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Name, age: Chase, 44
Annual income: $180,000 from work, including bonus, $2,500 in stock matching, $560 from Canada Carbon Rebate
Debt: $415,000 left on mortgage
Savings: $395,000 in tax-free savings account (TFSA), $865,000 in registered retirement savings plan (RRSP), $350,000 in unregistered investment account
What he does: Senior manager at a major bank
Where he lives: Markham, Ont.
Top financial concern: “As I think about this next stage of my life where I want to get into self-employment or semi-retirement, making sure I have all the financial wealth I need to carry me through my retirement years.”
Chase, 44, has been building a career at a major Canadian bank since he finished his bachelor’s degree in computer science and economics two decades ago. It’s a job and environment he enjoys, he says, but he is starting to feel as if he has been there long enough.
Chase, who has more than $1.6-million saved and is comfortable managing his own portfolio, is not looking to stop working entirely. “It gives me more flexibility to choose career options. I have been thinking about what the next phase would be,” he says.
“I think I want to do a job where I have even more control and autonomy. Something I could sustain on my own while relying on my portfolio income.”
Chase hasn’t nailed it down exactly, saying it’s hard to envision what a semi-retired lifestyle might look like for someone who is still relatively young. He doesn’t know how much money he’ll need – especially if he plans to travel more – but he doesn’t want to make the wrong call early and run out of cash down the road.
“What do I want to strive for and how long do I feel my savings can support me?” he wonders. “There’s so much complexity.”
Once he’s figured that stuff out, Chase plans to reposition his investments away from a growth portfolio to one focused on dividend-paying stocks and fixed-income products.
As he contemplates retirement, Chase is also set to get married. He is currently engaged but doesn’t expect the wedding to be a huge expense.
“We don’t have really large families, so I think it will be small and intimate,” he says. “I’m expecting it will be less than $10,000.”
The couple hasn’t moved in together yet – Chase lives alone in a semi-detached house he owns – but have begun integrating some aspects of their finances. When his fiancée recently got a job that required commuting, she began using Chase’s Mazda CX-5, and he bought a Tesla for himself.
“I have no regrets on plunking down close to $60,000 to buy that car,” he says, noting he went from spending more than $200 per month on gas to about $35 on electricity, and the car doesn’t require oil changes. “I love never having to look at a gas station sign again. It’s always full and ready to go when I leave.”
His typical monthly expenses:
Investment and savings: $1,650
$583 to TFSA
$667 to RRSP
$400 to unregistered investment account. “Where I put extra cash. I don’t have a savings account.”
Servicing debt: $2,760
$2,760 to mortgage
Household and transportation: $1,240
$150 on home insurance
$354 on property tax
$160 on utilities. “Includes $30 to $40 charging my EV.”
$83 on home repairs
$4 on parking
$160 on car insurance. “Covers two cars and two drivers.”
$150 on transit. “GO train trips to work.”
$17 on Uber or taxis
$40 on phone
$122 on internet and cable TV bundle
Food and drink: $1,245
$500 on groceries. “Including shampoo, toiletries, hand cream etc.”
$80 at coffee shops
$615 at restaurants
$50 on alcohol
Miscellaneous: $5,826
$4,037 on income tax
$150 on going out
$33 on streaming services
$500 on clothes. “I don’t buy a lot of clothes but I will spend money on high-quality clothes if it’s warranted.”
$50 on dry cleaning
$52 on gym membership
$13 on Zwift. “An indoor cycling app.”
$125 on personal training and equipment.
$70 on haircuts
$7 on dental. “I have a workplace health plan.”
$2 on prescriptions
$500 on vacations. “I am big into going to Asia and Europe, exploring various cultures around the world.”
$42 on donations
$167 on gifts
$42 on credit card fees. “Covers most of my airline travel needs with point accumulation.”
$36 on insurance. “Long-term disability and critical-illness coverage.”
Editor’s note: A previous version of this article incorrectly stated that Chase received $1,680 annually through the Canada Carbon Rebate. The correct amount is $560. This version has been updated.
Some details may be changed to protect the privacy of the person profiled. We want to thank them for sharing their story. Are you a millennial or Gen Z who would like to participate in a Paycheque Project? Send us an e-mail.
