As opposed to different rates of return, I like and prefer your conservative 5% approach, coupled with using a 2 year cash wedge to hedge against market downturns. If I know my retirement is good with these 2 approaches, then bigger return years are just a bonus where I can buy something, spend more on travel, push back into TFSA, etc, etc
I plan to live to be 100! And i don’t plan on running out of money. Delaying QPP (in Quebec) and OAS for as long as I can. And I’m also generating money from an online business while I sleep. Using the RRSPs before everything else. No kids so no need to save it!
One of the fears I have is leaving my financial planner. How do I tell him I want to go elsewhere? I don't feel I'm getting the information I need from him including all you mentioned above and so much more. He never tells me exactly how much I pay him...I know it's 2 % but what is that dollar figure actually? I also feel that's now too high as I am retired. Is there a cost associated with moving planners? Maybe this is fodder for an upcoming video. If you've already done it....then thanks!
@@johnperry1907 I've moved financial advisers and I don't recall it costing me anything. You don't even have to tell your current financial adviser, the new one you select should handle everything for you.
Such valuable advice! 💡 Stress testing your retirement plan is a smart way to ensure financial security for the future. These 5 tips are super practical and really help put things into perspective. Definitely going to apply this to my own planning. Thanks for the great insight!
The whole "run out of money" thing is why we deferred our CPP & OAS to age 70 that we started last year. One thing I can be sure of is that these indexed pensions will never run out for as long as we live and I have no other pension income. For me it's not about squeezing the most money out of the government, statistics say I have a good chance but who knows? Either way with those enhanced government pensions (combined we are receiving a bit over 63K a year) I know we'll have a guaranteed income that will be enough to get by on no matter what happens.
The only comment I will make is you have to run the stress test scenario like Adam said in this video... Because that 63K a year could very easily become 31.5K a year. Although the 63K is a nice number it's only guaranteed while both are living. We are delaying but will not delay till 70. Our Foundational income will cover all our needs with an age 65 CPP & OAS start as long as we are both alive but on the off chance once of us passes away say at 75 I like having a very healthy reserve for the survivor to fall back on should they need too (in our case that will be our TFSAs - hopefully fully funded along with a house to downsize or sell if LTC is required). All RRSP funds will be deregistered in around age 79). Important to note I do have a DB plan that will provide for survivor benefits of 100%, hence wanting to have a little protection on the off chance one of us doesn't make it to life expectancy. Will give up the cumulative difference of around $33K from age 65 to age 86 on CPP - not a huge loss when calculated down to a monthly net basis considering the cumulative loss is over 21 years.
@@DoneByD Of course but even 31.5K guaranteed isn't bad for one person, probably a bit more with survivor benefits but I take your point. Also any savings we have at the time plus the mortgage free home will all flow to the survivor so they should be okay. All going well we will pass away within a few years of each other. We are the same age and typically the woman outlives the man by about 2 years on average, but again, who knows. At the end of the day you can only make your best guess with the facts you have available to you at the time.
@@ddavidson5 I agree it's all a best guess and hopefully it works out in the end. I'm also not as concerned as I once was with getting the max out of CPP. Basically utilizing that income flow with a balanced approach in the overall retirement plan ensuring each or both of us have the money we need to enjoy the things we want to enjoy while we are on this earth.
Having an indexed pension is why I would never consider waiting until 70. I'm double dipping in Pensions. The reality is I paid into them both my whole life.
As opposed to different rates of return, I like and prefer your conservative 5% approach, coupled with using a 2 year cash wedge to hedge against market downturns. If I know my retirement is good with these 2 approaches, then bigger return years are just a bonus where I can buy something, spend more on travel, push back into TFSA, etc, etc
I plan to live to be 100! And i don’t plan on running out of money. Delaying QPP (in Quebec) and OAS for as long as I can. And I’m also generating money from an online business while I sleep. Using the RRSPs before everything else. No kids so no need to save it!
Lots to think about
Just purchased your course. ❤. My children are in university, hoping this helps get them off on the right foot. I plan on working with them on this.
Wonderful!
One of the fears I have is leaving my financial planner. How do I tell him I want to go elsewhere? I don't feel I'm getting the information I need from him including all you mentioned above and so much more. He never tells me exactly how much I pay him...I know it's 2 % but what is that dollar figure actually? I also feel that's now too high as I am retired. Is there a cost associated with moving planners? Maybe this is fodder for an upcoming video. If you've already done it....then thanks!
@@johnperry1907 I've moved financial advisers and I don't recall it costing me anything. You don't even have to tell your current financial adviser, the new one you select should handle everything for you.
Just leave! It's your money.
Just tell them you are leaving town
Such valuable advice! 💡 Stress testing your retirement plan is a smart way to ensure financial security for the future. These 5 tips are super practical and really help put things into perspective. Definitely going to apply this to my own planning. Thanks for the great insight!
The whole "run out of money" thing is why we deferred our CPP & OAS to age 70 that we started last year. One thing I can be sure of is that these indexed pensions will never run out for as long as we live and I have no other pension income. For me it's not about squeezing the most money out of the government, statistics say I have a good chance but who knows? Either way with those enhanced government pensions (combined we are receiving a bit over 63K a year) I know we'll have a guaranteed income that will be enough to get by on no matter what happens.
The only comment I will make is you have to run the stress test scenario like Adam said in this video... Because that 63K a year could very easily become 31.5K a year. Although the 63K is a nice number it's only guaranteed while both are living. We are delaying but will not delay till 70. Our Foundational income will cover all our needs with an age 65 CPP & OAS start as long as we are both alive but on the off chance once of us passes away say at 75 I like having a very healthy reserve for the survivor to fall back on should they need too (in our case that will be our TFSAs - hopefully fully funded along with a house to downsize or sell if LTC is required). All RRSP funds will be deregistered in around age 79). Important to note I do have a DB plan that will provide for survivor benefits of 100%, hence wanting to have a little protection on the off chance one of us doesn't make it to life expectancy. Will give up the cumulative difference of around $33K from age 65 to age 86 on CPP - not a huge loss when calculated down to a monthly net basis considering the cumulative loss is over 21 years.
@@DoneByD Of course but even 31.5K guaranteed isn't bad for one person, probably a bit more with survivor benefits but I take your point. Also any savings we have at the time plus the mortgage free home will all flow to the survivor so they should be okay. All going well we will pass away within a few years of each other. We are the same age and typically the woman outlives the man by about 2 years on average, but again, who knows. At the end of the day you can only make your best guess with the facts you have available to you at the time.
@@ddavidson5 I agree it's all a best guess and hopefully it works out in the end. I'm also not as concerned as I once was with getting the max out of CPP. Basically utilizing that income flow with a balanced approach in the overall retirement plan ensuring each or both of us have the money we need to enjoy the things we want to enjoy while we are on this earth.
Having an indexed pension is why I would never consider waiting until 70. I'm double dipping in Pensions. The reality is I paid into them both my whole life.
@DoneByD good pension..my surviving pension is only 66%.