Can I Retire with $500K?

Worried that the “magic number” of a $1M won’t be achieved? We run the math on a $500K nest egg and show how the right levers—timing, taxes, and total-return investing—can still deliver a confident retirement. You’ll also hear when part-time work or a slight delay meaningfully boosts sustainability, how home equity fits in, and why chasing double-digit yields is the fastest way to drain a portfolio.

Save Your Spot for the 6 Retirement Upgrades Webinar.

You’ll Learn

Start with projections, not a budget. When money is tight, run a full retirement projection first (by account and by year) to see what’s sustainable—then shape your budget to fit the plan, not the other way around.

Three levers you control. Your outcome is driven by spending, start date, and returns. Trim costs, consider a later start or part-time work, and prioritize strategies with higher expected total returns.

Part-time now, more freedom later. One to two days a week (especially in early years) can bridge the gap, preserve capital, and keep purpose and structure without giving up trips or hobbies.

Delay CPP/OAS for resilience. With a smaller portfolio, postponing to ~70 raises guaranteed, inflation-linked income—reducing your reliance on markets later and calming sequence-of-returns risk.

Use home equity strategically. Downsizing earlier, renting a suite/Airbnb while traveling, or planning a future sale can extend runway—and maxing your TFSA with proceeds shelters future growth.

Build, don’t buy, your income. Avoid yield traps (e.g., high-payout covered-call products that cap upside). Hold a 3-year cash reserve (the gap between spending need and portfolio income) and sell shares in up markets; tap cash in down markets.

Withdrawal framework that flexes. A 5–6% inflation-adjusted draw can work when paired with equities for growth, a cash wedge for storms, and an agile budget that tightens in bad years.

Common mistakes to skip. Not planning annually, chasing headline yields, and fixating on what you “don’t have” all hurt outcomes; plan proactively and stay focused on total return and control.

What $1M changes. More optionality—bigger projects, more gifting—but the process is the same: project, optimize taxes, use a cash wedge, and align spending with reality.

Action Steps You Can Take This Week

Run a projection (by account) that includes CPP/OAS timing and inflation; test retiring now vs. +1–2 years and with/without part-time work.
Calculate your wedge: Compute your 3-year cash reserve and map where to park it (HISA/GIC/cash ETF).
Portfolio cleanup sprint: Set a target position size; consolidate duplicates, review losers vs. thesis/metrics, trim outsized winners.
CPP/OAS decision window: Price the difference between 65, 67–68, and 70 so you can choose with eyes open.
Equity plan, not yield chase: If you hold high-yield products that cap upside, compare them to a total-return alternative + planned sells.
Explore housing options: Draft a downsizing or rental plan and note the TFSA top-up you could fund from proceeds.

Want to Get Ready for Retirement?

Retirement Loop is a community of over 500 Canadians who are in or nearing retirement. We have developed tools, including the RL Projections Tool, to help them navigate the transition and remain confident once they arrive. There is also a lot of power in having hundreds of people working with the same program to help each other. You can finally connect with other retirees going through the same challenges.

Canadians who enjoy their retirement:

Know which account to withdraw from first.
Build a clear financial plan covering multiple scenarios.
Use an agile budget through the go-go, slow-go, and no-go phases.
Create multiple sources of income, including CPP, OAS, investment income, and others.

Download the 20 Income-Focused Products Review for free and join the waitlist to get noticed when we reopen Retirement Loop doors.

retirementloop.ca/waitlist