You didn't state your current age, risk tolerance, if you have any other income or if the $600K is free to invest or already invested. It also depends ENTIRELY on your expenses and goals.
Say, on the income side, $600,000 you invest the $600K in Canadian Banks/other stocks that yield a mix of 4.5%. ETFs are great, marginally more safe but the yield is less. That will give you 0.045x$600K = $27,000 income a year that will likely grow ~5% per year. My personal experience is dividend income will grow at ~7.5% but that's me, YMMV. Assuming income/cash flow is the priority, you don't really 'care' about the capital gains and CG returns as long as the principle & dividends remain. Canadian Banks/Blue Chips (EMA, SLF, BCE, T say) are pretty good for retaining Principle.
[as an aside, 80% opinion, I think if you're >45, Dividend investing is better for you, <45, the Capital Gains Investing approach works better]
Also, since these are Canadian stocks, you're eligible for the Dividend Tax Credit (DTC) which, long story short, with a mix of Dividend, Capital Gains Income and Other Income (say CPP, Pension, RIF), you'll pay ~<5% in income taxes up to around $80K - $90K income. This is a pretty good income, particularly if your expenses are low.
The average CPP paid out in in 2023 was $760 per month so that will add $9,120 per year. You can check your amount in MyCRA, your CPP might be higher (or lower). The basic advice is delay CPP payout for as long as you can until you have to at 71 years of age.
For OAS, you're eligible for about $700 per month until 75. This will add $8,400 per year. We can assume claw back is not a concern for the first few years.
So, assuming 65, the question is,
is $27,000 +9,120+$8,400=
$44, 520* greater than your expenses by, say, 20% 'shit happens' factor?
That is, are your expenses <= $35.6K? If yes, you're ~good. If not, then no.
*with the DTC, no income taxes at this level of income
Alternatively, because interest rates are high, you could invest the $600K in an annuity, which @$500K, pays out $32.6K before taxes. This is taxed at income tax rates (versus Dividend/CG) so your income tax rate is a little more complicated. If your overall income is $50K, you'll pay about $9K in taxes worst case. The Annuity approach is outsourcing risk so
is a LOT safer than the self-investing Dividend/stock approach but slightly less income due to higher income taxes. There is always a cost for risk and self-investing requires good emotional control. Given that you hobby (as do I), your emotional control is baseline questionable
so you can decide what works for you. If you like the Annuity approach, pray to the Interest Rate gods that they'll keep increasing the rates for awhile before you purchase.
Other factors are of course health. Married or single? If single, when are you selling the house to pay for an old age home which costs about $100K a year. Married - bonus, more income. How long can you both age in place? Costs for in-house caregivers are, say, $50K per year. Can you down size? Selling the house, buying a small apartment and live in LCOL places and coming back to maintain your OHIP eligibility? First step of course is get/update your Will, Power of Care, and Power of Financial Attorney to someone.
Again, it ALL depends on your expenses.
Annuity Calculator;
https://www.sunlife.ca/en/tools-and-resources/tools-and-calculators/annuity-calculator/
Tax Calculator;
https://www.taxtips.ca/calculators/canadian-tax/canadian-tax-calculator.htm
EXCELLENT site;
https://www.financialwisdomforum.org/forum/ You can ask the same question there,
very smart people and a lot of good posts to read.
