Thinking of opening a Tim Hortons

I’m 56 years old and in retirement mode. I am thinking of a franchise or business or investment with less intensive physical involvement on my part – maybe a Tim Hortons franchise or something that can sustain myself and my wife. We have $242,000 saved up. Any suggestions? – A.V.

Gordon’s answer: I don’t know anything about franchises except that they involve a lot of hard work, can be risky, but can also be very profitable (the son of one of my best friends owns a Tim Hortons franchise that has done very well). I don’t have an answer for you, but don’t underestimate the work involved in getting a franchise up and running and making it a success.

If that isn’t what you had in mind, you might consider creating an income-oriented investment portfolio that would generate a return of 7 per cent to 8 per cent annually. On the amount you have available to invest, that would provide before-tax income of $17,000 to $19,000 annually. I don’t know what other income sources you have available but do the math and see how it works out.