Is my plan for retirement at 45 sound? (the Rolen Plan)
My plan is:
- Continue to contribute to TFSAs until the bitter end. Perhaps even borrow money from our children in our old age instead of ever withdrawing them, so as to obtain the maximum benefit from them.
- Continue to contribute the max to RRSPs until around age 45.
- Our remaining income outside of RRSPs and TFSAs contributions will pay off our mortgage, max out RESPs, and cover our living expenses.
- At age 45, we will both stop working and start drawing the maximum we can from our RRSPs without incurring any taxes (approx $30,000/year).
- We will have our RRSPs fully withdrawn around age 65.
- At that time, we will receive the maximum benefits of OAS, GIS, etc as we'll have no income. We can draw as much as we want from our TFSAs to supplement it.
- We aren't too worried about CPP, it will be low due to our early retirement but who cares as we'll receive the other benefits instead.
I realize there is little margin for error here, but we could also work past 45 if needed. And this also doesn't factor in any inheritance that we're likely to receive.
One thing that could really botch this plan is if OAS, GIS were done away with due to the prominence of TFSAs. TFSAs could also be done away with or changed in a way to botch this plan.
I am the proud inventor of the Rolen Plan for early retirement.