วีดีโอ

It’s possible! CPP sharing is complicated enough that I didn’t want to loop it into this video but under the right circumstances it could. If the majority of the income is split with pension splitting, the marginal benefit of CPP sharing is likely pretty low (depending on total income levels) but worth looking into anyways. Thanks for watching!

Welcome neighbour! Thanks for the sub

Absolutely! Thanks for watching

It wouldn’t be average (or median) for sure but there are many 35 year olds with good jobs that have at least that much saved. It’s a lot easier for people outside of Vancouver and Toronto because a person can actually save money instead of putting it all into an overpriced house. Thanks for watching!

@@canadianmoneyroadmap i am big saver with a high income but have chosen to pay off the mortgage so aside from that have 120k saved. But i also have a government pension. Im in a small town and would never live in a big city ew hahaha

Glad it was helpful!

Haha thanks for watching!

@@canadianmoneyroadmap It was good! You did well! Question for you BTW, any chance you could make a video for generally optimizing the set up for young folks having to build everything on their own, but making very decent money? Say single age <30 and pretax income north of 120K CAD, with expenses south of 30K post tax? Plan to retire on ~90-100K pre tax per anum? AFAICT the moves are broadly: Max out Employer matched RRSP (even if it's mutual funds) Max out FHSA (typically with a high yield ETF like VFV/VOO) Max out RRSP (split between S&P ETFs and full market ETFs, say VEQT and VFV) Max out TFSA (Split between S&P & broad market ETFS as well as some stocks) Do above while keeping ~10-15k in HISA as very liquid emergency fund After that the rest goes into non-registered accounts, other assets (property)?

My goodness you just made my day haha thank you for commenting! That really means a lot to know that this little project has made a difference in your life. And to be mentioned in the same breath as Cameron and Ben is an honour. Thanks for being a loyal listener (and now watcher!). Cheers!

Everyone's situation is unique! For basic bills maybe but not many people ONLY spend money on basic bills. Some people like to spend their retirements travelling, going out more often with friends, paying for their kids to join them on vacations, buying a truck and RV to see more of the country, etc etc. Many people I see also end up giving more to charity as well. And all of these things cost money far above basic bills and for the sake of the video, averaging out the annual costs to a monthly figure is sometimes just easier. But there are others who don't need nearly as much money every month and can make it work mostly with CPP and OAS. Cost of living and cost of lifestyle can be very different.

I believe so. The software is called Wealthscope. I'm using a version for financial advisors but I think they have a version for DIY investors as well. Lots of cool features baked into the software far beyond what I showed in this video

Cheers! Thanks for watching

Thank you! Glad you enjoyed it

Awesome, thank you!

Nope. Not that I’m aware of anyways

My pleasure! Thanks for watching

Absolutely! These were just examples from clients that actually have all of these in some form or another. Also on my list of other income sources I've seen from clients: self-employment income, TH-cam ad-sense, Guaranteed Income Supplement, annuities, publishing royalties, and even shares in an oil well. So many unique situations. Thanks for watching!

Hey thanks for watching and letting me know it was something you were looking for. I'm generally in the camp of CPP-at-70 being a really good deal that more people should consider but I also think that people need to make that decision with their eyes open to the potential risks. Any other CPP questions I should cover in the future?

What you are not taking into account in your scenario of saving rrsp to later is the tax obligation on the entire rrsp upon death. That’s a huge hit. The question is that rrsp tax at death worse than loss of the cop benefit? It depends.

Thanks for watching!

Lol I I had to look up who that is but I can hear it. We have inverse hair though

I’m not sure what you mean by “natural” but they’re definitely a hedge against stock market volatility. It’s not a perfect negative correlation by any means if that’s what you mean. 2022 was one of those very unique cases when they went down along with stocks for sure but the global agg index still had a shallower drawdown than global equities.

Just make sure to give us the heads up first!

Another insightful video. Thank you for all your hard work, it is appreciated🙏

Wow, very kind of you! Glad you enjoyed it. Thanks for watching

Haha fair point. Buying today at that price? Probably not. Buying years ago and having it worth that much 25 years later? Perhaps. But you’re right, likely a stretch on the hypothetical figure. But the scenario in the video wasn’t relying on the value of the house at all so it could have been worth $100,000 and it wouldn’t change the spending potential. Now, that could be different for someone who definitely plans to downsize at some point (most do whether they plan to or not) or borrow against it to increase spending. Lots of different ways to view one’s home in light of their retirement spending. Thanks for watching!

Cheers! Thanks for watching

Peter Pan, my man! Did you happen to actually watch the video? That was your takeaway? One of the best parts of CPP is that we all have our own choice to evaluate and make on our own. All good by me if you want to take it as soon as you want.

@@canadianmoneyroadmap Most of it.. I added the part about living longer 😉

Haha love the honesty.

Very interesting! Any memory of what defined “health adjusted”? I’ve mentioned to other commenters too that I don’t think delaying CPP means you’re trying to maximize spending in your LATER years but it’s your longevity backstop. Spend your money early and have fun then your higher CPP can keep you comfortable as long as you live. Either way, I’m curious about the health adjusted life expectancy concept. Thanks for watching and commenting!

@@canadianmoneyroadmap Yes I do get your point, it’s indeed different for every case and planning accordingly is the best. For the health-adjusted, as the statcan website, it says: « HUI3 is a summary index of health-related quality of life based on eight attributes of self-reported health status: vision, hearing, speech, ambulation, dexterity, emotion, cognition, and pain. »

Hey thanks for watching! Yes you're correct in that your CPP payments will increase with CPI inflation (the cost of stuff) while you're receiving your payments and your future benefit increases with wage inflation (the average increase in wages during that year) during your deferral years. These numbers are often similar but there are some nuances for sure. I briefly mention wage inflation at the 50 second mark and that the "lifetime loss" calculation includes an inflation adjustment at the 1:20 mark but fair point that it should have been more clear and hit harder. I should maybe do a video on that aspect specifically because the inflation benefit alone is massive.

Great reasons to take it early! 70 can be great for some but not for everyone

That’s very sad to hear. Does his situation affect how you’ll decide on CPP timing?

Oh man if I was a financial prophet I hope I’d have better tips than this! Haha You can decide based on worst case scenario, best case or most likely case! Doesn’t matter to me but the odds favour age 70 for the average Canadian. Either way, thanks for watching!

Any specific questions about it? There are a ton of great all-in-one funds these days but I was just focusing on the two most popular ones

​@@canadianmoneyroadmap is it in par with the other two or is BMO not a good option to invest into their ETFs

No I was just looking at CPP on its own but you’re right in that there are a lot of variables that go into each person’s decision

I know a multi-millionaire, he's 86 and too old to do anything with his money.

@@ZeusPatagonia yeah makes no sense to have tons of cash for those no go years other than donate to family or healthcare expenses.. live it up as early as you can during your best health years so you have lots of stories to tell the grandkids

Fear based decision making is one way that many people go for sure. I was just wanting to show the most likely outcome for the average Canadian based on the data. And to the comments below, I agree that you should spend money while you can! It just makes more sense to spend YOUR money and then use a deferred CPP as your longevity backstop. But it’s also not possible for everyone to save enough to wait that long either. Definitely a valid consideration.

Ah sorry about that Paul. It's tough to make videos about specific features of CPP while rehashing the basics in every video but perhaps some additional clarity would have been valuable. That being said, I recorded a podcast earlier this year talking about all of the ins and outs of CPP if you'd like to check that out: th-cam.com/video/EE251Bpsm6s/w-d-xo.htmlsi=PUNqkRO5WgZcZ2ns

Thanks for checking it out!

@@canadianmoneyroadmapalso been binge listening to your podcast a lot! Def very underrated channel😊

Thanks very much! Hoping to come back in fall feeling ready for more. I appreciate you listening and watching! Take care

Hey thanks for watching! Just curious why being newer and having lower trading volume would make it better? And what makes the holdings of ZEQT better in your mind?

@@canadianmoneyroadmap no thats the only negatives i can see

@canadianmoneyroadmap zeqt holdings are not water down like the rest. Zsp vs itot for example

Ah gotcha, my misunderstanding!

There's a very strong, evidence based case to be made for including small and mid caps (like the US total market) for higher expected returns. And I'm okay with people having different preferences (large cap vs total market) but ZEQT still does have US small/mid cap exposure through separate ETFs instead of a total market fund. Arguably less efficient as it would then require rebalancing to stay in market cap weights. Splitting hairs in my opinion though. It'll be a great and highly comparable fund for sure

Good idea for another video! Can you give me some idea on *hypothetical* monthly spending needs and what a “small” DB pension would be?

@@canadianmoneyroadmap $550k, annual spend of $45k, $12,000/year defined benefits plus $20k income from a suite retiring at 55

Wow glad you liked it! Thanks for the sub. Any topics particularly interesting to you? I’m always building my list of future videos

@@canadianmoneyroadmap I did have a question that I can't find an answer to. I currently dollar-cost-average bi-weekly into the market (instead of trying to time the market). But what do I do if I receive an inheritance / financial windfall? If I were to receive $50k-100k should I put that all into the market at once? Or break it up into monthly lump sums and put it in over the course of a year? Thanks again for the content you're putting out. People should be paying for this level of wisdom!

Absolutely, I should have made that clearer or phrased it differently. Since this couple (and most Canadians) don’t have DB pensions I didn’t want to muddy the waters on all of the income splitting particulars. But you’re totally correct. There’s a bunch of other income splitting wrinkles I could bake into a future video if that might be interesting or valuable? Thanks for watching and commenting!

Why not 30%?? Let’s dream big here 🚀🚀🚀 haha thanks for watching!

You'd be surprised how a defined benefit pension + CPP + OAS still isn't enough for many people. If you get used to spending everything from your working years, your DB + CPP + OAS isn't going to be close to the same level of income in many cases. Really tough to hit retirement and then spend less money when you want to travel and have some fun. Gotta have some money of your own at least for the flexibility of spending. Thanks for watching Reggie!