I don't understand why you have to live like a pauper just because you are retired. I have always maintained that retirees who struggle to meet their basic needs are the ones who did not invest in the right place. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad depended on pension fund to handle her retirement. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million.
This is true. I'm in my mid 40's now. My partner and I were following this same trajectory. Last two years, I pulled out my money and invested with a wealth manager. Not catching up over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $21k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
As one who retired early, I started volunteering almost immediately. I found something that gave me purpose and kept me from shopping/spending to fill the pending boredom and lack of fulfillment.
I was kind of forced into retirement when my California town completely burned down burn down, the most difficult thing is filling my time thank you I think volunteering is a great idea
I agree! Filling time is a critical part of retirement, and volunteering is a way to do that for free. I stopped working three years ago at age 51 and now I have 5-6 projects around my community that I enjoy my time on.
I think that's wonderful. It's different for me, however. I retired early a few months ago. So far, I'm loving it, and I'm not spending a lot. Just being able to do what I want when I want is a freedom I always longed for and now have.
Excellent advice. Paying cash for everything from when I was a teen onwards allowed me as a regular working guy to retire at 54, travel and buy that fancy car. The only thing I would add, is pay your house off asap. Debt is your enemy - show it no mercy!
That's what we did, got the house, and the living room and dining room had no furniture to start with, but by the time our daughter was 3 years old, the mortgage was done, making life much better on getting that furniture, upgrading vehicles, and taking the kids to Disneyland and such. I could have retired early, but waited until 62, and now play Pickleball 3 - 4 times a week, trying to stay in shape, and enjoying the socializing.
Not having debt is the same as erasing liquidity. Lack of liquidity is - by -far - the most frequent reason people get into deep financial trouble. Especially mortgage payments with their very low interest rates is a debt most people will do much better not paying back. Why give the bank your hard earned money when you can use it yourself to make retirement better? High interest debt like credit card debt should of course never even be taken, but its not a black/white decision which debt to keep and which to kill.
If you have no debt no one,except the government of course,can ruin your future.The only negative of being free of debt is you can’t declare bankruptcy,oh there’s probably some really shrewd tax attorney that could help you,for a gigantic fee,but it would earn you a spot in the Guinness book of world records if you could pull it off
I pay everything with cash, mostly via my debit card. If I put anything on my credit card, it's paid off 100% next statement. The only reason I use my credit card is if I go a few dollars over my own self-imposed monthly expenses even if I have enough money in the bank to cover it. It's my own way of keeping me on budget.
All of our friends are upsizing their homes in retirement. We want to downsize. Lower maintenance costs, lower utility bills, and I have spent the last 30 years cleaning a large house. No more!! I am in the process of clearing out stuff we have accumulated because it is not going with us.
Yes to small living. We bought a small house over a decade ago, planning to upgrade. Hubby was in a serious accident that took five years to fully rehab. Now that we are on the other side, we have decided to stay. We love where we live. And like you, I have no desire to clean a larger home in my retirement. Better things to do with my time.
This is about the best video I’ve ever watched! Your comments on ‘if you can’t pay cash don’t do it’ is the best advice for anyone at any age; period. I retired at 52 and my wife did at 58. This one point was the major reason we could do so. I love all your videos so far and really appreciate your perspectives on retirement tax planning. Thanks for the information. Good Tax and investment planning information is REALLY hard to find without slanted information (looking at you banks!). Your videos are being referred to ALL my friends that are reaching for retirement and are confused on what to do. Please keep up the good work!
I hear that about boats all the time. I disagree about the motor homes. Everyone who I know that has one use it regularly (including my parents). Just to be clear, I'm not talking about people spending 6 figures for a brand new motor home. I'm talking about buying used without financing. That's what people I know do.
@@Dutchy-1168 I loved having a swimming pool and used it daily in swimming season. My pool is the only thing I miss about living in Ottawa (I'm back in Victoria now and pools aren't such a thing here).
@@debbielockhart7762 Well said Debbie, albeit our coach needed tires this year, which was a large outlay of $$, and then another trip to Freightliner for maintenance, again costly, albeit I do all my own oil & filter, fuel filters and Onan generator maintenance plus a myriad of smaller jobs that seem to be fairly constant, but I 'do' have the time, and my abilities I learned quite young in life have helped considerably.
Hubs and I have a deal…if the flight is over five hours we upgrade the seats. It’s SO worth it to us! Preboarding, lots of legroom, a more private washroom, disembark first….. We have a separate travel account that is well funded so one exotic holiday a year and one to Mexico. This winter it’s Mexico for 17 nights and three weeks after we return we go to south India! Worth every single penny and then some! I don’t care about things, just experiences. Retired now for seven years and so excited for the upcoming adventures.
I agree with everything you say. I retired early after 18 months of downsizing, selling my house and moving into an apartment. Then the call came from my son asking for childcare help. Fast forward 3 yrs and now I am near my daughter and her family, chauffeur for my granddaughters. I bought a beautiful 1100 sq ft home with a beautiful patio and backyard as gardening is my passion. I never pay more than 10k cash for my bmw's and I purchased a 2003 beautiful RV which I lived in for 1 yr, great learning experience. Now I live by the Need vs Want mentality and am really enjoying life. I did a lot of international travel in the 5 yrs prior to retirement and now I have no desire to go abroad anymore. Both of my children went to school for 1 yr in Europe and we have fantastic memories of our experiences. I have so many 'credits " with my kids that they are more than happy to do my honey do's when I need help. It is truly a win-win for all of us. We are looking for land now and haven't reached a consensus yet on where that will be. We love the homestead life and want to be together.
For those people who insult your ability to provide retirement advice because you aren't retired, you might point out that you are also not an electrician, but you can certainly tell them how to turn on a light switch. Knowledge is knowledge, regardless of how it is gained. I am a Certified Financial Planner (CFP) Emeritus, meaning I have over 30 years experience in Financial planning. I am also a college professor,. I have been teaching Retirement Planning and specifically Retirement Income Planning for 13 years. Your advice in this video is spot on. I chuckled a bit when you mentioned the RV, until you said you paid cash. One of the many large purchases I have seen made by many retirees is a $100,000+ RV. It fits in your scenario, substituted as the Tesla or the Second Home. A few years later, the travel bug is gone and so are the RVs, usually sold at a substantial loss. For retirees looking to buy an RV, I recommend late model, =slightly used models, from the folks who made the mistake before them. (Smile) As one about to retire (June 30, 2023) I stopped buying things 4-5 years ago and I am concentring on gaining experiences, through travel, both home and abroad. My bride and I will be celebrating our 50th wedding anniversary in June 2034, on a trip to Germany (where we both lived as military children) and Ireland (from where our ancestors originated.) All paid for with savings, earmarked for the celebration. Keep up the good work...and good luck to your new Prime Minister.
Great video. What my wife and I like to do when traveling is find a high end hotel we like, book it for 2-3 nights and then stay in mid grade hotels the balance of the time. That way we can experience the lavish hotels without breaking the bank.
My wife and I do the same thing. In one case my wife wanted to take the "Deluxe - long helicopter tour of the Grand Canyon". We did the cheapest sleeping arrangements on most of the trip we could find as a way to pay for the helicopter tour. Lets face it: hotels are hotels an if all you are doing is sleeping the night while you are driving 1500 miles to get somewhere there is no reason to pay a lot more money for a bed, bathroom, and shower.
@@perryallan3524 That Grand Canyon trip sounds like an interesting idea. We did similar with vacations to Jamaica and the prices went up over the years. We started booking small B&B style spots, some in the $50 / night range, and poked around the town. Took a taxi to the other side of town and got another for like $100 / night and walked everywhere. Food from street vendors is cheap down there. After a week we'd go to an all inclusive for 5-7 nights. ($300 / night per person) The bonus here is a travel day was only 10 - 15 minutes by taxi between facilities so you had more time to enjoy. We could actually get to the all inclusive to grab breakfast so one less meal out of pocket there!
My goal is to have the smallest amount of money and properties by the time I die. I will spend it all if I can in whatever it feels right to me, my pension will be more than enough in case I run out of funds and/or assets. I do not care to plan for my departure from this world, whenever I go, I just leave it to my relatives to dispose off of me in whatever manner they choose to.
Retirement requires planning and too many people also don’t know how to spend during this time and switch from accumulation to some spending. They end up with huge RRIFs when you are in a no go stage. You earned to enjoy life whatever that may be by having a new car or a great vacation, etc. Budget is key I think. You have to be able to afford the treats and not be indebted. More people need planners like you to develop a plan through all stage of life as there are many components that need to be addressed and issues that people need to be aware of. I like your messages so keep educating your audience.
Agreed. Budget and planning is key. I was in my early 30's when my husband and I met with a financial planner. He helped us establish a plan to reach our short term and long term life goals. We set up a budget and met with the financial planner every 3 months. One of my goals was to be able to retire at age 44. I retired 2 months before my 44th birthday. My husband retired 1 yr before me. We lived on a very tight and strict budget for more than a decade. We drove used cars and didn't go out to restaurants. My family made fun of us for living so cheaply, buying used cars, used clothes, not going out to restaurants, and not going on vacations. We worked hard, we saved and invested into retirement and we were teased by family and friends for being so "tight fisted". People looked down on us because they thought we were poor. We didn't have to worry about anyone stealing our cars because they were POS clunkers. Lol We retired multi-millionaires (net worth). Our family and friends quit teasing and laughing at us when we retired. They started asking how we did it. I told them, "tight budget, setting goals, long term planning, live well below your means, and be able to have many people look down their noses at you (snobby) or make fun of you. The hard part is going from the mindset of saving and living on a tight budget for so many years to retirement and being able to spend money. We've been retired 8 yrs and haven't gone on a vacation. We eat out at a restaurant once every 1 to 2 yrs. It's hard to go back to spending money.
It’s about living your maximum life while working leaving enough to continue in retirement. It’s not about working your butt off and suffering so you can be a millionaire at 50. Balance. If I need to save $2000 a month for retirement and make $4000 I’m spending $1999.99 each month. Key is knowing what the real saving number is so you don’t suffer and die rich.
Thanks for the good advice, I liked your straightforward approach. I'm 72 and semi retired, have an investment property with two rentals I've managed myself for about 20 years. No longer doing full time job.
When each grandchild was born, we established a 529 savings plan for college or vocational training. The savings grow over time and are tax free to the child when they graduate from high school. I would encourage everyone to consider doing this in leu of purchasing large gifts for the grandchildren.
100% agree.I started at birth with each grandchild,giving the maximum,up to 30k yearly for 6 consecutive years.That supplied 3 payments to their 529 and 3 to their general start in life account.That has really helped them and taken a great deal of worry and stress away from their parents.I know most people can’t do it this way but if nothing else do a 529 beginning at birth and they’ll easily afford an education or a start in life.
@@deborahmaehs7604 my biggest concern is what kind of education is even achievable these days. I would never suggest my grandchildren go to any Ivy League school. They’re so indoctrinated by morons. I couldn’t possibly imagine what the current administrators and the Academy might have in store for impressionable children?.
@@lv4077 The 529 plan works at any school that is accredited and where you could obtain a loan. This includes vocational schools, cosmetology schools, community colleges, state universities, as well as private colleges and Ivy League schools.
Not quite sure why you should be expected to purchase large gifts for your grandchildren in the first place. Also, imo, children & grandchildren should learn how to stand on their own two feet & not be forced to be dependent on big handouts from relatives. Think of their self esteem in future. How can they feel good about themselves if they've not achieved their goals themselves but have been reliant on family handouts?
My daughter is 21. She is buying her first car and has the cash to buy outright but we are going to finance a small portion for a short period of time to help her build her credit rating.
@@machinesnmetal She is young. She may need a business start up loan/or a mortgage someday. It is better to have a curated credit history than none at all.
@@machinesnmetal interesting… Did you have a higher rate in interest on your mortgage? Did you have more than 20% down? Are you in Canada or US? No, not trying to get into your business. 😉 I just have not seen manual underwriting on a mortgage in Canada. Not saying it hasn’t happened. Just seems very out of norm for a lender to not have the first mortgage insured through the CMHC.
Having a mixture of debt history is actually a factor in credit scoring. This is a good idea when young. This with other good credit hygiene is very good.
Great advice. There are two types of folks in this world when it comes to money, and you can recognize them in childhood: the savers and the spenders. The savers become well versed in investing. The spenders don’t, usually. I am a saver and it has served me well throughout life. I now have a comfortable retirement with zero debt. I have always paid cash for cars, mostly Hondas and Toyotas that are one year old. The only things I have ever paid interest on are principal residence mortgages, but I now live mortgage free. I do have an HOA because I have chosen to have someone else manage and perform all landscaping and external maintenance and security costs. I keep it simple. For those who can successfully leverage their way to wealth: a hat tip to you my friend. You are the successful spender of OPM (other people’s money).
Know your goals and your budget, I love my Pontoon. They hold their value, dont fall for the extras that don't fit your lifestyle. Lake life is wonderful
A very good video. I disagree with one point. I've been retired for 11 years and one of the worst mistakes that I've seen others do is buy a new motor home. They seem to spend most of the first year at the dealership trying to resolve warantee problems. The workmanship that I saw on 2 motor homes was disappointing. My RV is a camper that slides into the back of my truck. It was a freebie from CraigsList. After 15 years I can still sell it for what I paid for it. On the other hand I've seen people buy a new motor home. Use it a couple of times and then it sits exposed to the weather. A couple of heavy snow storms and the roof leaks but they didn't notice. A couple of years later the insides are ruined and they give it away. In many cases people are better off renting an RV. Good Luck, Rick
@@DrSchor The camper was free, I didn't pay anything for it. I did buy the truck. When I said that I could sell it for what I'd paid for it, I meant it as a joke and that I could easily give it away. Good Luck, Rick
Hi Adam, Great advice and practicality on saving and spending before and during retirement. I totally agree about living modesty and comfortably without going into "needless" debt. Love your channel and great content 🥰
Adam, you are speaking my language! My husband and I have recently retired at 58 but before we did, we completed home renovations like new windows & siding, paid off our mortgage & vehicles! We have never carried debt on our credit cards because I can't sleep worrying how am I going to pay it off... now with no debt we are enjoying our retirement! Your advise on helping the kids is excellent and something for us to think about! Thanks for your videos I really enjoy them and all the good advice.
Many years ago when i was 10 or 11.. my grandmother before she passed away wanted me to have a computer... and I was lucky enough to get one. The early 1980s was the dawn of home computing... and I graduated university with a computer science degree several years later... and it changed my life! I still have it.
I’ll wait for inflation to fall from the stratosphere before buying ‘stuff,’ and pay cash. I contribute monthly to a vacation account so vacays are paid off before leaving the house.
I love your philosophy on paying cash! It has put us where we are now, with no mortgage, vehicles paid and enough income to live a quality life. We're in the Vancouver area as well, and we do enjoy travel as well, lately, always to the U.S. I've honestly been retired for 7 years, yet have never been off North America, yet when I was younger I wanted to go to different countries, but as I got older, it wasn't such a big thing, which is the opposite of many. We have an older motorhome we use fairly extensively and find it to be our 'home away from home' retirement travel for now.
Paying cash is key. That point when you get out from under making interest payments on purchases is one of the most liberating experiences in life. That's how you start to build personal wealth even on a modest income....stop paying interest to banks and credit card companies.
I have a Toyota Matrix and will have it until I don’t have to load my kayak on the top….scratch city. I am looking at hybrid. But I am doing my homework and there is no rush. I added on to my house. It was cottage size so I added on a living room, bed and bath and did a kitchen reno. All on one level, thinking about ageing and mobility. I used part of my inheritance so I owe nothing and am debt free. I look at many people who buy a holiday home. You are right about all the expenses. Years of renting for a few weeks is so much cheaper. I love to travel, but Covid had put the kibosh on that. I travel sensibly and use the opportunity to see friends. I watch videos on travel and make the most of my trips. I don’t need fancy hotels, just nice and clean and convenient. I do go for nice meals and go have a drink at the bar at the Ritz or the Palace for fun. My mom taught me that trick! Thanks for the hints!
We bought a home in Phoenix in 2012 for just over 300k when the dollar was $1.02 in our favour and house prices in Arizona were very low. Now with the dollar around .73 and inflated home prices in Phoenix our home is worth around $900k. We spend about 51/2 months south not the 2-3 months that you mention.
You were right with your first comment - never finance a car. Financing a car at 0% financing is rarely free. There are admin costs, sometimes there is rebates ($2000+) that you would get by not financing, etc.
Agree about not buying fancy new car if can't pay cash. On the other hand, in your example, if you buy an expensive Tesla, your fueling and maintenance costs will be lower (if you can charge at home most of the time) especially compared to a similar fancy gas car that needs premium gas.
I retired the end of 2019. Instead of spending, I started saving, downsizing and paying off debt. I worked 46 years and am doing better retired than I ever did while I was working. I absolutely LOVE being retired! Never knew life could be so good. I'm single with no children so no one to support. It's all about me! Not that I'm selfish but that's just the way my life turned out and I'm truly enjoying myself. I don't go out much and didn't own a car but I've discovered Lyft and I love that, lol!!! Took a trip to Monterey, CA last year for my birthday and this year I went to Seattle. I'm hoping to take one of those Rocky Mountaineer tours...I love trains! I'm thankful and feel very blessed. With the current administration, sheesh, selling us down the tubes, I don't know what's going to happen. 😑 Hope God will bless me with a few more decades.
As opposed to the former Admistration run by the Golden Mussolini and his MAGA Fascists who collectively fomented a Coup against American and Americans. The real Patriots on January 6th, 2021 were the Caltol Police who fought against a pack of treasonous Domestic Terrorists. I would rather be on the side fighting for Democracy and the Rule of Law rather than on the side fighting for Domestic Terrorism, White Supremacy, Fascism, and taking away the Civil Rights of select Americans.
Great information. My one vice is new cars, but always pay cash. In 2019 I purchased a luxury electric car that was discounted because they were not selling well. Manufacture offered 0% financing. They had a unadvertised offer of $7,000 credit on purchase price if you did not take the 0%. I was very happy to take their offer. I hate paying interest.
When traveling to Europe, we always stop in NYC for a visit (our former hometown) and then fly economy plus to Europe. Don't need first class for a a sub- ten hour flight.
I’m from the USA and really enjoy your retirement tips. I will be retrieving in 6 weeks and have a pension and investments. I was drawn to your channel months ago because so few discuss pensions.
My advise … look at your savings … guess your remaining years on the planet add 10 years and then live within your means … enjoy your time … do things .. appreciate everything and everybody … love what you do and enjoy what you do …
I Have A Few Former Coworkers Who Blew Through Their Retirement Savings With Big Ticket Purchases. We Decided To Hunker Down In Our Current Home In Retirement With Our Kitties. Our Children Are Grown Living Elsewhere....YAY!
The second home is wildly different from the rest. It is an appreciating asset. Here in Florida, plenty of "snowbirds" are thrilled with their decision to buy a second home here. They love spending their winters here, and their FL home is worth double what they paid for it.
Great validation. Thought I had retirement figured out and became disabled and unable to work at 58!! Took 3 denials to get disability and drew down lots from savings to survive in cash bought home at $6k/yr. Now back to aggressively saving and rehabbing home to age in place. When pandemic cools and strength more reliable want to travel but for now can only go short distances so very glad I traveled lots in 20's and yes, walked , stayed at hostels, ate lightly and locally. I actually paid credit card so had negative balance as bill would come while I was out of country, enclosed a note saying please extend amount if I wind up in foreign hospital which am sure gave someone a giggle. Now when wanted an alpaca sweater which I could knit but yarn would be really high I taught myself how to spin so buying raw fleece for 1/5 the cost. There is always a way to go cheaper
Regarding where to live: When you become less active and need more care and oversight you should go live near family. There are really two phases to retirement...
Or, go on a cruise have the cash to go - buy discounted gift cards ($100 for $$90) and pay with a credit card that has rebates - you can save a ton of money.
I'm 65 and not retired yet. I'm going to work another 2-4 years. I like all these suggestions. I have read that you don't need an expensive car, but you need a reliable car in retirement. Freedom and independence are better with a reliable vehicle. I'm buying a new 4x4 truck this month that I can use for offroad exploring we want to do close to home. I am paying cash and buying direct from Ford to avoid dealership add-ons. My only other car is 12-years old (also bought for cash) and I'm hoping this new truck will let us go places we couldn't otherwise enjoy.
Couldn’t you buy a four wheel drive that is smaller than a truck? We own a Subaru Forester and it can go a lot of places that a regular car can’t. Unless you are hauling stuff, chopping wood etc… I would find a truck too expensive on gas. We plan on going electric on our next vehicle as this is the way of the future. I am 52 years old and when I retire we plan on dropping to one car so at least we will save over having two cars now, that we need because of us both working.
Retired 6 years ago. Haven't had chance to get bored yet. Get involved with a Rotary Club or similar, home maintenance, days out, walks, holidays, in fact they are so rare, I enjoy a day with nothing to do.
Umm, you have a signed contract. They can't come back and say "We're changing it to 5%". Unless you default. But I completely agree - always wait for zero percent. And buy what you can afford for sure.
We bought a second property (a condo) within a couple of hours drive so it's easy to get there regularly. We could have just left that cash in investments or put it into more real estate....so far, it's appreciated in value over the 10 years we've owned it by a lot....yes we've spent a lot on taxes, condo fees and renos but at least we're using it
I just retired a month ago and my dream is to roadtrip d whole US in a self converted van where i can sleep or rest during trips. It doesnt have to b fancy conversion, but van must b newer to insure no hiccups. I can pay cash for it but i just want to put a big downpayment and finance d rest. It has to have a bathroom for those middle of d night trips. I have some small trips planned this year and next year, but as soon as i have d van, i will make trips 3 months at a time and take a break during d winter season. I dont like snow or driving issues associated with it. I plan to keep my homebase for d winter break and when i can no longer make trips... i agree with most of your suggestions😅
I totally agree with all of your "don't spend your retirement money on" list. I definitely agree with never borrowing money to purchase any vehicles at any age. Always think of vehicles as a consumable and never think of them as an investment. When you think of them as a consumable, it will change how you look at vehicle purchases.
I saw an article recently that describes us: don't travel in business/first class ....because once you do, economy just won't fit it anymore, even premium economy is hard to accept
Get your kids out of the house. Get your house paid off. Get your cars paid off. Pay out your credit cards and keep them that way every month. Don't make debts. Pay cash. Retire and enjoy.
I have traveled my entire life, in the navy, and merchant marines. I completely squandered my youth. But I still managed to own 2 houses outright, I haven't had a car payment in 15 years. When I paid off the car. I kept making the payments to myself, same with the mortgage. I only have 18 months left before I retire. I have all my hobbies pretty well supplied. I still need to build a shop, that will be soon. Overall I have had a good life.
I am originally from the UK and my Canadian partner and I were considering buying some property so that we could stay 3 to 4 months there in retirement. While it is possible to buy some fairly cheap property there, the taxes and utility bills can be high so looking at buying a small RV and inflatable tent. There are lots of good camp sites for around $35 per night and there are also some nice B&Bs for about $80 per night.
I spent all overtime and extra income on paying down my mortgage so I could retire without a mortgage. I did retire and without a mortgage. But I had a 30 year old home that was tired. Many things need updating.
In retirement I do pay cash for everything though you may think I am offside in some other areas. We did buy a 2nd house down south, in Mexico actually. We rented for the first 5 years but it was becoming increasingly difficult to find a decent high season rental. We picked a temperate area of Mexico in the central highlands so no need for heat or AC, generally it's 26C in the day and 16C at night year round. Property taxes on our gated community townhouse are CA$150 a year and the HOA fees are about CA$50 a month. There is still home maintenance, you know houses, there's always something to fix, and I wouldn't call it an "investment" in the make-money sense of the word but it does enhance our lifestyle and we are there about 5 months of the year. When the time comes to sell who knows if we'll make any money on it, we could potentially even lose some money, but I am sure it won't be a total loss. We have travelled a lot since we retired in 2015 and recently we have started flying in upgraded seats. I am 6'3", my wife is 5'10", and quite honestly being jammed into an economy seat on an overnight flight to Europe has lost its appeal and we're not getting any younger either. We are getting on to 8 years in retirement so have a good feel for what we can afford and while it grates a bit when I make the upgraded seats purchase we really appreciate it when we are on the plane in the air. Bought the Cadillac when I first retired. Love the car and its getting old enough now that I'll probably be buying the next one in a year or so. It's a splurge for sure but like the upgraded seats on the plane it's certainly nice when you are sitting in it. We both turn 70 next year (and will be starting our CPP & OAS pensions then) so we are now in the back half of the Go-Go years and things will be slowing down soon enough but life is pretty good even if I perhaps haven't followed all the rules.
@@mrofnocnon subjective opinion of course predicated on your criteria. I actually bought my wife an xt6 and basically it was because I said the hell with it I'm almost 55 and have been saving my whole life when am I going to start living? The car is amazing and I'm sure other vehicles have advantages as well as disadvantages to them
I just bought a 50,000 car this year with a 10,000 down payment and financed the rest at 2% interest. At this current inflation rate (way higher than 2%) the financing is just basically free money. Feels like I'd have to turn off my brain to think it's a good idea to sell a part of my stock portfolio to pay for the car in cash, when I can just keep the money in stocks that are expected to be a way better investment than a car anyway. So I _could_ pay for the car in cash if I really wanted to, but there are just way better ways to allocate money. Am I missing something?
Isn't there a finance fee when buying a car (not cash, but at 0% interest) just for having the loan? That's what I had a few months ago (paid off at that time, not rushed).
I’m from the PNW. In spite of the area having the highest per capita boat ownership in the country the common saying was “a boat is a hole in the water that you throw money into”
I just bought a Caravan. I live bush so a trip or holiday to the city costs $200 for a cheap motel up to $650 for a hotel p/night...IF you can get one, compared to $50 p/night for a site. I also bought a caravan (trailer? Im in West Australia) as opposed to a RV because the rego is under $100 p/a as opposed to $1200 for a vehicle. I am thinking of the necessary trips to Perth as well as holidays around the state. I feel I have made the right choice.
Non of these were a problem! I bought a few things I always wanted since a child, cameras and photo colliers that I used to work through college and my hobbies that fell away, restoring my Corvette, updating house, and reopened my business so my house got bigger for the work space.
Good morning I know this is an old video. But if you pay cash for a new vehicle you will pay more there is a cash buyer price and a finance price. You're better to finance the car then after 1 month go in and pay the loan off you'll save money from the island have a good day. But I do agree with a lot of what you say
I agree with cash. I bought a car and i had taken loan with a 2% interest rate. I had cash in bank to buy outright if i wanted making 5% interest. Perfect at the time. Australia 🇦🇺
If you're oversees travelling, why waste money on lavish hotels when all you need it for is to sleep the rest of the time you're out and about seeing the sights.
A follow a number of retired people that have you tube channels. Some of them are clearly on fixed monthly budgets with not a ton of money for example living on a pension. What blows me away is the money that some of them spend on international flights. Refusing to fly economy alway flying business or first class. So instead of several hundred dollars for a long international flight paying several thousand dollars.
I bought a Tesla Model 3, and I save the equivalent of the monthly payment in zero gasoline and maintenance cost along with Tesla insurance and financing. Tesla insurance is based on how safely I drive, not driving history. Also, Tesla keeps lowering the cost of its vehicles, especially the Model 3 and the Model 2, soon to be released for sale, reportedly around $25,000. The cost of electricity to charge my Tesla is less than 40% of the cost of gasoline for the same mileage via my level 2 home charger.
I stopped half way thru this video. Yes, save all your money for a better graveyard and a larger estate for your family! Don’t spend any money that you earned yourself! Trust me, I worked 5 years beyond eligible retirement date and that’s a big mistake. The extra pension I earned cannot buy me health nor time! It is 5 years I lost . Go buy that sports car now! You may be dead tomorrow!
If I was supporting my kids who are in late 20s or 30’s, I would have failed as a parent. My wife and I started 38 years ago in a small apartment and air mattress. What we have accumulated to now is though hard work and sacrifice. Please don’t guilt empty nesters to support adult kids. Let them figure it out themselves and they will appreciate what they did
Defer your pensions till 70. Build your rrsps as quickly as you can. You will be just fine. If you need a little extra nothing wrong with a part time job
I don't understand why you have to live like a pauper just because you are retired. I have always maintained that retirees who struggle to meet their basic needs are the ones who did not invest in the right place. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad depended on pension fund to handle her retirement. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million.
This is true. I'm in my mid 40's now. My partner and I were following this same trajectory. Last two years, I pulled out my money and invested with a wealth manager. Not catching up over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $21k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same
Sonya Lee Mitchell is the manager I use. Just research the name. You'd find necessary details to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
"Retirement isn’t an end goal, but a journey best secured by careful and consistent investments."
Well said! My adviser guided me through retirement planning, ensuring my investments were strategically positioned for long-term rewards.
That's a great point! Finding a reliable financial adviser would be essential for me to ensure my retirement plans are well-structured.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
As one who retired early, I started volunteering almost immediately. I found something that gave me purpose and kept me from shopping/spending to fill the pending boredom and lack of fulfillment.
I was kind of forced into retirement when my California town completely burned down burn down, the most difficult thing is filling my time thank you I think volunteering is a great idea
I agree! Filling time is a critical part of retirement, and volunteering is a way to do that for free.
I stopped working three years ago at age 51 and now I have 5-6 projects around my community that I enjoy my time on.
I think that's wonderful.
It's different for me, however. I retired early a few months ago. So far, I'm loving it, and I'm not spending a lot. Just being able to do what I want when I want is a freedom I always longed for and now have.
That is great advice!
OMG! You believe in, "Don't live beyond your means"! I thought I was the last person in the world!!!
Excellent advice. Paying cash for everything from when I was a teen onwards allowed me as a regular working guy to retire at 54, travel and buy that fancy car. The only thing I would add, is pay your house off asap. Debt is your enemy - show it no mercy!
That's what we did, got the house, and the living room and dining room had no furniture to start with, but by the time our daughter was 3 years old, the mortgage was done, making life much better on getting that furniture, upgrading vehicles, and taking the kids to Disneyland and such. I could have retired early, but waited until 62, and now play Pickleball 3 - 4 times a week, trying to stay in shape, and enjoying the socializing.
Not having debt is the same as erasing liquidity. Lack of liquidity is - by -far - the most frequent reason people get into deep financial trouble. Especially mortgage payments with their very low interest rates is a debt most people will do much better not paying back. Why give the bank your hard earned money when you can use it yourself to make retirement better? High interest debt like credit card debt should of course never even be taken, but its not a black/white decision which debt to keep and which to kill.
So, you don’t know how to use debt to your advantage. Got it.
If you have no debt no one,except the government of course,can ruin your future.The only negative of being free of debt is you can’t declare bankruptcy,oh there’s probably some really shrewd tax attorney that could help you,for a gigantic fee,but it would earn you a spot in the Guinness book of world records if you could pull it off
I pay everything with cash, mostly via my debit card. If I put anything on my credit card, it's paid off 100% next statement. The only reason I use my credit card is if I go a few dollars over my own self-imposed monthly expenses even if I have enough money in the bank to cover it. It's my own way of keeping me on budget.
All of our friends are upsizing their homes in retirement. We want to downsize. Lower maintenance costs, lower utility bills, and I have spent the last 30 years cleaning a large house. No more!! I am in the process of clearing out stuff we have accumulated because it is not going with us.
Seems nuts for empty nester to upsize. You have the right idea IMO.
This is my plan too…next 2-3 years to get rid of stuff….and then moving to a smaller place to be nearer family.
Outside of cost, I love keeping "upsized" as cleaning and maintain keeps me moving. When I loved in an apartment I sat all the time.
Yes to small living. We bought a small house over a decade ago, planning to upgrade. Hubby was in a serious accident that took five years to fully rehab. Now that we are on the other side, we have decided to stay. We love where we live. And like you, I have no desire to clean a larger home in my retirement. Better things to do with my time.
A large house is much easier to clean and keep clean than a small home.
This is about the best video I’ve ever watched! Your comments on ‘if you can’t pay cash don’t do it’ is the best advice for anyone at any age; period. I retired at 52 and my wife did at 58. This one point was the major reason we could do so.
I love all your videos so far and really appreciate your perspectives on retirement tax planning. Thanks for the information. Good Tax and investment planning information is REALLY hard to find without slanted information (looking at you banks!). Your videos are being referred to ALL my friends that are reaching for retirement and are confused on what to do.
Please keep up the good work!
Motorhomes and boats have 2 very exciting days - the day you buy it and the day you get rid of it.
so true
Indeed ….swimming pools too ‼️
I hear that about boats all the time. I disagree about the motor homes. Everyone who I know that has one use it regularly (including my parents). Just to be clear, I'm not talking about people spending 6 figures for a brand new motor home. I'm talking about buying used without financing. That's what people I know do.
@@Dutchy-1168 I loved having a swimming pool and used it daily in swimming season. My pool is the only thing I miss about living in Ottawa (I'm back in Victoria now and pools aren't such a thing here).
@@debbielockhart7762 Well said Debbie, albeit our coach needed tires this year, which was a large outlay of $$, and then another trip to Freightliner for maintenance, again costly, albeit I do all my own oil & filter, fuel filters and Onan generator maintenance plus a myriad of smaller jobs that seem to be fairly constant, but I 'do' have the time, and my abilities I learned quite young in life have helped considerably.
Hubs and I have a deal…if the flight is over five hours we upgrade the seats. It’s SO worth it to us! Preboarding, lots of legroom, a more private washroom, disembark first…..
We have a separate travel account that is well funded so one exotic holiday a year and one to Mexico. This winter it’s Mexico for 17 nights and three weeks after we return we go to south India! Worth every single penny and then some! I don’t care about things, just experiences. Retired now for seven years and so excited for the upcoming adventures.
If you get 0% finance the cost to the dealer is priced into the car. You cannot negotiate on price if they are offering 0%.
I agree with everything you say.
I retired early after 18 months of downsizing, selling my house and moving into an apartment.
Then the call came from my son asking for childcare help.
Fast forward 3 yrs and now I am near my daughter and her family, chauffeur for my granddaughters.
I bought a beautiful 1100 sq ft home with a beautiful patio and backyard as gardening is my passion.
I never pay more than 10k cash for my bmw's and I purchased a 2003 beautiful RV which I lived in for 1 yr, great learning experience.
Now I live by the Need vs Want mentality and am really enjoying life.
I did a lot of international travel in the 5 yrs prior to retirement and now I have no desire to go abroad anymore.
Both of my children went to school for 1 yr in Europe and we have fantastic memories of our experiences.
I have so many 'credits " with my kids that they are more than happy to do my honey do's when I need help.
It is truly a win-win for all of us.
We are looking for land now and haven't reached a consensus yet on where that will be. We love the homestead life and want to be together.
For those people who insult your ability to provide retirement advice because you aren't retired, you might point out that you are also not an electrician, but you can certainly tell them how to turn on a light switch. Knowledge is knowledge, regardless of how it is gained.
I am a Certified Financial Planner (CFP) Emeritus, meaning I have over 30 years experience in Financial planning. I am also a college professor,. I have been teaching Retirement Planning and specifically Retirement Income Planning for 13 years. Your advice in this video is spot on.
I chuckled a bit when you mentioned the RV, until you said you paid cash. One of the many large purchases I have seen made by many retirees is a $100,000+ RV. It fits in your scenario, substituted as the Tesla or the Second Home. A few years later, the travel bug is gone and so are the RVs, usually sold at a substantial loss. For retirees looking to buy an RV, I recommend late model, =slightly used models, from the folks who made the mistake before them. (Smile)
As one about to retire (June 30, 2023) I stopped buying things 4-5 years ago and I am concentring on gaining experiences, through travel, both home and abroad. My bride and I will be celebrating our 50th wedding anniversary in June 2034, on a trip to Germany (where we both lived as military children) and Ireland (from where our ancestors originated.) All paid for with savings, earmarked for the celebration.
Keep up the good work...and good luck to your new Prime Minister.
Great video. What my wife and I like to do when traveling is find a high end hotel we like, book it for 2-3 nights and then stay in mid grade hotels the balance of the time. That way we can experience the lavish hotels without breaking the bank.
So do we….i think it’s smart
My wife and I do the same thing. In one case my wife wanted to take the "Deluxe - long helicopter tour of the Grand Canyon". We did the cheapest sleeping arrangements on most of the trip we could find as a way to pay for the helicopter tour. Lets face it: hotels are hotels an if all you are doing is sleeping the night while you are driving 1500 miles to get somewhere there is no reason to pay a lot more money for a bed, bathroom, and shower.
@@perryallan3524 That Grand Canyon trip sounds like an interesting idea. We did similar with vacations to Jamaica and the prices went up over the years. We started booking small B&B style spots, some in the $50 / night range, and poked around the town. Took a taxi to the other side of town and got another for like $100 / night and walked everywhere. Food from street vendors is cheap down there. After a week we'd go to an all inclusive for 5-7 nights. ($300 / night per person) The bonus here is a travel day was only 10 - 15 minutes by taxi between facilities so you had more time to enjoy. We could actually get to the all inclusive to grab breakfast so one less meal out of pocket there!
My goal is to have the smallest amount of money and properties by the time I die. I will spend it all if I can in whatever it feels right to me, my pension will be more than enough in case I run out of funds and/or assets. I do not care to plan for my departure from this world, whenever I go, I just leave it to my relatives to dispose off of me in whatever manner they choose to.
Excellent! And perfect closing, advising us to simply chat with retirees and ask about their regrets if they’re willing to discuss.
Yup, bought the beautiful luxury car when we retired as a gift to ourselves …. Just sold it back to the dealership. Very good advice Adam !
My common law partner and I have NO kids. I don’t want to die with ANY money left. I do agree with you on most of this.
Be charitable
Its called a de facto here.
Retirement requires planning and too many people also don’t know how to spend during this time and switch from accumulation to some spending. They end up with huge RRIFs when you are in a no go stage. You earned to enjoy life whatever that may be by having a new car or a great vacation, etc. Budget is key I think. You have to be able to afford the treats and not be indebted. More people need planners like you to develop a plan through all stage of life as there are many components that need to be addressed and issues that people need to be aware of. I like your messages so keep educating your audience.
Thanks Corinne.
Agreed. Budget and planning is key. I was in my early 30's when my husband and I met with a financial planner. He helped us establish a plan to reach our short term and long term life goals. We set up a budget and met with the financial planner every 3 months. One of my goals was to be able to retire at age 44. I retired 2 months before my 44th birthday. My husband retired 1 yr before me. We lived on a very tight and strict budget for more than a decade. We drove used cars and didn't go out to restaurants. My family made fun of us for living so cheaply, buying used cars, used clothes, not going out to restaurants, and not going on vacations. We worked hard, we saved and invested into retirement and we were teased by family and friends for being so "tight fisted". People looked down on us because they thought we were poor. We didn't have to worry about anyone stealing our cars because they were POS clunkers. Lol
We retired multi-millionaires (net worth). Our family and friends quit teasing and laughing at us when we retired. They started asking how we did it. I told them, "tight budget, setting goals, long term planning, live well below your means, and be able to have many people look down their noses at you (snobby) or make fun of you.
The hard part is going from the mindset of saving and living on a tight budget for so many years to retirement and being able to spend money. We've been retired 8 yrs and haven't gone on a vacation. We eat out at a restaurant once every 1 to 2 yrs. It's hard to go back to spending money.
It’s about living your maximum life while working leaving enough to continue in retirement. It’s not about working your butt off and suffering so you can be a millionaire at 50. Balance. If I need to save $2000 a month for retirement and make $4000 I’m spending $1999.99 each month. Key is knowing what the real saving number is so you don’t suffer and die rich.
Thanks for the good advice, I liked your straightforward approach. I'm 72 and semi retired, have an investment property with two rentals I've managed myself for about 20 years. No longer doing full time job.
When each grandchild was born, we established a 529 savings plan for college or vocational training. The savings grow over time and are tax free to the child when they graduate from high school. I would encourage everyone to consider doing this in leu of purchasing large gifts for the grandchildren.
100% agree.I started at birth with each grandchild,giving the maximum,up to 30k yearly for 6 consecutive years.That supplied 3 payments to their 529 and 3 to their general start in life account.That has really helped them and taken a great deal of worry and stress away from their parents.I know most people can’t do it this way but if nothing else do a 529 beginning at birth and they’ll easily afford an education or a start in life.
@@lv4077 Most people don't see the big picture like we do. We both value education and how it might help the grandkids out later on.
@@deborahmaehs7604 my biggest concern is what kind of education is even achievable these days. I would never suggest my grandchildren go to any Ivy League school. They’re so indoctrinated by morons. I couldn’t possibly imagine what the current administrators and the Academy might have in store for impressionable children?.
@@lv4077 The 529 plan works at any school that is accredited and where you could obtain a loan. This includes vocational schools, cosmetology schools, community colleges, state universities, as well as private colleges and Ivy League schools.
Not quite sure why you should be expected to purchase large gifts for your grandchildren in the first place. Also, imo, children & grandchildren should learn how to stand on their own two feet & not be forced to be dependent on big handouts from relatives. Think of their self esteem in future. How can they feel good about themselves if they've not achieved their goals themselves but have been reliant on family handouts?
Great information! Thanks 😊.
My daughter is 21. She is buying her first car and has the cash to buy outright but we are going to finance a small portion for a short period of time to help her build her credit rating.
Just use the credit card or some other loan and pay it all back before the interest comes due to improve your credit rating.
Great idea.
@@machinesnmetal She is young. She may need a business start up loan/or a mortgage someday. It is better to have a curated credit history than none at all.
@@machinesnmetal interesting… Did you have a higher rate in interest on your mortgage? Did you have more than 20% down? Are you in Canada or US? No, not trying to get into your business. 😉 I just have not seen manual underwriting on a mortgage in Canada. Not saying it hasn’t happened. Just seems very out of norm for a lender to not have the first mortgage insured through the CMHC.
Having a mixture of debt history is actually a factor in credit scoring. This is a good idea when young. This with other good credit hygiene is very good.
Great advice. There are two types of folks in this world when it comes to money, and you can recognize them in childhood: the savers and the spenders. The savers become well versed in investing. The spenders don’t, usually. I am a saver and it has served me well throughout life. I now have a comfortable retirement with zero debt. I have always paid cash for cars, mostly Hondas and Toyotas that are one year old. The only things I have ever paid interest on are principal residence mortgages, but I now live mortgage free. I do have an HOA because I have chosen to have someone else manage and perform all landscaping and external maintenance and security costs. I keep it simple. For those who can successfully leverage their way to wealth: a hat tip to you my friend. You are the successful spender of OPM (other people’s money).
Know your goals and your budget, I love my Pontoon. They hold their value, dont fall for the extras that don't fit your lifestyle. Lake life is wonderful
A very good video. I disagree with one point. I've been retired for 11 years and one of the worst mistakes that I've seen others do is buy a new motor home. They seem to spend most of the first year at the dealership trying to resolve warantee problems. The workmanship that I saw on 2 motor homes was disappointing. My RV is a camper that slides into the back of my truck. It was a freebie from CraigsList. After 15 years I can still sell it for what I paid for it. On the other hand I've seen people buy a new motor home. Use it a couple of times and then it sits exposed to the weather. A couple of heavy snow storms and the roof leaks but they didn't notice. A couple of years later the insides are ruined and they give it away. In many cases people are better off renting an RV. Good Luck, Rick
Why did you pay for a freebie? Thanks.
@@DrSchor The camper was free, I didn't pay anything for it. I did buy the truck. When I said that I could sell it for what I'd paid for it, I meant it as a joke and that I could easily give it away. Good Luck, Rick
Excellent suggestion on renting - many times - before you buy. Applies to any large purchase, of whatever type.
Hi Adam,
Great advice and practicality on saving and spending before and during retirement. I totally agree about living modesty and comfortably without going into "needless" debt.
Love your channel and great content 🥰
Thanks Victor
Adam, you are speaking my language! My husband and I have recently retired at 58 but before we did, we completed home renovations like new windows & siding, paid off our mortgage & vehicles! We have never carried debt on our credit cards because I can't sleep worrying how am I going to pay it off... now with no debt we are enjoying our retirement! Your advise on helping the kids is excellent and something for us to think about! Thanks for your videos I really enjoy them and all the good advice.
Congrats on the retirement Terry!
Many years ago when i was 10 or 11.. my grandmother before she passed away wanted me to have a computer... and I was lucky enough to get one. The early 1980s was the dawn of home computing... and I graduated university with a computer science degree several years later... and it changed my life! I still have it.
I am a male 69 years old my wife is 74 and you gave great advice thank you
Thanks Happy Nurse!
I’ll wait for inflation to fall from the stratosphere before buying ‘stuff,’ and pay cash.
I contribute monthly to a vacation account so vacays are paid off before leaving the house.
I love your philosophy on paying cash! It has put us where we are now, with no mortgage, vehicles paid and enough income to live a quality life. We're in the Vancouver area as well, and we do enjoy travel as well, lately, always to the U.S. I've honestly been retired for 7 years, yet have never been off North America, yet when I was younger I wanted to go to different countries, but as I got older, it wasn't such a big thing, which is the opposite of many. We have an older motorhome we use fairly extensively and find it to be our 'home away from home' retirement travel for now.
Paying cash is key. That point when you get out from under making interest payments on purchases is one of the most liberating experiences in life. That's how you start to build personal wealth even on a modest income....stop paying interest to banks and credit card companies.
One thing about using your Visa outside Canada is first check your terms of service. My TD Visa just added a 2.5.% fee to all foreign transactions.
I have a Toyota Matrix and will have it until I don’t have to load my kayak on the top….scratch city. I am looking at hybrid. But I am doing my homework and there is no rush. I added on to my house. It was cottage size so I added on a living room, bed and bath and did a kitchen reno. All on one level, thinking about ageing and mobility. I used part of my inheritance so I owe nothing and am debt free. I look at many people who buy a holiday home. You are right about all the expenses. Years of renting for a few weeks is so much cheaper. I love to travel, but Covid had put the kibosh on that. I travel sensibly and use the opportunity to see friends. I watch videos on travel and make the most of my trips. I don’t need fancy hotels, just nice and clean and convenient. I do go for nice meals and go have a drink at the bar at the Ritz or the Palace for fun. My mom taught me that trick! Thanks for the hints!
We bought a home in Phoenix in 2012 for just over 300k when the dollar was $1.02 in our favour and house prices in Arizona were very low. Now with the dollar around .73 and inflated home prices in Phoenix our home is worth around $900k. We spend about 51/2 months south not the 2-3 months that you mention.
Great timing! Hopefully these opportunities come again in the next 25 years...
should have sold while you were 600k ahead. prices are going down from here
@@gregh7457 maybe but Canadian dollar is still dropping against US $
Screw the haters Adam, you have your pulse on the situation, more than anyone can imagine !!
Lol thanks Joe.
You were right with your first comment - never finance a car. Financing a car at 0% financing is rarely free. There are admin costs, sometimes there is rebates ($2000+) that you would get by not financing, etc.
Exactly - and at the end of the day most people that take the 0% financing couldn't buy the car outright if needed - which to me is the red flag.
If there are discounts available for cash purchases then in reality it’s not 0% financing.
They normally just increase the price of the car to make up for the 0% financing
Go to vacation destinations and see all of the empty homes. It sounded like a good idea at the time
Agree about not buying fancy new car if can't pay cash. On the other hand, in your example, if you buy an expensive Tesla, your fueling and maintenance costs will be lower (if you can charge at home most of the time) especially compared to a similar fancy gas car that needs premium gas.
Happiness isn't determined by how much you have, but by how little you need.
I retired the end of 2019. Instead of spending, I started saving, downsizing and paying off debt. I worked 46 years and am doing better retired than I ever did while I was working. I absolutely LOVE being retired! Never knew life could be so good. I'm single with no children so no one to support. It's all about me! Not that I'm selfish but that's just the way my life turned out and I'm truly enjoying myself. I don't go out much and didn't own a car but I've discovered Lyft and I love that, lol!!! Took a trip to Monterey, CA last year for my birthday and this year I went to Seattle. I'm hoping to take one of those Rocky Mountaineer tours...I love trains! I'm thankful and feel very blessed. With the current administration, sheesh, selling us down the tubes, I don't know what's going to happen. 😑 Hope God will bless me with a few more decades.
As opposed to the former Admistration run by the Golden Mussolini and his MAGA Fascists who collectively fomented a Coup against American and Americans. The real Patriots on January 6th, 2021 were the Caltol Police who fought against a pack of treasonous Domestic Terrorists. I would rather be on the side fighting for Democracy and the Rule of Law rather than on the side fighting for Domestic Terrorism, White Supremacy, Fascism, and taking away the Civil Rights of select Americans.
I want to go live with the Elephants
Great information. My one vice is new cars, but always pay cash. In 2019 I purchased a luxury electric car that was discounted because they were not selling well. Manufacture offered 0% financing. They had a unadvertised offer of $7,000 credit on purchase price if you did not take the 0%. I was very happy to take their offer. I hate paying interest.
Well done Jerry. Now just watch the charge level 😄
That is an absolutely great video, thanks Adam
When traveling to Europe, we always stop in NYC for a visit (our former hometown) and then fly economy plus to Europe. Don't need first class for a a sub- ten hour flight.
I’m from the USA and really enjoy your retirement tips. I will be retrieving in 6 weeks and have a pension and investments. I was drawn to your channel months ago because so few discuss pensions.
Thanks for watching
Each of your points are excellent, well done sir.
Thank you kindly!
My advise … look at your savings … guess your remaining years on the planet add 10 years and then live within your means … enjoy your time … do things .. appreciate everything and everybody … love what you do and enjoy what you do …
I Have A Few Former Coworkers Who Blew Through Their Retirement Savings With Big Ticket Purchases. We Decided To Hunker Down In Our Current Home In Retirement With Our Kitties. Our Children Are Grown Living Elsewhere....YAY!
The second home is wildly different from the rest. It is an appreciating asset. Here in Florida, plenty of "snowbirds" are thrilled with their decision to buy a second home here. They love spending their winters here, and their FL home is worth double what they paid for it.
Insurance has quadrupled……😮
Good advice and not just for retirees
Great validation. Thought I had retirement figured out and became disabled and unable to work at 58!! Took 3 denials to get disability and drew down lots from savings to survive in cash bought home at $6k/yr. Now back to aggressively saving and rehabbing home to age in place. When pandemic cools and strength more reliable want to travel but for now can only go short distances so very glad I traveled lots in 20's and yes, walked , stayed at hostels, ate lightly and locally. I actually paid credit card so had negative balance as bill would come while I was out of country, enclosed a note saying please extend amount if I wind up in foreign hospital which am sure gave someone a giggle. Now when wanted an alpaca sweater which I could knit but yarn would be really high I taught myself how to spin so buying raw fleece for 1/5 the cost. There is always a way to go cheaper
I brought a brand new 2020 Mazda CX-5 2 years ago. I have no regrets. My pension pays for the car payments.
Yes. That is exactly why we worked all those years to earn a pension.
You didn’t buy it, you financed it.
@@yves8639 what's your point. I am retired and live below means.
@@CGB65 Exactly!!
I have a CX 5, a fantastic car.
Regarding where to live: When you become less active and need more care and oversight you should go live near family. There are really two phases to retirement...
Or, go on a cruise have the cash to go - buy discounted gift cards ($100 for $$90) and pay with a credit card that has rebates - you can save a ton of money.
I'm 65 and not retired yet. I'm going to work another 2-4 years. I like all these suggestions. I have read that you don't need an expensive car, but you need a reliable car in retirement. Freedom and independence are better with a reliable vehicle. I'm buying a new 4x4 truck this month that I can use for offroad exploring we want to do close to home. I am paying cash and buying direct from Ford to avoid dealership add-ons. My only other car is 12-years old (also bought for cash) and I'm hoping this new truck will let us go places we couldn't otherwise enjoy.
Couldn’t you buy a four wheel drive that is smaller than a truck? We own a Subaru Forester and it can go a lot of places that a regular car can’t. Unless you are hauling stuff, chopping wood etc… I would find a truck too expensive on gas. We plan on going electric on our next vehicle as this is the way of the future. I am 52 years old and when I retire we plan on dropping to one car so at least we will save over having two cars now, that we need because of us both working.
@@moewilson4605 If you've ever been off-road, you will know the difference.
I sent this to my grandkids, many thanks
Thanks for sharing!
Retired 6 years ago. Haven't had chance to get bored yet. Get involved with a Rotary Club or similar, home maintenance, days out, walks, holidays, in fact they are so rare, I enjoy a day with nothing to do.
My Tesla is the first car I've ever bought that I can get all of my purchase price including tax back now, a year and a half and 24000 kms later!
BFD
Umm, you have a signed contract. They can't come back and say "We're changing it to 5%". Unless you default. But I completely agree - always wait for zero percent. And buy what you can afford for sure.
We bought a second property (a condo) within a couple of hours drive so it's easy to get there regularly. We could have just left that cash in investments or put it into more real estate....so far, it's appreciated in value over the 10 years we've owned it by a lot....yes we've spent a lot on taxes, condo fees and renos but at least we're using it
Len, sounds like a great buy and a wonderful place you are enjoying. All the best.
You are speaking my language. Subscribed to see more of what you have to say in good advice.
Thanks K W. Welcome to the channel.
I just retired a month ago and my dream is to roadtrip d whole US in a self converted van where i can sleep or rest during trips. It doesnt have to b fancy conversion, but van must b newer to insure no hiccups. I can pay cash for it but i just want to put a big downpayment and finance d rest. It has to have a bathroom for those middle of d night trips. I have some small trips planned this year and next year, but as soon as i have d van, i will make trips 3 months at a time and take a break during d winter season. I dont like snow or driving issues associated with it. I plan to keep my homebase for d winter break and when i can no longer make trips... i agree with most of your suggestions😅
Instead of a bathroom for the middle of the night why not an empty gallon water jug?
I totally agree with all of your "don't spend your retirement money on" list. I definitely agree with never borrowing money to purchase any vehicles at any age. Always think of vehicles as a consumable and never think of them as an investment. When you think of them as a consumable, it will change how you look at vehicle purchases.
I saw an article recently that describes us: don't travel in business/first class ....because once you do, economy just won't fit it anymore, even premium economy is hard to accept
Cash? It is becoming a cashless society.
Get your kids out of the house. Get your house paid off. Get your cars paid off. Pay out your credit cards and keep them that way every month. Don't make debts. Pay cash. Retire and enjoy.
What house?
@@samanthathompson9812That is, if you have a house. Good point. I guess I should include paying off homeless tents also.
The Wealthy Barber basics
I have traveled my entire life, in the navy, and merchant marines. I completely squandered my youth. But I still managed to own 2 houses outright, I haven't had a car payment in 15 years. When I paid off the car. I kept making the payments to myself, same with the mortgage. I only have 18 months left before I retire. I have all my hobbies pretty well supplied. I still need to build a shop, that will be soon. Overall I have had a good life.
I am originally from the UK and my Canadian partner and I were considering buying some property so that we could stay 3 to 4 months there in retirement. While it is possible to buy some fairly cheap property there, the taxes and utility bills can be high so looking at buying a small RV and inflatable tent. There are lots of good camp sites for around $35 per night and there are also some nice B&Bs for about $80 per night.
Great videos, thanks. I appreciate your advice and insights. Altho I've been retired for a few years now, I only have my own perspective!
I spent all overtime and extra income on paying down my mortgage so I could retire without a mortgage. I did retire and without a mortgage. But I had a 30 year old home that was tired. Many things need updating.
Excellent advice
Thanks Audio Tech!
In retirement I do pay cash for everything though you may think I am offside in some other areas. We did buy a 2nd house down south, in Mexico actually. We rented for the first 5 years but it was becoming increasingly difficult to find a decent high season rental. We picked a temperate area of Mexico in the central highlands so no need for heat or AC, generally it's 26C in the day and 16C at night year round. Property taxes on our gated community townhouse are CA$150 a year and the HOA fees are about CA$50 a month. There is still home maintenance, you know houses, there's always something to fix, and I wouldn't call it an "investment" in the make-money sense of the word but it does enhance our lifestyle and we are there about 5 months of the year. When the time comes to sell who knows if we'll make any money on it, we could potentially even lose some money, but I am sure it won't be a total loss.
We have travelled a lot since we retired in 2015 and recently we have started flying in upgraded seats. I am 6'3", my wife is 5'10", and quite honestly being jammed into an economy seat on an overnight flight to Europe has lost its appeal and we're not getting any younger either. We are getting on to 8 years in retirement so have a good feel for what we can afford and while it grates a bit when I make the upgraded seats purchase we really appreciate it when we are on the plane in the air.
Bought the Cadillac when I first retired. Love the car and its getting old enough now that I'll probably be buying the next one in a year or so. It's a splurge for sure but like the upgraded seats on the plane it's certainly nice when you are sitting in it.
We both turn 70 next year (and will be starting our CPP & OAS pensions then) so we are now in the back half of the Go-Go years and things will be slowing down soon enough but life is pretty good even if I perhaps haven't followed all the rules.
I'm looking forward to the day I can upgrade my flight because economy seats are way too small for my legs.
Good for you sounds like you're doing well
Nice if you can afford it. But why buy a Cadillac? There are far better cars that are cheaper.
@@mrofnocnon it's your money, buy whatever you like.
@@mrofnocnon subjective opinion of course predicated on your criteria. I actually bought my wife an xt6 and basically it was because I said the hell with it I'm almost 55 and have been saving my whole life when am I going to start living? The car is amazing and I'm sure other vehicles have advantages as well as disadvantages to them
I just bought a 50,000 car this year with a 10,000 down payment and financed the rest at 2% interest. At this current inflation rate (way higher than 2%) the financing is just basically free money. Feels like I'd have to turn off my brain to think it's a good idea to sell a part of my stock portfolio to pay for the car in cash, when I can just keep the money in stocks that are expected to be a way better investment than a car anyway.
So I _could_ pay for the car in cash if I really wanted to, but there are just way better ways to allocate money.
Am I missing something?
Not about the interest.
Isn't there a finance fee when buying a car (not cash, but at 0% interest) just for having the loan? That's what I had a few months ago (paid off at that time, not rushed).
I agree with everything you said. You and I are on the same wavelength.
I’m from the PNW. In spite of the area having the highest per capita boat ownership in the country the common saying was “a boat is a hole in the water that you throw money into”
Or 'the best boat is your friend's boat'
I have done it all. The real answer is spend within your means….
Your videos are so helpful and informative, Adam. Thank you very much :)
I just bought a Caravan. I live bush so a trip or holiday to the city costs $200 for a cheap motel up to $650 for a hotel p/night...IF you can get one, compared to $50 p/night for a site. I also bought a caravan (trailer? Im in West Australia) as opposed to a RV because the rego is under $100 p/a as opposed to $1200 for a vehicle.
I am thinking of the necessary trips to Perth as well as holidays around the state. I feel I have made the right choice.
Non of these were a problem! I bought a few things I always wanted since a child, cameras and photo colliers that I used to work through college and my hobbies that fell away, restoring my Corvette, updating house, and reopened my business so my house got bigger for the work space.
Good morning I know this is an old video. But if you pay cash for a new vehicle you will pay more there is a cash buyer price and a finance price. You're better to finance the car then after 1 month go in and pay the loan off you'll save money from the island have a good day. But I do agree with a lot of what you say
Great advice$
I agree with cash. I bought a car and i had taken loan with a 2% interest rate. I had cash in bank to buy outright if i wanted making 5% interest. Perfect at the time. Australia 🇦🇺
Actually 1K condo fees are not that unusual in southern Ontario. The flip side is that property taxes and heating costs are much lower in a condo.
If you're oversees travelling, why waste money on lavish hotels when all you need it for is to sleep the rest of the time you're out and about seeing the sights.
Great Advice , Thank you.
You got my like at the 11:50 mark! 100% agree with that.
Thanks Fred
Excellent advice!
Thanks Mark
Best advice ever.
Couldn't agree more. Everything you said, I agree.
Agree but the home
Grandparents can even pay for hotel and car rental if needed
Retirement is great if you can afford it otherwise it just sends you into depression.
A follow a number of retired people that have you tube channels. Some of them are clearly on fixed monthly budgets with not a ton of money for example living on a pension. What blows me away is the money that some of them spend on international flights. Refusing to fly economy alway flying business or first class. So instead of several hundred dollars for a long international flight paying several thousand dollars.
I bought a Tesla Model 3, and I save the equivalent of the monthly payment in zero gasoline and maintenance cost along with Tesla insurance and financing. Tesla insurance is based on how safely I drive, not driving history. Also, Tesla keeps lowering the cost of its vehicles, especially the Model 3 and the Model 2, soon to be released for sale, reportedly around $25,000. The cost of electricity to charge my Tesla is less than 40% of the cost of gasoline for the same mileage via my level 2 home charger.
I stopped half way thru this video. Yes, save all your money for a better graveyard and a larger estate for your family! Don’t spend any money that you earned yourself! Trust me, I worked 5 years beyond eligible retirement date and that’s a big mistake. The extra pension I earned cannot buy me health nor time! It is 5 years I lost . Go buy that sports car now! You may be dead tomorrow!
I agree with you, absolutely. I retired early and never regretted it.
@@Teporamesame same
Have always paid cash. Built my own house on a cash basis over a few years
and lived in it once the roof and windows were in. (no interest expenses).
No regrets buying an exotic car. Yes, pay cash; buy depreciated, and find a good independent mechanic.
Or, learn how to fix your vehicles yourself. You’ll never regret becoming more self reliant.
A neat and unique car can be worth every penny if you don’t lose your mind buying one! Convertibles are a great starting point in my opinion.
If I was supporting my kids who are in late 20s or 30’s, I would have failed as a parent. My wife and I started 38 years ago in a small apartment and air mattress. What we have accumulated to now is though hard work and sacrifice. Please don’t guilt empty nesters to support adult kids. Let them figure it out themselves and they will appreciate what they did
I'm 66 years old and I still work fulltime just so that I can put food on the table.
Defer your pensions till 70. Build your rrsps as quickly as you can.
You will be just fine. If you need a little extra nothing wrong with a part time job
Cash is king zero debit.
I'm done flying back and forth from Europe in economy. Premium is the way to go at our age.
100 percent true 👍