A decade or so ago, Calvin and Carol inherited a farm property that has risen substantially in value over the years. Even before the windfall, they were in solid financial shape. They raised three children, paid off their house and bought a family cottage. "We contributed as much as we could each year and were mortgage-free on the house by the time our kids went off to university." The inheritance paid off the mortgage on the cottage. Today, at the age of 58, they are debt free and proceeding as originally planned. They hope to pass on to their children an inheritance of $1-million each. With a net worth on paper of $5.2-million - most of it illiquid real estate - Carol and Calvin are wondering whether they can retire soon and how long they can hang onto their small-town Ontario house and nearby cottage. In the meantime, they plan to give each of their three children a $100,000 down payment on a house. Calvin brings in $105,000 a year in financial services while Carol earns $47,000 a year in communications. They also have some income from the farm. They recently sold part of the property and have about $800,000 sitting in the bank. They expect to sell the rest of the property in about 15 years for approximately $3-million. 

He plans to retire at the age of 60 and Carol at the age of 62. He will be entitled to a defined benefit pension of $15,600 a year; she will get $7,200 a year. Neither pension is indexed. Their retirement spending goal is $90,000 a year after tax. They also ask about investing and tax planning. Details: The people: Calvin and Carol, both 58, and their three children How to best finance their early retirement years and when to start collecting CPP and OAS benefits. Monthly net income: $10,415 Assets: Bank accounts $801,000; GICs $100,000; his RRSP $515,000; her RRSP $200,000; estim. present value of his DB pension plan $210,000; estim. present value of her DB pension plan $100,000; residence $450,000; cottage $350,000; farm property $2.5-million. Total: $5.2-million Monthly outlays: Property tax $320; utilities $250; home insurance $165; maintenance $160; garden $85; transportation $685; groceries $720; clothing $210; gifts, charity $835; vacation, travel $1,250; dining, drinks, entertainment $1,460; personal care $70; pets $85; sports, hobbies $165; subscriptions $50; other personal $85; doctors and dentists $290; phones, TV, internet $200. Total: $7,085 Liabilities: None They think they have enough money to fund their retirement needs but want to know how they can bridge the shortfall in living costs from investments until they start collecting Canada Pension Plan and Old Age Security?