Відео

You should be able to leave your money in uour rrsp and withdraw it as you see fit rather than having tomturn it into a rif and have mandated withdrawls ehether you need that amont of money then or not. That would be a real self directed retirement plan as opposed to what we have now. In the end the residual amount is taxed at the top marginal rate anyway.You should be lobbying to change the law rather than explaining what we have now.

First video after watching hundreds where this is the route im thinking of taking. As well as taking it out early, you can invest this early cpp and take out less from rrsp or lira

The biggest problem with the CPP is its performance. According to some studies the CPP average annual return is around 2%. " For Canadians born after 1956, however, the CPP rate of return is a meagre 3.0% or less-and that rate of return declines further to 2.1% for those born after 1971. So, if you place your contribution in GICs instead of paying CPP you might have a better return. If you take the CPP at 60 and you invest it yourself for 10 years you'll get a better return than delaying it to 70.

Between threats of taxing unrealized capital gains, a near refusal to let Canadians leave, frozen bank accounts of protesters, imprisonment of men who don't pay alimony that they don't have and can't get, the tossing of prenups, and the blatant dishonouring of wills, I'd say spending and giving most of your wealth away before you die is a far more sensible option than having faith that your rights to decide over your wealth will be respected after you're gone. Only reason I listed the rest is to point out that it's a clear trend.

This is a ridiculously simple example that does not talk about some very important considerations. Starting CPP early can impact tax effective RSP redemptions. If you start the CPP income at a younger age, you either pay more in tax for your RSP withdrawals, or you further defer them until they become RRIFs, when minimum withdrawals are mandated, regardless of whether you need the money, or if it is tax efficient to take it out. In my personal example, starting CPP at 60 would cost hundreds of thousands of dollars to my estate, owing to higher taxes that will be paid. There is a similar gain by deferring CPP from 65 to 70. These numbers have been confirmed and stress tested by professional financial planners. There is a second benefit to delaying CPP, and that is offsetting the risk of poor returns. Delaying CPP results in higher payments that are indexed to inflation, and guaranteed, no matter how the market performs. If you start CPP early and are relying on your investments to cover living expenses, then your portfolio must have adequate returns to outpace inflation, which means you have the stress of managing your money. There is a 3rd consideration, and it is a big one. The average life span of a Canadian living today is 87. Yes, we all know someone that died much younger than they should have, but there are many people living will into their 90s that offset these early deaths from a statistical perspective. So if most Canadians will live to 87, most Canadians will benefit from a later CPP start, even if it is at 70 and the "break even" age is 83. So yes, it is possible that some people will die younger and not have wrung every penny out of the government, but this is not the norm and should not be the basis for laying out a prudent plan to managing finances. The videos that Parallel Wealth produces for retirees do a fantastic job of laying out these concepts and more, with concrete examples. They do a much better job of presenting ALL sides for consideration. I recommend checking them out (and know that I have no affiliation with them).

If you are still working full time until you are 65 then it makes sense to take it when you are 65 but if you retire at 60 then it makes sense to take it at 60 unless you don't need it. It may be better to draw down a RIFF because of the tax implications when you die. For larger RIFFs, the government are going to get a lot of tax back if you die early

“My math” = wrong. I can’t take anything else this guy takes seriously if he makes such an obvious mistake on this simple problem

the information within this video isn't complete and IMO miss leading... this is by far a better more accurate video.. ua-cam.com/video/PQVvWDOXKKo/v-deo.html

why is CPP mandatory? I want the right to opt out

I submitted my CPP Application to activate at my age 61. Just a few week after my birthday. During age 60, we live off some of my company pension and saved up RRSPs. This works for us....

I am sure comments will be mixed, it is situational. I took CPP at age 60, I had been retired since 50. The addition of the CPP to my curated income still meant I paid no tax, and I did not need the CPP money, so I invest it in my TFSA. The "break even" point of 74 is actually extended to 86 using historical stock market returns of 7.41% (optimistic) - however, taking CPP early definitely depends on your tax situation.

This is misleading.

Your math makes no sense.

Because when you take the paltry cpp at 60 you need to rely on depleting your savings to survive. The average person who is making decent money can continue to accumulate funds to better ensure comfort in old age. If you're in good health keep working. Is the host part of a reverse mortgage company? Cat food manufacturer?

Wrong!!!

"Great explanation! If you're retiring at 60, it makes sense to take CPP then. That's what I'll be doing, while deferring my RRSP withdrawals until 65, using only what I need to live on. If you're planning to work until 65, then it's better to wait and start CPP at that time. Keep in mind that if you retire at 60 and defer CPP until 65, your benefits might be significantly reduced, as they'll be based on your income during those last five years, which could be lower."

By the end of minute one you can understand why the math is totally wrong. No adjustments made for inflation indexing built in to CPP. Sorry, right there the credibility is completely lost.

Is it wrong to continue to work and still draw cpp at 60?

Good for CPP if you take it at 60. They save a couple hundred thousand per person

Bad advise better to melt down rrsp with major tax savings and take ccp later as any money you have in rrsp at death is taxed at 50%

You can also send 50% of your lira to a rrif when converting to a lif as rrif has no maximum withdrawal unlike a lif

If your melting down your rrsp the tax savings more than offsets what you say your losing

End the death tax and reduce ALL taxes.

Interesting conversation to be sure. I'm very two minded on this decision though. I think it will come down to where you will fund your life while not taking CPP. Personally, I still think it makes sense to defer CPP as long as possible because I intend to work at least part time to cover my lost CPP during those years. If you will be bleeding down your funds, I do tend to agree with your point of view. I think it really comes down to sitting down with a financial advisor and running the scenarios.

It may not be available if you wait till 70…. That’s putting too much trust in the government

Everyone’s situation is different. I am 63 and have been working to de-register my RRSPs/LIFs. CPP gets in the way by increasing my tax rate. Die with money registered in RRSP is more money wasted in Taxes more than a few CPP payments.

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

This dude is math disabled.🤦‍♂️

And if you get CCP, for every dollar of ccp gis is reduced by .63 cents per dollar. So ccp is worth 32 cent instead of a dollar.

If I am getting OAS and CPP and a small pension from work , are all those have to be included on the 19,000 income . ?

So for a single person , earning less then 19,000 was is the amount you can expect to get ? .

All these experts NEVER factor current income and tax liability. I am 69 and did not want to have an even more reduced pension because of taxes. If I am still alive when I turn 70, and get my expanded pension, and my other incomes stop, I will be comfortable and smiling. Besides, those who took a pension at 60, do not enjoy the larger inflation and other pension adjustments.

The overall value is not the way the average person lives their lives. It's the monthly expenses you need to live. $1000 goes a lot farther than $700.

Bad advice 👎🏼

There’s so much more. This guy is giving out false info .

The way I see it, the government has done the math. If they want you to defer your cpp, it must mean they will benefit over you in the long term. I have learned that I should actually do the opposite of whatever the government says I should.

CRA has denied my ex spouse . She is presently working and collecting CPP and OAS. She wants to retire but her CPP is too little . They base her income on last year's total income but her income after retiring will be $800 per month .She would have to move to the street. Can She collect GIS after retiring without waiting 1 year for her tax return to show only her actual pension amounts ?

You are not considering strategies such as RRSP meltdown. Please do not take this advice as true for everyone. Speak with a qualifed financial planner (I am a CFP holder) who understands a wider picture. There are benefits and tradeoffs to every strategy out there. What he is saying may make sense for some people, but not others.

"By my math..." is something you shouldn't say until you learn how to better use math. You need to actually figure out the entire financial pictures... something anyone giving advice needs to do before they start trying to offer anyone advice.

Tax brackets people...Tax brackets OAS clawback people....OAS clawback Single/Married? That comes into thought process too. Best to have your own scenario analyzed by someone you know who understands finances.

If you like your job why collect at 60? If you need the money at 60 my question is what did you do with all the money you earned before that?

Deferring CCP can make a LOT of sense, and anyone who doesn't understand that should not be giving advice to anyone else!

I am also loving the information you have here and would love to collaborate.

This guy math is completely OFF. If you get a 1.75% Increase with indexing. Would you rather have that on the 1000 a moth or the 640 a month. That's only the first year. What about after 15 years of inflation increases. It's compounded back to the first year. You are getting increase on your exising increase., you may need that extra money one day in the future. What if you live well past the 74. You loose the 36% and the inflationary increase for the rest of your life. If money is tight already and you are still working. Wait till you are at least 65

I have watched so many different points on this so frustrating how do you know who’s correct everyone says something different really frustrating. This vid makes sense so does the last one I watch that said 65 was better WHO IS CORRECT FRUSTRATING

I am now dumber for having listened to this. SMH. The 60,000 you're spending regardless. if you retire, it's not like you're going to make an extra $60,000 so your math is flawed. huge.

does the growth count dividends? you put in the $81,000 and it grows to $90,000 so $9,000 in dividends?

Everyone’s financial situation is different. One size does not fit all. Retirement age, RRSP’s and OAS clawback weigh into my decision to delay collecting CPP.

Every situation is different. While I agree you need to look at the big picture of how your retirement is funded, the best way to do that is to run the numbers and see which option gives you the most money. Financial planners have software that will do just that.

I disagree with you .. I waited till 65 and so happy I did !