How To Die With $0 - The Mindset That Will Change Your Spending Habits
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- Опубликовано: 1 июн 2024
- ➡️Our financial planning services: www.parallelwealth.com/planning
In this video, we'll go discuss the book 'Die With Zero' and 5 concepts we use in our financial plans that help people get to the end of life with as little money as possible.
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
Financial Resources I personally recommend:
➡️Retirement Income for Life: Getting More without Saving More (Second Edition): amzn.to/3tvIdVN
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OUTLINE
0:00 - Intro
0:49 - Memory Dividends
1:59 - Tip One
3:27 - Tip Two
4:54 - Tip Three
7:36 - Tip Four
10:26 - Tip Five
This presentation is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter. Every effort has been made to ensure the accuracy of its contents. Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Returns are not guaranteed and past performance may not be repeated.
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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.
Retired last year at 57 as a high school teacher for 32 years with ample money 💰. Single but I am about to have open heart surgery, so wish me luck. I intuitively knew it was the right time to retire. 😊
I hope your surgery is a success. Don’t worry.
being a teacher tough job retire asap
Building wealth involves good habits and risks like putting money into solid investments like digital currencies,having a good financial manager is what people tend to shy away from,and it keeps hunting them in the near future after many losses, be disciplined and get certified advisor, I pray that anyone reading this will be successful!!!
Thank so much for the advice been seeking means of being successful in the digital market,do you recommend any professional ?
I don’t really do but luckily Anna Dorris Arthur is the best I can recommend so far..
I agree. We should aim to « die with zero taxable income”. Zero RRSP / RIFF, and plenty in TSFA for comfortable older days, care, inheritance… cheers 🥂
Good strategy. As an executor I learned of one opportunity regarding the TFSA beneficiaries when dealing with an estate. Since there was no surviving spouse the beneficiary was the estate. This means the TFSA was included in value of the estate and was involved in probate. If the TFSA beneficiaries were named this money could have been transferred sooner and without probate cost. It’s something to look into and consider the pros and cons. It may be an opportunity.
I could have retired but then Covid hit. Rather than retire at that time I decided to continue working (as an essential worker) rather than getting stuck at home during the lockdown period. 64 years old now, I am not spending much. Basically I'm living on the interest of my savings. I need to think of things that would make me happier. Stuff that I might have considered wasteful, but that I should consider it worth it.
This is my goal. No kids, not much money. Need and want to spend it all. It would help me very much if I knew when I was going to croak.
I'm turning 65, retired a few years ago. Money isn't an issue but being single I want to travel but doing it alone doesn't sound like a lot of fun. I'm still fit and active and want to know how single retirees enjoy solo travel.
Thank you for this video. I have been putting aside all major trips until after retirement. But I am going to start now. With one European trip every 2 years. I downloaded my passport renewal form a few minutes ago. We also agree with keeping our home as a safety net for late 80-90’s years and transferring risk of inflation by delaying CPP and OAS as you have educated your viewers.
Delayed CPP is best for people who don't have a significant pension or savings. It guarantees an increase of income indexed to inflation..its a safe thing to do. The problem with it is you spend YOUR MONEY NOW. If you die or have a medical issue you will have collected nothing. I'm taking mine at 63..$1000/ month.
The words ''invest'' and ''RV'' never belong in the same phrase...never !!! You just buy an RV...But I understand what you mean;)
As touched on in the video, it's an investment in memories. I had never connected it like this before , but it does seem valid. 25+yrs later, the wife and I still yak about some of the cool things we adventured before kids. Once the kids were a bit older, we started RVing. Some great times, and its still happening (although the eldest works, and it usually doesnt line up with our trips now). Eventually, the youngest will be on their own and it will be back to just the wife and I. More investments to come !
@@davecarpenter4917 Yes, I agree !! When you die, you regret things you did not do, rarely things you did ;)
Such great advice as usual Adam. Security and comfort is what we need MOST in the latter years of our lives.
Tip #2 is what my financial advisor is telling me. Now I understand why he’s telling me this
I'm not sure even a realistic financial plan will ease everyone's mind because there are just so many variables in a plan. The probability of one or more of those variables all turning out exactly as planned seems unrealistic. On the other side you have to base your financial actions on something so better to follow a plan and then revisit the plan annually to make adjustments should ease the stress over time so we are not saving everything for tomorrow just in case... I have never counted our house in our retirement spending plans and know in my head it's the backup plan should we need it but being reminded it's there is a good thing as out of sight out of mind sometimes.
Thanks Adam for another very interesting and informative video. The more I watch and experience this retirement journey the more at ease I feel about our futures both from a financial and life experience basis. I enjoy the videos very much, thank you for all you do to enlighten us. Your channel is driving many to take a more proactive approach to retirement planning.
I enjoyed the book. Basically about making sure you enjoy each stage of life. This video is a practical guide on how to implement that plan.
It’s not so much dying with zero money it’s having money that’s not in registered accounts so that if you know you’re going to die soon you can dish that money off to family and not have to worry about the government taking 50% of your registered accounts. I know it doesn’t make sense financially, but sometimes stashing all your money in a basic high interest savings account makes things a lot easier in the end.
Exactly. I'm moving my RRSP into TFSA..maximize it. I also have money in my high interest savings account that earns me close to $4000 / year. Incidentally the money I earn in the high interest savings account is similar to the yearly difference that delayed CPP would make me at 70. The difference being that those savings are compounded monthly. I'm making close to 325 a month in interest. That 325 goes up each month as the account requires a $200 deposit each month so it increases in value by $525 per month..compounding monthly. If I delay CPP until 70, I'll have 10 years of compounding..that's over $68,000.. if you take CPP at 63 1000/ month I'll make $144000 by age 70. If I wait until 70 I will have lost 20,000 by the age 85
I religiously contributed to the RRSP throughout the years but see it is a boondoggle now in retirement. I wish they had the TFSA way back when.
@@Jopie2112 Have to agree with you. I think the same way.
@@Jopie2112Don’t stress over this. RSPs only deferred the taxes (they don’t avoid it). There are studies that show that at the same tax bracket when contributing and at retirement, the after tax proceeds of using RSPs are identical to a cash account. Compounding tax-free is essentially the same after tax/after withdrawal then paying tax as you go. A bit counter-intuitive but the math is the math. And TFSAs, if they become too large - governments will cap the tax benefits in the future. CRA is already looking and auditing large TFSA accounts with the view of disqualifying some of the trades that generated the wealth.
Thanks Adam. One of your best here I think. 🙏
I appreciate that!
You're going to love Disney (especially the kids at those ages) although Florida can get hot, we visited about May/June last year and it was already getting hot. Thanks for the videos, always very informative!
DisneyLAND maybe. Adam lives in BC. Disneyland is in Santa Ana, CA.
Great video - We plan to keep our large house until we are 70 and then we will downsize to an "elderly friendly" home and use the approx. 25% equity we just moved as a buffer until we are both gone (75-90 yrs old). Kids can split the remaining real estate.
Sometimes you need a friend to tell you when it is OK to spend. Being kids of immigrants we were taught to work, work ,work and save, save, save. I am very selective with my spending and I save and invest a lot, but I think I know when to cut myself off a piece of cake. I have increased my spending a bit to the point where some have questioned it, BUT I have also increased my income, saving and investing every year in the last four years.
Same here, but I wasn’t a child of immigrants, just POOR folks. The fear of spending too much is still there 50 years later!
@@catherinewilson1079 Other problems that go hand in hand I see is hoarding “Just in case we need it”
Can you do a video about the desire to work during retirement years - What are some part time or easy ways a pensioner can create some margin and stay active with part time work -
i love the idea of getting to zero when I die but doubt it can happen. It will most likely be zero cash versus zero assets. My challenge is I have a locked in RRSP that 50% will be converted to a LIF very soon as that is all I can do with my current RRSP in Ontario. Based on my financial advisor, even taking out the max per year I will still have a 25K+ left by age 90. i don't expect to live past 80 let a Ione get to 90. I know I can submit requests along the line for bulk withdrawals but they are subject to approval. How can I maximize my withdrawals? I will still have a home worth over 1 million to leave to my kids. I want to enjoy my next 25 years of retirement. Any advice?
Ah, I think this is the first I've heard you mention that you assume keeping the house as a buffer. Huge information. It's half my assets. That explains why the no-go allowance that you recommend is so low. This was mystifying me about your videos until now.
With all the recent changes to CPP, do you still recommend taking cpp at 60?
The problem is you could have significant financial requirements in your later years so you still need to be careful not to burn through your funds prematurely
The portion of the crowd with secure (should I have put quotes on that word ?) pension plans cant die with zero. We dont have a pile of money , just regular income. 2/3 of my monthlies will go to the wife upon my expiry, but there's nothing really to pass on to the kids.
Great video, one question. You say to ladder your income. What if one or both of you need to be in a care home later in life. From what my friends tell me, this is NOT cheap. Shouldn't you keep your income higher to account for this?
If you have nothing, you pay nothing. Public care homes give you the same care if you are paying or if you are a bum. They will take your CPP/OAS and pension checks to pay for it if you get those.
If you own a home, you sell it to fund the retirement home fees
Can't get money out of a stone.
In Hawaii right now then Las Vegas go home work my last 2 weeks then retire at56 have a book cruise for Mexico starting next year farther location
Trying to die with zwro
Dying with zero is not so far fetched for some. If you have a workplace pension, CPP , and OAS (all indexed to inflation) and some modest TFSA savings and your needs are met (ie you have a budget you can live with) it’s probably doable, especially when one is in the no go stage of life.
Ok, wait. Let me grab pen and paper ✍️
Nice video. I’d have to say that in my opinion buying an RV is not an investment as there is a high probability the value is going down not up, which is the opposite of what you want an investment to do.
It’s an investment in experiences, like any travel.
How does what your saying regarding reverse mortgages tie in with Fred Vetesse's advice? He says you should apply between 75 to 80 but many people live another decade (or two) longer?
I want to die with zero, and have the cheque to the funeral home bounce!
👍😁😎
No money for tying up loose ends after death?
Get a 10k life insurance.
@@mrslcom I would rather be my own insurer.
Yes, loose ends cost money. A simple cremation and service is $5k-$10k, final tax filing, accountant, probate fees. The $2.5k CPP death benefit won’t cover it all.
I'm 60 years old and have $2.7m in stocks, generating $150k in income each year. any tips for what I should do with my rrsp and cpp? thx
You are very lucky
At 9 minutes when you say, "a non-registered investment account that’s generating tax liability. It’s clawing back your OAS, you’re paying tax on it…" hopefully you are talking strictly about the interest, and there isn't some other liability there that I'm unaware of. I actually bought your fee for service plan, and have my appointments booked.... but if I am asking this question, I'm rarely the only one thinking it.
wife a bunch of kids west coast lifestyle boy i should got into your gig
Bahaha.
I don't have the worry of trying to die with zero. I have zero now and am soon to be unhoused. Living day to day is struggle enough.
There are two things in your laddered retirement you don’t seem to be accounting for are; inflation (from 65 to 85 prices are gonna go up) and health care (if you need personal care after 80 - $$$$$).
We adjust to inflation. If there is Healthcare, it's built in for most with their home, or ongoing budget. It's not forgotten!
@@ParallelWealth My bad! I commented before the video finished🙄
The Queen mother died in debt which guarantees no death/inheritance taxes
Don’t THEY know how to play the game!
I'm 57 yrs. Old and have a son. I'll make sure my account is empty before time is up. I have burial insurance to bury me. I have friends who paid their children mortgage so when time is up zero in their acct.
You always talk about working too long. It assumes people hate work. I loved my job, it was exciting. I financially could have retired at 55 but retired at 62. I just stopped saving for retirement and lived to the max of my income.
I hear a lot that older people don't spend much, but on the other hand, I hear that long term residence costs a lot. I wish you explained it a little bit.
Assisted living or care homes can cost as much as your spendings during your go go years or more. Life is unpredictable and impossible to plan with 100% accuracy.
@@mrslcom When you have money, you have options.
If you have nothing, you pay nothing. Public care homes give you the same care if you are paying or if you are a bum. They will take your CPP/OAS and pension checks to pay for it if you get those.
Independent Living and in home care cost a lot in BC especially greater Vancouver. Public care, if you qualify eg the health authority determines the need,, is a percentage of your income in BC. My dad was in long term care for 4.5 years. It cost 80% of his income and did not cover clothes, dental, vision care, podiatry and a few other things. There were unhoused in his facility who paid via welfare.
He did an entire video on this. Search his channel.
Why would you want to die with $0? Why not leave something for your children and grandchildren? Why so selfish? My mother in law passed away a year ago and left my wife enough to pay off our mortgage. Now we are richer because of it and plan to pass that on to our daughter. Thereby increasing the wealth of future generations of our family.
Doing everything possible to leave nothing for future generations is beyond selfish.
You missed the entire point of the video. If you’re going to leave something, do it before you die or structure things so there’s minimal taxation to the estate. In the meantime, don’t sit on your money - use it to enjoy the last active years of your life.
Maybe think about the impact of travel. Millions of people around the world are suffering and dying due to the climate crisis! Transportation is a major contributor to greenhouse gas emissions. There are lots of ways to enjoy life and retirement without flying or buying RVs.
Me thinks you asked for a second cup of kool-aid.Those who are waving the red flags on climate are the same ones who buy beachfront property,fly regularly to exotic locations,and own a fleet of vehicles.Not even mentioning their probable A/C use,electric to keep lit their multi million $$ mansions,and their Jacuzzis to keep comfortably warm at ALL times.Ive probably missed a few,but then I'm just a happy pleb with no debt,and mortgage free.
I agree with you. I am not flying anymore because of this. There was a time when flying was rarely done except for emergencies. We need to return to those times.
Unless you are Samantha from Bewitched, Jeannie from I Dream of Jeannie, or live on the USS Enterprise and can teleport, travel requires fuel of some sort.
This is not how to create Generational Wealth.
Passing money early versus later will be much more effective to creating generational wealth.
@@ParallelWealth Teaching early is even better.
What the hell is this? ...why not leave an inheritance to your kids or or nephews? Or create a scolarship. ..Or establish a school in South America....this is so selfish.
My problem is my house:
I don’t want to die with 800-1,000k$ zero morgage left « unused money ».
There must be other ways other then a reverse morgage…. 😔
Smith Manouver
@@sandray7609 thanks for this infor. It’s really goos 👌
It’s called renting.
That’s good advice ! Thank you .🪺
And then you died at 98, living 16 years in squalor👌🥲