Unconventional retirement
Retired with No CPP, No OAS, No Pension — Just Covered Calls
I’m 56 years old, and my retirement looks a little different from the traditional playbook.
I don’t collect CPP.
I don’t collect OAS.
I don’t collect GIS.
And I don’t have a defined benefit pension.
My entire retirement income comes from high-yield covered-call ETFs.
Right now, my portfolio generates approximately three times what I actually need each month to cover my basic living expenses.
But instead of simply living on the bare minimum, I’ve entered what I call my travelling retirement stage.
I’m currently spending around $150,000 a year enjoying retirement. That means I’m often out of the country for three to four months annually, exploring new places, experiencing different cultures, and making the most of the freedom I worked so hard to achieve.
After all, what’s the point of building a retirement portfolio if you never get around to enjoying it?
Spending Dynamically, Not Recklessly
Here’s something I think gets overlooked in retirement planning: spending doesn’t have to be fixed.
My basic living expenses are covered comfortably by my portfolio income. The additional spending is discretionary.
If markets are strong and distributions are holding up, I’m happy to travel more, spend more, and enjoy life.
If markets turn south or income starts coming under pressure, I can adjust.
Fewer trips. Less discretionary spending. More money retained in the portfolio.
My lifestyle is flexible. My ability to adapt is part of the plan.
I don’t believe every retiree needs to spend the same amount every year, regardless of what the markets are doing.
Reinvesting for Tomorrow
Even though I’m retired, I haven’t stopped investing.
I reinvest a minimum of 10% of my monthly portfolio income.
Why?
Because inflation doesn’t retire when you do.
I also want a cushion against potential distribution reductions and the inevitable ups and downs of the market.
Reinvesting helps me build that buffer while continuing to enjoy the income my portfolio generates today.
Of course, reinvesting 10% doesn’t guarantee that purchasing power or capital will be preserved, but it gives me another tool to help manage those risks.
And Here’s the Interesting Part…
So far, this strategy has been working quite well.
I’ve actually increased my total net worth since retiring.
Think about that for a moment.
I’m spending approximately $150,000 a year, travelling internationally for several months, living the retirement lifestyle I wanted, and my net worth has still grown.
I’m not suggesting this will happen every year. Markets change, ETF distributions can fall, and high yields come with risks. I keep that in mind.
But so far, the combination of portfolio income, flexible spending, and regular reinvestment has served me well.
My Retirement Philosophy
I don’t need to chase the biggest possible portfolio balance at the expense of enjoying my life today.
I want my money working for me while I’m healthy enough to enjoy what it provides.
I understand that my approach isn’t for everyone. High-yield covered-call ETFs have risks, and a large distribution doesn’t automatically mean a strong total return or sustainable income.
But I’ve built my retirement around the strategy I believe suits my goals, my risk tolerance, and my lifestyle.
I’m not waiting until I’m 70 to start living.
I’m living now, managing my risks, and adjusting as circumstances change.
Retirement isn’t just about how much money you have. It’s about what your money allows you to do.
And right now, mine is allowing me to see the world.
What about you? Would you be comfortable funding your retirement primarily through high-yield covered-call ETFs, or would you prefer the security of CPP, OAS, and a traditional pension?
Let’s hear your thoughts in the comments!
