Відео

My pleasure :)

Perfect thank you :)

Thank you! and same to you!

Thank you and Happy 2025 to you too :)

LOL --- Careful what you wish for --- might be cheaper overall paying a bit more in taxes ...

Is it always recommended that you withdraw the max from your LIF especially when there has been growth allowing greater than max % or should you really worry about Tax brackets?

😂

@@zone3slo-pitchbcsgs436 On a positive note (depending on your home province), you can transfer from your Lif to Rif a one time transfer of funds. In my case living in Ontario, you can transfer up to 50%.

It is not 'always' but in my opinion it's 90%+. The first thing I'd look at though is if it's able to be split, so you can get as much of that money away from a government inforced maximum

Thanks for the feedback @donebyd :) Yeah EY is usually faster, hopefully it's up this week

no sweat :)

Absolutely, I'll add that to my list :)

Thank you!

Sorry for the confusion! If you are drawing CPP, then they ARE included in the GIS calculation

Thanks for the idea :)

Good points on how one defines fairness. What are out of pocket health care costs for two seniors vs one? What about food, clothing, etc? One of the driving reasons that we do not have a flat tax, is that many tax regulations are brought in by the government in order to help shape a desired outcome. A flat tax prevents the government from shaping behaviour through income tax. Are their government studies which conclude that a senior couple living together requires less government support over their lifetime than a single senior living alone? If so, then the government may want to shape the tax regulations in order to help people to choose to stay together - even if it is for financial reasons and in separate bedrooms? RRSP, TFSA and FHSA were all brought into the income tax out in order to help shape behaviour. Senior (65+) income splitting may have similar reasons for existence - someone wishes to shape a behaviour through taxation.

Many great points! It would be impossible to define fair as it would be case by case. Some costs are certainly lower for 1 person, while something like rent is largely unaffected

​@@ChadWiebeK4 I read the recommendations on the website. I like them, practical.

Thank you and yes I certainly did mean MP

Good point!

sex has nothing to do with this. a single is a single and tax is paid on income irrespective of sex. no need to manufacture yet another issue to divide men v women

No problem at all! I don't have the statistics in front of me but yes, the majority of single seniors are women

I was once in your position. I started investing earlier this year,,, with a start of 30k. I made my first 100k USD last month. Today, I have a decent $260K nest egg. The right investments will change your life. I should retire soon as long as things remain this good. My only regret is not starting earlier.

How did you manage to achieve that level of growth?

Diversification made a significant difference for me. I ventured into real estate crowdfunding, stocks, and the digital market, with the help of my CFA. You need a CFA who can assist you in managing your portfolio while diversifying your investments.

Robert Carlos Wright is my CFA... His expertise in market knowledge and asset management is truly top-notch. Do your research, google his full name you'll find his details on IAPD or SEC

Just did. I found his qualifications, also saw him on the CBC market interview. How can I reach him?

The rising costs have disrupted my plan to retire at 62, work part-time, and save for the future. I can't help but wonder if those who went through the 2008 financial crisis had an easier time than I’m facing now. The combination of stock market volatility and decreased income is causing me concern about whether I’ll have enough saved for a comfortable retirement.

That sounds awesome! Unfortunately not common

No problem 😊

That's what I posted a day before you

@garth217 Great minds think alike

​@@CanuckDividendsok..I'll give you that😊

True! Another great point :)

Sounds awesome!

People often forget about cognitive risk when we get older besides the longevity risk. You made the sound decision. We will do the same.

@@freedomlife3623 Cognitive risk is very often overlooked but I don't expect many will agree or even think of it as a risk. It is often a good idea to defer OAS though it's not quite as actuarily advantageous as deferring CPP, but then hardly anyone defers CPP either. Most people don't look at the numbers or consider risk (outside of "I might not get my money") but rather go with their gut. And their gut tells them "Don't confuse me with statistics, I want my money and I want it now". Deferring the indexed government pensions addresses a number of risks -- investment risk, inflation risk, longevity risk, and cognitive risk. A new one I heard of just recently is: "risk adjusted certainty of returns" a fancy way of saying you don't have to take much risk to get the return. Deferring has a lot going for it but that "gut feeling" to take your money as soon as possible is a strong one.

​@@ddavidson5 only 1% of people defer until 70

The fact is that to be able to wait until 70 to collect both CPP and OAS you required significant savings in either cash, TFSA or RRSPs or other similar products. The problem I have with the delay is you have to use ALL OF YOUR SAVINGS. That means you have nothing in an estate other than potentially a home. I'm a proponent of drawing from all sources rather than being dependent on just CPP and OAS. In order to get $63000 / year you require at least $500,000 ( based on 30% withholding tax). If your money is not exclusively in RRSPs the tax can be lower. I'm my opinion early retirement is and should be your GoGo years. Hence you spend more. After 70 you actually spend 1% less each year. Why not take some benefits early..in my case CPP at 61 @ $10000/ year, that's $90,000 left in my savings at age 70 that I need not touch., once you factor in OAS that's $40,000 more for 130 k. That 130 continues to grow intge RRSPs. Lastly you have to make it to 82 for CPP delay to make any difference at all

@ If I recall you have an inflation indexed DB pension which of course changes the calculations. Either way it's a personal choice based on your individual circumstances and for sure make use of those go-go years, they don't last. 😁

I started CPP at 61 and will start OAS at 65 because I have a Defined Benefit Pension

Right on!

Totally agree. I took mine at 65 and reinvested a portion into stocks. Now, I’m earning an extra $1,100 monthly from dividends. Waiting longer isn’t worth the gamble, especially if health issues come up later

My uncle delayed his OAS until 70, but he only collected for 3 years before passing. He left thousands on the table. Sometimes, it’s better to enjoy your money while you can. Life’s too unpredictable

I would tend to agree

Great point

Sorry for the delay! I have never heard of the notarized copy excuse. The LIRA 50% split paperwork does not need a notary involvment. As for your wife's LIRA, she can absolutley still split it. I will say Ontario is probably the slowest jurisdiction to do splits, but she can absolute do it.

Yup!

I'll add that to my list of future videos :)

haha

Every case is different. The OAS delay rarely has a significant impact. But a negative impact could come down to the level of assets and potential returns. In some cases letting the investments continue on untouched is a greater benefit that the OAS delay

Sounds like your all wet!

I'll add that to my list :)

Financial planning and retirement strategies are crucial, especially in today's economic climate. With global economic fluctuations and uncertainties, it's essential to have a solid plan in place to protect your financial future.

the problem is that most don't have the knowledge needed to succeed in a challenging climate. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high in these challenging conditions.

Consulting with a financial consultant can provide personalized insights and help align your investment strategy with your retirement goals.

I just turned 44 and awfully late to investing with barely any portfolio except my 401k, I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I'm getting worried about retirement, my intention is to retire at How best do l maximize my savings of over $220k

@@camela8445Mar Americans on a Canadian site 🤣

People who make good decisions for decades. Lots can do it but they spend what they should be saving.

Stats Canada says the average Canadian has $130,000 in RRSPs. I would like to see more videos with realistic numbers as well.

@garth217 stats can also says 6.9 million have access to pensions. Those go into the hundreds of thousands. Also, the age of the average rrsp holder is not the age of the people in this d example so you're not comparing apples to apples

​@laundrygoddess4 so what's your point?? Mine was clear. You not so much

@@garth217 my point is clear to money savvy people. Your point was stats can says the average rrsp is 130000. This fact is useless considering the average age of an RRSP holder. The only RRSP number that matters is what the value of the RRSP is when you retire. It's useless to say what the average is when the average still has over two decades of compound growth to do.

2.5% inflation and 5.3% post fee ROI

Unfortunately SNAP doesn't have MonteCarlo BUT under a severe stress test it worked out in the end :) I'll be sure to add some stress testing to future videos

Noted! Thank you for the feedback :)

It's their retirement, not their kids

@garth217 you won. Nice. Congratulations

Will do :)

Fair enough, I would tend to agree. $15k in especially in retirement can go a long way towards travel

Thank you!

If I'm understanding your question the income source you are drawing from doesn't really matter as long as it all the same type of taxable income. Another way to look at solving this problem is to identify your spend need in today's dollars. Then calculate the gap between foundational income sources (DB Plan, CPP & OAS) and your anticipated spend. Once this gap has been identified see how long your investments can fund the gap using time value of money calculations. For instance $250K at 5% return will fund about $19,700/yr gross for 19 years. On another note, around OAS clawback threshold. If you have 80K pension index to inflation and CPP payment of $11K index to inflation you will sit right at the OAS clawback threshold. Since this threshold (90,997 in 2024) will also increase with inflation you should never go over if you only have these two sources of income. Given the above it would seem to make sense to transfer $40K of income (1/2 DB Pension) to your wife (whenever she retires or is below income threshold mentioned below) which will give you $40K of income room you could add without ever worrying about OAS clawback. Since OAS is around $8,700 you would have the ability to add about $31,000 (40K-8.7K) of RRIF income each year (which could also be index to inflation) before any concern of OAS clawback. Once you're 65 any RRIF withdrawal money can also be split with your wife so plan would become more flexible. The other thing you can do depending upon the difference between your CPP benefit and your wife's is share your CPP to further transfer a bit of income onto her return. In Ontario I would shoot for wife's taxable income gross to be no less than $51,446 or 20.05% tax rate (Or $55,867 @ 24.15% rate - for 2024 taxable income) as this is going to be your cheapest taxable rate to get money into the family. Since you would be transferring DB funds to your wife I would increase the taxable gross targets by the $2000 pension credit amount.

​@DoneByD good reply. Thanks.. I already pension split with my wife. We get the $2k deduction from that. No need to wait until converting to RIF. At 65 my DB Pension bridge Benefit drops off, so my CPP and OAS brings in a bit more than my pension drop..no changes in lifestyle needed. My RRSP withdrawals are the fun money. TFSA is emergency funds

Thank you! And sorry the super long delay! Very roughly I would suggest that for every ~$1000 you get from your pension that it would be equivalent to ~$200,000 of investment. So if you have about $500k and receive around $2500/month, it's roughly equal. OMERS = Fantastic pension