Great video Mark👍👍 In my experience, talking with many people who have not invested their money, is due to fear of losing their money, because they do not understand how investments work. When I talked with these people and recommended at least investing in their TFSA, I was surprised how many have never even opened a TFSA. IMO, the major issue with people not investing, is a lack of understanding of how financing works, how stocks work, how ETFs work...etc.. Grade Schools does not teach financing as a primary course but as an option. At a minimum, invest in your TFSA. It's a gift!
The U.S. stock market today is the most overvalued in all of history even the summer of 1929 was a better time to buy stocks in America. Some people will get lucky and die before the stock market major indexes crash some 90+ percent back down to fair market value but what about the ones who don't die first in the buy and hold crowd? They get wiped out and the streets are a bad enough place to live even if you're young.
Fascinating. I retired single at 57. A DB pension is the key for me. Small investments helped me get 63 k after tax and adjusted for inflation. Home paid off long ago because of an inheritance. So i agree with the stats. My heart ❤️ health is problematic.
It's important to highlight the difference between "per household" income vs individual income. A large percentage of households are multi-person, so individual income would be expected to be, not half, but substantially less than the "per household" income. As a simple example, if 70% of retirement "households" are 2 people, and 30% are singles, and the "per household" income is $40,000 then the individual income would be $23,529 on average.
Canadians might have to SOON work 1-2 years longer to cover the new costs of fancy health care and surgery. The longer work should not be too strenuous. RS. Canada
The stats must be 20 years outdated as most people retire with at least a million dollars today. Two million for married couples. The low incomes for retirees reflect the quantitative easing era where great sums of money were stolen from savers and retirees.
Do the authors of your report define what they mean by "household"? Since the composition of households vary, there must be a standard definition they are using.
Well as a senior now on limited fixed income I have one comment. The federal coalition government and the BC government treat low income seniors like disposable diapers. Before Covid I was in good shape as I could have retired and worked part time as long as I wanted. I was a contractor in business development and could not replace my cancelled contract due to my customers drop in business and now the actual inflation rate not the phoney one the feds tell us. 🥶🥶🤮🤮
There are many folks in our predicament. I am one of them. Covid / pandemic is a large turning point in history - people's outlook and values have been permanently shifted and reformed.
yes, but check with your dentist to make sure they are participating and if there is any difference between their rate card and the government rate card.
Thank you for a great vid. I see some great gaps/ gaffes in this presentation concerning Canadian retirement preparation. But it is a powerful insight into current thinking and practice/ mispractice. If inflation is your greatest fear of wiping out your purchasing power - then why is no one holding precious metals and only a thin level of crypto? Why are precious metals not even in the survey...its the oldest investment asset class in history. In a land like Switzerland, most wealthy folks hold between 5 and 25% of their wealth in metals...yet completely missing here? War and political instability teaches you the power of this asset class. No one in Ukraine needed metals until after the day Putin invaded, the currency collapsed, and war started - then overnight they all needed it....but none had it...because they had no forethought on the matter. If your currency collapses - or interest rates hit 50% pa - like it did this week in Turkey { an EU member country] or Egypt, then your pension is....complete wiped out and your local currency is worth less than a used bubble gum wrapper. No one in Canada understand this - most of all the financial planning community. I also found the survey really lacking in real estate asset determination - but I think there is quite a bit of bias in the survey as its written by the OSC - so it is investment product/ securities focused. Also many retirees may still own small businesses - run by their children for example and this is not noted in the survey - but is a typical practice among immigrant families for example. Keep up the great content. You are appreciated.
Some additional retirement misconceptions are the following: 1/ No one needs precious metals in their portfolio. PM is the strongest kind of money - honest money. It is a form of calamity insurance you hope to never have to use, but like a parachute - comes in quite handy at times. 2/ Only the rich hold and need precious metals. Really wrong. I learned about the criticality of PM from a refugee - my grand mother. Her few pieces were simply - life saving and life altering. They can be that for you....but hopefully you have no need. 3/ Currency collapse will not happen in North America. Really wrong. Its happened already many times in USA and Canada. Read your history and go as far back as New France who had to deal with all the French currency theft of the time. Or look at the US Civil War or the War of 1812 and so on. 4/ Government pensions are like the Titanic. Yes they are - they more frequently do hit icebergs. The OTPP was in severe difficulty. The CPP was in severe difficulty - usually synchronized when government at multiple levels were in real trouble. Just look at the times of Jean Chretien and Roy Romano/ SK or Tommy Douglas/ SK to get an idea. Less than 10 yrs ago the QPP lost C$40 Billion on the ABCP fiasco under the misdirection of M Scaire...look up Coventree Asset Management and Purdy Crawford and you will learn about a massive pension scandal in Quebec. This scandal is what led Michael Sabia to lead the QPP and take it out of its dark ,dark times - with success. And that is why he is now at Quebec Hydro leading another state disaster rescue effort.
Most Canadians do not at all understand the power of annuities. But they have strong strong pension envy. Please read the books by Moshe Milevsky of the Schulich School of Business and those of Fred Vettesse. They are life altering works for your pension and retirement financial literacy. Look at the CAAT and SPP pension plans - they are bringing really new and strong pension plans back to life for ALL Canadians.
If I can offer some insight, as someone who never learned about finances while growing up, and has no house or saving to fall back on: if you can, leverage what you like to do and find a spot in government somewhere - city, provincial or federal - and find a job there. They’re almost always hiring, and will often offer defined pensions for life. The latter was a life-saver for me, and allows me to retire at an age where I can still enjoy retirement. Federal pays less than provincial, but seems to have more longevity and there is much less chance of getting laid off. In municipal, there are jobs ranging from manual labour to IT to administrative services - there’s a huge range.
@@DougWolfe Thanks for watching Doug. I agree to a point. In many cases, government jobs will provide a healthy work life balance and pension benefits. I do remind people though, that the government employees have to pay into those pensions. They aren't freebies. You already know this, but I do have more than a few conversations with people who believe the pensions are a free perk for government employees. Not the case.
@@WalhoutFinancial That’s a very good point. I wasn’t aware that anyone thought gov’t pensions were entirely free. Their setup is basically a forced savings deal - which of course they match.
I never had to work so I never worked. Even my grandfather retired with more than a million dollars in the 1930's. Things don't look good for future retirees. At some point in time the U.S. stock market will implode reminiscent of the '29 crash back down to fair market value. Ponzi's with zero fundamentals don't last forever. Gold and long term bonds as of today June 7th 2024 after the jobs reports both in Canada and in America look like the best thing to hold and stocks the worse thing to hold.
On minimum retirement income, life is unsustainable. You exist but you do not live a life. Existence is not living, which every human deserves. On top of that, I will most likely be homeless this summer which means it will be my last summer on this planet. Can't happen fast enough!!!
Great information. In follow up to troyboyd’s comment about single retirees. Is there a general percentage of couples calculations, that a single could use?
Here is an article that looks at averages in Canada, which includes information on seniors: www.moneysense.ca/save/retirement/whats-the-average-monthly-retirement-income-in-canada/#:~:text=The%20average%20Canadian%20retirement%20income,senior%20individual%2C%20it%20was%20%2431%2C400.
Great video Mark👍👍
In my experience, talking with many people who have not invested their money, is due to fear of losing their money, because they do not understand how investments work. When I talked with these people and recommended at least investing in their TFSA, I was surprised how many have never even opened a TFSA. IMO, the major issue with people not investing, is a lack of understanding of how financing works, how stocks work, how ETFs work...etc.. Grade Schools does not teach financing as a primary course but as an option. At a minimum, invest in your TFSA. It's a gift!
Thanks for watching the video. I completely agree with you on all of your points. :)
Financial literacy is a proven rate determining factor. It is a life skill. If you are not literate, you are at a great disadvantage.
TFSA ‘s are wonderful but I understand the need for tax write offs with RRSP’s. When you’re retired, the TFSA’s just make nothing but tax free income.
@@jgriffin282
No reason you can't invest in both your RRSP and TFSA. How much you invest is dependent on your income.
The U.S. stock market today is the most overvalued in all of history even the summer of 1929 was a better time to buy stocks in America. Some people will get lucky and die before the stock market major indexes crash some 90+ percent back down to fair market value but what about the ones who don't die first in the buy and hold crowd? They get wiped out and the streets are a bad enough place to live even if you're young.
Fascinating. I retired single at 57. A DB pension is the key for me. Small investments helped me get 63 k after tax and adjusted for inflation. Home paid off long ago because of an inheritance. So i agree with the stats. My heart ❤️ health is problematic.
I'm going to show this video to my mother. Thank you for making this. This is extremely helpful.
Thanks for watching!
It's important to highlight the difference between "per household" income vs individual income. A large percentage of households are multi-person, so individual income would be expected to be, not half, but substantially less than the "per household" income. As a simple example, if 70% of retirement "households" are 2 people, and 30% are singles, and the "per household" income is $40,000 then the individual income would be $23,529 on average.
What about the annual income, investment breakdown, confidence of financial situation and enjoyment for singles? Are only the couples living well?
Interesting stuff, thanks for the presentation!
Thanks for watching!
Biggest issue in retiring is Govt Taxes , Govt seem to want to tax every
investment , another issue is Fraud , constant scams on older people .
Thanks for the summary, much appreciated.
My pleasure!
Canadians might have to SOON work 1-2 years longer to cover the new costs of fancy health care and surgery. The longer work should not be too strenuous.
RS. Canada
Great video! Thank you!!!
And remember, if you can't retire, there is always MAID.😮
Some of these stats are very disturbing, especially the one regarding mutual funds.
The stats must be 20 years outdated as most people retire with at least a million dollars today. Two million for married couples. The low incomes for retirees reflect the quantitative easing era where great sums of money were stolen from savers and retirees.
Good talk
thanks Richard
Do the authors of your report define what they mean by "household"? Since the composition of households vary, there must be a standard definition they are using.
Primarily spouse and partner households. See page 91 of the study. I link the PDF in the description section.
Have you read or watched (for free) 'The Great Taking'? You might want to
thanks for watching my video!
Well as a senior now on limited fixed income I have one comment. The federal coalition government and the BC government treat low income seniors like disposable diapers. Before Covid I was in good shape as I could have retired and worked part time as long as I wanted. I was a contractor in business development and could not replace my cancelled contract due to my customers drop in business and now the actual inflation rate not the phoney one the feds tell us. 🥶🥶🤮🤮
There are many folks in our predicament. I am one of them. Covid / pandemic is a large turning point in history - people's outlook and values have been permanently shifted and reformed.
Would the dental include dentures?
yes, but check with your dentist to make sure they are participating and if there is any difference between their rate card and the government rate card.
Retirees🌞😎
💯
I worked in healthcare for the last 18 years in your lower income so this video very little value to me !
Thank you for a great vid.
I see some great gaps/ gaffes in this presentation concerning Canadian retirement preparation. But it is a powerful insight into current thinking and practice/ mispractice.
If inflation is your greatest fear of wiping out your purchasing power - then why is no one holding precious metals and only a thin level of crypto? Why are precious metals not even in the survey...its the oldest investment asset class in history. In a land like Switzerland, most wealthy folks hold between 5 and 25% of their wealth in metals...yet completely missing here? War and political instability teaches you the power of this asset class. No one in Ukraine needed metals until after the day Putin invaded, the currency collapsed, and war started - then overnight they all needed it....but none had it...because they had no forethought on the matter.
If your currency collapses - or interest rates hit 50% pa - like it did this week in Turkey { an EU member country] or Egypt, then your pension is....complete wiped out and your local currency is worth less than a used bubble gum wrapper. No one in Canada understand this - most of all the financial planning community.
I also found the survey really lacking in real estate asset determination - but I think there is quite a bit of bias in the survey as its written by the OSC - so it is investment product/ securities focused.
Also many retirees may still own small businesses - run by their children for example and this is not noted in the survey - but is a typical practice among immigrant families for example.
Keep up the great content. You are appreciated.
Some additional retirement misconceptions are the following:
1/ No one needs precious metals in their portfolio. PM is the strongest kind of money - honest money. It is a form of calamity insurance you hope to never have to use, but like a parachute - comes in quite handy at times.
2/ Only the rich hold and need precious metals. Really wrong. I learned about the criticality of PM from a refugee - my grand mother. Her few pieces were simply - life saving and life altering. They can be that for you....but hopefully you have no need.
3/ Currency collapse will not happen in North America. Really wrong. Its happened already many times in USA and Canada. Read your history and go as far back as New France who had to deal with all the French currency theft of the time. Or look at the US Civil War or the War of 1812 and so on.
4/ Government pensions are like the Titanic. Yes they are - they more frequently do hit icebergs. The OTPP was in severe difficulty. The CPP was in severe difficulty - usually synchronized when government at multiple levels were in real trouble. Just look at the times of Jean Chretien and Roy Romano/ SK or Tommy Douglas/ SK to get an idea.
Less than 10 yrs ago the QPP lost C$40 Billion on the ABCP fiasco under the misdirection of M Scaire...look up Coventree Asset Management and Purdy Crawford and you will learn about a massive pension scandal in Quebec. This scandal is what led Michael Sabia to lead the QPP and take it out of its dark ,dark times - with success. And that is why he is now at Quebec Hydro leading another state disaster rescue effort.
Most Canadians do not at all understand the power of annuities. But they have strong strong pension envy.
Please read the books by Moshe Milevsky of the Schulich School of Business and those of Fred Vettesse. They are life altering works for your pension and retirement financial literacy.
Look at the CAAT and SPP pension plans - they are bringing really new and strong pension plans back to life for ALL Canadians.
Forget retirement for my generation
Which generation is that? :)
Forget to plan = Plan to Fail.
Small savings - can be life altering.
If I can offer some insight, as someone who never learned about finances while growing up, and has no house or saving to fall back on: if you can, leverage what you like to do and find a spot in government somewhere - city, provincial or federal - and find a job there. They’re almost always hiring, and will often offer defined pensions for life. The latter was a life-saver for me, and allows me to retire at an age where I can still enjoy retirement. Federal pays less than provincial, but seems to have more longevity and there is much less chance of getting laid off. In municipal, there are jobs ranging from manual labour to IT to administrative services - there’s a huge range.
@@DougWolfe Thanks for watching Doug. I agree to a point. In many cases, government jobs will provide a healthy work life balance and pension benefits. I do remind people though, that the government employees have to pay into those pensions. They aren't freebies. You already know this, but I do have more than a few conversations with people who believe the pensions are a free perk for government employees. Not the case.
@@WalhoutFinancial That’s a very good point. I wasn’t aware that anyone thought gov’t pensions were entirely free. Their setup is basically a forced savings deal - which of course they match.
I never had to work so I never worked. Even my grandfather retired with more than a million dollars in the 1930's. Things don't look good for future retirees. At some point in time the U.S. stock market will implode reminiscent of the '29 crash back down to fair market value. Ponzi's with zero fundamentals don't last forever. Gold and long term bonds as of today June 7th 2024 after the jobs reports both in Canada and in America look like the best thing to hold and stocks the worse thing to hold.
Leave Canada or your savings will be sucked out with inflation and rising taxes 😮
Our inflation is not too bad. On the taxes, you might want to consider some tax planning.
@@OptimisticHominid apparently you haven't shopped lately.
On minimum retirement income, life is unsustainable. You exist but you do not live a life. Existence is not living, which every human deserves. On top of that, I will most likely be homeless this summer which means it will be my last summer on this planet. Can't happen fast enough!!!
Have you applied for and investigated the GIS Program?
Great information. In follow up to troyboyd’s comment about single retirees. Is there a general percentage of couples calculations, that a single could use?
Here is an article that looks at averages in Canada, which includes information on seniors:
www.moneysense.ca/save/retirement/whats-the-average-monthly-retirement-income-in-canada/#:~:text=The%20average%20Canadian%20retirement%20income,senior%20individual%2C%20it%20was%20%2431%2C400.
Thank you.@@WalhoutFinancial