Rhys, I am just consuming your content. I'm 52 and semi retired because I've had plan since I was 24 years old. I consider myself a very knowledgeable investor / money manager, but I'm still learning a lot from your video. Thanks.
So good to hear. And thanks for the encouragement. Takes some elbow grease to make these so I really do appreciate it. Putting one out today that I’ve really been looking forward to making. Hopefully you dig it.
I just started watching your videos as I get closer to retirement. They are so well done and I love your tone of voice and delivery. I think you’re the coolest financial type guy I’ve come across (no offence to the others lol) 😊
Your financial information is clear understandable and that's your quality. My question is why don't we learn this in school...about how money works. Your information is very helpful.
Hey Rhys, I very much enjoy your videos; you're a great communicator and get straight to the point, with ample jokes and examples along the way. One thing that you don't address other than stating things along the lines of "things are different for different people" in the various videos I've seen from you is by how much one might be able to grow that smaller OAS & CPP when taken at 65 vs 70. Or even as early as age 60 assuming one is comfortable with a slightly higher risk portfolio generating higher growth or higher dividends or both. I'm not an advisor myself but I've spoken to many registered ones and, at least with the ones I've spoken to, the average seem to be of the opinion of "take any money the government offers it to you as early as possible & invest it". And sure enough, if you end up living like your wife's grandfather to the ripe old age of 103, then the appraoch oyu seem to favour in most of your videos of delaying to age 70 may work out better (especially if the investments deliver sub-par returns) but for those roughly 50% of the population that life less than the average expectancy of 82.6 years, waiting until 70 to take OAS or CPP instead of taking it at 65 or even 60 seems like a bad deal. I'd like to know why your default example tends to go to the take OAS & CPP at 70 instead of "take it early" which seems to be the more standard approach of the advisors I've spoken to in the past. Genuinely curious. Are you perhaps a more optimistic person than average so you're expecting most people to live to 90-95 and that's when the math works out best for waiting for 70 or is there more to it? Thanks in advance.
Thanks for the thoughtful comment and question. I didn’t realize my default in these videos was delaying both OAS and CPP to age 70. That’s certainly not what we see most of our clients doing (and I’m pretty sure I’ve said as much). We see many interested in delaying CPP but hardly anyone delaying OAS (unless they should for clawback reasons). Ultimately, we don’t really care what people pick. We just care that they understand their options and the math really clearly. Then they can make an informed decision. There are good reasons for all sorts of decisions. In fact, my best performing video is about the best reasons to start CPP at 60. As for many advisors saying “take it as early as possible,” that’s been the standard advice in the industry for a long time. But since the advent of sophisticated software we can see that mathematically, that is often a bad call. So the advice is changing as the knowledge improves. But again, as long as people know their options and the real math (which we spend a lot of time highlighting) people can do whatever they want and we’re perfectly cool with that :)
@@wellbuiltwealth Thanks for your detailed reply. I think what it was is that I had watched 3 or 4 videos of yours in a row and in each you happened to mention delaying CPP & OAS till age 70 as one of the main strategies to have a larger nest egg in retirement (or something along those lines) hence I came to the conclusion that you may favour that approach. I guess that way the software can forecast future payouts adjusted to some pre-set inflation amount while taking it early at 60 and investing the smaller amount doesn't work that great for most because people either "invest it" in a HISA or GIC or some might speculate on some random meme coin or penny stock and lose most of it in a matter of days. While a minority might acheive 20%+ returns per year with their investments making any comparison between those 3 groups almost impossible I guess. I hadn't seen your video about the best reasons of taking CPP at age 60; thanks for pointing it out.
What are your thoughts on lifetime payout annuities? Why don't you have a video on them yet? They're a very important retirement tactic if you don't have a DB pension, IMO
There is definitely a place for annuities. Especially now that interest rates are higher. I haven’t made a video on them yet because I haven’t had time yet. Only been pumping out videos for just over 6 months and I do my best to put out quality. So each one takes time. And my queue of upcoming videos is quite long. Lots of ideas, lots of important topics, small amount of time 😞
Great job on your videos, very educational. One topic that confuses me and would love to be covered is how CPP, OAS & QPP translate for us living in Quebec. Thanks!
Great practical advice. I have started tracking my expenses with Quicken to get better accuracy and think through my lifestyle. Love that software. I'd love to do what-ifs myself. Do you have a link for it? Many apps with the same name. Is it usable by clients?
Sorry, the only way to access the software I use is through an advisor. But my clients do I have access to their own plan so that they can tinker with it on their own if they like.
Thanks for all the great content 🎉 In the video, you showed Lou and Sue at around 100% retirement with a 3 million legacy? How does that work? Aren’t they inherently more funded due to the large safety net?
Thank you! And yes, you’re correct. The percentage is referring to their retirement cash flow goal only (not their total net worth) and so that is why their home is not reflected in the percentage. However, if they sold it, they would have the cash and it would therefore increase the cash flow available and that in turn would increase the percentage. Cheers
Hi, my feed started showing your video's. Awesome. I'll be calling. Something that has been driving me crazy is turning my defined contribution plan into a LIF. How does unlocking 50% and transferring to RRSP or RRIF jive with RRSP max contribution room? Would love to see a video talking about the LIF intricacies.
Great to hear! I’ll definitely put this pension/LIF topic in the queue. In the meantime, you can reach out to us directly anytime you like for a look at your specific situation. Info@wellbuiltwealth.ca Cheers :)
Was health care/medical costs not covered by OHIP (list is incr) planned for? Public home and or longterm care for later in life (hopefully) are avail. Right now wait list are 1-2 yrs incl respite homes (post surgeries esp family/spouse are unable to cope. Private home care in Canada is an option (and a good one) costs s/b in plan. Health/medical care is a key expense too many think about until needed. I’ve seen it many times. We have a good health system but like all countries it has realities to plan for.
Did I misunderstand part of the example? It looked like, even when the “success rate “ was only about 80%, there was still a very large legacy estate when they passed away. If so, I feel like it should have been mentioned that one of their goals was to leave a certain size estate. Or if I misread one of the screenshots, please let me know. Thanks! Love these videos!
Good eye! And thank you :) The percentage solve rate is showing the liquid resources available for funding the goals. Any estate residue would be from illiquid assets such as the family home, which many people do not want to include as a resource for retirement planning purposes. However, you can definitely use the proceeds from the sale of a home to fund retirement income. Just depends on what you want. Cheers
I am certainly sold on the concept of deferring OAS and CPP as long as possible, to maximize that income. But it does require you to trust that the government won't pull the rug out from under your feet. The programs have been very stable. But then in 2012, the government announced plans to change the OAS age from 65 to 67. This was the first time (that I remember) a parliament took steps to improve their bottom line by reducing retirement benefits. The recent trend in politics is populist governments with potentially radical agendas. I can see how people want to get those CPP and OAS income streams running as soon as possible. I was pleased that the 2012 change was undone in 2016, but that may only stand until the next election.
The reason OAS was planned to increase to age 67 is that people are living on average 10 years longer now than at the inception of the plan. OAS comes right of govt revenue rather than contributions such as CPP. I think it was the responsible thing to do and is in line with other countries in the west.
Are the dollar figures net or pretax when tou refer to what the couple require on a monthly basis and if pretax do they need to aet aside a portion to pay tax at the end of the year?
Inflation estimated at 2.5%? Wow, ballsy ... given food inflation is 40% and rent or “shelter” inflation about 25% this year, 2023, time of video. And $6K income a month with no mortgage? Sheesh, this is “gravy” income. Just my opinion! (64 year old living off $1,750 net monthly from “RRSP meltdown” protocol, so I can maximize all government funding and take both CPP and OAS at 70.)
We always stress test for higher inflation. Just use 2.5% as long-term base case. But when we do these plans for clients, we always use numbers that apply to them. When you’re making videos to teach concepts, you simply have to pick to ballpark numbers to work with and go from there.
Thanks for the info,so I think only ymax and ymag ,are the etf u can buy and ATM machine gives you dividend’s until u get retired,because diversity and consistency
Rhys, I am just consuming your content. I'm 52 and semi retired because I've had plan since I was 24 years old. I consider myself a very knowledgeable investor / money manager, but I'm still learning a lot from your video. Thanks.
So good to hear. And thanks for the encouragement. Takes some elbow grease to make these so I really do appreciate it. Putting one out today that I’ve really been looking forward to making. Hopefully you dig it.
Hey Rhys, did you get the email I sent you? @@wellbuiltwealth
I just started watching your videos as I get closer to retirement. They are so well done and I love your tone of voice and delivery. I think you’re the coolest financial type guy I’ve come across (no offence to the others lol) 😊
Wow, thank you!
Your financial information is clear understandable and that's your quality. My question is why don't we learn this in school...about how money works. Your information is very helpful.
Watching your retirement videos, I am 6 years away from my retirement, making me think I should retire. Great work. Keep it up
Great and clear explanation. Most of us are in similar situation with your example. Thank you.
Nailed it again Rhys. Keep up the Great Work. 👍
I watch all your videos Reece. Very well done and so informative. Thanks for all you do.
Thank you Martin! Very much appreciate the encouragement :)
Excellent info! You earned a subscriber!
Welcome aboard!
Hey Rhys, I very much enjoy your videos; you're a great communicator and get straight to the point, with ample jokes and examples along the way. One thing that you don't address other than stating things along the lines of "things are different for different people" in the various videos I've seen from you is by how much one might be able to grow that smaller OAS & CPP when taken at 65 vs 70. Or even as early as age 60 assuming one is comfortable with a slightly higher risk portfolio generating higher growth or higher dividends or both. I'm not an advisor myself but I've spoken to many registered ones and, at least with the ones I've spoken to, the average seem to be of the opinion of "take any money the government offers it to you as early as possible & invest it". And sure enough, if you end up living like your wife's grandfather to the ripe old age of 103, then the appraoch oyu seem to favour in most of your videos of delaying to age 70 may work out better (especially if the investments deliver sub-par returns) but for those roughly 50% of the population that life less than the average expectancy of 82.6 years, waiting until 70 to take OAS or CPP instead of taking it at 65 or even 60 seems like a bad deal. I'd like to know why your default example tends to go to the take OAS & CPP at 70 instead of "take it early" which seems to be the more standard approach of the advisors I've spoken to in the past. Genuinely curious. Are you perhaps a more optimistic person than average so you're expecting most people to live to 90-95 and that's when the math works out best for waiting for 70 or is there more to it? Thanks in advance.
Thanks for the thoughtful comment and question. I didn’t realize my default in these videos was delaying both OAS and CPP to age 70. That’s certainly not what we see most of our clients doing (and I’m pretty sure I’ve said as much). We see many interested in delaying CPP but hardly anyone delaying OAS (unless they should for clawback reasons). Ultimately, we don’t really care what people pick. We just care that they understand their options and the math really clearly. Then they can make an informed decision. There are good reasons for all sorts of decisions. In fact, my best performing video is about the best reasons to start CPP at 60.
As for many advisors saying “take it as early as possible,” that’s been the standard advice in the industry for a long time. But since the advent of sophisticated software we can see that mathematically, that is often a bad call. So the advice is changing as the knowledge improves. But again, as long as people know their options and the real math (which we spend a lot of time highlighting) people can do whatever they want and we’re perfectly cool with that :)
@@wellbuiltwealth Thanks for your detailed reply. I think what it was is that I had watched 3 or 4 videos of yours in a row and in each you happened to mention delaying CPP & OAS till age 70 as one of the main strategies to have a larger nest egg in retirement (or something along those lines) hence I came to the conclusion that you may favour that approach. I guess that way the software can forecast future payouts adjusted to some pre-set inflation amount while taking it early at 60 and investing the smaller amount doesn't work that great for most because people either "invest it" in a HISA or GIC or some might speculate on some random meme coin or penny stock and lose most of it in a matter of days. While a minority might acheive 20%+ returns per year with their investments making any comparison between those 3 groups almost impossible I guess. I hadn't seen your video about the best reasons of taking CPP at age 60; thanks for pointing it out.
All good :)
What are your thoughts on lifetime payout annuities? Why don't you have a video on them yet? They're a very important retirement tactic if you don't have a DB pension, IMO
There is definitely a place for annuities. Especially now that interest rates are higher.
I haven’t made a video on them yet because I haven’t had time yet. Only been pumping out videos for just over 6 months and I do my best to put out quality. So each one takes time. And my queue of upcoming videos is quite long. Lots of ideas, lots of important topics, small amount of time 😞
Great job on your videos, very educational. One topic that confuses me and would love to be covered is how CPP, OAS & QPP translate for us living in Quebec. Thanks!
Thank you! I’ll put that in the queue :)
Great practical advice. I have started tracking my expenses with Quicken to get better accuracy and think through my lifestyle. Love that software. I'd love to do what-ifs myself. Do you have a link for it? Many apps with the same name. Is it usable by clients?
Sorry, the only way to access the software I use is through an advisor. But my clients do I have access to their own plan so that they can tinker with it on their own if they like.
Many Thanks for these great video's...!!!
You’re welcome!
Thanks for all the great content 🎉 In the video, you showed Lou and Sue at around 100% retirement with a 3 million legacy? How does that work? Aren’t they inherently more funded due to the large safety net?
Thank you! And yes, you’re correct. The percentage is referring to their retirement cash flow goal only (not their total net worth) and so that is why their home is not reflected in the percentage. However, if they sold it, they would have the cash and it would therefore increase the cash flow available and that in turn would increase the percentage.
Cheers
Hi, my feed started showing your video's. Awesome. I'll be calling. Something that has been driving me crazy is turning my defined contribution plan into a LIF. How does unlocking 50% and transferring to RRSP or RRIF jive with RRSP max contribution room? Would love to see a video talking about the LIF intricacies.
Great to hear! I’ll definitely put this pension/LIF topic in the queue. In the meantime, you can reach out to us directly anytime you like for a look at your specific situation. Info@wellbuiltwealth.ca
Cheers :)
Was health care/medical costs not covered by OHIP (list is incr) planned for? Public home and or longterm care for later in life (hopefully) are avail. Right now wait list are 1-2 yrs incl respite homes (post surgeries esp family/spouse are unable to cope. Private home care in Canada is an option (and a good one) costs s/b in plan. Health/medical care is a key expense too many think about until needed. I’ve seen it many times. We have a good health system but like all countries it has realities to plan for.
Did I misunderstand part of the example? It looked like, even when the “success rate “ was only about 80%, there was still a very large legacy estate when they passed away. If so, I feel like it should have been mentioned that one of their goals was to leave a certain size estate. Or if I misread one of the screenshots, please let me know. Thanks! Love these videos!
Good eye! And thank you :)
The percentage solve rate is showing the liquid resources available for funding the goals. Any estate residue would be from illiquid assets such as the family home, which many people do not want to include as a resource for retirement planning purposes. However, you can definitely use the proceeds from the sale of a home to fund retirement income. Just depends on what you want.
Cheers
@@wellbuiltwealthThank you for the quick response, and a simple answer that makes a lot of sense!
🤓
I am certainly sold on the concept of deferring OAS and CPP as long as possible, to maximize that income. But it does require you to trust that the government won't pull the rug out from under your feet. The programs have been very stable. But then in 2012, the government announced plans to change the OAS age from 65 to 67. This was the first time (that I remember) a parliament took steps to improve their bottom line by reducing retirement benefits. The recent trend in politics is populist governments with potentially radical agendas. I can see how people want to get those CPP and OAS income streams running as soon as possible. I was pleased that the 2012 change was undone in 2016, but that may only stand until the next election.
The reason OAS was planned to increase to age 67 is that people are living on average 10 years longer now than at the inception of the plan. OAS comes right of govt revenue rather than contributions such as CPP. I think it was the responsible thing to do and is in line with other countries in the west.
It appears that Conquest is available only to financial planning professionals, is that correct?
Yes.
Are the dollar figures net or pretax when tou refer to what the couple require on a monthly basis and if pretax do they need to aet aside a portion to pay tax at the end of the year?
These are after tax amounts! So taxes are already dealt with :)
Revenue Canada called. They want 54% of that 100 dollar bill. 😉
Ha! Yup. And they’ll get it too. One way or another 😢
Inflation estimated at 2.5%? Wow, ballsy ... given food inflation is 40% and rent or “shelter” inflation about 25% this year, 2023, time of video. And $6K income a month with no mortgage? Sheesh, this is “gravy” income. Just my opinion! (64 year old living off $1,750 net monthly from “RRSP meltdown” protocol, so I can maximize all government funding and take both CPP and OAS at 70.)
We always stress test for higher inflation. Just use 2.5% as long-term base case. But when we do these plans for clients, we always use numbers that apply to them. When you’re making videos to teach concepts, you simply have to pick to ballpark numbers to work with and go from there.
Thanks for the info,so I think only ymax and ymag ,are the etf u can buy and ATM machine gives you dividend’s until u get retired,because diversity and consistency