A Complete Retirement Plan Build - Step By Step Guide
Вставка
- Опубліковано 6 чер 2024
- Thank you for 100,000 subscribers!
In this video we go through a full retirement plan build, which breaks down the fundamental pieces that any retirement plan should have. This includes, CPP timing, RRSP meltdown, laddered income strategy, and more.
➡️Our financial planning services: www.parallelwealth.com/planning
If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to find a certified financial planner in your area or book a consultation with us to get your retirement plan on track. You can learn more about our services at www.parallelwealth.com/planning
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OUTLINE
0:00 - Intro
0:33 - Base Plan
3:34 - CPP Timing
6:55 - RRSP Meltdown
12:24 - Laddered Income Strategy
16:08 - Planning For Fears
This presentation is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter. Every effort has been made to ensure the accuracy of its contents. Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Returns are not guaranteed and past performance may not be repeated.
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.
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...
@Elijah-Brian That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@Elijah-Brian I will give this a look, thanks a bunch for sharing.
Bravo Adam!!! I’m 64 years old. I have been using financial planners for at least thirty years. I can say unequivocally that I learned more from your UTube videos than all the financial planners I have used combined. Thank you very much.
Thanks Neil, glad to hear the videos have helped.
These courses/videos should be mandatory for everybody entering the work force ! And yes,yes,yes, major banks don't even come close in terms of financial planning...They are a joke....They mainly want you to put your savings in their home products...That's it. Who here remembers Liberty 55 !!!!??????????? LOL!!!
My plan is to convert RRSP to RRIF and keep DPSP in RRSP when I retire. Then delay CPP and OAS to age 70. Then convert remaining RRSP to RRIF and use TFSA to supplement income past age 70.
Congrats Adam!
congrats on 100K, awesome information.
Congrats on your milestone 👍
Great information, thanks for the video.
Thanks so much. This is really helpful.
Congrats on hitting the 100K plateau Adam! and thanks for providing reliable, in depth and trustworthy knowledge and peace of mind to fellow Canadians on an important chapter in our lives! I've always been a number cruncher and your channel greatly puts my mind at ease!🤑✌
Thanks and happy to hear it's been helpful.
I like the process very much, along with your willingness to provide variations and use your experience and expertise to provide the most net income throughout retirement's 3 phases. So much better and more meaningful than hit run and done plan.
Congrats on 100K subscribers Adam! I've been watching you guys since mid 2020, when you only had a few thousand subscribers. I considered myself to be fairly well versed in this area but subscribed after watching several of your videos. I was looking for some additional information as I approached my retirement. The amount of information and best practices I learned, from your channel, has been eye-opening. I can humbly admit I wasn't as 'informed/knowledgeable' as I thought I was. Keep up the outstanding content!
You rock…..the best videos EVER (and for the record I work for an FI)
Congratulations Adam!!
Thanks!
Thank you Adam. Great information!
My pleasure!
Congratulations and thank you for your sage advice,
You are so welcome
Congrats on the 100k! Well deserved. You're sharing quality content here, and I for one really appreciate it.
I appreciate that!
Congratulations on the 100,000! Fabulous work!
Thank you so much 😀
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Congrats on the 100k plus on u tube
Congrats on 100K Subscribers 🎉
Thank you!!
Great information as usual. Congratulations on reaching 100k subscribers.
Thank you very much!
Thank you Adam for sharing your knowledge with us. My plan to retire at age 55 from the federal government is going to happen in 2025! Your videos have given me insight I never had before. I look forward to hiring your company to create a financial plan for me. Congratulations on 100,000!
Congratulations Adam. I have learned a great deal from watching your videos. The banking industry and its “financial advisers” (what a joke!) have trained consumers to think that they can’t or shouldn’t touch their RRSPs until long after they’re retired and well into old age. So many folks who scrimped and saved their whole lives, and barely touched their retirement savings except to withdraw the annual minimum RRIF payment, have no clue that the CRA is going to take a major chunk of that money when they die. Thanks for helping to educate us about the importance of creating a drawdown plan.
Congratulations and thank you for your knowledge and services and we will be using your service again in the future 👏👍
Much appreciated!
Congratulations! ☺ And thank you for another very helpful video and your lovely personality!
Thank you!! 😊
Congrats on the 100K subscribers Adam. Looking forward to seeing the UA-cam plaque soon. Good for you. Well deserved.
Thanks John
Excellent.
Thank you Rhys!
Adam! Amazing achievement to hit 100k subscribers! I’ve been watching since summer 2021 and I look forward to every new video. I’ve thoroughly enjoyed being a part of the Parallel Wealth community in the comments.
Thanks so much James, and for all your comments and contributions along the way
Phenomenal video and an incredible milestone for your channel. With 100k subs I can only imagine how many more people you’ve helped over the years with your incredibly helpful advice. Here’s to the next 100k!
Thanks!
100k subscribers because the videos have great content and you provide them frequently and consistently. Well done. Please keep up the great work. Helped me feel much more confident in early retirement.
Thank you very much!
Adam, I share your videos with all my friends. Education from experts is key to success.
Thanks for sharing!
Nice!! ... This ONE video sums it all up! There isn't another channel out there (Canada or anywhere) that teaches and trumpets making a plan, detailing a plan and implementing a plan like yours Adam. And big congrats on the 100k mark! Cheers
Wow, thanks! Very kind to say.
Thanks again for another great video Adam! Your videos have totally changed my retirement plan. Huge difference of where it was a couple of years ago vs now. Looking to retire by 60 and i feel confident in my plan and especially my withdrawl strategy!
Congrats on your big 100k milestone! I've already shared your links with others. Great to see this type of education that will help us all to plan for a better future!
This made my day! So glad to hear the videos have helped.
Congratulations on 100k! Always great information, thank you for sharing your knowledge with everyone. Hopefully we can all have a richer and fuller retirement thanks to your advice and strategies. Cheers.
Much appreciated!
Congrates on your subscribers ! love the videos . questions at age 57 just retired no pension . Is it a good idea to start contributing to a RSP at my age ?
first of all I would like to say your videos are great. Been binge watching lately. I would like to point out that at time 14:10 at age 76, I think the program seems to have forgot to add the inflation rate. seems to have taken the previous year -$5K. BTW Your way of explaining is to the point but informative.
congrats on 100K subscribers! I have learned so much from your videos. 63 and retiring this year.
Unfortunately my spouse's family are like a lot of Canadians and think talking money and estate planning is 'impolite'.
Thanks Dave - it's a generation thing, yet most I talk to closer to end of life regret not talking about it more. I guess they like paying more tax! LOL
Great video, Adam! Regarding levelling out the average tax rate, do you use standard deviation as a metric to optimize this? If I understand correctly, the goal is to keep the average annual tax within a certain range. Standard deviation can help with this by ensuring a certain percentage of the values fall within one standard deviation of the mean, indicating low variability and fewer extreme deviations. Is this the approach you use, or do you have different criteria to decide? I'm asking because sometimes your mind plays tricks when you are looking at a set of data. I find statistical measures are the way to go here. Thanks again for the great content. Also curious because I noticed Snap projection keeps the marginal rate constant throughout, wondering why is biased towards the marginal vs Effective/average. I get why you want average to drive here.
Thank you for these videos. So helpful.
I turned 60 this year. With the new CPP 2.0 do you know how this will affect the CPP payments if for instance I work until 65?
LOVE the videos!! Congrats on 100K @ParallelWealth Question Adam re:CPP and the software that is being used. When altering CPP start date does the software re-adjust the client anticipated CPP calculations by including 60-65 as zero income employment years?..- video of 06/1/22 HAS been watched! :)
Thank you...and yes it does.
Does your software increase both the federal and provincial basic personal exemptions by inflation each year? How about the tax brackets? Are either of those adjusted/indexed over the duration of the plan? Great video by the way!! Thanks
Congratulations!! Do you have a recommendation on financial planning software for an end-user?
TBH, nothing great out there. You can get a general idea with some - Desjardins used to be decent, but they are all high level. Even as good as Snap Projections is for us, there is still a lot of knowledge and people hours that go into a proper plan build.
Best video yet, thanks for sharing the name of the software you use. Question: wouldn't it be 'smarter' to avoid touching the TFSA at all costs? Increase the dependance on the RRSP and have more tax-free income to draw on for expenses or to give to your kids. Keep up the great work!!
I agree, best video yet! Touching TFSA will depend on cash needs. Try to avoid for sure, but at some point better than adding more taxable income
I would love to know what rates you are using for investment return and inflation.
And congratulations on 100,000 subscribers 🙂
This example was 5% ror and 2% inflation. Fully customizable though.
Congrats on 100K Adam. Have definitely been learning a number of things from video and definitely keeping your FFS offer as an option in mind in the next few years. Quick question about the spreadsheet you provide, which is great. Are numbers in each cell just values or formulas? Would be great if formulas, especially for income sources, so if say CPP increases more than expected or RIF or TFSA worth more or less than expected at end of a year, can plug in updated numbers and see how that affects subsequent years.
Values, but pushing Snap to provide formulas.
@@ParallelWealth only problem I see with having formulas from SnapProjection's perspective is the user then has the ability to bypass using the software if their formulas are in the wild. Also could open up their logic to competitors.
@@DoneByD I'm sure that all goes into their decision making - and giving the client the formula doesn't give them the best way forward. Many bad advisors have made proof of that over the years!
@@DoneByD Interesting point but to clarify, not talking about any proprietary code, logic, etc. Talking about amounts keyed into the software to come up with the plan. i.e. estimate RIF growth of 5%, so the amount from one year to the next is balance + 5% growth - withdrawals = next years balance. Would be good to update that year to year when amounts differ from plan.
Congratulations Adam! I’m so happy for you - you share great content!!
Thanks so much!
Can I just say I love those BC tax rates! I fear if I ran my numbers based on living in NS the program would just laugh at me and suggest I pack my bags and head to Kelowna...... :)
One question I have about delaying CPP and OAS to later years, what if you take CPP/OAS as early as possible and then INVEST those dollars in other non-tax deferred sources. Can you make up the difference with reasonable investment returns vs. never getting those dollars from the Feds if you die before "optimal" 90?
Good vid. For non-reg assets I see data entry for % fixed income, equity, ROR and cash. What I don’t see is how you deal with eligible Cdn dividend income. US div income is same as interest but the tax advantages to Cdn Eligible is meaningful. So a stock that produces a cash div is a source of cash for your CF with a div tax credit. So if a client has a large stock portfolio they could use dividend CF instead of TFSA or RRSP meltdown. Do you model like this?
Yes, that is customizable in the software - not shown in this video.
For those worried about the funds being depleted when delaying CPP, would gifting the income increase to your kids and put that money into their TFSA be beneficial?
Do you ever consider the opportunity cost of depleting your investments and relying more on your cpp and oas later in life?
Anything for US markets outside of Canada?
How about CPP Calculator in Service Canada Retirement planner, it calculates CPP, OAS RRSP, and other investments, shows monthly, yearly projections, till age 85.
Very poorly and a very high level. It will give a general idea, but no actual planning
Does your software calculate GIS benefits with the higher income thresholds based on partial OAS where they have < 40 years in Canada? ie: If a senior gets 1/2 full OAS their max income threshold is much higher than one who gets the full OAS.
Watched this video more than once since so many good points in one place. This last time however, based on the fears scenarios, made me wonder do you have a video that show and example of a plan like this but one spouse dies earlier? So, CPP at 70, RSP meltdown, etc but one spouse dies before 70, say 68, and another where they die at say 75, 76. So one scenario, never go old enough for delayed CPP and other only for 5 or 6 years. What does the financial situation become for the surviving spouse. If don't have one like this, there's your next video idea 😁👍
Every situation is different, but something we stress test with clients.
Great video! Does the software keep the tax brackets constant?
I wish - all manual labor from our end
So, Snap projections does NOT apply a CPI to the tax brackets?
@martik778 yes CPI to taxbrackets. I was referring to the actual tax bracket client falls in.
May I ask if you have rental property where downpayment came from principal home and you want to put it back . Would it be taxed?
While your software determines optimal amounts from a RIF for a meltdown, does it also factor in trying to maximize Government benefits such as dental care, gst, etc where a lower income optimizes these benefits?
Identifying the 'right' life expectancy age is what I struggle with the most. Using a too high number would mean working longer while using a low number would be running out of money. Most advisors use 95 but that's not realistic IMO and according to most stats that average life expectancy is 85 in North America.
All you can do is use the life expectancy tables to get you to an average number... Then you have to either be optimistic, average or pessimistic in your assumption. Optimist would want to use some number above average, and pessimist would probably want to use below average number. Important to have factual reasons behind your life expectancy opinion though. Then go with it, that's all you can do. Planning isn't a one and done process, if things change for better or worse in the future you can redo the plan. Remember this is a plan and isn't ever going to be 100%.
Also important when looking at life expectancy tables you use the ones that are applicable. For instance don't use average life expectancy at birth table when you are already nearing or beyond 65. There is a life expectancy at 65 table you should be using...
Your plan can change along the way too... Plan, retire, and tweak....The spreadsheet isn't written in stone. All we can do is our best estimate.
My plan is to 85ish. After that if I'm out of money We'll have the house to downsize or sell as needed. For additional longevity insurance buy an annuity
Can we get CPP without retiring yet from work
So Adam, if I am 64 years old right now and on the cusp of turning 65 in April can I get your company to do a financial plan for me to delay or not delay OAS or CPP? Also, can I get YOU as my financial planner? Looking at the book a call calendar the next available call is April 3 (my actual birthday), is it too late for me to make any decisions?
Book the call and let's chat. We can definitely help you out!
I do have a question. If I get into a coma that is unlikely to get resolved, Should my partner keep me on 'artificial life" to get CPP income or cut my artificial life and let that $$ goes away?
Does Sustainable income include income taxes? At at 70 k income they are just below the next tax level, which I think is 72 ish. Is the 70 k income a combined income??? Or individual. I pension split. My spouse is still working and owns her own business, which she loves but it doesn't generate a lot of income. When she finally retires our income will be mostly my pension and investments
Hey Adam, what inflation rate are you using these days?
Client specific, but typically 2-2.5%. But it's fully customizable in the software.
My brother & I lived together all our lives, both are single. RRSP's, TFSA can we make each other beneficiary or do we have to be common law
You can make each other beneficiaries, but will all go through the estate at death.
Question for CPP. If I stop working at 62 but delay CPP until 65, am I penalized for 2 years with no contributions? Is the estimate on the service canada site accurate or based on contributions up to 65?
Depending how many other non contributory years you have, it could slightly affect the payment. But taking it at 62 would also decrease the amount drastically.
Adam, can you do a video on Frederick Vettese's PERC?
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals?
How does the TFSA value increase from 314K to 348K with 14K taken out in one year? What assumptions are made here?
My mistake, it was 14K contributed not withdrawn which tracks with 5% interest. Which leads to another question, what's the reasoning behind taking out of your RRSP to contribute to your TFSA? Taking it out at lower income time?
And how are they contributing $9000-29000 a year to TFSA? Where is that money coming from?
Anyone using parallel wealth? What was your return last year? Im with nicola wealth..return was 3.9
Parallel Wealth is not an investment firm. They do financial planning and sell insurance. But they will introduce you to investment firms if you wish.
Great video. Good point about money for vehicles. The only thing I disagree with is our money requirements going down as we age. I don't see that - I've been watching how retirement home fees are being inflated and once the wealthy boomer gravy train dies off it will be replaced by smaller generations who have already been scalped by student debt and 30-year mortgages. The industry will start to contract which will mean an excess of understaffed worn-out establishments squeezing everything they can out of the remaining residents. This may sound like a cynical viewpoint, but I've a history of not even guessing the half of it when the facts come out.
What about OAS holding it back or not
Not in this case
but you could die between 60 and 70 and... well you took no money at all out of CPP...
What about that Adam?
Also you could get your CPP so you do not lose if you die and if you use CPP to invest it, I could make a better return then leaving the $$ out of my pocket on CPP.
The point here is that I do not have that money in MY pocket before I die and when I die I have NONE (for my heirs).
How many people live to see the age of 70. Drawing cpp at 70 you will be too old to enjoy life.
If you're metabolically healthy at 60 you have an excellent chance at making 85 or more. If you're obese and on 15 medications, maybe not so much.
Think about it. Would you rather die totally poor and struggling during your last years or die with some amount of money in the bank ...And no, the governement won't take care of you like it used to be , when you are poor at the end...at least not in Quebec anymore. Don't count on it ...These times are gone...My wife and I are taking care of her 101 year old mother trying to keep her in her home for as long as possible.... If it weren't for us, she'd be in an elderly residence spending 15 hours in her soiled diaper without anybody taking care of here...THIS is reality...even in private elderly residences.
Current average life expectancy is around 83 with majority expected to make it to at least 75. So, how many people live to see the age of 70? Most
If looking at the Stats Can life expectancy table for males (will be higher for females) in Canada who are age 65, you can expect to live 19.5 years (or 22.3 years for females) longer or to the age of 84.5 (87.3 for females) years old. Important to note this data has increased 5 months (2.5 months for females) over the 4 grouping years of data so I would anticipate this trend to continue meaning the age will increase in the future as well.
Drawing CPP later let's me spend a bit more earlier, and reduces the risk of outliving my savings.
If u drank Trudeaus Mandated Tea take it at 60.Cheers
CONGRATULATIONS! on 100k subscribers and more importantly much gratitude for educating the masses. Retirement looking brighter for many due to your contributions. thank you.
Thank you so much!