I am 65 and don’t have a plan. I have tried many time, but have always been disappointed with financial advisors not helping me. You are the first one that sees to be helpful. Thank you. I would love to talk with you about our plan. I have zero debt. But would love a plan.
Just found your TH-cam videos. Super helpful in understanding all the different income sources against tax liabilities and benefits. Thank you. You mention acquiring a financial plan to prepare for retirement. Are there any reliable financial planning tools for Canadians to get started before approaching a financial adviser ?
My parents are in their 60s, and they both never had a retirement plan, they grew up thinking pension was gonna be enough, my dad is still working and mom isn't but wants to, it shows banks never helped them over the years, to try build something for retirement, now i don't want to build a life for myself because i want to give my money towards them...
Your greatest source of creating wealth is your income. And don’t go into debt. The average stupid car payment is over $700 a month! Invested wisely that car payment is over $2 million dollars in 30 years. Be an owner not a loaner.
How much you need depends on how much you were making in your working life and how long. Above all, how much your investments made progress during this period. For simple math no one need a financial planner, little math and logic will do. What we need is someone who tells use which stock to invest and where to invest so that a steady rise in the portfolio. It is like a athlete is asking what is the timing to stay in the race, the winner always asks himself I need to run as fast as possible to win the race. This is same..
Thanks for your comment and for watching the video. Coaches don't make athletes better by simply telling them to run faster. Telling you which investments to buy is about 25% of what goes into a successful retirement.
Well that was humbling. At 61 with only 400,000 I’m not ever going to be able to retire. Even invested with decent dividend stocks it sounds like rice and rhubarb in retirement every day. At least the house is almost paid for but that doesn’t help much as it’s not liquid. And I’m not taking no heloc.
Hi Gary, It's never great hearing situations where retirees have to consider living with less. Have you considered brainstorming on developing an alternative income source? Have you watched this video? th-cam.com/video/nauGVc9fDNI/w-d-xo.html
Great content, concise advice! 👊 There was no youtube in the mid-80s, I somehow believed in the magic of cutting your spending and budgeting your money definitely increases your income without sacrificing a great deal. I love the quote" you rather have a 5 dollar wallet with 100$ in it, than a 100$ wallet with only 5 dollars" mental accounting has to do with how we make financial decisions based on our associations with money. Cheers!
Thanks for the video. One thing I don't understand in your 4% explanation is the table on the left. Fundamental to the 4% rule is that you make at least 4% on your investments and if you only draw down 4% annually, you will actually experience no decumulation. In your chart on the left, you show only draw down but no annual investment return to offset the draw down? Am I missing something?
Hi Martin, Thanks for your comment. If you can let me know the timestamp of the table that would be great as there were several tables. I was making reference to the fact that a RRIF minimum withdrawal after age 65 is greater than 4% and increases with each passing year, forcing one to withdraw more than 4% per year.
@@martinzeddy Got it. 5.25% return. Withdrawals are adjusted for inflation. The 4% rule is a guide so as to not run out of money vs. a goal of lifestyle funding needs.
@@martinzeddy I think you aren't withdrawing 4% annually. Ok, I am not good with math, and am just some guy on the internet, so I am going to simplify for my benefit. Let's say you have a million dollars. Year one you withdraw 40K. Year two: your one million (1M) became: 1M - 40K (what you took out) + 52.5K (what you made on the million) = 1.0125M. In year two, we aren't withdrawing 4%. We are withdrawing 4% plus whatever inflation is. So say inflation is 5% then in year two we are withdrawing 42K to maintain our purchasing power (40K x 1.05 = 42K). That's about 4.15% of our nest egg of 1.0125M. Inflation will continue to compound the amount we need to take out over the years, and eventually the inflation will make it more than 5.25% of the egg, and the total invested amount will start dropping. Again, I'm just some guy on the internet and my math is probably not totally accurate, but hopefully it's in the ballpark. :) P.S. I think maybe second to health expenses, inflation is the biggest potential killer of retirements.
You explain it so simply. I wrote down all my bills and expenses devided by 12, Wow no money left for anything else with my pension. I have to continue working ...Thank you so much for the eye-opening info. Thank you!.
Hi! Well done!! Very clear and easy to understand. I just wanted to say that I have heard so much about Index investing and how there is really no need for financial advisors because of the fees they charge. Could you please do a video on Index funds vs Financial advisors please. I think a lot of people including myself who have had a financial advisor for years are feeling a little disillusioned with the results. I would just like your opinion.
Thanks for watching the video and for your comment. I like your video suggestion as it is an excellent example of how people don't fully understand the role and value of what a Financial Advisor does for their clients. Your comment suggests you see the role of an advisor is to manage a rate of return. I'll do a video on this because there is so much I can say on this subject such as minimizing taxes, estate planning, which accounts to use first in retirement. Helping clients with their concerns about having enough money to retire. Looking forward to your comments on the video.
The science of making money? Application of maths does not make what you do a science. I think it would be more accurate to describe what you do as research and management. I’m not diminishing the importance of what you do. As you showed, the majority of Canadians need help. On the other hand, I can’t remember a single time “money management” was a topic of learning during my government provided education.
I was never able to get idea how much was going to be until I got it. I was suprised it was better than I expected and I think the amount related to year out raising kids helped.
Hi Maria, thank you for your question. In Canada, a $300 pension doesn't go far which is why we have retirement benefits offered by the Canadian government. Without these retirement benefits (Canada Pension Plan - CPP, Old Age Security - OAS & the Guaranteed Income Supplement - GIS) many low income families would not be able to afford the basic necessities to live.
If I could go back in time I would of told my 25 year old self to start saving. It wasn't until I was 35 I started to save. Fortunately I buckled down and turned it around. But if I started earlier I would be retired now instead of a couple of years from now.
Thanks for the video, I now know I don't have a written financial plan, a projected income at retirement or a tax plan, things that I have to look into, though I have made up a expense budget for a moderate retirement, thanks again.... great insight!
I disagree that you need 70-75% of your pre-retirement income to retire comfortably. We have been retired for over 6 years and I find that while our income is much LESS than when we were working (about 40% of our working income) we have MORE to spend now than we did before retirement. Firstly when you are retired you don't have to save for retirement. I can tell you that NOT saving 18% of my income into an RRSP every year (I've never had any carry forward) and NOT maxing out our TFSAs really frees up a lot of money. Add to that the house is now paid off, the kids are grown and gone, and my tax rate has fallen from a marginal rate of 50% to an overall rate of 15%. So much of your working "income" is absorbed by taxes, saving for retirement, paying off the house and raising kids that you never really had it to spend in the first place. On 40% of our pre-retirement income we are quite comfortable, we winter in Mexico and have an annual trip to Europe (pre-Covid). If we had 75% of our pre-retirement income I think we'd have more money than we'd know what to do with. Personally I think that most people can be quite comfortable on 40-50% of their pre-retirement income.
@@ddavidson5 That section of the video is about rules of thumb. They're starting points and everyone's situation is different. There are all sorts of rules of thumb from mortgage affordability to wedding ring costs. Again, they are designed to help one someone who has not planned to get an idea of costs
@@AaronWealthManagement I understand your video content was general. Really I was replying to johnnyboyvan about my experience that most people don't need near that amount, among those that I know 50% is closer to the mark.
The first 2 years after you retired, no doubt you will spend more ri explore the world, but the expense will drop afterwards. No, you dont need 75% of your pre-retirement income to live comfortably based on my experiences.
These numbers the industry throws out are only there to help someone who hasn't planned. Everyone's situation is unique. Having a financial plan created is the 1st step. Thanks for following and for commenting 😀
Even simpler check out Bonnie Jean Macdonald. What will be your expense in retirement then you plan what income income streams To be greater then your expense including inflation. This is an excellent video.
Great video and thorough! I have watched lots of retirement videos during the Pandemic. I wish yours was available a year ago! I hope to retire in 2025 so I am preparing now with the detailed questions that you touch on here. Well done, thank you for sharing your knowledge
Very informative and explained in a way that is easily understandable… thank you!
I am 65 and don’t have a plan. I have tried many time, but have always been disappointed with financial advisors not helping me.
You are the first one that sees to be helpful. Thank you.
I would love to talk with you about our plan. I have zero debt. But would love a plan.
Hi Mona, you book time for us to discuss here.
calendly.com/aaronwealthmanagement/discovery
Just found your TH-cam videos. Super helpful in understanding all the different income sources against tax liabilities and benefits. Thank you. You mention acquiring a financial plan to prepare for retirement. Are there any reliable financial planning tools for Canadians to get started before approaching a financial adviser ?
😂
I found the Canadian Income Retirement Calculator a good starting point.
My parents are in their 60s, and they both never had a retirement plan, they grew up thinking pension was gonna be enough, my dad is still working and mom isn't but wants to, it shows banks never helped them over the years, to try build something for retirement, now i don't want to build a life for myself because i want to give my money towards them...
Banks are out for themselves. They are no help at all.
I’ve had bad experience with financial advisors that work at banks. They were terrible.
Quality video, you can retire certain with the help of an investing expert.
Thanks for the insight….what’s your point ?
What do you recommend to invest in your 60s? Medium to low risk
Your greatest source of creating wealth is your income. And don’t go into debt.
The average stupid car payment is over $700 a month! Invested wisely that car payment is over $2 million dollars in 30 years. Be an owner not a loaner.
How much you need depends on how much you were making in your working life and how long. Above all, how much your investments made progress during this period. For simple math no one need a financial planner, little math and logic will do. What we need is someone who tells use which stock to invest and where to invest so that a steady rise in the portfolio. It is like a athlete is asking what is the timing to stay in the race, the winner always asks himself I need to run as fast as possible to win the race. This is same..
Thanks for your comment and for watching the video. Coaches don't make athletes better by simply telling them to run faster. Telling you which investments to buy is about 25% of what goes into a successful retirement.
Well that was humbling. At 61 with only 400,000 I’m not ever going to be able to retire. Even invested with decent dividend stocks it sounds like rice and rhubarb in retirement every day. At least the house is almost paid for but that doesn’t help much as it’s not liquid. And I’m not taking no heloc.
Hi Gary, It's never great hearing situations where retirees have to consider living with less. Have you considered brainstorming on developing an alternative income source? Have you watched this video? th-cam.com/video/nauGVc9fDNI/w-d-xo.html
That’s tough dude. Did you always make payments on everything?
@@billyrock8305no. Mortgage is now gone. No car payments and now maybe 490k. It’s going to be a rough ride!!
Very interesting topic
Hi Aaron
Is the sum of the super nested include investment properties or just cash and share stock?
Great content, concise advice! 👊
There was no youtube in the mid-80s, I somehow believed in the magic of cutting your spending and budgeting your money definitely increases your income without sacrificing a great deal.
I love the quote" you rather have a 5 dollar wallet with 100$ in it, than a 100$ wallet with only 5 dollars" mental accounting has to do with how we make financial decisions based on our associations with money. Cheers!
Hi David please tell how much is services for financial advise.
Let's have a brief call so I can better understand your goals. Here's a link to my calendar: calendly.com/aaronwealthmanagement/discovery
Thanks for the video. One thing I don't understand in your 4% explanation is the table on the left. Fundamental to the 4% rule is that you make at least 4% on your investments and if you only draw down 4% annually, you will actually experience no decumulation. In your chart on the left, you show only draw down but no annual investment return to offset the draw down? Am I missing something?
Hi Martin, Thanks for your comment. If you can let me know the timestamp of the table that would be great as there were several tables. I was making reference to the fact that a RRIF minimum withdrawal after age 65 is greater than 4% and increases with each passing year, forcing one to withdraw more than 4% per year.
@@AaronWealthManagement th-cam.com/video/1nFlaprSGz8/w-d-xo.html
@@martinzeddy Got it. 5.25% return. Withdrawals are adjusted for inflation. The 4% rule is a guide so as to not run out of money vs. a goal of lifestyle funding needs.
@@AaronWealthManagement I understand but that does not explain how, in your chart, $1mil goes to $0 in 30 years by withdrawing 4% annually.
@@martinzeddy
I think you aren't withdrawing 4% annually.
Ok, I am not good with math, and am just some guy on the internet, so I am going to simplify for my benefit.
Let's say you have a million dollars. Year one you withdraw 40K.
Year two: your one million (1M) became:
1M - 40K (what you took out) + 52.5K (what you made on the million) = 1.0125M.
In year two, we aren't withdrawing 4%. We are withdrawing 4% plus whatever inflation is. So say inflation is 5% then in year two we are withdrawing 42K to maintain our purchasing power (40K x 1.05 = 42K). That's about 4.15% of our nest egg of 1.0125M. Inflation will continue to compound the amount we need to take out over the years, and eventually the inflation will make it more than 5.25% of the egg, and the total invested amount will start dropping.
Again, I'm just some guy on the internet and my math is probably not totally accurate, but hopefully it's in the ballpark. :)
P.S. I think maybe second to health expenses, inflation is the biggest potential killer of retirements.
You explain it so simply. I wrote down all my bills and expenses devided by 12, Wow no money left for anything else with my pension. I have to continue working ...Thank you so much for the eye-opening info. Thank you!.
Subscribed, I tryed to email it bounced back
Thanks for subscribing. Email. Aaronwealthmanagement@gmail.com
calendly.com/aaronwealthmanagement
Great video David, to compare it to what I have done on my own. I'll probably get in touch soon.
Looking forward to your email or call. Thanks aaronwealthmanagement@gmail.com
Hi! Well done!! Very clear and easy to understand. I just wanted to say that I have heard so much about Index investing and how there is really no need for financial advisors because of the fees they charge. Could you please do a video on Index funds vs Financial advisors please. I think a lot of people including myself who have had a financial advisor for years are feeling a little disillusioned with the results. I would just like your opinion.
Thanks for watching the video and for your comment. I like your video suggestion as it is an excellent example of how people don't fully understand the role and value of what a Financial Advisor does for their clients. Your comment suggests you see the role of an advisor is to manage a rate of return.
I'll do a video on this because there is so much I can say on this subject such as minimizing taxes, estate planning, which accounts to use first in retirement. Helping clients with their concerns about having enough money to retire. Looking forward to your comments on the video.
Join my livestream tonight as the topic is by your request!
Looking forward to it! Thanks!
@@playit00 Looking forward to your questions
Bro idk how your channel is not bigger! Great content, I just subscribed to help support your awesome videos! Keep up the great work!
Thanks for the sub! Appreciate your support.
@@AaronWealthManagement you got it :)
Can you please let me know how much you charged is your service
Please email me and I’ll send all the details. Aaronwealthmanagement@gmail.com
The science of making money? Application of maths does not make what you do a science. I think it would be more accurate to describe what you do as research and management. I’m not diminishing the importance of what you do. As you showed, the majority of Canadians need help. On the other hand, I can’t remember a single time “money management” was a topic of learning during my government provided education.
You may need to adjust expenses going up 2 percent year. Not even close. Have a good day👍
I’m using my bank financial advisor and I don’t think he is putting much into it, do you have some good recommendations
Schedule a call with me.
calendly.com/aaronwealthmanagement/discovery
StatsCan 57 thousand avg. needed for a single retiree age 65 before taxes?....GURL!!! show me that statscan !!
Here is the actual stat: The median AFTER-TAX income (2022) for a single senior (not in an economic family of 2 or more) is $33,600.
I was never able to get idea how much was going to be until I got it. I was suprised it was better than I expected and I think the amount related to year out raising kids helped.
I meant how much CPP was going to be.
Lo siento una pregunta quién puede vivir con una pensión de 300$ al mes. Después de haver trabajado 25 años es justo O es lo correcto gracias
Hi Maria, thank you for your question. In Canada, a $300 pension doesn't go far which is why we have retirement benefits offered by the Canadian government. Without these retirement benefits (Canada Pension Plan - CPP, Old Age Security - OAS & the Guaranteed Income Supplement - GIS) many low income families would not be able to afford the basic necessities to live.
This does not take into account perhaps the most important factor: inflation.
The content of the video uses historical inflation around 3%. It's true if inflation remains much higher than 3% than we're all in trouble.
It doesn't take into account real life. Things happen in life that can alter when you can save and how much. Paper ideas don't match real life events.
V nice..
Thanks Harris and thanks for subscribing to my Channel. Do you have any video topic requests?
I really like how thorough you are. This will really help me.
Thanks Bella and thank you for subscribing. if there is a specific topic you would like to me to do a video on, let me know
If I could go back in time I would of told my 25 year old self to start saving. It wasn't until I was 35 I started to save. Fortunately I buckled down and turned it around. But if I started earlier I would be retired now instead of a couple of years from now.
If I sale my condo I have 600 k I’m now 60 years old I want to retire at 62 how much I have at 65 plus my government retire income .thx
Please use my online calendar to schedule time for us to discuss your situation. calendly.com/aaronwealthmanagement/discovery
Thanks for the video, I now know I don't have a written financial plan, a projected income at retirement or a tax plan, things that I have to look into, though I have made up a expense budget for a moderate retirement, thanks again.... great insight!
I would say 70 to 75 percent of one's present income is necessary to retire comfortably. Sadly, most people don't reach this when they are single.
I disagree that you need 70-75% of your pre-retirement income to retire comfortably. We have been retired for over 6 years and I find that while our income is much LESS than when we were working (about 40% of our working income) we have MORE to spend now than we did before retirement. Firstly when you are retired you don't have to save for retirement. I can tell you that NOT saving 18% of my income into an RRSP every year (I've never had any carry forward) and NOT maxing out our TFSAs really frees up a lot of money. Add to that the house is now paid off, the kids are grown and gone, and my tax rate has fallen from a marginal rate of 50% to an overall rate of 15%.
So much of your working "income" is absorbed by taxes, saving for retirement, paying off the house and raising kids that you never really had it to spend in the first place. On 40% of our pre-retirement income we are quite comfortable, we winter in Mexico and have an annual trip to Europe (pre-Covid). If we had 75% of our pre-retirement income I think we'd have more money than we'd know what to do with. Personally I think that most people can be quite comfortable on 40-50% of their pre-retirement income.
@@ddavidson5 Nice to know but being single in Vancouver is costly. My condo is paid off as well.
@@johnnyboyvan it's true, all things being equal single people have to manage money more carefully compared to a double income couple.
@@ddavidson5 That section of the video is about rules of thumb. They're starting points and everyone's situation is different. There are all sorts of rules of thumb from mortgage affordability to wedding ring costs. Again, they are designed to help one someone who has not planned to get an idea of costs
@@AaronWealthManagement I understand your video content was general. Really I was replying to johnnyboyvan about my experience that most people don't need near that amount, among those that I know 50% is closer to the mark.
Which form? Fiat currency or real money
Not gonna be possible.
Re: your 290% claim, did you control for income?
Hi Laura, can you be more specific about your comment, please. Where is the claim for 290%?
The first 2 years after you retired, no doubt you will spend more ri explore the world, but the expense will drop afterwards. No, you dont need 75% of your pre-retirement income to live comfortably based on my experiences.
These numbers the industry throws out are only there to help someone who hasn't planned. Everyone's situation is unique. Having a financial plan created is the 1st step. Thanks for following and for commenting 😀
Even simpler check out Bonnie Jean Macdonald. What will be your expense in retirement then you plan what income income streams
To be greater then your expense including inflation. This is an excellent video.
The amount I pay for medical insurance = my monthly rent, + utilities + food = $3k grand total.
That’s a serious amount of money 💰 would make it much easier on you if you were part of a group plan
There is no subscribe button
you can only afford to retire in Canada is to win a lottory of million or more
Hi Matti, thanks for watching the video. Have you tried engaging an advisor? You may be surprised by the results
Great video and thorough! I have watched lots of retirement videos during the Pandemic. I wish yours was available a year ago! I hope to retire in 2025 so I am preparing now with the detailed questions that you touch on here. Well done, thank you for sharing your knowledge
Thanks for following and for your comment. Go ahead and send your questions via email and I’d be happy to help if I can 😀
Too bad, I am learnig about $$ retirement at 60... there was no TH-cam in my 20s
It’s never too late to learn