We have multiple planners plans, we have the plan, and are spending ++ in our go-go 50’s. (Yes 4 big trips this year. Spend, spend, spend!). We are pretty knowledgeable I think. What we would love to have is our hands on good planning software so we are able to update our software as we go along versus having to go back to our planner each time. It seems like access to this software is the hardest part, like it’s kept from us so we have to depend upon financial planners until we croak. In this day and age of DIY I would think we should be able to get the tools to be a bit more independent.
I 💯 agree. I'm not sure why this is, but we have been pushing a few providers to offer a client facing portal for access once a professional plan is done. I would much prefer our clients have access for basic updates when needed. We are working on it!
Excel can do all of it too. Seriously. I have a planner but when I retire I will be relying on my spreadsheets - they are very detailed - tax backet shifts, taxes, tax rates, old age tax credits, with holding tax, how much I need etc....educate yourself and you will find it's not that hard to keep track of funds, taxes etc... in retirement
I agree with you... I want to retire in three months but one needs to work with an expert if you want to make sufficient passive income.. Imagine investing 200k and getting 5% profit, thats too low when some folks are raking up 250% profit with the same capital.
Very true. despite having no prior investing knowledge, I started investing before the pandemic and pulled in a profit of approximately 950k that same year. in reality, all I was doing was getting professional advice.
To many of the commenters: Many people find themselves unexpectedly retired or earning significantly less after having been downsized fairly late in life. Finding an equally well paying position in early 60s is not easy. It means all thise fantastic plans now have to be completely reviewed. Some people are also helping other family members unexpectedly. So, please tone down to smugness about debt.
Hi Adam, love your videos ❤ I just retired last year at 62 but not taking CPP/OAS until 65. Drawing down my RRSP now. Currently BCE shares are down by quite a bit. Is this a good time to move my BCE shares from a self directed registered plan to my TFSA? Cheers 🍻😎🙏
Great video once again. I have an informal plan, but its been developed in conjunction with all of your videos. I've considered when to take CPP, RRSP meltdown vs slow burn, tax implications of a meltdown during my Defined Benefit Pension bridge vs after it drops off. My TFSA will be maxed out by 65. Further TFSA contributions will be made via my RRSP withdrawals if not spent. My cash holdings currently generates about $325/ month in interest which is about 66% of the increase if i delayed CPP until 70, but im earing it now, not in 10 years. Your plans will certainly save people money in the long run, but I believe that almost everyones plan will need changes as time passes as circumstances always change. I 100% agree with Adam about not having money left in RIFF or RRSP..the tax implications are too great. I will be converting to cash.
I certainly agree with you on having a retirement plan created by a credible financial planer such as yourself, but as you know there could be a big difference in the size of your clients portfolios. Considering the fees that are required to be paid for your services you provide, what would you say is the appropriate portfolio size of ones investments worth paying for creating a plan by your firm?
If I recall correctly the fees are about $3000 for a single person $5000 for you and your spouse. Adam would almost certainly save you the cost pay via reduced taxes in probably less than 3 years. And just like investments it compounds yearly. All of that is based on not being able or willing to do the work yourself.
We don't have an asset requirement. We have done plans for clients with very little investments, but a pension. Some have just a few hundred thousand saved and some millions. There's taxes to be saved and more efficient methods for all situations. Book a call with me and we can chat it through to make sure hiring a planner would make sense for your situation. www.parallelwealth.com/planning
I have found MOST financial planning literature etc etc. is/was for people in the middle to top income bracket through my decades of it (literally, .... 30+ years) ... but i've been mostly lowest tier to middle tier bracket. ... same with accountants - father and brother(s) use them .... and talk about the savings. Each time I went it was an expensive bill for little value/return
Plan on expenses doubling every 12 years (6% a year compounded annually), can't stop devaluation of the dollar, a person needs to cover current expenses plus grow income during retirement to handle expense increases. I am 100% in income investments and handle my retirement my living on 50% income and reinvesting 50% income.
with Dplan and TFSA invested in income ETFs small RRSP invested in income ETFs (rrsp and tfsa ) monthly income removed each month Cpp and some claw backed OAS in 10 years all has worked out well 90k plus
I’m gonna connect with you eventually just to make sure I’m in a good place. I’m just beginning the process of taking my money from the bank and put it into it all in one.
Great video Adam. Maybe if you did follow uo videos on each if tgese important points. I would certainly apprecuate a video on drawing down from a RIFF and TFSA. I plan on a RIFF meltdown and try and keep tax level
My major financial concern near the end is having to go into an old age home. Any decent one costs thousands a month. You can spend most of your savings $50-60 + thousand in 1 year.
You would use your pension income plus top-off with retirement savings (and you may also have proceeds from house sale that you no longer live in). Later on, if you get put on a critical care list (due to declining health), then you would qualify for Long Term Care (subsidized), which would drop the monthly care cost by roughly half (versus regular private senior home care). My partner's mother went through this, and she is now in her late 80's.
@@terrygelinas4593 Who is blessed with a pension? The bulk of my work history ( started working in our family business at 12yrs old ) 20yrs and on, I was facing downsizing, restructuring, hiring of contractors not employees. Pensions and benefits were gone. So the fear of not enough funds when all you have seen is cut backs is real. At 80 I can't easily find a job. Depending on where you live the govt long term care facilities can be scary. You need active family members to make sure you are cared for. Foolishness, of placing meals on tables clients can't reach, not taking them out of their beds because it takes too long and they can't get back to them soon enough to return them to bed before they are exhausted from seating etc..
Brutal survey results! I guess one should not really be that surprised when you see so many people running credit card debt before and into retirement. Bad habits won't just disappear on their own like magic.
Bridgette Casey said it didn't matter whether you put money in a TFSA or RRSP because the tax brackets are so large that you are likely to pay the same tax rate when you retire as when you are working. What do others think?
I think there are many middle and lower-middle income folks for whom that is exactly true. That second tax bracket is super wide, CRA federal 2024 is from $53,359 to $106,717. It's easy to see how people making $70-100k will remain in that tax bracket in retirement, having 70-80% of that pre-retirement income. There are good use cases for both vehicles, and whether one has kids under 18yo and being honest about your psychology (behavioural finance) are just two considerations that go beyond the simplistic tax-bracket arguments many people make.
@@a.j.4644 Yes there are many factors to consider. I might be over simplifying her advice and I respect her opinion on personal finance. Every one is in a different situation though. There is also a possibility that tax rates will change in the future so that would throw off the calculations.
Interesting video. The "get a plan" rant stats and the working part times stats surprised me the most. My retirement plan in about 6 years is to work part time at golf course, so part time and seasonal. Not because I expect to need the money but I just love golf and the extra money is, well, extra 🙂 Would be willing to bet there are a lot of retirees right now that could be doing better with a plan but they are currently doing ok or better than ok, so don't bother.
Most people I know of who golf are planning on working part-time at a golf course. The problem is most of those jobs are full-time and seasonal with thousands of applicants. Golf courses can't afford to hire 20 part-time employees when what they need are 8 full-time ones, too much paperwork and part-time employees are less dependable. So good luck with your dream, you'll need it
My ex husband was just diagnosed with cancer and we do not know the time line of his life span. He is 61 and taking his work short term disability. I have mentioned to him to register for CPP but we don't want him to be penalized financially for taking it right now.
Here's the thing about CPP. You are not penalized for taking it early, the expectation is you take less of YOUR money over a longer period. We never know when our best before date is. I hope he does well with his treatment and collects for a very long time. As a retired first responder I've seen children pass, teens lose a battle to illness, fatal accidents, innocent victims of violence. Life is random, .... don't live What " IF"... just live
@@garth217 Thank you. His treatment is considered palliative, not curable so it makes sense to take it now. I think there is a psychological component in his hesitancy.
I buy gold and silver bullion and also sealed packs of pokemon cards I'm hearing China who has over 70,000 metric tons of gold is going to make gold be worth $100,000 a ounce for Brics it be worth it for them. If it's not in your hand you don't own it and for silver if spot price of silver falls to $17.00 a ounce it won't be worth digging up.
So does it matter if we have enough in retirement to live on, who really cares if there is money at the end to give to family members, or causes? I don't have a huge amnts in my Rrsp anyway, I have enough in gics, and put all I can into tfsas. I don't invest or trade in stocks or mutual funds any more after losing some $. Don't trust stocks. I don't travel.
So the talk is always wait to take the govt $ that you have contributed to. What happens if you dont make it to the magical date? You left money on the table that could have let you retire sooner or that could have helped the people you left behind. Lets talk about where female widows stand who worked weird poor paying jobs
Great video Adam. Maybe if you did follow uo videos on each if tgese important points. I would certainly apprecuate a video on drawing down from a RIFF and TFSA. I plan on a RIFF meltdown and try and keep tax level
We have multiple planners plans, we have the plan, and are spending ++ in our go-go 50’s. (Yes 4 big trips this year. Spend, spend, spend!). We are pretty knowledgeable I think. What we would love to have is our hands on good planning software so we are able to update our software as we go along versus having to go back to our planner each time. It seems like access to this software is the hardest part, like it’s kept from us so we have to depend upon financial planners until we croak. In this day and age of DIY I would think we should be able to get the tools to be a bit more independent.
I 💯 agree. I'm not sure why this is, but we have been pushing a few providers to offer a client facing portal for access once a professional plan is done. I would much prefer our clients have access for basic updates when needed. We are working on it!
Completely agree. This type of software should not be difficult to create! Makes me a bit suspect when things are proprietary.
Excel can do all of it too. Seriously. I have a planner but when I retire I will be relying on my spreadsheets - they are very detailed - tax backet shifts, taxes, tax rates, old age tax credits, with holding tax, how much I need etc....educate yourself and you will find it's not that hard to keep track of funds, taxes etc... in retirement
@@vm6824 we have income properties and creating all those rules in Excel is a lot of work.
Great video, as I approach retirement in the next 5 or 6 years this looks like good advice
I agree with you... I want to retire in three months but one needs to work with an expert if you want to make sufficient passive income.. Imagine investing 200k and getting 5% profit, thats too low when some folks are raking up 250% profit with the same capital.
Very true. despite having no prior investing knowledge, I started investing before the pandemic and pulled in a profit of approximately 950k that same year. in reality, all I was doing was getting professional advice.
Her name is "Dianne Sarah Olson" Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Her name is "Dianne Sarah Olson" Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
She appears to be well- educated and well-read. I ran an online search on her name and came across her website; thanks for sharing
To many of the commenters: Many people find themselves unexpectedly retired or earning significantly less after having been downsized fairly late in life. Finding an equally well paying position in early 60s is not easy. It means all thise fantastic plans now have to be completely reviewed. Some people are also helping other family members unexpectedly. So, please tone down to smugness about debt.
Excellent content! Can you please do one for people in their 40s who have a pension?
Hi Adam, love your videos ❤ I just retired last year at 62 but not taking CPP/OAS until 65. Drawing down my RRSP now.
Currently BCE shares are down by quite a bit. Is this a good time to move my BCE shares from a self directed registered plan to my TFSA? Cheers 🍻😎🙏
Excellent summary of the OSC survey, thank you!
Great video once again.
I have an informal plan, but its been developed in conjunction with all of your videos. I've considered when to take CPP, RRSP meltdown vs slow burn, tax implications of a meltdown during my Defined Benefit Pension bridge vs after it drops off. My TFSA will be maxed out by 65. Further TFSA contributions will be made via my RRSP withdrawals if not spent.
My cash holdings currently generates about $325/ month in interest which is about 66% of the increase if i delayed CPP until 70, but im earing it now, not in 10 years.
Your plans will certainly save people money in the long run, but I believe that almost everyones plan will need changes as time passes as circumstances always change.
I 100% agree with Adam about not having money left in RIFF or RRSP..the tax implications are too great. I will be converting to cash.
I certainly agree with you on having a retirement plan created by a credible financial planer such as yourself, but as you know there could be a big difference in the size of your clients portfolios. Considering the fees that are required to be paid for your services you provide, what would you say is the appropriate portfolio size of ones investments worth paying for creating a plan by your firm?
I have this question too.
If I recall correctly the fees are about $3000 for a single person $5000 for you and your spouse. Adam would almost certainly save you the cost pay via reduced taxes in probably less than 3 years. And just like investments it compounds yearly. All of that is based on not being able or willing to do the work yourself.
We don't have an asset requirement. We have done plans for clients with very little investments, but a pension. Some have just a few hundred thousand saved and some millions. There's taxes to be saved and more efficient methods for all situations. Book a call with me and we can chat it through to make sure hiring a planner would make sense for your situation. www.parallelwealth.com/planning
i started watching one on life insurance for business owners and was talking in the millions .... I stopped it pretty fast - not my league LOL
I have found MOST financial planning literature etc etc. is/was for people in the middle to top income bracket through my decades of it (literally, .... 30+ years) ... but i've been mostly lowest tier to middle tier bracket. ... same with accountants - father and brother(s) use them .... and talk about the savings. Each time I went it was an expensive bill for little value/return
Thanks for the valuable information.
Plan on expenses doubling every 12 years (6% a year compounded annually), can't stop devaluation of the dollar, a person needs to cover current expenses plus grow income during retirement to handle expense increases. I am 100% in income investments and handle my retirement my living on 50% income and reinvesting 50% income.
with Dplan and TFSA invested in income ETFs small RRSP invested in income ETFs (rrsp and tfsa ) monthly income removed each month Cpp and some claw backed OAS in 10 years all has worked out well 90k plus
I’m gonna connect with you eventually just to make sure I’m in a good place. I’m just beginning the process of taking my money from the bank and put it into it all in one.
Here to help when the time is right.
Great video Adam. Maybe if you did follow uo videos on each if tgese important points. I would certainly apprecuate a video on drawing down from a RIFF and TFSA. I plan on a RIFF meltdown and try and keep tax level
My major financial concern near the end is having to go into an old age home. Any decent one costs thousands a month. You can spend most of your savings $50-60 + thousand in 1 year.
i've heard $7K+ ... more than on a cruise ship!
You would use your pension income plus top-off with retirement savings (and you may also have proceeds from house sale that you no longer live in). Later on, if you get put on a critical care list (due to declining health), then you would qualify for Long Term Care (subsidized), which would drop the monthly care cost by roughly half (versus regular private senior home care). My partner's mother went through this, and she is now in her late 80's.
@@terrygelinas4593 Who is blessed with a pension? The bulk of my work history ( started working in our family business at 12yrs old ) 20yrs and on, I was facing downsizing, restructuring, hiring of contractors not employees. Pensions and benefits were gone. So the fear of not enough funds when all you have seen is cut backs is real. At 80 I can't easily find a job. Depending on where you live the govt long term care facilities can be scary. You need active family members to make sure you are cared for. Foolishness, of placing meals on tables clients can't reach, not taking them out of their beds because it takes too long and they can't get back to them soon enough to return them to bed before they are exhausted from seating etc..
Brutal survey results! I guess one should not really be that surprised when you see so many people running credit card debt before and into retirement. Bad habits won't just disappear on their own like magic.
Never pay interest on your credit cards. Use a card to your advantage. Keep your money making interest then pay when due.
@@garth217 I don’t think you get the point on why some people run CC debt.
Thank you again Adam for a great video.
My pleasure!
Bridgette Casey said it didn't matter whether you put money in a TFSA or RRSP because the tax brackets are so large that you are likely to pay the same tax rate when you retire as when you are working. What do others think?
I think there are many middle and lower-middle income folks for whom that is exactly true. That second tax bracket is super wide, CRA federal 2024 is from $53,359 to $106,717. It's easy to see how people making $70-100k will remain in that tax bracket in retirement, having 70-80% of that pre-retirement income.
There are good use cases for both vehicles, and whether one has kids under 18yo and being honest about your psychology (behavioural finance) are just two considerations that go beyond the simplistic tax-bracket arguments many people make.
@@a.j.4644 Yes there are many factors to consider. I might be over simplifying her advice and I respect her opinion on personal finance. Every one is in a different situation though. There is also a possibility that tax rates will change in the future so that would throw off the calculations.
Interesting video. The "get a plan" rant stats and the working part times stats surprised me the most. My retirement plan in about 6 years is to work part time at golf course, so part time and seasonal. Not because I expect to need the money but I just love golf and the extra money is, well, extra 🙂 Would be willing to bet there are a lot of retirees right now that could be doing better with a plan but they are currently doing ok or better than ok, so don't bother.
Most people I know of who golf are planning on working part-time at a golf course. The problem is most of those jobs are full-time and seasonal with thousands of applicants. Golf courses can't afford to hire 20 part-time employees when what they need are 8 full-time ones, too much paperwork and part-time employees are less dependable. So good luck with your dream, you'll need it
I find some I talk to feel they are doing ok, but then realize pretty quickly what they are doing wrong or not at all.
Perhaps the numbers are low in savings because people are factoring inheritance and downsizing into their equations
My ex husband was just diagnosed with cancer and we do not know the time line of his life span. He is 61 and taking his work short term disability. I have mentioned to him to register for CPP but we don't want him to be penalized financially for taking it right now.
very sorry to hear of your situation
@@josephkeith6954 Thank you.
Here's the thing about CPP. You are not penalized for taking it early, the expectation is you take less of YOUR money over a longer period. We never know when our best before date is. I hope he does well with his treatment and collects for a very long time.
As a retired first responder I've seen children pass, teens lose a battle to illness, fatal accidents, innocent victims of violence. Life is random, .... don't live What " IF"... just live
@@garth217 Thank you. His treatment is considered palliative, not curable so it makes sense to take it now. I think there is a psychological component in his hesitancy.
Take it now regardless of the situation
I finally figured that when you say SIRI, you mean CRA!
🤣🤣
@@ParallelWealth took me 2nd or 3rd time too! :-)
A bad plan that you paid $0 for is better than a good plan that you paid $thousands for if you do not have a ton of money.
I buy gold and silver bullion and also sealed packs of pokemon cards I'm hearing China who has over 70,000 metric tons of gold is going to make gold be worth $100,000 a ounce for Brics it be worth it for them. If it's not in your hand you don't own it and for silver if spot price of silver falls to $17.00 a ounce it won't be worth digging up.
So does it matter if we have enough in retirement to live on, who really cares if there is money at the end to give to family members, or causes? I don't have a huge amnts in my Rrsp anyway, I have enough in gics, and put all I can into tfsas. I don't invest or trade in stocks or mutual funds any more after losing some $. Don't trust stocks. I don't travel.
I didn't know PW was sponsored by Nike!
(Adam... if you're not, you might be opening yourself to liability)
So the talk is always wait to take the govt $ that you have contributed to. What happens if you dont make it to the magical date? You left money on the table that could have let you retire sooner or that could have helped the people you left behind. Lets talk about where female widows stand who worked weird poor paying jobs
Stop trying to get people to pay less tax! The rest of us need them to pay as much tax as possible. 😀
Well said as from a country perspective this is bad advise
Great video Adam. Maybe if you did follow uo videos on each if tgese important points. I would certainly apprecuate a video on drawing down from a RIFF and TFSA. I plan on a RIFF meltdown and try and keep tax level
Noted