The Top 5 Purchases Retirees Always Regret
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- Опубліковано 14 гру 2023
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In this video we'll go through the top 5 purchase regrets we we see retirees make, in hopes that it can help you reassess as you go through retirement.
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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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.
Depends a lot on your health. I am all alone and originally thought I would not take out my CPP until 65 or later. Then the pandemic hit. I ended up taking my CPP at age 64. There wasn't that much difference between 64 and 65 but taking it at 64 allowed me to reduce my hours of work, which in turn will allow me to STAY in the workforce longer. I'd rather work part time and supplement a slightly reduced pension than work myself to death and burn out.
there are exemptions to take cpp early....you must know your health and safety attitude. A colleague of mine took it at 65, 2 yrs later he died due to disease. I took mine at 60...no regrets at all .
The key component in financial planning is your longevity. But it is also the biggest unknown. Therefore, your financial plan should be updated according to your changing health condition.
Another point to consider is the survivor benefit. Delaying CPP can be an advantage to your spouse should you kick off early.
CPP is going to go bust. Take it early or don’t get it at all. No western government has the ability to pay back any of this massive debt. Pay attention to the WEF, one world, government, digital currency, etc. It’s all happening and it’s gonna affect us old folks and the younger folks.
@@angus7278if you die, and your spouse didn’t max max contributions throughout her/his life, the spousal benefits is a pittance…..
@@mrslcomnever mind longevity. Consider “quality” of life as you age. LOTS of people live well into their 80’s and 90’s BUT it’s not quality. Take cpp @60 and enjoy WHILE you can.
One could argue either way regarding CPP timing. One thing that doesn’t get mentioned much is when a couple wait and draw down on retirement assets. Then one spouse passes early, it can be financially devastating to the remaining spouse with no RRSP remaining, and OAS and possibly all CPP gone from the spouse who passed.
Good advice for sure! Much appreciated!
71, still working, took my OAP at 68 to help make ends meet, then took my CPP at 70 and now life is getting sweeter every day!
I was a tax accountant. I found that way to many people can’t turn the corner from saving to spending. So because they didn’t buy the house, RV, Boat, Vacations there was often a lot of wealth that wasn’t enjoyed in any way. As you become sedentary in your retired live it is really hard to spend money. My advice is to retire as early as you can and have a great time spending the money you worked so hard for. I can guarantee you that the next trickle down generation will have no problem having a party on your dime if you don’t.
Or they buy a house
Good point. You can’t take it with you…but some retired people still try! 😂
I am 56, own my own home and 2 vehicles with no debt or payments. We could have retired 5 years ago and lived off the interest on our investments, and had more disposable income than we were living off of. This is excellent advice, don't let it pass you by. We are being very calculating on how we spend, but we aren't holding back, by any means. Our advisor continually shows us plans that don't touch the principal. I can tell you, that ain't gonna happen. As an aside, within the last year we bought an RV that we spent 44 evenings in last summer, we are in the market for a cottage and a boat. Basically, gonna do everything this video suggests we don't.
I know so many retired people who have saved all their lives and now have a lot of money and they just cannot spend it….out of habit I guess…fortunately I don’t have that problem😁
My parents both retired early and bought an RV in their mid 50s. Of course they needed a vehicle to tow it, which is another expense. After 3 or 4 years they totally lost interest in the RV and it sad unused at my brother's farm for another 7 years. For my parents, it was out of sight out of mind and by that time it had a bunch of problems. Finally, my brother got sick of the eyesore and forced my dad to get rid of it.
Good advice as always, but at 60 I am not attracted to vehicles or timeshare, or even retiring early. I can barely back up my Kia Rio so I am sure not buying an RV! Thanks for all this info!
Good advice generally. CPP of course depends on the circumstances. As a stay-at-home mom and rancher, my CPP was $385 per month. Waiting until age 65 wouldn’t have made much of a difference 😂 That’s why I never counted on govt pension as my retirement income. So yes, “do your homework” is always good advice.
Took CPP at 63, no regrets.
Keep beating that CPP drum. Sooner or later, the other 99% will learn and understand.
Meanwhile, I've had a sailboat for 2/3of my life. Currently anchored in Marsh Harbour, The Bahamas, trapped on my boat for three days due to high winds, and still have three more days of wind to deal with. I've had very little sleep, wind is screeching, worried about my anchor. Paradise?
The 2 best days in a boat owner’s life, the day you buy it and the day you sell it
The main problem with buying an RV is that most folks try to get something with all of the amenities of their home. Dish washer, washer/dryer, lots of space, etc. This is the primary reason that it becomes expensive to maintain. All of the extra gizmos are just things which can break. Also they significantly increase the weight which lowers the fuel economy. Instead of thinking of something which will enhance their adventure of the outdoors, they are focusing on how they can bring their home to a camping site. Instead of mostly boondocking or going off-grid, they always want full hookups and that drastically increases the cost of camping.
I had a big class-A and am so glad that I got rid of it. I now have a class-B (van build) which is only 21 feet long so can park/camp anywhere and has what I need, and very little more. On my last trip up to Alaska, I averaged 18.5 MPG and spent the majority of my time off-grid.
I'm just glad you didn't have a sports car on the list ;) Whew
A Miata?
One thing that's rarely mentioned is that CPP caps survivor benefits if you're already at the max for a single person. While you BOTH legitimately paid in, CPP uses a single fixed cap to pocket YOUR money! Per the CPP website:
"The most that can be paid to a person who is eligible for the retirement pension and the survivor's pension is the maximum retirement pension"
I'm 56 and just had an older brother who was a teacher retire. He is a year older than I. He's into watching live sports and entertainment so I think he will have a good retirement. I have had the same job for 35 years and with a small company. I have some savings but I can't see retiring before 65. We had kids late and neither one shows signs of being independent. I have no doubt we will not be empty nesters at 65. Still supporting four at retirement seems like my destiny. I do enjoy life and have ridden a motorcycle for close to 40 years. I just will be working for many years to come.
Hi Adam you hit this one outta the ball park. Many retirees we know including us were saved during COVID lockdown by owning our home. It gave us something to do, a place to do our own thing like BBQing, washing our vehicles, gardening, or just a place to chill outside in our own environment. Those in condos or apartments felt more locked in & isolated. I retired at 51 & took a front loaded pension. At 65 the company took decreased my pension by over 1/2 but OAS & CPP covered the loss. It would have been tough if I had talked early CPP. Everyone’s situation is different but as you say do your homework because once these decisions are made there are ‘No Do Overs’ or is very costly to go back if you can. You work all your life to retire so make sure you take the necessary time needed to retire in the best possible position for you & your partner. Thank Adam. 🙏👍
Totally disagree. Own a boat cottage for over 12 years. My paradise. I have a blast and has been great for my stress and mental health. That cottage I bought the land and built for 800k and its now worth 2.5m so that icing on top of the cake knowing I have this huge asset that can be sold later on if money is ever an issue.
The biggest retirement mistake people make is not planning for it and not actually running any numbers to find out how much it will cost, if they can afford it and how they can afford it. Just blindly spending your working life living paycheque to paycheque and taking out enormous amounts of debt to fund a lifestyle you can’t really even afford in the first place while those assets depreciate and inflation decimates your buying power…..this is why people either work until they die or are forced to accept a lower standard of living if they ever decide they want to stop working.
Great advice , as you have said before , reward yourself with experiences over material good.
Personally, I have heard people regret taking CPP at both 60 and 70. I have never heard anyone regret taking it at 65.
This was such a great video….definitely has us reconsidering some (all) of those items.
You're right. I bought a condo in great Vancouver a few years ago - thinking we can use it for vacations with families. So far we stayed there less than 12 months in total. Meanwhile I have been paying condo fee, utilities, maintenance and speculation tax. It's absolutely my biggest regret with purchasing this property.
Taking cup at 70 is good for the government for sure. It comes down to how long you are going to live, it is not purely a mathematical calculation, you get more at 70 so I’ts better. People are dying all around us. You need to live past 76 to be better off taking it at 65 then 60. Lots of factors and each situation is different.
Lots of little used fishing boats with motors in the 3-10k price range. Have fun!
Purchased my used RV to live in when I got a job out of town and wasn't sure I was going to keep the job long term. So I didn't want to purchase a house or sign a one year lease. By the time I decided to stay with the job, the RV was paid for. So it more than paid for itself plus I have kept it and used it all these years since.
Great video. I retired at age 55 which was 18 years go and I avoided all 5 of these traps. As for CPP I took it at age 60 but it is a trivial amount of my income so insignificant to me. My company pension and investment income are such that my OAS is now reduced to zero with the recovery tax which kind of rankles.
This was another interesting presentation. I was very curious what were some of the regrets out there. I enjoyed this one Adam and team! Thanks, Meg, PEI chiming in ☺
Glad you enjoyed it!
Very good points and great video , in the 70's thru 90's an RV wasn't bad for a retiree to see the country , today with the price of fuel and campsites it's very expensive so have deep pockets , i am a life long sailer and in retirement always planned on buying a sailboat down south and sold the one i have here in the north , and then well the wife is heavily involved with her friends at church an the grandkids so it's go alone , that means sitting on the boat you waited your whole life to buy getting drunk on cheap rum and either falling overboard or jumping from depression so i watch sailing video's an drink expensive rum it's about the same i guess 🙂
This video is FANTASTIC !!!!!!
Thank you!
Very good information. I'm glad to hear about taking CPP at 60 it makes so much sense to wait until 65-70, and yet the majority of people seem to have a negative opinion of this strategy.
I know the issue with passing a cottage on to more than one child. My father's decision was to give me half the value of the cottage and to give the entire cottage to my brother. I pointed out that this was not equitable as he wanted the entire estate split 50/50. In reality, he was just gifting assets and gave me half what he gave my brother. I was called difficult, selfish and greedy for pointing this out. To this day they both think I was treated fairly.
There is a common theme here. Retirees that think they have more money than they do, and retirees that have more money than brains. The concept of acquiring all this stuff in retirement is foreign to me. The best strategy is to liquidate it, travel the world... and let them come and visit if they like. It's all cheaper than any of this other nonsense.
this was interesting stuff--thanks.
You are welcome
People who have passed away cannot be asked if they regret taking their CPP at 60.
Well... I'm 71 and took CPP at 60, have a big truck camper and a good-sized boat. No regrets! We spend four winter months in the SW USA and about 40-50 nights per year cruising the BC coast on the boat. Never made more than $50k/year working. The secret is never buy new depreciating assets -- there are always lots of good used choices at a small fraction of new "toys". And most importantly, have no debt!
I have made the first mistakes you list as an employee so that is off. Now I own a city condo and a cottage by the sea. That is optimal for me! Buying something that deprecates in value is always wrong.
So no timeshare, no RV. Guess the only way to get warm in the winter months is by sitting in front of a space heater after you finish shovelling the snow.
Candles are nice
We are contemplating a long term RV rental or a purchase and then sale for an RV adventure across North America for year one of retirement. No firm plans yet - four years to go, but it’s something we’re strongly considering.
Great video! Thank you so much. My husband and I are just about to retire. All this advice will definitely come in handy 😊
Glad it was helpful!
Interesting video and I think the man thing is to be sure before committing your time and money to whatever it is. I have some familiarity with a few of the things discussed and these are my experiences
Buying an RV: I would say to start small and then move up to the larger RV if it suits you. My father was an RV guy well into his retirement but he started off with a station wagon and a tent (while he was still working), next was a normal sized Ford Econoline van that he outfitted as a camper for his travels which was not all that big but comfortable enough. After that he went with a small travel trailer and every 2-3 years he'd trade-in for a larger model eventually working his way up to a 36' 5th wheel with slide outs that he pulled with his pickup truck. With his wife he travelled 6 months of the year like this and it really suited them but he did it step by step.
Recreational Property: Frist up, I agree, don't buy a timeshare. Now to what we did do.
I always said I'd never buy a recreational property but after retirement we were spending winters in the same small mountain village in Mexico each year but it was getting harder and harder to find a rental for the winter "high season", we kept getting bounced whenever the owners found 12 month tenants. I can't blame the owners for that but never knowing where we were going to be from year to year wasn't for us. After 4 years of renting we saw something we liked and bought a place. We were familiar with the house as a friend of our had rented it previously. As a former rental it needed some work (which was reflected in the price) but it was a sound house in a great little community of 20 townhouses with a good mix gringo retirees and local Mexicans (about 50/50). This year will be our 5th season in this house and it's working out for us. That said we went slow, getting to know the area, renting and living in several different locations in the area, basically being really sure this was for us.
Downsizing to a condo too early (OR too late):
We both turned 70 this year and this is the year we decided to sell our family home and move to a condo. We had lived in our family home for almost 40 years, raised both our daughters there, they were 4 & 2 when we moved in and now are in their 40s. We had put a lot of work into the house over the years too. It was tough to move, harder than we thought it would be, but felt it was time. We stayed in the same area, the condo is only 2km from our former house, and in the town where both our daughters and our grandchildren still live. We have only been in our condo for a couple of months and at 1700 sq ft it's about the same size as our previous house but it's an adjustment for sure. We are slowly settling in and it is a really friendly condo community which helps. As much as it has been an adjustment to move to a condo we felt that if we left it too long we'd also run the risk of getting "stuck" in that house. In fact moving at 70 was a major undertaking and exhausting--we are glad we didn't wait any longer.
Deferring CPP past 60:
This is a tough one. We deferred to age 70 for both CPP & OAS which, according to statistics, is the right thing to do but I do understand the gut emotion of "I want my money and I want it now" because of course, statistics are statistics, you never know for sure. Just like compound interest and "start saving early, time is on your side", I trusted the numbers but you'll never know if you made the right decision until the day you leave this earth.
this is sage wisdom
We own RV for many years. It's not about saving money on travel, it's about enjoying the nature with amenities and comfort. We plan to keep our RV in retirement.
wise words
Renting any of these is the best thing.
So well said !!! 100% agree !!!
We bought a used camper for $11,000. Already owned a truck. Insurance is only $150/ year. We don't have to pay for storage. It has bunk beds and the kids love it
Thanks
Already have the boat. I've been sailing it for years.
How about just a small trailer?
Timeshare...of course. "Last Week Tonight" has a good story on them.
Condos have their own issues. Your costs are regulated by a board of directors. Also, in some locations, such as Florida, the fees are shooting up to cover the cost to upgrade the buildings to meet new requirements.
Hi Adam. I would love for you to do a video on how to get the best outcome for someone who has nothing for retirement but CPP, OAS and probably GIS. My friend works for minimum wage and lives pay cheque to pay cheque. A single mom that rents an apartment. No house but a small vehicle. I read that to qualify for GIS, she must take OAS at 65. But when would taking CPP be best in this situation?
I would like Adam's perspective on this as well.. CPP at 60 makes sense in this scenario as any extra dollar of CPP is "taxed" at 50% based on GIS clawback. Some employment income is exempt from the clawback if they work 65+, but that doesn't include CPP benefits unfortunately. It's the rare situation to take CPP early. If they do have any savings eventually, or they get an inheritance, it's imperative they save it in a TFSA so none of their withdrawals lead to a GIS clawback - RRSP withdrawals are subject to clawback. Your friend may also be eligible for provincial benefits for low income seniors.
Good advice but it assumes the people do not think the purchase thru.
I would say think about all the ongoing costs and time requirements before you buy anything.
In my case I always do some some thinking about the downside of anything I buy.
So when I purchased my first sailboat I paid $200 and could store it in my garage.
Very little downside and with 3 boys we used it for sailing and fishing
Over the years I have owned 5 sailboats (not at the same time) and today I have a $4,000 Watkins 27 that costs me $3,000 per year for dockage.
I use the sailboat about once a week for the past 3 years before retirement
In 39 days when I retire I will still only use it about once per week.
Biggest mistake ever is buying a 2 story home instead of a bungalow as your primary home before retirement.
Regarding CPP, all the advice I got from retirement planning courses was to take it at 60 instead of 65. The five years advance payments math worked out to be more advantageous over the long run.
What is the poverty level for seniors in Canada?
Thankfully, I will never have regrets buying these things I could never afford.
The best days of owning a boat are the day you buy it and the day you sell it.😂
A hole in the water into which you throw money?
I lived on a boat for 20 years,but it was also my livelihood. If you’re not living and working on your boat? Don’t own one unless you can park it in your yard and live 5 minutes from the water.
B.O.A.T
Bring On Another Thousand
Same goes for a RV.
On the money again Adam!; or is it IN the money... lol
Totally off topic, as these thoughts/concepts just come to me. Started writing this long a$$ question/statement on AYMPE (5yr avg YMPE) and dbs, with various calculations, data, etc but thought to keep simple. As the YMPE is increasing substantially year over year, compared to number years ago due to enhanced cpp, I wonder how this will impact pensions whose calculation is based on 1.375% below and 2% above the AYMPE. This will result in a greater proportion of pension income below AYMPE and thus less income for upcoming retirees and going forward.
Wondering if you could do video on how substantial increase of YMPE will (negatively) impact db pensions.
Let me know if you want something more specific as to what I mean.
Everyone is different and in my experience people are set in their ways early in life. People who spend in a reckless manner in their 20s continue the pattern until they exhaust everything or die.
Shoot! Just bought an RV which is towing my new boat to my new timeshare along the ocean. Should have watched this video first! 🤪
How about a year long round the world cruise?
I just retired 2 days ago...for the 3rd time. I hope this one sticks..but im getting bored already..its day 2
Retired 4 years ago. Loving every minute of it.
Here's something that might interest you... I worked for the cities and the M.E.R. a bit, I didn't know I was paying into their pension plan, at 60 I applied for my Qc Pension Plan, they contacted me and said they'd be sending me a check for 4K, basically what I'd put in plus interest. I was thrilled, I gave the kids $ 700 each to help them with their CERB tax payments! I knew that invoice/reality check would be a surprise to them. The gouv gives with one hand and takes with the other. I put myself through college with a student loan, didn't even know I'd receive bursaries, wow, paid it off and never went into debt again, became a stay at home mom, paid kids schoolings (our daughter's D.E.C., bach and son's a lisenced nurse), our wants are many our needs are few, bon weekend from French Canada everyone!
CPP at 60, now 63 and should have waited, but I have three pension now. May delay the OAS for two years, but have 16 months to think about that.
Your opinion today is that you should have waited. If you die in the next 10 years the 63 year old you of today will feel very differently. Not something we like to think about but that should give you some comfort in your decision...
@@mozerm
I started thinking about that over twenty years ago. Many advisors told me to take it eary, never know when I die.
Everything is paid for, even my cremation and hole in the ground.
What about a fishing boat under 30000 is that reasonable?
When I put all my peoples I know in my House, then compare to I put all of them in my boat 🚢⛵ there is a different felling, I can see they get more excitement when they are in the boat 🚢⛵
Taking CPP at 60. If I take it at 65, I would have to live to 84 to make up the difference and start getting ahead.
I have a Defined Benefit pension with a bridge until 65. If i take CPP at 60 ill collect for 5 years before the bridge dropped off. The drop off will be the same as my CPP estimate. My income will not change. OAS at 65 is a bonus. I also have RRSPs that i need to start drawing from. Expenses down and income up in retirement. I don't see a regret for taking CPP at 60 if you know the actual implications. Ive even considered Spouses Survivor Benefit into the mix, as you can only reach the maximum..no point in waiting until 70 to get the maximum if one of you dies because your spouse can only be topped up to the maximum of a single person.
Plan wisely
Are you sure you can draw CPP while still getting the bridge?
@@brentmacdoanld3196yes, you can. The pension has no control over when you start CPP, at least not that I’ve ever heard of. More importantly, many pension holders with a bridge benefit believe they MUST take CPP at 65 when their bridge ends. This is also untrue. They can defer CPP to 70 if it makes sense, but in my experience many defined benefit pension holders do not utilize their RSPs much, if at all, so 65 tends to be the default anyway.
I agree that many DBP due not save in RRSPs. While contribution availability is low, I always maxed as the intention is to utilize this as a bridge and draw down from retirement (55) until planned CPP at 70. This is a matched effort by my spouse although she will not have the max pension based joining plan later in life. I still advocate maxing TFSA when possible first, to allow flexibility and unregistered if possible for those in the position to due so.
@@brentmacdoanld3196 I mostly agree with you. Many of our teacher friends did not leverage their RSP and have 10's if not 100's of thousands of available contribution room left unused, even with their generous DB pensions. But - I don't think they have risked much in their retirement by doing so - as many of them are "teacher couples" and both benefit from their Defined Benefit Pensions. As for TFSA first - I think most people need to treat this purely as a mathematical / forecast question. If one's tax rate will be lower in retirement than when working they should prioritize the RSP, otherwise they should prioritize their TFSA. I'll add that the flexibility of the TFSA (mostly I'm referring to being able to recontribute withdrawn funds) often tips the scales in favour of the TFSA first strategy, but I think many, if not most of us over estimate our tax burden in retirement (i.e. - we will almost always be in a lower tax bracket post retirement) and are missing out on some generous tax refunds during our working years. As always though, personal finance is personal, and it is not always a purely mathematical question.
@@brentmacdoanld3196 yes
buying airplanes, starting airplane restoration project, buying Land Rover Defender restoration projects, starting companies, or all the above at the same time!!!!!!!!!!!!!!
Wish I’d bought a cottage on the lake and a boat. Could have had them both for 30k but got talked out of it by my financial advisor. Could have sold the cottage for $800k just 15 years later and given the boat away. Time shares and upsizing before retirement are foolish, often foolish anytime really. RV is ok if it’s your new home 6 months a year down South and you don’t drive it much.
Really good advice. The increase by delaying OAS is less than CPP, but I still thought it was pretty attractive and am delaying CPP AND OAS to 70 and wife is 68, and we are bridging that period with cash taken from investments. The total combined amount for all 4 will be 55-60k, indexed to inflation, though our 70s and 80s. I have a small DB pension, plus investments, and those together will just about double the OAS/CPP. It means that only about a quarter of our total income is subject to stock market risk. A 50% crash in investment cash flow is only about a 13% pay cut. We bought a waterfront property an hour from the city as our primary residence about 9 years ago, a moderate size bungalow, and I really don't want to go anywhere except to go shopping or flying. We have kayaks, but I still haven't gotten around to buying a boat after 9 years living on the water. Maybe next spring, but no more than 10k tops, just a little runabout, or maybe a microcruiser sailboat.
This kind of forward thinking makes sense and all that, but if you look at actual life expectancy... waiting until 70 for cpp may not be the best, depends on of course how long and how much you qualify for and what you are doing. So many variables. So many people die well before 80.
Yes that's an obvious consideration, but you're still just making a bet in the end. But yeah I'm heart disease free at 67, so can expect to live to mid 80s, so it makes extra sense. @@JayandSarah
@@JK-rv9tp you have to do the math on it. Everyone is different. I could go from early 50's to death without drawing CPP or OAP and be fine. Not everyone the same. You can be heart disease free and end up with dementia or cancer, so thinking you can look at your health and guess the outcome is foolish. Just check the age for average death. Plan for slightly less than that, take the CPP and OAP as late as you can and spend you own money first. That my .02c
Yeah that's more or less what I'm doing. It'd be a different story if had congestive heart failure. @@JayandSarah
It seems like the real regret for any one of them is people are not doing their homework.
Up until now I would have agreed with 90% of your videos Adam. However I wouldn’t say don’t buy toys and luxury items. Boats, we have two , one in the ocean and one for fishing fresh water lakes. Sold the sleds but still have 2 trucks, 2 campers. Again one on the west coast and one on the prairies. We sold the cabin at the lake and are in the process of building a family property on the Gulf islands. We have owned timeshares for several years and don’t plan to let those go for at least 10-15 more years. 8-10 weeks of timeshares in Hawaii to escape the cold is worth it and now our fees cost half the amount compared to the regular vacation costs. So no sleds or ice fishing in our future. If you can afford it have fun and enjoy because life is short. If you don’t like the headaches of owning the fun stuff you can always sell it as easily as you bought it. I’ve seen more friends and relatives over the years leave this world than I care to count who didn’t make it to 65. I retired 6 years ago and turning 65 this year. I started putting my CPP in a TFSA earning 9.5% when I turned 60. My theory is I would get taxed on CPP a lot more if I was to wait to 65-70. So why wait…😊
Agree that toys are great to buy - with cash - and as long as you can afford it! I have an RV, so I'm with you. Just meet too many that buy more than they need/can afford. We live in a society where we need to keep up with our neighbors and friends, and many of us cripple our retirement and financial plan to do so.
@@ParallelWealth, agreed never borrow money for entertainment including a cabin at the lake.
Adam have you ever made a calculation of putting the proceeds of a CPP in a TFSA gaining tax free at age 60? Try compounding $8k annual after tax at 8% for 10 years age 60 to 70 then withdrawing it tax free verses waiting to age 70 to get CPP with the top up. You could then continue to combine the TFSA tax free as income along with CPP from age 70 on. Or hold it for later as it continues to amortize. We are collecting OAS at 65 with the same train of thought. This only works if you have the room in a TFSA to make the deposits but could also work for anyone who is late at the savings game with a fresh TFSA.
1) Timeshare.
2) RV - maintenance, insurance, storage, gas, depreciation. 28 nights a year.
3) Boat - worse than an RV. Most people don't use them much.
4) Family Cottage/ 2nd property. Very expensive to maintain.
5) Downsizing too early.
BOAT= break out another thousand!
I took my CPP at 61…I’m now 68. I’m fine with that decision.
RV, it's also more of an active lifestyle than some older folks are able to enjoy.
NOW you tell me
I can't speak for any of these mistakes, except perhaps the boat.
Bought one 3 yrs ago. Thoroughly enjoy it, but on a cost-per-use basis, it's ruinous.
The most expensive meal you will ever have is fish caught while out in the boat.
Thanks for sharing!
What is the approximate cost for your services?
Barry, all the details and prices at www.parallelwealth.com/planning
very wrong on the cpp, rethink that one out
CPP at 60 is one of the most financially impactful decisions on your retirement income. Unfortunately emotions take over for most.
@@ParallelWealth you are so wrong
@@user-nt5cq3xu3k How so? Can you kindly elaborate? Unless you have some medical conditions that will lower you life expectancy, lack of other income to bridge the gap before or in dire need, I don't really see a point taking CPP early.
Don't buy a red Corvette with chrome wheels. That is straight up old man spec.
Think I'll be working till 65. Depends on how the subdivision of an inherited property goes...thanks, mom and dad. Couldn't do it without you. Unlike previous generations, late Boomers and Gen x and up need an inheritance to make it, I think.
I'm a Boomer. I got my inheritance when I was already a multi-millionaire.
Horse pucky. It has been no different for any generation, financially speaking. I have no property, no inheritance, just me and solid financial choices - from educating myself. I will retire at 53-54. The younger generations can't even move out of their parent's home until they have a house and big screen tv lined up...They have no idea how to 'adult' and appreciate the benefits of a struggle when they are young. They want it all right now...and it's why they are all failing.
Hi Adam! So ... I don't have timeshares, I don't have RV, I don't have a boat, I don't have second house, I am also on a way to be mortgage free and debt free, and I am not planning to sell the house. Also I plan to take CPP at 65. How am I doing so far?
Why aren't you mortgage free already
Sounds great!
@@garth217 I have a wife, two sons, place to live... mortgage is next.
A boat is a hole in the water you throw your money into. B.O.A.T. stands for Break Out Another Thousand!
I saw this and wonder if I’m doing it wrong. My wife and I are both retired after 30+ years of work. We don’t have any children, we took our commuted value and reinvested it back in 2020. We are both in our 50s. We have a boat and an rv plus a couple of vehicles. We plan to travel a little with the rv. Spend winter somewhere warmer,than here on the east coast. I was 55 when I retired and was and probably going to take cpp at 60. There is no guarantee that I will live until 70. So why not take it at 60. I might live way longer also,so there is no right answer. I look at it now as we are in our go,go stage of life. When I watched this, I wonder or stress about my outlook. Thanks Bob
The conventional wisdom when I retired was to take it at 60 because you would still be dollars ahead until 82
at which point you wouldnt need so much.
But that math doesn't work!
Biggest regret: Not earning enough in my career so I can't afford 1-4
I think a big regret retirement wise is people who invested in common stocks and mutual funds and lost money at retirement.
Five purchases retirees always regret:
1. Timeshares
2. RV
3. Boat
4. Family Cottage
5. Taking CPP at 60. Taking 65 or later will get you a lot more.
You are welcome.
There is also the alternative of working less between 60 and 65/70. Many men die early because of retirement.
Let me resume in a single phrase. One of the best days of your life is when you sell your RV, your cottage, your timeshare and your boat.
@@bossman-yk9ji You'll find my name in some Marine technical guides. So I know a thing or two about boating. I own a RV as well. Sorry if you got offended but that's the reality. It is called the Inflatable neighbour's syndrome.
A counterargument on the CPP at 60 point is that no one really knows how long they'll live. There's the modelling in your planning software and then there's reality. I'd be interested to see if there is data on when to take CPP that factors in dying. How many people who deferred to 70 really end up ahead because they live long enough. I don't really have an opinion either way but this is a nuanced conversation. The government likely has data on this but it's not easy to tease out. If for some reason your client ends up dying at 69 or 72 or 75 you will have given them some VERY bad advice...
More than half who delayed CPP to 70 vs. taking it at 65 came out ahead. However, for the majority of those who delayed CPP, the actual % increase in total income during retirement is relatively small unless you live beyond the average life expectancy.
You should also want to know how many took their CPP at 60 and lived well beyond their 70s? How did they fare? I suspect those that take CPP before 65, because they assume they have reduced longevity, don’t spend down their own assets to zero for the same reason. I also suspect many of them only withdraw their RRIF minimums - So they don’t run out of money. Contradictory behavior.
I agree with the RV waste of money but not the boat or are Waterfront cabin on an island on the West Coast. We have two boats small ones cheap to run are cabinets paid off and our house is paid off and close to retirement. Sorry man those are the two things I like that you don't have a nice day from Nanaimo British Columbia
Disagree about taking CPP at 60 ...Don't get financial planner, use à common sense this time of uncertainty.. take CPP, the early the better, life is Short enjoy your CPP while still can and healthy..
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Yes I think I downsized to early I really miss my yard and house.