Ah sorry about that Paul. It's tough to make videos about specific features of CPP while rehashing the basics in every video but perhaps some additional clarity would have been valuable. That being said, I recorded a podcast earlier this year talking about all of the ins and outs of CPP if you'd like to check that out: ua-cam.com/video/EE251Bpsm6s/v-deo.htmlsi=PUNqkRO5WgZcZ2ns
Number 1 reason for taking it early, is so as not to 'burn' your own savings. Not sure why this is so overlooked. Why use up most of your savings early when you are (hopefully) enjoying some healthy years, in the hopes of getting more $ later when you are stuck at home for health reasons. Nonsense.
The goal is not maximizing income when you’re old and sick. The goal is to not run out of INCOME while you’re alive. By spending more of your money first you transfer investment risk and longevity risk to the higher CPP payment. The higher guarantee amount in the future means that you can safely spend more money during your healthy years and then use the CPP as your backstop later (because you might need the money since you probably didn’t die at 70 like everyone on the internet thinks). Like it or not, the longer you live the greater the chance that your savings are gone before you are. And at that point, having a solid amount of guaranteed, inflation protected income can really matter. I don’t care what anyone decides to do but if you’re willing to do the math, the tradeoff isn’t great.
@@canadianmoneyroadmap Sorry, but will disagree with you. The risk of dying before CPP "paysoff" is simply not worth it. Again, you are running the risk of leaving your spouse with nothing, since CPP is capped $1400
Thanks for the video Evan, your podcast will be missed, but...
Enjoy your summer!
Thanks very much! Hoping to come back in fall feeling ready for more. I appreciate you listening and watching! Take care
The video doesnt make much sense because you appear to have left out anything about how the cpp program actually basically functions ...
Ah sorry about that Paul. It's tough to make videos about specific features of CPP while rehashing the basics in every video but perhaps some additional clarity would have been valuable. That being said, I recorded a podcast earlier this year talking about all of the ins and outs of CPP if you'd like to check that out: ua-cam.com/video/EE251Bpsm6s/v-deo.htmlsi=PUNqkRO5WgZcZ2ns
Number 1 reason for taking it early, is so as not to 'burn' your own savings. Not sure why this is so overlooked. Why use up most of your savings early when you are (hopefully) enjoying some healthy years, in the hopes of getting more $ later when you are stuck at home for health reasons. Nonsense.
The goal is not maximizing income when you’re old and sick. The goal is to not run out of INCOME while you’re alive.
By spending more of your money first you transfer investment risk and longevity risk to the higher CPP payment.
The higher guarantee amount in the future means that you can safely spend more money during your healthy years and then use the CPP as your backstop later (because you might need the money since you probably didn’t die at 70 like everyone on the internet thinks).
Like it or not, the longer you live the greater the chance that your savings are gone before you are. And at that point, having a solid amount of guaranteed, inflation protected income can really matter.
I don’t care what anyone decides to do but if you’re willing to do the math, the tradeoff isn’t great.
@@canadianmoneyroadmap Sorry, but will disagree with you. The risk of dying before CPP "paysoff" is simply not worth it. Again, you are running the risk of leaving your spouse with nothing, since CPP is capped $1400