Five Retirement Planning Ideas That Everyone Should Know
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- Опубліковано 8 чер 2024
- Fee for service financial planning: www.parallelwealth.com/ffs
Stressing about your retirement is the last thing people want to do, but we find that it is a very common occurrence. If you are able to put a solid plan in place, however, a lot of that stress is going to be alleviated, and you'll be able to enjoy your retirement just how it is meant to be. While these five ideas only cover a portion of what your retirement plan will need to include, they are a good starting point, and these ideas will help you create a checklist of what you need to prioritize heading into 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 savings plan on track. You can learn more about our services at www.parallelwealth.com/planning
OUTLINE:
0:00 - Introduction
1:03 - Idea One: Time Horizon
3:50 - Idea Two: Retirement Spending
6:34 - Idea Three: Estate Plan
13:41 - Idea Four: Net Return After Inflation
15:59 - Idea Five: Utilize Your TFSA
18:50 - Summary
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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.
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Mr five, I watched lots of people/professional who talks about TFSP and RRSP and retirement. You are the top in delivering the material is simple language.
Well done Adam, I find your video one of the best 👌 👍
This video had so much excellent information, I had to watch it twice just to make sure I got it all. Outstanding!
Thanks Jax!
Thank you for the helpful video.
A year later, 2023, I return to watch this again, as it is still relevant. Thank you Adam and team.👍🙏🇨🇦
Good video. Make me think ... thank you!
Thanks Adam, great info and well presented! I also watched it twice!
Thanks Malibu Spiff!
I had no idea that you can use your tfsa so wisely...take money out in Dec, not taxed...and then in January you are allowed to put all of what you took out back plus the additional yearly max contribution....compared to taking money out in January and NOT being allowed to put that money in until the FOLLOWING January otherwise the CRA will charge a penalty per month if you do put the money you took out back in in the same year you took it out....crazy rules and so important to be aware of them...thank you Adam!
Excellent high level example of saving taxes
Defered capital gains 🐴
Great video
Awesome video, tons of great info as always.
I'm 48 and hoping to retire in roughly 3 and a half years. When should I get my plan done? Asap or closer to retirement? Thanks!
Hi Adam, I love your video's and I agree with these 5 planning ideas, the problem that I have is that most of my retirement income is tied up in RRSP's.
is there a tax efficient was to move money from an RRSP to a TFSA?
Cheers, Kevin
Definitely like the idea of strategies on how to get inheritance to others while you are alive and making sure it does not go to the government in taxes. I guess there is a cap of how much one can donate to a charity upon death as it relates to helping reduce taxes. I think I heard on one of your other videos is upon death charity donations are allowed to be 100% of your last years yearly income to qualify for the charitable donation credit. Of course you can give more but there will not be any charitable donation credit for the amounts above the 100% mark. Did I understand that correctly ADAM?
Correct, 75% of income while alive and 100% in year of death.
If you want to give more consider gifting money to your kids or someone close and have the donate it a d receive the tax break!
@@ParallelWealth Thank you.
@@ParallelWealth just to be sure I understood you correctly because the last few words in your response were broken wording, If I want to give more than 100% in year of death as a donation, gifting money would be possible, however, the Estate would NOT be allowed to claim charitable donation on the gifting of the money to kids or someone special because they are not a registered charity, and even if they were, the Estate already donated its maximum, 100%, for the charity credit, correct? Really good hearing from you Adam.
Hello is better to do more saving in tfsa then in rrsp I'm 55yrs
Who in the Edmonton area do you recommend for financial advice. Thanks!
Reach out to Kent at K4 financial. He is on UA-cam as well.
As always your video always very informative. As an immigrant I learn how complicated Canadian tax system. What the tax bracket on the money we bring to Canada? Say inheritance money from overseas? Is it part of the income for that year?
Thanks Suhi. No inheritance tax in Canada, or on the money you bring in.
Hi Adam love your videos you had mentioned typically one would need around 60% of their current income in retirement? But if most bill are are the same actually increased with inflation how can that be thanks
Just based off 1000s of client over the years. It's just the actual data we see with real clients.
Question - If a client has RRSP room and TFSA room and is in a high income bracket do you suggest putting money into RRSP until the room is exhausted or into TFSA and RRSP?
Top up your RRSP first to get maximum return on your taxes, and then in TFSA
It depends on your situation. Will you retire with a company pension? While I was working I maxed out my RRSP room. TFSAs were not invented at the time. Now with my OAS, CPP and company Pension I don't need RRSPs at all and I have to be careful how much RRSPs to withdraw to make sure I don't put myself in a higher tax bracket or get my OAS clawed back. For me RRSPs were /are the biggest rip off. The tax charged when withdrawing more than cancels out any lowering of income tax. So from my personal experience I would say max out the TFSA. If you're going to get a company pension don't get any RRSPs. Take that money and invest it in other things.
@@frogsmoker714 no company pension here.
@@mozerm If you're pretty sure you'll be in a lower tax bracket in retirement, then RRSP comes put ahead, assuming you invest in the same things either way. But, you also want to keep an eye on the OAS clawback. It's like an extra tax tax RRIF income pushes you toward it, but TFSA withdrawals don't. So, in sum, try to project both your future tax bracket (compared to now) and whether your income will likely trigger the clawback.
Adam, what software you use?
We use Snap Projections.
I want to develop a roller coaster strategy
60-67 grow your RSP
68-80 attack your RSP
80- ?? Live off TFSA ( helps your estate ? )
I AM HOPING THAT DELAYING MY CCP IS BASED ON MONTHS NOT YEARS
is it not per month delayed that adds to your FUTURE CCP value !????
Hello Sir,
I love your videos and it gives me lots of information. However, I am making around 50k but I want to increase my income tremendously. Could you please guide me through? Give some idea to start small business.
Inflation does not impact everyone the same. If inflation is 2% and HISA is 1.5%, you may still come out ok if you are not impacted by the increase in oil, lumber, etc..,
Such a broad spectrum of circumstances for sure….divorce or health can make such a massive difference never mind economic conditions.
They should make the Tfsa have no limit for contributions if you’re buying Canadian stocks.
I like that idea - never heard that one before.
Exactly! And Adam mentioned in a few of this other videos that one has to be careful not to trade too often in the TFSA or CRA will look at the TFSA as a business. Interesting eh! Thank goodness Adam pointed this out. So, I trade infrequently and let the dividends make the TFSA grow and grow. My TFSA brings in about $800 per month. On the stocks that are down below the Average Cost Base (ACB) if the company has a DRIP then I get into that so the divvy's get reinvested and lowers the ACB. Any stocks that show a capital gain I do not have a DRIP on those and let the cash grow until I find another stock to buy...with a dividend. 👍 Nice to know you too figured how to grow the TFSA above the limited contributions.🍁🇨🇦
how to that?
The percentage of income needed is a tough one. Right now my expenses are very high (mortgage, 3 kids at home, 4 cars, 4 phones, sports fees, retirement savings, etc., etc.). Even with a high income of > $350,000 per year there isn't a huge pile of money at the end of every month. In retirement A LOT of those costs go away. There will be no mortgage, no retirement savings, no kids at home, only 1 or maybe 2 cars, etc. Also, taxes are a huge difference. As a single income household we're paying 54% on everything over $200K in income (thanks Trudeau). In retirement we'll be able to split income so more money stays in our pockets. The thought that we'll still need $200K per year in income is pretty far fetched. My calculations and planning are all based on having $120K gross per year in retirement. I do realize the majority of Canadians aren't in this situation so every one is different.
Wow. If you're the Matt I replied to previously, my evaluation of things I deem to be irrelevant. You don't need my meagre opinions. haha. Get in touch with Parallel Wealth.
I retired never knowing any of this and did just fine. If you are going to do a tax free savings account make sure it's worth your while if you only have small money hid it under your pillow/ If you have 100,000.00 then do a TFSA. even if they only cap it at 86,000.00 anything less isn't worth it wait till you have BIG money as it's a one time shot so if you use it on $6000.00 savings and later sell your house you won't be able to toss $86,000.00 at it/ so wait till you have big $$$ to do TFSA come on someone tell I'm wrong ?