Lump Sum Income Modeler
Retirement savings, inheritance, or property proceeds. See what your lump sum can realistically support, how long it may last, and where the plan looks safe, tight, or fragile.
What you'll need
- Total lump sum available to invest
- Your target monthly income from the portfolio
- Your approximate marginal tax rate (use the Tax Bracket Calculator if unsure)
What this calculator should answer
Not just how much income your lump sum might generate, but whether your target looks realistic, how much cushion you have, and how exposed you are to capital erosion.
Your Lump Sum & Goals
Choose whether you are starting with capital or solving backward from an income target.
Investable after reserve: $500,000
Target funded by portfolio only: $3,000
Investment Basis
Fixed-income sleeve
3.50%
Equity-income sleeve
5.50%
Blended yield
4.50%
Plan Settings
Deploying a Lump Sum for Income in Canada
Deploying a lump sum into income-producing assets is one of the biggest portfolio decisions many investors make. The right mix depends on income needs, risk tolerance, and tax treatment.
What is the safest way to deploy a lump sum into income investments?
Many investors blend more stable income assets with equity income assets rather than relying on one source alone.
Should I reinvest surplus income or take it all as cash?
Reinvesting surplus income can materially improve long-term sustainability. Taking everything as cash can reduce longevity.
How does dividend growth affect a lump sum income portfolio?
Dividend growth can help close an income gap over time even if the portfolio starts below the desired target.
How do CPP and OAS affect my lump sum income strategy?
Government income sources reduce the amount your portfolio must generate on its own.
What is the break-even yield for a lump sum income portfolio?
It is the minimum yield needed for a given lump sum to support a target income level, subject to taxes and assumptions.
How does a market crash affect a lump sum income portfolio?
A major drawdown early in retirement or decumulation can create sequence risk, especially if withdrawals continue during the decline.
What's Next?
Continue planning with a related calculator.
Updated for 2026 CRA limits · Last verified April 2026
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