That first plan looks similar to the first plan that my bank did for me. They had me burn through all of my TFSA's first. The 2nd plan they made was a bit better but their advice to me for if I required emergency funds was to use the line of credit. Why would I want to do that in retirement when I no longer have an income? I hired you guys for a financial plan and am I glad that I did. It was worth every penny. I also moved all my money from the bank once I found out how much I was paying in fees. I've been retired almost a year now, the plan is in place and I have peace of mind. Thank you Parallel Wealth!
The considerations are endless and these vids help pose relevant questions. What I’d like to see is a case of heavily loaded rrsp with no tfsa. What old like to see is a strategy for moving that rrsp to a tfsa while minimizing income taxes. There is also the complexity if RIF rules. This is so that the estate upon death is more valuable (less tax at death) to those we leave in our will.
I love the case studies, but a common problem on your channel and many others is a lack of information for singles. The number of single people making it to retirement, either due to divorce or in my case never getting married, I think is growing but there is a real lack of valuable information out there covering this demographic. I love the case studies, but please include more diverse demographics than just "Jane & Joe RUclips".
@ParallelWealth can you direct me to any...lots of people do not have $500,000 saved some don't have even $200,000 unfortunately life happens...thank you
Thank you for this case study. It was reassuring that this case didn’t have a defined pension plan but they could retire with $700,000 savings as some of us don’t have a defined pension plan. Looking forward to more case studies
Having a Defined Benefit Pension is the way to go. I've been drawing my pension for 6.5 years and I've received about $420,000 already and it's adjusted to the CPI
@@garth217 I don't think anyone would disagree with you that "Having a DB pension is the way to go" but honestly they are almost non-existent outside of the public sector and of the few private sector DB pensions that do exist these days almost none are indexed to inflation. Having an indexed DB plan puts you in pretty rare territory. Don't get me wrong I think you deserve your pension, you worked for it, but it's something that only a few of us have access to.
This is exactly why you skip the advisor at the bank when you need actual financial advice and go to real pro. I have no plan to use a financial advisor to manage assets, but I definitely pay for one to help with retirement, tax and estate planning when the time comes.
The case studies are a great way to connect with reality. One can see themselves in the one or other scenario, or can see the parallel wealth ( pun intended).
Very good and insightful video. It would be great to see from a lightly earlier perspective in terms of age. Perhaps a couple entering their 50's and what they need to do to reach their retirement goals.
A key point: "create that Defined Benefit plan on their own" We don't have DB pensions and this is exactly why my wife and I deferred our CPP & OAS to age 70. It wasn't about getting the most money out of the government, statistics say we might but who knows, it was the whole "not run out of money" thing and income that we won't have to manage no matter how long we live. We retired at age 61, are now in our 70s, and life is good. As far as I am concerned all the discussion around deferring and the breakeven point is just a distraction. Of course if you have a solid DB pension it's a different calculation.
It will be interesting to see with the trade war how that changes retirement planning. I planned on retiring in 3 years. If the economy goes to pits, which it will plans will likely change. Inflation will come back and maybe harder than pandemic for Canadians. The markets are going to be an issue to get decent returns. Hopefully its only be short term. Thanks for your videos I really enjoy them.
Great video. Love this idea of walking through actual case studies of real clients. One thing I would like to see in each though is a stress test, which I am sure you did with them. Different people have different what if's but would be willing to wager the #1 what if is, what if one of us dies early? Will the remaining spouse be ok?
Luckily, my dad showed me that it's possible to retire with less than 200K ! He's been retired 20 years so perhaps it's a bit more now but if you are good at investing and not just collecting a few percent a year... it's entirely possible to retire with far less than you think. Worst case, I plan on retiring at 55 just like my dad did, there's a decent chance it'll be sooner. My kids, I'm trying to get them in a financial position so they'll never even need to get a job in the first place. That's my goal with them, which is why I'm not sure about my retirement age.
Could you possibly do a video with rental income involved? I find the videos very informative, but find they quite often leave out some of the different sources of income. Thanks.
I understand the reason for draw down on the RRSP for tax purposes etc. but if you have 700K couldn't you roll your investments to generate dividend paying investments for those first years before drawing down? I'm not talking about low yield investments but there are some good ETFs etc out there today generating 8-10% today. If you consider 700K @ 9% that's 63K per year not including CPP or OAS. I haven't seen this method employed for many case studies on the net just wondering why not??
Huge fan of your videos incl the case studies. My struggle is determining how much I need/want monthly or annually in retirement. I know approximate expenses to live, but am looking forward to alot of travel, so what's the best strategy to factor in 2-4 nice vacations into a plan?
Create a base budget for main living. And then research the type of travel you want to do and that will give you your budget. $5k per trip x 3 per year. Then add that in and inflate it
That's simple..anytime you have any investment/ income that is indexed you win. CPP and OAS being indexed is a security you can't pass up on. The thing is...do you need the money...now??? If you don't need the money now, you can take it and invest it... how much money would you receive in 10 years 60 to 70..would that money double in 10 years???...
Thanks for the video. Can you please comment on reverse mortgages. So many commercials on t.v. for them. If you could share your thoughts, that would be appreciated.
@@chantaldanbondy1573 Personally I'd say reverse mortgages are a last resort option but you'd need someone like Adam to do a proper independent analysis of your own individual situation. I wouldn't rely on a reverse mortgage lender or other lender (like your bank) to do that analysis for you.
One person alone living in a city like Toronto would need about $50K a year to live if renting. Retiring at 65 yrs. for higher CPP pension is better. If the home is paid off, 2 people might be able to live for less than $70K a year especially if they moved to a small town area outside the city, or switch to a small condo in the city. Working part time to 65, getting higher CPP pension might make more sense. 2 people who own a home paid off might live well in the city for 1 million savings (or more than 700K savings) to live another 25 years after 60. Inflation will also erode their buying power, however their savings will grow 5 percent or more each year. So depends on cost of living going forward. My thoughts, I would guess yours may differ.
Once you get close to retirement you should really invest to protect your income. Get out of stocks and move to bonds, GIC's, etc. The return is probably closer to 3-4% but you avoid a potential down year in the market that could seriously put a dent in your retirement savings. The S&P 500 lost 38% in 2008 and 19% in 2020, you can expect a bad year at least once a decade.
@@BusterDarcy Maybe, maybe not. If they were spending both CPPs and both OASs then probably not. The CPP survivor benefit isn't much if you were both working, and OAS is just gone. Even pensions aren't always dual-life, you might only get 5 or 10 years of your spouse's pension and then that's gone too.
With inflation averaging 2.93% from 1925 - 2022, why are your recommendations from the financial planners guides you use for 2.5%? Also, do you use a different ROI for investments preretirement and then a lower more conservative number in post retirement?
By depleting their RRSPs early and deferring CPP/OAS to 70, the survivor will have much less, if anything to draw on to make up the loss of the others CPP/OAS and lack of income splitting.
Take this from a 5 year retiree, one thing that’ll matter the most is how soon you start and how much you’re able to compound in your active years from your earnings and most especially investments. Don’t be shy of seeking professional guidance.
I probably didn’t start early enough but glad I got on track eventually, took my pension lump sum and pushed it into the financial market, over 700k generated! And yes, I definitely had a cfa by my side
I’m looking at about $70,000 pension plan payout, and I’ve got about $650,000 saved in my 401k, not sure how to maximize on these to make sure I’m good for retirement instead of sitting on it.
Graham David Fullerton is the licensed advisor I use, I’m only putting his name here because I’ve read through these comments and I just feel that people are going on about retirement without proper planning. Search the name, you’ll find necessary details.
I like the case studies, actually I've been watching everything and learning a tonne so thx for that. Being single now, I am in favour of more cases involving the last survivor, My wife and I didn't have kids and no family to leave any residue to. Just charity so if you could work that in somehow, it would be much appreciated.
Better to work a little longer than Retire earlier for More Income and an increased feeling of security in this Uncertain Overpriced Manipulative World unless you have Health issues in my opinion.
The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
I completely agree; I am 60 years old, recently retired, and have approximately $$$ in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
This is really nice. I worry that I have a couple more years before retirement, and I want to switch to using a financial advisor, I could really use the expertise of this advsors.
I'm guided by “Grace Lorraine Austin” an experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me. She offers valuable insights, including entry and exit points for the securities I concentrate on.
Thank you for the information. I conducted my own research and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.
Know & cost out your current spending pattern, then add in changes for things that may go away or be less in retirement and lastly add in things which may increase during retirement. It all depends upon your lifestyle needs, wants or what you can afford in retirement and then the amount of cash you need to fund those expenses.
@DoneByD I am 63 and personally do not believe in the "slow go years"....I believe today's retirees will be in the "go go years for ever"....we can't base today's retirement to what people did in the 70,s
@ then don't incorporate slow go years into your lifestyle expenditures plan. That just means you will need more available dollars to fund your retirement out to whatever age. From my experience though I have witnessed 3 set of parents (my wife was adopted) all slow down from an expenditure perspective (mostly travel) from age 75 onward. Health issues, like heart attack, dementia, and cancer affected these people and they generally stuck closer to home (travel stopped around 73 years of age for the younger spouse because of above health). So I still think slow go years are relevant as a number of books I have read on this subject suggest longevity and health are not the same thing. So although we may live longer health gets in the way from a lifestyle expenditure standpoint (mostly travel or not doing things because of health issues or a partner passing early) which therefore lowers overall costs.
@ LOL me too, well except for the "dead" part... Have a great evening - I'll definitely have reserves available if we are both still willing and able to venture out into mid to late 80s. I guess the kids are the only ones that will lose out at that point, if that happens, so I hope you are correct and I'm just wrong. 😉
Once you’re certain you can pull the plug, hang in there one or two more years. It’ll go by quickly and you’ll sleep better in retirement. May you all find inner peace.
I don't know when people will learn that you need to go through a proper financial planner and not someone at the bank with quotas in order to maximize your investments
@@M.A.Q2304 Correct not everyone can but even if on the cusp, should really look into what may end up better. Their Household Retirement Plan costs $4000 and got them to retirement now with income they required. Free bank plan had them working 2 more years. Which is better is an individual decision but can guarantee 1000% which I would choose
The bank is not free..in fact very far from. Our plans will typically save tens to hundreds of thousands. Yes it's an up front fee, but it's better than paying all those extra taxes to CRA.
@@M.A.Q2304 banks don't do anything for free. You can pay two ways: up front fee or trailer fees. You can negotiate both with a proper financial advisor. Not so much a bank. Their costs are higher but hidden and they sell you what makes them the most money and not what is necessarily in your best interest. There are lots of exposes about how corrupt the bank investment sector is. Go check it out.
Hello Adam, Thank you for putting this together. I was wondering if you've factored in RRSP/RIF withholding tax deduction (for excess amount withdrawal) in this scenario. Let's say John needs $24k from RRSP at age 60. His RIF annual min. would be $4950 considering 3.3% the minimum RIF payment. To achieve $19,050 (after 30% witholding tax deduction) for the reminder, the amount of $27,214 gross needs to be withdrawn in addition. Hence, the total first year withdrawal from RRSP will be equal to $32,164 ($27,214+ $4950), which needs to be deducted from $150k initial balance. Therefore, the RRSP balance for the second year will be $123,727 adjusted for 5% annual interest rate instead of $132,300. So I think it will be melted down faster as the same rules cascade in following years respecting min. withdrawal percentage rule/excess withholding tax deduction. Please correct me if I'm wrong or missing something as I use a simple calculator and don't have access to FP software.
A great vid. But while I agree with you that the bank most likely offered a really poorly thought out retirement decummulation plan, the recommendation that they work 2 more years was actually not a bad recommendation - you have made it often yourself as a means to beefing up the robustness of other folks plans.
Retirement at 55. With currently close to $1M in retirement savings -Husband & Wife... Husband $515k rsp, $16k tfsa, wife $402k rsp, $25k tfsa. Currently 50 & 49.
@smiles9819 We sold 3 investment properties, so put larger lump sums to off set some of the capital gains. Also husband's company matches, one of my company's did as well for a bit. Also larger income earners. We also had a "big bank " investment portfolio up til 1 year ago. So that was what they suggested . I have learned alot in the last year.
Nice, makes sense. Might be nice going forward with your RRSPs to reinvest your tax savings from them to top up your TFSA. Just give you more options into retirement.
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
Sounds interesting. I was planning to invest some few £ in some coins, stack them up and leave them for a few years, but seeing this changed my mindset. Thank you very much
This was a wast of time. Who in their right mind would spend TFSA before RIFFs. Makes no sense. No pro is that incompetent. The RRSP meltdown is obvious and waiting for CPP later. No big amazing trick here. Sorry, I call it like I see it.
@@elp2689 and people are going into various facebook groups and asking about what to do. The sheer volume of opinions out there is staggering. Not everyone understands all the implications. One of the reasons why I watch Adam & Company
You are saying pros offer that kind of advice. Is it not regulated or requires minimal knowledge? It’s so bad I think you are telling BS just to get business.
Sadly clients of banks sometimes give even worse advise than this. A friend who retired age 65 a month ago his bank said continue to live frugally, take your govt benefits now, take from your RRSP as needed only to reduce income tax. Meaning his almost $1mil sitting in the bank he saved for retirement they are actually trying to tell him not to spend.
I retired 10 years ago at age 46 with roughly $730,000. My hosie cost me $355,000 at the time and I give myself $20,000 a year. I have ZERO income as in no pension or any other income source. I'll start collecting my CPP at age 60 and then at 65 I'll get OAS and GIS which will give me well.l over 20k per year, so I'm set even if I live to be 125. Of course I'll have to increase my 20k per year as inflation creeps up but ultimately, I will be able to sell the house and downsize at some point which will put more lines into my stack. Here's an interesting way to look at it...I paid 355k for my house 10 years ago. Ots worth 855K (or more) now. So I've earned 50k per year without a job. Thats 50k with NO tax. Id have to earn at leat 90K per year working to take home 50K and thats far more money than I ever made working a job. My only regret is that I didn't retire at age 40 instead!!
That first plan looks similar to the first plan that my bank did for me. They had me burn through all of my TFSA's first. The 2nd plan they made was a bit better but their advice to me for if I required emergency funds was to use the line of credit. Why would I want to do that in retirement when I no longer have an income? I hired you guys for a financial plan and am I glad that I did. It was worth every penny. I also moved all my money from the bank once I found out how much I was paying in fees. I've been retired almost a year now, the plan is in place and I have peace of mind. Thank you Parallel Wealth!
I agree with others here, case studies are great, and very often helpful to one’s own specific situation. Keep them coming!
Yes please more case studies! Love your content. Thanks so much!
You got it!
Your videos inspired me and we just submitted our details to your team for our plan!!
Such a helpful and reassuring video. Our situation is close enough that I feel better about our plans. Thank you!
Excellent épisode ! Please do more case studies like that !
The considerations are endless and these vids help pose relevant questions. What I’d like to see is a case of heavily loaded rrsp with no tfsa. What old like to see is a strategy for moving that rrsp to a tfsa while minimizing income taxes. There is also the complexity if RIF rules. This is so that the estate upon death is more valuable (less tax at death) to those we leave in our will.
I love the case studies, but a common problem on your channel and many others is a lack of information for singles. The number of single people making it to retirement, either due to divorce or in my case never getting married, I think is growing but there is a real lack of valuable information out there covering this demographic. I love the case studies, but please include more diverse demographics than just "Jane & Joe RUclips".
We have done a LOT of single specific videos and will continue to do so. One of the next few case studies will be single focused!
@ParallelWealth can you direct me to any...lots of people do not have $500,000 saved some don't have even $200,000 unfortunately life happens...thank you
Thank you for this case study. It was reassuring that this case didn’t have a defined pension plan but they could retire with $700,000 savings as some of us don’t have a defined pension plan. Looking forward to more case studies
Having a Defined Benefit Pension is the way to go. I've been drawing my pension for 6.5 years and I've received about $420,000 already and it's adjusted to the CPI
@@garth217 I don't think anyone would disagree with you that "Having a DB pension is the way to go" but honestly they are almost non-existent outside of the public sector and of the few private sector DB pensions that do exist these days almost none are indexed to inflation. Having an indexed DB plan puts you in pretty rare territory. Don't get me wrong I think you deserve your pension, you worked for it, but it's something that only a few of us have access to.
@ddavidson5 I did work for it. 30 years as a first responder.
This is exactly why you skip the advisor at the bank when you need actual financial advice and go to real pro. I have no plan to use a financial advisor to manage assets, but I definitely pay for one to help with retirement, tax and estate planning when the time comes.
The case studies are a great way to connect with reality. One can see themselves in the one or other scenario, or can see the parallel wealth ( pun intended).
Love your content, amazing source of information ❤
I really enjoy the case studies. Great idea!
than you very much , I’m far from retirement but I love the knowledge you provide
Start planning now!!
Very good and insightful video. It would be great to see from a lightly earlier perspective in terms of age. Perhaps a couple entering their 50's and what they need to do to reach their retirement goals.
A key point: "create that Defined Benefit plan on their own"
We don't have DB pensions and this is exactly why my wife and I deferred our CPP & OAS to age 70. It wasn't about getting the most money out of the government, statistics say we might but who knows, it was the whole "not run out of money" thing and income that we won't have to manage no matter how long we live. We retired at age 61, are now in our 70s, and life is good.
As far as I am concerned all the discussion around deferring and the breakeven point is just a distraction. Of course if you have a solid DB pension it's a different calculation.
I'm glad I have a DB Pension. It's great..adjusted to the CPI. 6.8% in 2022..2.8% this year.
Great video as always. how about doing one for a couple who both have DB pension plans, and reg and non reg investements.
Thank you for giving a realistic scenario.. I hate these scenarios "John and Jane have $1.9M at age 45"..
It will be interesting to see with the trade war how that changes retirement planning. I planned on retiring in 3 years. If the economy goes to pits, which it will plans will likely change. Inflation will come back and maybe harder than pandemic for Canadians. The markets are going to be an issue to get decent returns. Hopefully its only be short term. Thanks for your videos I really enjoy them.
Great video. Love this idea of walking through actual case studies of real clients. One thing I would like to see in each though is a stress test, which I am sure you did with them. Different people have different what if's but would be willing to wager the #1 what if is, what if one of us dies early? Will the remaining spouse be ok?
Thank you,Adam
My pleasure!
Luckily, my dad showed me that it's possible to retire with less than 200K ! He's been retired 20 years so perhaps it's a bit more now but if you are good at investing and not just collecting a few percent a year... it's entirely possible to retire with far less than you think. Worst case, I plan on retiring at 55 just like my dad did, there's a decent chance it'll be sooner. My kids, I'm trying to get them in a financial position so they'll never even need to get a job in the first place. That's my goal with them, which is why I'm not sure about my retirement age.
Gee, I'm SO shocked the bank made a crappy plan.....eye roll
I bet they paid a lot in mutual fund fees though.
Could you possibly do a video with rental income involved?
I find the videos very informative, but find they quite often leave out some of the different sources of income.
Thanks.
I understand the reason for draw down on the RRSP for tax purposes etc. but if you have 700K couldn't you roll your investments to generate dividend paying investments for those first years before drawing down? I'm not talking about low yield investments but there are some good ETFs etc out there today generating 8-10% today. If you consider 700K @ 9% that's 63K per year not including CPP or OAS. I haven't seen this method employed for many case studies on the net just wondering why not??
Huge fan of your videos incl the case studies. My struggle is determining how much I need/want monthly or annually in retirement. I know approximate expenses to live, but am looking forward to alot of travel, so what's the best strategy to factor in 2-4 nice vacations into a plan?
Create a base budget for main living. And then research the type of travel you want to do and that will give you your budget. $5k per trip x 3 per year. Then add that in and inflate it
Case studies are very interesting. Can you do a video about a non-indexed defined benefit plan. I assume delaying CPP and OAS is crucial here.
That's simple..anytime you have any investment/ income that is indexed you win. CPP and OAS being indexed is a security you can't pass up on. The thing is...do you need the money...now??? If you don't need the money now, you can take it and invest it... how much money would you receive in 10 years 60 to 70..would that money double in 10 years???...
Thanks for the video. Can you please comment on reverse mortgages. So many commercials on t.v. for them. If you could share your thoughts, that would be appreciated.
Adam will be the best person to commend, HELOC will be the best option. Lower interest rate
.
@@chantaldanbondy1573 Personally I'd say reverse mortgages are a last resort option but you'd need someone like Adam to do a proper independent analysis of your own individual situation. I wouldn't rely on a reverse mortgage lender or other lender (like your bank) to do that analysis for you.
Very informative. Stupid question, but what software are you using to make those plans?
Snap Projections
That's a good one... Professional planner in banks? Lol yea
Do you have any videos that talk about strategies for incorporated professionals at retirement?
On the agenda
But how did you actually do it?
Case studies are the best, you may want to use board and write it on the board without using Snap Projection. Great Video. Keep up the good work!!!!
One person alone living in a city like Toronto would need about $50K a year to live if renting. Retiring at 65 yrs. for higher CPP pension is better. If the home is paid off, 2 people might be able to live for less than $70K a year especially if they moved to a small town area outside the city, or switch to a small condo in the city. Working part time to 65, getting higher CPP pension might make more sense. 2 people who own a home paid off might live well in the city for 1 million savings (or more than 700K savings) to live another 25 years after 60. Inflation will also erode their buying power, however their savings will grow 5 percent or more each year. So depends on cost of living going forward. My thoughts, I would guess yours may differ.
Once you get close to retirement you should really invest to protect your income. Get out of stocks and move to bonds, GIC's, etc. The return is probably closer to 3-4% but you avoid a potential down year in the market that could seriously put a dent in your retirement savings. The S&P 500 lost 38% in 2008 and 19% in 2020, you can expect a bad year at least once a decade.
Thank you
You're welcome
Amazing.. sorry for asking for the second time.. what is the name of the software you use ?
Snap Projections
And what happens when one of them dies, and the lose ONE CPP, this is a drastic reduction of their income! You need to tell your viewers about this!
You would be eligible for survivor benefits. Its not 💯 but its better than nothing
And they can live off their remaining nest egg that was meant for two as just one person now, so essentially they’d have a surplus
@@BusterDarcy Maybe, maybe not. If they were spending both CPPs and both OASs then probably not. The CPP survivor benefit isn't much if you were both working, and OAS is just gone. Even pensions aren't always dual-life, you might only get 5 or 10 years of your spouse's pension and then that's gone too.
Oh we have lots of videos on that, and one coming in a couple weeks that will blow your mind! Too much misinformation our there. Stay tuned.
What are the returns on investment??
they are interesting to see
With inflation averaging 2.93% from 1925 - 2022, why are your recommendations from the financial planners guides you use for 2.5%? Also, do you use a different ROI for investments preretirement and then a lower more conservative number in post retirement?
By depleting their RRSPs early and deferring CPP/OAS to 70, the survivor will have much less, if anything to draw on to make up the loss of the others CPP/OAS and lack of income splitting.
Take this from a 5 year retiree, one thing that’ll matter the most is how soon you start and how much you’re able to compound in your active years from your earnings and most especially investments. Don’t be shy of seeking professional guidance.
I probably didn’t start early enough but glad I got on track eventually, took my pension lump sum and pushed it into the financial market, over 700k generated! And yes, I definitely had a cfa by my side
I’m looking at about $70,000 pension plan payout, and I’ve got about $650,000 saved in my 401k, not sure how to maximize on these to make sure I’m good for retirement instead of sitting on it.
Graham David Fullerton is the licensed advisor I use, I’m only putting his name here because I’ve read through these comments and I just feel that people are going on about retirement without proper planning. Search the name, you’ll find necessary details.
I like the case studies, actually I've been watching everything and learning a tonne so thx for that.
Being single now, I am in favour of more cases involving the last survivor, My wife and I didn't have kids and no family to leave any residue to. Just charity so if you could work that in somehow, it would be much appreciated.
Better to work a little longer than Retire earlier for More Income and an increased feeling of security in this Uncertain Overpriced Manipulative World unless you have Health issues in my opinion.
Great video… just out of curiosity what fees do you charge for this type of plan compared to what the bank charged your clients?
I think they are listed on his website.
The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
I completely agree; I am 60 years old, recently retired, and have approximately $$$ in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
This is really nice. I worry that I have a couple more years before retirement, and I want to switch to using a financial advisor, I could really use the expertise of this advsors.
I'm guided by “Grace Lorraine Austin” an experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me. She offers valuable insights, including entry and exit points for the securities I concentrate on.
Thank you for the information. I conducted my own research and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.
How does one know how much money one needs?
Know & cost out your current spending pattern, then add in changes for things that may go away or be less in retirement and lastly add in things which may increase during retirement. It all depends upon your lifestyle needs, wants or what you can afford in retirement and then the amount of cash you need to fund those expenses.
@DoneByD I am 63 and personally do not believe in the "slow go years"....I believe today's retirees will be in the "go go years for ever"....we can't base today's retirement to what people did in the 70,s
@ then don't incorporate slow go years into your lifestyle expenditures plan. That just means you will need more available dollars to fund your retirement out to whatever age.
From my experience though I have witnessed 3 set of parents (my wife was adopted) all slow down from an expenditure perspective (mostly travel) from age 75 onward. Health issues, like heart attack, dementia, and cancer affected these people and they generally stuck closer to home (travel stopped around 73 years of age for the younger spouse because of above health). So I still think slow go years are relevant as a number of books I have read on this subject suggest longevity and health are not the same thing. So although we may live longer health gets in the way from a lifestyle expenditure standpoint (mostly travel or not doing things because of health issues or a partner passing early) which therefore lowers overall costs.
@DoneByD time will tell my friend.....but I hope your dead wrong and wish you an adventurous lifestyle into your 90,s
@ LOL me too, well except for the "dead" part... Have a great evening - I'll definitely have reserves available if we are both still willing and able to venture out into mid to late 80s. I guess the kids are the only ones that will lose out at that point, if that happens, so I hope you are correct and I'm just wrong. 😉
Once you’re certain you can pull the plug, hang in there one or two more years. It’ll go by quickly and you’ll sleep better in retirement. May you all find inner peace.
I don't know when people will learn that you need to go through a proper financial planner and not someone at the bank with quotas in order to maximize your investments
Yes, but not everyone can afford their fees. Banks do it for free.
@@M.A.Q2304 Correct not everyone can but even if on the cusp, should really look into what may end up better. Their Household Retirement Plan costs $4000 and got them to retirement now with income they required. Free bank plan had them working 2 more years. Which is better is an individual decision but can guarantee 1000% which I would choose
@@M.A.Q2304TD told me I would have to pay to get a personalized plan done by someone there.
The bank is not free..in fact very far from. Our plans will typically save tens to hundreds of thousands. Yes it's an up front fee, but it's better than paying all those extra taxes to CRA.
@@M.A.Q2304 banks don't do anything for free. You can pay two ways: up front fee or trailer fees. You can negotiate both with a proper financial advisor. Not so much a bank. Their costs are higher but hidden and they sell you what makes them the most money and not what is necessarily in your best interest. There are lots of exposes about how corrupt the bank investment sector is. Go check it out.
Hello Adam, Thank you for putting this together. I was wondering if you've factored in RRSP/RIF withholding tax deduction (for excess amount withdrawal) in this scenario. Let's say John needs $24k from RRSP at age 60. His RIF annual min. would be $4950 considering 3.3% the minimum RIF payment. To achieve $19,050 (after 30% witholding tax deduction) for the reminder, the amount of $27,214 gross needs to be withdrawn in addition. Hence, the total first year withdrawal from RRSP will be equal to $32,164 ($27,214+ $4950), which needs to be deducted from $150k initial balance. Therefore, the RRSP balance for the second year will be $123,727 adjusted for 5% annual interest rate instead of $132,300. So I think it will be melted down faster as the same rules cascade in following years respecting min. withdrawal percentage rule/excess withholding tax deduction. Please correct me if I'm wrong or missing something as I use a simple calculator and don't have access to FP software.
How much are your ball park fees for creating an effective plan with about a million?
www.parallelwealth.com/planning
Pricing, details and sample there for you
What if one of them dies at 79 yrs old?
You become single
What happens if they live until 99?
CPP and OAS would cover their expenses and last until they die
MAID
@@paulnardo7987 😂 Better budget that in for myself..
Yeah by delaying cpp to the max they will likely be fine living off that and oas for their waning final years beyond 90
Screwed. Totally screwed😂
A great vid. But while I agree with you that the bank most likely offered a really poorly thought out retirement decummulation plan, the recommendation that they work 2 more years was actually not a bad recommendation - you have made it often yourself as a means to beefing up the robustness of other folks plans.
But for this client (which was the focus) they wanted to retire asap. So why would they work 2 more years if they didn't have to?!
Retirement at 55. With currently close to $1M in retirement savings -Husband & Wife...
Husband $515k rsp, $16k tfsa, wife $402k rsp, $25k tfsa.
Currently 50 & 49.
This would be a great one it’s realistic and I would like to see both with no mortgage and some mortgage
Why so little in TFSA compared to your other investments?
@smiles9819 We sold 3 investment properties, so put larger lump sums to off set some of the capital gains. Also husband's company matches, one of my company's did as well for a bit. Also larger income earners. We also had a "big bank " investment portfolio up til 1 year ago. So that was what they suggested . I have learned alot in the last year.
Nice, makes sense. Might be nice going forward with your RRSPs to reinvest your tax savings from them to top up your TFSA. Just give you more options into retirement.
@smiles9819 yes I have switched careers last year, TFSA is my focus now. Hoping to max out both mine & husband's prior to retirement
don't get any advise from your bank !
sure you can! just try not to live so long
Do they still have a mortgage ?
Are you guys comfortable working with people who are doing FIRE?
Ya done many plans for it
Smart Investing Made Simple: Bitcoin as a Key to Retirement Planning
Many new tra-ders face challenges without proper guidance. I found success by learning from James Clark's expertise.
That's precisely why I trust and value the guidance of Mr. J. Clark in all my endeavors.@@JMRecordz
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
Sounds interesting. I was planning to invest some few £ in some coins, stack them up and leave them for a few years, but seeing this changed my mindset. Thank you very much
at 60 you age well
This was a wast of time. Who in their right mind would spend TFSA before RIFFs. Makes no sense. No pro is that incompetent. The RRSP meltdown is obvious and waiting for CPP later. No big amazing trick here. Sorry, I call it like I see it.
But sadly people who don’t know are being told this bad information by so called experts.
Oh man, go get a plan from the bank. While I completely agree with you, what we presented here is the reality many face in the plans they receive.
@@elp2689 and people are going into various facebook groups and asking about what to do. The sheer volume of opinions out there is staggering. Not everyone understands all the implications. One of the reasons why I watch Adam & Company
You are saying pros offer that kind of advice. Is it not regulated or requires minimal knowledge? It’s so bad I think you are telling BS just to get business.
Sadly clients of banks sometimes give even worse advise than this. A friend who retired age 65 a month ago his bank said continue to live frugally, take your govt benefits now, take from your RRSP as needed only to reduce income tax. Meaning his almost $1mil sitting in the bank he saved for retirement they are actually trying to tell him not to spend.
I retired 10 years ago at age 46 with roughly $730,000. My hosie cost me $355,000 at the time and I give myself $20,000 a year. I have ZERO income as in no pension or any other income source. I'll start collecting my CPP at age 60 and then at 65 I'll get OAS and GIS which will give me well.l over 20k per year, so I'm set even if I live to be 125. Of course I'll have to increase my 20k per year as inflation creeps up but ultimately, I will be able to sell the house and downsize at some point which will put more lines into my stack. Here's an interesting way to look at it...I paid 355k for my house 10 years ago. Ots worth 855K (or more) now. So I've earned 50k per year without a job. Thats 50k with NO tax. Id have to earn at leat 90K per year working to take home 50K and thats far more money than I ever made working a job. My only regret is that I didn't retire at age 40 instead!!