Avoid This Costly Retirement Withdrawal Strategy

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  • Опубликовано: 5 янв 2025

Комментарии •

  • @JohnLi-yq2ts
    @JohnLi-yq2ts Месяц назад +3

    Will you consider to defer cpp and oas till 70 for a higher inflation adjusted guaranteed income by drawing rrsp first? Try to take out the maximum rrif to avoid oas claw back and then supplement the difference in cash flow need via tfsa at ahe 70. No need to worry oas claw back from 65 to 69 by drawing more out from rrsp as you will not plan to apply oas until 70.

  • @davidkirk1781
    @davidkirk1781 Месяц назад +3

    This is not a failure of the 4% rule. This is an example of someone who has no idea of what the rule is and how to apply it.

  • @vexeloquence2547
    @vexeloquence2547 Месяц назад +1

    Where can we find someone who makes those withdrawals strats here in Quebec using this kind on software to do so?

  • @neolithic3
    @neolithic3 Месяц назад

    Excellent video! One question, is the rate of return (4% originally and then 5% after some tweaks to your plan) after inflation or before inflation? Like to get this 4% or 5% would you really need to be getting 7-8% to account for inflation?

  • @fullerr1
    @fullerr1 Месяц назад

    I have been shopping around my portfolio to other investors and they all seem to be setting low expectations yet the performance has been over 6% averaged over the last 15 years. It appears that they have combined the worst case scenarios. I would them to be honest and present worst, average and optimistic cases otherwise you make a decision based on 1 side

  • @liverpool3469
    @liverpool3469 Месяц назад +4

    Ok, there is the person, who has $2m portfolio and is going to run out of money. This whole example is absolutely ridiculous. Also... 4% a year gain. I have very classic portfolio and so far it has 16% in a year gain. People, pay attention!

    • @tubetop123
      @tubetop123 Месяц назад +1

      My thoughts exactly. Show me how many people with even a $1 million dollar saved up? I would say less than 1 percent of the population.

    • @j.frankparnell3087
      @j.frankparnell3087 Месяц назад +2

      If you plan on a 16% yearly return over a 30 year retirement you will be very disappointed.

    • @DoneByD
      @DoneByD Месяц назад

      1 YEAR return, that isn't a trend...2024 has definitely been a good year for investments. What's the 3, 5 & 10 years returns... I definitely wouldn't put a plan in place expecting average returns based on a single year return. I even plan a few percentage points lower than my overall 5 & 10 year return rates so the plan will have a high success rate and be able to weather the bad negative years like during the financial crisis of 2008.

  • @billyrock8305
    @billyrock8305 Месяц назад +3

    Excellent advice ✅
    Bring down that RRIF early and fast 💨. Save the tax penalty.

  • @norm4907
    @norm4907 Месяц назад

    Are you selling mutual funds, those are killers and can cost +/- 3% per year alone. I retired at 52, my investor has a track record of 8.5% over 15 years. Sure some years I’am at 1 or 2 but I’ve also seen sixteen. We calculate taking 8.5 per year. We started at 2.3 and 4 years later with those heavy withdrawals we managed to get up to 2.6M. Get out of mutual funds is all I can say however proper investors usually won’t be bothered with you at under 1M.

  • @MLovesacoffee
    @MLovesacoffee Месяц назад

    This makes sense if you are looking to leaving money for someone. Otherwise, keep the money invested in mutual funds, and perhaps take out even more money, 5% and live life. You'll soon be dead so spend the money. No one ever died and then came back and said, I should have spent more money because there are no ATM machines after death.

  • @petervaneverdink448
    @petervaneverdink448 Месяц назад +4

    There are plenty of dividend stocks and ETFs that yield a consistent 6 to 12 % return, regardless of whether stocks happen to be having a good year or not. 4% is absolutely ridiculous. Retirement income is all about cash flow, period. The only people who care if the market goes up or down are those who are reliant on selling stocks to get income. You are better to invest in products that provide cash flow. Markets will always be up and down. As far as worrying about the clawback of a measly 8000 OAS payment per year, I would sooner have the 150,000 income it would take to be fully clawed back.

  • @Sofaguy101
    @Sofaguy101 Месяц назад +1

    With that portfolio,a couple can live in SEAsia ( especially Thailand) with the 2% withdrawal rate..Leave the West behind, and you’ll be fine

    • @kyungshim6483
      @kyungshim6483 Месяц назад

      is that where you currently live? How do you deal with 365-day humid heat?

    • @Sofaguy101
      @Sofaguy101 Месяц назад

      @ Stay away from Bangkok and you will easily climatize

  • @tubetop123
    @tubetop123 Месяц назад +1

    CAUTION to everyone watching this. This video strategy is a poor one. As many people already commented, you should invest that money instead of withdrawing from it. Then live off the dividends from that big investment.
    Easy example: with 2 million dollars, buy a monthly dividend income fund or ETF. Price moves extremely slowly, so its low risk (up or down), you will get about $145,000 per year in dividends. Now use that cash to live! Havent even touched your $2 mill. Which has probably grown (a little) as well.
    Honestly, who they heck had 2 mill? I think for retirement, 1 million saved up is enough, again do the dividend idea instead of using your principal.