You’ve worked hard, built wealth, and now retirement is on the horizon.
You may have:
- A home that’s mostly or fully paid off
- One or more investment properties
- A stock portfolio in RRSPs, TFSAs, or a corporate account
And now you’re asking the big question:
“What should I draw from first—my real estate or my investments?”
The answer?
It depends on your goals, lifestyle, and long-term strategy.
Here’s how to think it through from a financial planning perspective.
1. Understand the Role of Real Estate in Retirement
Real estate is a powerful wealth-builder. It can provide:
- Rental income (if it’s a cash-flowing property)
- Long-term appreciation
- A physical asset with inflation protection
But it also comes with:
- Illiquidity (harder to access quickly)
- Maintenance costs and responsibilities
- Tax complexities when you sell
💡 Tip: Real estate is best viewed as part of your retirement income mix—not the whole plan.
2. The Case for Using Your Stock Portfolio
Market investments (stocks, bonds, ETFs) offer:
- Greater liquidity and flexibility
- Easier tax planning through strategic withdrawals
- Opportunities to rebalance and adjust over time
Properly diversified portfolios can provide steady, long-term returns—and may be more adaptable to changing needs.
But they also come with:
- Market volatility
- The need for thoughtful withdrawal planning to avoid outliving your money
3. What’s the Best Strategy? The One That Balances All the Factors
As a financial planner, I help clients evaluate:
- Tax efficiency (e.g., should you draw RRSPs early or delay?)
- Cash flow needs (rental income vs. dividend income)
- Time horizon (how long you plan to hold each asset)
- Risk and flexibility (how much certainty you want)
In many cases, a blended approach works best:
✅ Hold real estate for stability
✅ Draw from investments for flexibility
✅ Use tax-efficient strategies like TFSAs, RRIFs, and income splitting
Luke 14:28 – “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost?”
The best retirement strategy doesn’t start with choosing sides—it starts with clarity and coordination.
Final Thoughts
Whether your wealth is in bricks or stocks, the key is knowing how to access it in a way that supports your lifestyle, protects your future, and aligns with your values.
You’ve built the assets.
Now it’s time to build the plan.
Let’s Talk
If you’re unsure whether to lean on real estate or your portfolio in retirement, let’s have a conversation. I’ll help you explore the best combination for you—not just what’s trending.