{"id":489431,"date":"2026-05-17T16:25:24","date_gmt":"2026-05-17T16:25:24","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/489431\/"},"modified":"2026-05-17T16:25:24","modified_gmt":"2026-05-17T16:25:24","slug":"can-edith-51-afford-to-quit-her-job-to-care-for-her-parents-full-time","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/489431\/","title":{"rendered":"Can Edith, 51, afford to quit her job to care for her parents full time?"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Edith has about $3.4-million in savings and investments, both registered and non-registered. Her retirement spending goal is $70,000 a year after tax.Andrej Ivanov\/The Globe and Mail<\/p>\n

Edith is 51 years old and single with no children. As a professional, she has earned a good living over the years, amassing considerable savings and investments in addition to her Quebec home. <\/p>\n

But caring for an elderly parent has led her to re-evaluate her priorities, she writes in an e-mail.<\/p>\n

\u201cMy mother has been recently diagnosed with a neurodegenerative disease along with other medical issues due to a bad fall a few years ago,\u201d Edith writes. \u201cMy dad is helping a lot but is over 80 years old.\u201d <\/p>\n

\u201cSo, I have become a caregiver. It\u2019s a real labour of love and frankly, I like it more than my current job,\u201d she adds. \u201cI would be ready to leave the rat race behind and spend my time taking care of my parents and enjoying some time for myself because right now I am just drained from every direction.\u201d<\/p>\n

Her parents will face increased expenses in the coming years, which Edith will help pay for. \u201cThe realization that I will not have children to help me if I get sick makes me wonder if I can retire and free my days a little,\u201d she writes. <\/p>\n

What\u2019s the best way for Randall and Polina to secure their disabled daughter\u2019s financial future?<\/a><\/p>\n

\u201cI would still want to be able to enjoy my retirement without worrying about running out of money. I have worked really hard and really value peace of mind.\u201d <\/p>\n

She has about $3.4-million in savings and investments, both registered and non-registered. Her retirement spending goal is $70,000 a year after tax.<\/p>\n

We asked Roger Massicotte, an advice-only financial planner at Objective Financial Partners in Quebec, to look at Edith\u2019s situation.<\/p>\n

What the expert says<\/p>\n

\u201cEdith can confidently consider retiring right now,\u201d Mr. Massicotte says. \u201cHer financial resources are more than sufficient to meet her needs.\u201d <\/p>\n

Edith\u2019s goals are to \u201cfree her days a little,\u201d renovate her home, pay for private care for her parents and still have enough to pay for her own health care when she grows old.<\/p>\n

In the short term, she might work part-time \u201cjust for fun,\u201d perhaps earning $40,000 a year. In addition to her investments, Edith has a defined-benefit pension from a previous job that will pay $14,380 a year, indexed, at age 65.<\/p>\n

Based on the planner\u2019s calculations, Edith\u2019s retirement is funded at 132 per cent, which means she has more than enough to meet her financial goals, he says. That assumes basic lifestyle expenses of $5,835 a month or about $70,000 a year. <\/p>\n

In preparing his forecast, Mr. Massicotte assumes life expectancy of 96 and an inflation rate of 2.2 per cent. \u201cHer net estate value at 96 will be almost $3.6-million, or about $2-million in today\u2019s dollars,\u201d he adds.<\/p>\n

With so much of her retirement income dependent on her investments, Edith wonders if she would be able to weather a major market crash. \u201cShe estimates that at least one and possibly two major market crashes could occur during her lifetime,\u201d the planner says.<\/p>\n

What\u2019s the most tax-efficient way for retirees Tyson and Daniella to draw down their savings?<\/a><\/p>\n

Using financial planning software, Mr. Massicotte assesses Edith\u2019s risk tolerance and compares it to the risk score of her portfolio. While her risk tolerance is average, her portfolio\u2019s risk score is high, he says.<\/p>\n

\u201cI recommend a more diversified and phased approach for her strategic asset allocation,\u201d Mr. Massicotte says. He suggests that Edith gradually increase her fixed income allocation from 30 per cent now to 40 per cent from now to age 74, and to 50 per cent from age 75 onward. <\/p>\n

\u201cI suggest she rebalance her equity mix because she has almost no international exposure.\u201d <\/p>\n

With less volatility from a rebalanced asset mix, the expected rate of return after subtracting management expense ratios, advisory fees and taxes would be 4.1 per cent until age 74 and 3.9 per cent thereafter. <\/p>\n

\u201cThe suggested asset allocation has lower expected volatility and could provide Edith with some peace of mind,\u201d Mr. Massicotte says.<\/p>\n

Based on financial planning assumptions guidelines, he tested her retirement scenario by asking a number of hypothetical questions:<\/p>\n

What if the market crashes by 30 per cent in the year after her retirement, takes four years to recover, and the recovery effectiveness is only 67 per cent? Recovery effectiveness is the percentage of the loss you expect to regain over the recovery period.<\/p>\n

\u201cShe will meet all her goals,\u201d he says. \u201cHer retirement funding score will drop from 132 per cent to 123 per cent. That\u2019s still a comfortable margin of safety.\u201d She\u2019ll be able to pay for her parents\u2019 private care as well as her own and still leave an estate of $2.7-million. That\u2019s just a hypothetical number. She could well spend most of her savings over time.<\/p>\n

Are retirees Amit and Keira, both in their 70s, too exposed to the stock market?<\/a><\/p>\n

What if her average rate of return is one percentage point lower during her retirement years? She\u2019ll still meet all her goals, the planner says. Her funding score will drop to 115 per cent and she\u2019ll leave an estate of $1.95-million.<\/p>\n

What if she lives to be 106, her average rate of return is one percentage point lower and inflation is 2.35 per cent instead of 2.2 per cent?<\/p>\n

\u201cShe may run out of money at the age of 102 but she will achieve all her other goals.\u201d He recommends an annual checkup to rerun the numbers and adjust if necessary. \u201cPlanning is a continuous process.\u201d<\/p>\n

To further stress-test the forecast, Mr. Massicotte ran a Monte Carlo simulation, a volatility analysis that Edith had asked about. \u201cVolatility analysis assesses how sensitive the plan is to rates of return varying over time,\u201d he <\/b>says. The assumptions are run through 1,000 market simulations with return rates varied each year. \u201cIn her case that\u2019s 45,000 random scenarios.\u201d<\/p>\n

The verdict? \u201cHer odds of outliving her money are very low. In my analysis she could perhaps have to reduce her expenses around the age of 88 but those are extreme scenarios.\u201d According to the analysis, her estate value at 96 could range from minus $397,000 to a positive $17.9-million, depending on the variables.<\/p>\n

The following recommendations are integrated in Edith\u2019s retirement plan: <\/p>\n