How To Guarantee Your Retirement Income Needs
ฝัง
- เผยแพร่เมื่อ 30 มิ.ย. 2024
- Business Inquiries: info@wellbuiltwealth.ca
Well Built Wealth: www.wellbuiltwealth.ca/
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Planning software we use: Conquest www.conquestplanning.com/en-c...
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Intro (0:00)
Annuity Basics (1:08)
Scenario #1 (2:37)
Scenario #2 (8:39)
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DISCLAIMER: All videos on this channel (including this one) are for educational or entertainment purposes only. They are not (and are not intended to be) financial, investment or legal advice. It is our firm position that everyone has a unique situation and should seek professional advice on how best to navigate it. Rhys Martell is a Chartered Investment Manager (CIM), a Fellow of the Canadian Securities Industry (FCSI), a Qualified Associate Financial Planner (QAFP) and more. However, he is not registered to provide investment advice and, therefore, does not provide specific investment recommendations. Those looking for specific investment advice should seek out a registered professional.
I sold my soul to the Government for 30 years but now am enjoying the benefits of an indexed DB plan with bridge. I’ve no regrets but it’s not everyone’s cup of tea. Waiting for the day I’ll have my pension, CPP, and OAS when all the longevity risk is transferred to the Government.
Well said :)
There's much worse jobs than working for a government, and they likely have crappy high fee DC plans, if anything at all. 30 years in a DB is fantastic.
When I was younger and didn't know better, I put 12 years of a DB plan into a LIRA. I regret ever moving it out. Buying 12 years back now would be horribly expensive and the dollar value would only give me three years. Oh well. It is what it is. I'm back in that same pension plan and have been for about 5 years now and plan to say until I retire.
Love the scenarios you cover. Really helpful in educating us of the options in retirement. 👍
Thank you!
I’ve been thinking about annuities again. Originally I dismissed the idea… and to quickly. So many “what if’s” to think about. Running the numbers… before eliminating the concept is the smart thing to do. Thanks for bringing this forward.
Yeah, they had a long hiatus but they’re definitely making it back into conversations.
Annuities are probably a good option for singles or people who don’t want to leave any inheritance and also for people who have no idea about investing. Managing your own portfolio has many advantages and at the end of the day I think it’s the best option of all. Thanks for the video.
Fantastic video, I have been playing with the idea of a annuity to do exactly that (help cover essential expenses) ...I do think they make sense in certain cases and through the research I have done, my situation may be one of these cases
I’d like to see a video from you on covered call ETFs for passive income during retirement. Good idea? What are your thoughts! Love the content btw !
People focus on passing away early but the risk is the same for DBPP and annuities they in practice function the same way. If you don't like annuities you should also dislike DBPP.
Also note as part of a DBPP you still give away your capital (your contributions) only its done in installments over your career.
Second point does the plan you created include fees paid to the financial planner and fund Companies?
Thanks for the idea. Lifetime annuities aren't for me, but the 10 year idea has me thinking.
You spoke about annuities being an option for people who don't want to carry investment risk. What happens if the insurance company goes out of business (or otherwise struggles financially, and is unable to make full payments)? Is there a way to judge /compare the risk levels of annuities provided by different insurers?
Solid question! Insurance companies are also insured by other insurance companies and in Canada the regulations around all this are pretty tight. But I would definitely recommend that you use an insurance company that has a deep and long reputation of fulfilling their obligations. Always do your due diligence or work with an advisor that you trust to do this for you :)
Do you have any videos on disability financial planning, everything seems to be on the assumption people are healthy and abled body.
Sorry. That’s not a speciality of ours.
I thought that one of your earlier videos said that you must be a Canadian resident to claim OAS. How can Harry"s budget including OAS if he moves to the Philippines?
Nope. You just need to have been a Canadian resident for at least 20 years after age 18.
Thanks for the clarification. I've always said if my wife pre-deceases me (heaven forbid!) that I'm selling everything and moving to Jamaica!
For the 2nd scenerio, isn't it a good idea to get a 150k annuity? ~$1870 per month will give back about 50% more in return .. approx 224 k in 10 years. This amount if not spent can be reinvested. Any thoughts?
This was just one example. You can try any numbers you like and see how they work.
How come you don't factor in the no go 70 and 80 years of age?
Which companies offer annuity and is there a website you can compare them. Thanks
Tons of insurance companies offer them. Not sure about a public website for quotes though. Advisors often use a service called CANNEX.
@@wellbuiltwealth Thank you
I think everyone should know by now that waiting until later for CPP and OAS is a benefit unless you plan on dying early or haven't saved at all for retirement. And let's be honest, people who haven't taken care of their finances aren't watching this channel.
Not a blanket statement. Someone could still be concerned about their finances, even though they haven't taken care of them in the past. Im on a decent db pension and still considering CPP at 60, mainly because I would like to pay down debt. Sure, I could pay it later with the bump in CPP-65 but if I expire before the financial advantage is realised, then the wife is saddled with the larger debt.
Nobody knows when they expire 😂
Some know they have fewer years than others, honey...if they find out they have Parkinson's, MS, prone to genetic diseases etc...@@marjorielicup7514
That's what makes it a blanket statement - it's going to be true for most people. You're an exception? Hooray for you. Although your situation doesn't sound great.@@davecarpenter4917
@@marjorielicup7514 True, but it can be easy to tell when people are past their "best before" date. 🤣
Maybe I’m just missing this,but are annuities taxable?
Yup! But how they are taxed depends on what kind of account you hold them in etc.
Unless, you hold them in a TFSA I suppose…
I wouldn't find it easy to hand over my money for an annuity. Perhaps I need to feel the pain of a crash at the wrong time, but then of course, it'll be too late!
Well said!
If OAS is a "social program," and therefore prey to the attacks all social programs increasingly undergo, can it really be called "guaranteed"?
Fair. Nothing is really guaranteed.
The Conservatives did increase the eligibility age to 67 in 2012, effective 2023 - the increase was cancelled by the Liberals. So, for sure, it's not guaranteed .
the most likley thing to happen would be a steeper clawback which will affect richer retirees