Retirement Cashflow - How To Plan Around Market Fluctuation
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- Опубліковано 22 лют 2024
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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.
My planner set it up such that we keep 2 years plus current of living expenses in cash or near cash like a GIC that matures when we need it. We've been retired for 9 years now and it's worked out great with no concerns about what the market is doing today.
I think the truest thing you said in this video, which seemed to be a bit of a throw away line at the end, was: "Cash flow is king as you go through retirement". In retirement what I've found out is that when you are working the path to financial success is building assets (i.e. net worth) but when you are retired it's all about cashflow. When you retire you need to change your focus from net worth to cashflow. It's not easy to change your mindset after decades of building and protecting your net worth but in reality that's what you need to do.
I find the comments in your videos are just as informative. It’s nice to see the different ideas and opinions on folks approaching retirement and those that are retired.
Love the videos Adam, I’m 9.2 years away from retirement at 58 (the plan). I’ll be seeking a retirement planners advice in the very near future!
I 100% agree. Such an amazing community that supports each other.
Wow, I was just talking about this idea with my wife and only a couple hours later your video showed up. ... Attn, Google AND ADAM are listening!! Thanks for the great explaination!
Ya we heard you, ripped out a quick video and here we are!! Lol. Ai is getting pretty good 🤣
When markets are up, squirrel a little more away. When markets are down, tap into that little more you squirrelled, maybe spend a little less if you have to (not the end of the world), and when the market bounces back you rinse and repeat.
Adam - in many of your videos you speak of drawing down one’s RRSP (meltdown). If one has a good DB Pension and thinking of cash flow (recognize everyone is different), if one draws down RRSP by 70 as CPP turns on, that keeps cash flow solid and also avoids estate taxes. We are “trained” to keep our RRSPs for later in life. I like your approach and I think. It is interesting to see how many financial groups are very cautious on using RRSPs early. Your videos are very educative, interesting - thank you.
I'm in the same situation as you and I use the RRSP meltdown strategy to complement my generous DB. If your spouse has a lower income (or none) then income splitting at 65 for such things as DB and RRIFs are also an intergral part of the strategy to lower the tax bill. In that scenario, pushing back the CCP/RRQ is the right approach. Since I can turn it on at any time, one doesn't need to make a locked-in decision early on.
I find the Meltdown of RRSP to be a bad idea. I retired at 54..worked part-time until 60 and have a Defined Benefit pension with a bridge until 65. I'm 60 now and can't work anymore because of taxes. I just got my T4a AND T4...looking at both adding the income i will Still OWE $12,000 MORE in taxes..I'll pension split to reduce my income...if I add an RRSP meltdown into the mix for 10 years..I'll add 30 k as income per year. RRSP meltdown doesn't work for everyone. I'm going with a RIF..and take a lower amount of income. I see no point it waiting for CPP for 10 years just to get 5000 more a year, when I would forced into taking 30,000 more now that I don't need because of my Bridge benefit from my pension. I'll be long dead for the extra 5000 per year to equal the 30,000 I'll be forced to take now.. maybe Adam can do a break even video for RRSP meltdown vs Delayed CPP
Excellent advice - thank you Adam and PW team!
Our pleasure!
Thanks Adam.
Exactly what we received from institutional financial advisor even after we retired we never received a breakdown so we have moved to a fee for service providing way better service.
Institutional advisors are rarely (if ever) in it for your best interest, it's just a fact.
Hi Adam. Great video. You mentioned low cost mutual funds. Which company offers such?
Adam I find your videos informative, and they have been very insightful. I wonder if you could do a video for us folks with a Defined Benefit pension with a bridge, TFSA and cash savings. I'm just 60 and not taking CPP now but will do so at 63 ( 1000/ month) . An RRSP meltdown of my portfolio would be $20,000 / yr for 10 years. Waiting until 70 would mean an extra income of $9600/ year vs $20,000 more for 10 years . To age 85 the CPP delay will get me $144,000 vs $200,000 . That being said I have a bridge until 65..plus 20 k of RRSP means giving it to the tax man.
Everybody worries about taxes on rrsp. If you are close to the edge on the dividend tax credit already, TFSA full and colletcing CPP will the money coming out of rrsp's get taxed at a continual and high tax rate. In that instance with growth outside taxed high and regular how does that compare to paying a big tax bill on your RRSP later on . I hope our RRSP doubles and doubles again while in a RIF. Could you do a comparison on this as I am a big believer in sheltered growth but cannot find any software to compare these variables. I do know of tax friendly ETF's as well .
I get the idea of having a 1,2 and 3 year GIC but as each of those mature, what vehicle within your LIF / RIF would you put that money into? High interest savings account? For example, especially for tax purposes, you don't want to pull out a maturing 24K GIC, you want to pull out 2K a month.
The idea is that would be income you need to pay the bills
Thanks for the tips. I prefer investing in ETF’s with monthly Dividends that yield 8-9.5%. Over that is a bit risky for my liking.
Which ETFs are yeilding 8 to 10% ?
@@gavinhassett479
Well my friend, if you watched this video, Adam gave you a great hint, at around the five (5) minute mark.
HPYT..... which at today's closing market price will give you ~15.5%!!!!
@@daytonfunk1835 well... if you are going to espouse information/returns like that.. then the least you can do it back it up with data. And that is ETFs with 8+% dividend rates. Its no skin off your back.
@@gavinhassett479There are several, but the majority have an annual total return that is less than the yield- often the principle is in decline.
@@gavinhassett479 , start with Evolve.
First here Hi Ha...NVDA?
Keep investing in simple, boring slush funds during retirement. A rolling GIC, TFSA savings accounts (check out online banks like EQ), high interest savings account...etc... make sure you have those accessible, easy funds there for when you need them. It doesn't have to be complicated and you can do it yourself. Of course this is only PART of your plan that goes along with pension, OAS, CPP, rrsp, other TFSA etc... that are managed by others.