I retired at the end of last year at 51. The part that feels strange is switching from saving every spare dollar to.... spending money? Still can't do it. lol. Thanks for the videos, I like your simple to understand explanations!
Yes its true, my friends across the street are 75 and 73.After one of your shows a while back,i had coffee over there and i asked him just that question.he said when he was my age-64 they spent way more than now,he said it just evolved that way,they did not plan it that way.
My wife and I are 71 and have been retired for 10 years. We didn't hold back on spending in early retirement (wintering in Mexico and a 3-4 week overseas holiday once a year) but early on we were perhaps a little more conscious when spending, always making sure we'd be okay. We do less of that now and 10 years on we are confident we are doing just fine and don't worry as much. I would say our spending hasn't gone down yet but we've seen pretty much everything we wanted to and I can sense there's some slowing down not too far off.
Always a pleasure to watch your videos Rhys. For the folks who think their situation might not align with the averages; it's entirely possible. Averages are just that. There is much data above and below the average, and that's where your situation might land. There will never be a substitute for being able to mindfully understand and articulate your own needs, and plan accordingly. But information is power, and this video is very helpful. Keep 'em coming. And hair is overrated 😀
The quality of these videos is impressive. Just a top notch ressource for aspiring Canadian retirees. I look forward to hiring WBW in the coming years.
Agree, retired right now and I spend a lot less money than I used to when working..Glad I did all my travel in my 40's and 50's because travelling now just doesn't seem to be as enjoyable..Happy to have my own home and to be able to live a simple life.
Turkey is on my bucket list. No doubt. But that hair transplant stuff is hilarious!!😂 I mean,they’re gonna grow a luscious head of hair on YOUR dome!?!? 😂😂🤣 yer a sharp lookin dude rockin the no hair….but if you do travel half way around the planet to get risky (possibly) infected hair transplant ….definitely vlog that!! It’d be like driving by a car crash. We could all not help watching!😬
I am a little more skeptical on retirement home living expenses being as modest as some of the attached websites indicate. I have a friend with early stage Parkinson's who just moved into a retirement home in Mississauga in the last year. He is largely independent and lives in one of their one bedroom units. Its about 600 square feet with only a partial kitchen. The place offers three meals a day... there is a pool, a gym, a bar (pay for your own drinks) with a pool table and some common element features. It offers basic housekeeping. Its nice.. Fancy? Ummmm no.. But its nice! Monthly cost??? $8000 And as his needs rise... help with medications, getting dressed etc... the monthly costs will rise ... with a la carte services... So from my vantage point, it is safer to build in higher costs in the no-go phase of your life. I am aware there are far more fancier retirement homes available in Oakville and Mississauga... I can only imagine the cost of those places... $10 grand... $12 grand a month... ??
With retirement homes you can pretty much spend as much as you want. A pool, gym, bar, pool table and a few other amenities seems reasonably fancy though perhaps not "luxurious". At age 88 my mother moved to a nice 1 bedroom independent apartment (about 600 sq ft or so) in a retirement home in Welland that, outside of the dining room for meals, had only a "recreation room" with some card tables for board games etc. and a few couches but it was nice enough. She liked it there anyway. The year she passed away in 2021 her cost was $3,300 a month including all expenses. When she passed away she was on a waiting list for LTC and because that's subsidized in Ontario it would have been about $500 a month cheaper if I recall correctly. In any case most people aren't in these facilities for decades. Typically, like my mother, they move there when living in their own home becomes too much for them as their age or illness progresses and are usually only there for about 3 years or so. Also, like my mother, very often they have their paid off home or condo to sell when they move to a retirement home or LTC which should cover many years of expenses. There are of course exceptions but generally that's what you see.
Private retirement homes are way more expensive than the government ones which are subsidized and based on your income with a reasonable maximum even if you are rich. So a person can stay in those for well under $2000 per month. At least in Alberta, this is the case. I was CAO for a Housing Association which included a Lodge. And my parents were in a "villa" and had little CPP as he was a farmer and she was a housewife for most of her life. So they basically had their OAS and some money from selling the farm.
Appreciate your work and the videos. Have you done a scenario in a video where there is about an 8 year difference in ages and the younger spouse has a defined benefit pension... asking for my "friends," Dwayne and Elayne Wayne :-)
Great information and strategic planning , I know first hand when your team helped me out in drafting my retirement plan , thanks to you and your team in making it easy for me , please keep up the good work and help as many people as possible
Hair transplant in Turkey? Wow. That immediately reminded me of a report just last month about a young French man who recently un-alived himself because a beard transplant he received had failed and left permanent damage and he was in constant pain. Wanna guess where he went to get the transplant? Istanbul, Turkey. He'd found the clinic online, which he thought was credible because it had certification from _Turkey’s Ministry of Health!_ He'd found out after the fact, that the man performing the transplant was allegedly not a medical professional, but an _estate agent._ It was a very sad case.
Another great video Rhys! And super timely as I am literally on your On-boarding Page that is asking me about this very question. I, like many, am concerned about long-term care as my mother is currently in a Dementia Village in Langley (The Village) and it is $11k per month, so the struggle is real so to speak! Haha…. But the video does put my mind at ease that at least we will discuss this in detail and can outline our plan to compensate for this potential outcome as part of the process. Cheers my man!!
First off another excellent video, Rhys. My takeaway or summary from this video is if you planned for same real income in retirement from day 1 to RIP day, have a plan which shows you are covered at over 100%, you shouldn't have to worry about ever running out of money as the inflation will be your additional buffer/safety net, although it would be nice to quantify that additional buffer amount as well. Still we are people who saved all our lives so buffers never seem to be enough, but it's time to believe in the plan. For anyone that has a house you can also use that asset for LTC needs in the event it happens --- Like Rhys said here and Frederick Vettese said in his book "Retirement Income for Life" LTC tends to be a financial problem for a small percentage of people. Most will not need LTC and many of those few that do need LTC will only need it for a short period of time.
Everyones different. I think my Grandma is spending more now in her "no go" phase at 88 because shes moved into a retirement community. If she was more tight on cash, Im sure she would have been able to choose a cheaper option.
My retirement income is approximately half of my annual work income. I have 2 years to go before I can get OAS, so I spent the last 2 years socking money away in GICs, TFSA, and high interest savings to make up the difference.
Confident men embrace their bold ,bald look ,while utilizing sharp clothing and crisp facial hair to be their natural selves. Being confident, exercising self control ,looking after your physical health and maintaining a solid financial plan are the most valuable qualities a man can possess. Thanks for sharing your wisdom with us all ❤
@@Pkeats817 your son is a wise young man, make sure you reinforce these positive characteristics with him , so his self esteem and confidence remains high just the way he is.
@@theliftexpertSadly, his confidence isn’t as high as it used to be, but he is working on it. A few sad bits I won’t bring up, but thank you for your words. I will do my best.
Royal income? lol Not even close !!! That is slightly above a middle class household income.... a couple with NO savings and NO private pension plan can easily pull in $4000 a month just from CPP X 2 and OAS X 2 ... that is a basic income for many lower income couples.
@@rdefacendis As you say 4K a month in retirement isn't all that difficult. My wife and I deferred our CPP & OAS to age 70 (started last year) and our income from just those 2 sources is 5.3K a month or almost 64K a year. Those pensions are guaranteed for life and indexed, "running out of money" seems unlikely.
@@Andrew21882 "only if they both have lived in Canada for at least 40 years and been putting into CPP pretty much all their lives" That does pretty much describe my wife and I as well as most of the people I know but then again I was born in Canada though my wife independently immigrated to Canada at age 21. For sure if you contribute less to your pension you get less, which only seems fair.
By ignoring inflation and taking a flat amount from your RIF over time would give you a similar decline in income as you age..Perhaps your income would decline too rapidly??
To hell with crazy ass hair loss treatments. Bald is sexy. Seriously, though, I’m not convinced that, averaged out, spending declines. The spending profile, however changes. In any event, I’m 60 and my retirement income will eventually be fixed (DB pension, CPP, OAS). So my income risk (which is the point behind this vid) will be transferred to the State. So it’s less of a concern to me.
I agree on the shunning hair transplants. I shave bald sometimes, but usually it's a 1/8" buzz cut, diy style. People dont care that much about other's hair, it's more about the face (smiles, expressive eyes ) and the words coming out of the yap. Im with you on the retirement scenario. There's no large retirement pile to leave to the heirs if you check out early, but there's no stress of "running out".
Wrong Wrong & Wrong!!The cost of long term for my spouse has trapped me into the exact opposite of enjoying retirement.Spend years because of the cost staying home with all the 40 years I worked for not being able to do the things I thought I would do after swinging tools for 35 years.Not complaining but would of like to travel and have a real home not a Condo down by a parking lot!👉👷☹️✅💁👈🏻
So, I guess it depends on your retirement hobbies. My husband (73 yo) has a very expensive Porsche hobby. GT3RS and multiple track days a year. No slowing down yet. Says he has “one more car” in him. 😂 I love to travel, so have travel plans ahead too. I still work, se we can make these things happen and budget for the future is ok too. Interestingly, I have family members in their mid 80s who are still traveling, staying multiple weeks in 5* hotels etc. They see time running out and can’t spend it the money fast enough. Granted these people all worked hard and saved hard to have those kinds of funds late in life, but it just shows that slo-go can be delayed too if health and budget permits. Just another perspective. Glta.
Sadly the whole Gg-go phase of retirement is total BS for anyone with kids -sadly the kids of today will like stay at home till their 30's, not marry and never have jobs that generate them the income or retirement benefits they need (gig economy). It also depends heavily on where you live. Toronto destroys you financially in retirement even with a paid down house. Put all that in your fancy models!!!
This fictitious couple is attempting to maximize their lifestyle without running out of the money they have accrued. It doesn’t matter if it’s $3K per month or $30K per month. The people who “deserve to run out of money” in retirement didn’t plan well.
great video! So is the trip to Turkey a go-go or no-go? Might be a hair raising experience.
😂🤣
I retired at the end of last year at 51. The part that feels strange is switching from saving every spare dollar to.... spending money? Still can't do it. lol. Thanks for the videos, I like your simple to understand explanations!
Thank you! And you’re not alone in those feelings. Super common :)
Yes its true, my friends across the street are 75 and 73.After one of your shows a while back,i had coffee over there and i asked him just that question.he said when he was my age-64 they spent way more than now,he said it just evolved that way,they did not plan it that way.
My wife and I are 71 and have been retired for 10 years. We didn't hold back on spending in early retirement (wintering in Mexico and a 3-4 week overseas holiday once a year) but early on we were perhaps a little more conscious when spending, always making sure we'd be okay. We do less of that now and 10 years on we are confident we are doing just fine and don't worry as much. I would say our spending hasn't gone down yet but we've seen pretty much everything we wanted to and I can sense there's some slowing down not too far off.
Always a pleasure to watch your videos Rhys.
For the folks who think their situation might not align with the averages; it's entirely possible. Averages are just that. There is much data above and below the average, and that's where your situation might land. There will never be a substitute for being able to mindfully understand and articulate your own needs, and plan accordingly. But information is power, and this video is very helpful.
Keep 'em coming. And hair is overrated 😀
Thank you! I appreciate your thoughts here. Spot on.
Very well explained. Thank you .
The quality of these videos is impressive. Just a top notch ressource for aspiring Canadian retirees. I look forward to hiring WBW in the coming years.
Thank you!!
Love your videos. The ending on this once broke me up! Well done!
Agree, retired right now and I spend a lot less money than I used to when working..Glad I did all my travel in my 40's and 50's because travelling now just doesn't seem to be as enjoyable..Happy to have my own home and to be able to live a simple life.
Another winning video R🤩 Many thx for ongoing fab retirement planning lessons from WBW! 🎉
Thank you 🤓
Great video! Certainly one of the better retirement videos out there. Love your humour and down to earth discussion.
Wow, thank you!
Turkey is on my bucket list. No doubt. But that hair transplant stuff is hilarious!!😂 I mean,they’re gonna grow a luscious head of hair on YOUR dome!?!? 😂😂🤣 yer a sharp lookin dude rockin the no hair….but if you do travel half way around the planet to get risky (possibly) infected hair transplant ….definitely vlog that!! It’d be like driving by a car crash. We could all not help watching!😬
Bahaha!! 🤓
I am a little more skeptical on retirement home living expenses being as modest as some of the attached websites indicate. I have a friend with early stage Parkinson's who just moved into a retirement home in Mississauga in the last year. He is largely independent and lives in one of their one bedroom units. Its about 600 square feet with only a partial kitchen. The place offers three meals a day... there is a pool, a gym, a bar (pay for your own drinks) with a pool table and some common element features. It offers basic housekeeping. Its nice.. Fancy? Ummmm no.. But its nice! Monthly cost??? $8000
And as his needs rise... help with medications, getting dressed etc... the monthly costs will rise ... with a la carte services... So from my vantage point, it is safer to build in higher costs in the no-go phase of your life.
I am aware there are far more fancier retirement homes available in Oakville and Mississauga... I can only imagine the cost of those places... $10 grand... $12 grand a month... ??
With retirement homes you can pretty much spend as much as you want. A pool, gym, bar, pool table and a few other amenities seems reasonably fancy though perhaps not "luxurious".
At age 88 my mother moved to a nice 1 bedroom independent apartment (about 600 sq ft or so) in a retirement home in Welland that, outside of the dining room for meals, had only a "recreation room" with some card tables for board games etc. and a few couches but it was nice enough. She liked it there anyway. The year she passed away in 2021 her cost was $3,300 a month including all expenses. When she passed away she was on a waiting list for LTC and because that's subsidized in Ontario it would have been about $500 a month cheaper if I recall correctly.
In any case most people aren't in these facilities for decades. Typically, like my mother, they move there when living in their own home becomes too much for them as their age or illness progresses and are usually only there for about 3 years or so. Also, like my mother, very often they have their paid off home or condo to sell when they move to a retirement home or LTC which should cover many years of expenses.
There are of course exceptions but generally that's what you see.
Private retirement homes are way more expensive than the government ones which are subsidized and based on your income with a reasonable maximum even if you are rich. So a person can stay in those for well under $2000 per month. At least in Alberta, this is the case. I was CAO for a Housing Association which included a Lodge. And my parents were in a "villa" and had little CPP as he was a farmer and she was a housewife for most of her life. So they basically had their OAS and some money from selling the farm.
What software are you using to calculate retirement income
Appreciate your work and the videos. Have you done a scenario in a video where there is about an 8 year difference in ages and the younger spouse has a defined benefit pension... asking for my "friends," Dwayne and Elayne Wayne :-)
Ha! Not yet :)
But I’ll add them to the queue 🤓
Ch Ch Ch Chia. Always enjoy the videos
Great information and strategic planning , I know first hand when your team helped me out in drafting my retirement plan , thanks to you and your team in making it easy for me , please keep up the good work and help as many people as possible
Thank you :)
Hair transplant in Turkey? Wow.
That immediately reminded me of a report just last month about a young French man who recently un-alived himself because a beard transplant he received had failed and left permanent damage and he was in constant pain. Wanna guess where he went to get the transplant? Istanbul, Turkey.
He'd found the clinic online, which he thought was credible because it had certification from _Turkey’s Ministry of Health!_ He'd found out after the fact, that the man performing the transplant was allegedly not a medical professional, but an _estate agent._ It was a very sad case.
😬
Another great video Rhys! And super timely as I am literally on your On-boarding Page that is asking me about this very question. I, like many, am concerned about long-term care as my mother is currently in a Dementia Village in Langley (The Village) and it is $11k per month, so the struggle is real so to speak! Haha…. But the video does put my mind at ease that at least we will discuss this in detail and can outline our plan to compensate for this potential outcome as part of the process. Cheers my man!!
Ha! How’s that for perfect timing ;)
What software do you guys use @ 1:14? The screen shots always look great, better than anything my advisor uses...
It’s called Conquest. Link is in the description :)
First off another excellent video, Rhys.
My takeaway or summary from this video is if you planned for same real income in retirement from day 1 to RIP day, have a plan which shows you are covered at over 100%, you shouldn't have to worry about ever running out of money as the inflation will be your additional buffer/safety net, although it would be nice to quantify that additional buffer amount as well. Still we are people who saved all our lives so buffers never seem to be enough, but it's time to believe in the plan.
For anyone that has a house you can also use that asset for LTC needs in the event it happens --- Like Rhys said here and Frederick Vettese said in his book "Retirement Income for Life" LTC tends to be a financial problem for a small percentage of people. Most will not need LTC and many of those few that do need LTC will only need it for a short period of time.
Hilarious sidebar! Thanks for the information.
🤓
Everyones different. I think my Grandma is spending more now in her "no go" phase at 88 because shes moved into a retirement community.
If she was more tight on cash, Im sure she would have been able to choose a cheaper option.
I would take them up on the hair transplant idea. You can bring me along. 😂
Great work thanks!
My retirement income is approximately half of my annual work income. I have 2 years to go before I can get OAS, so I spent the last 2 years socking money away in GICs, TFSA, and high interest savings to make up the difference.
Pick me as your friend for the trip to turkey. Do you ski - they have some decent hills!
I snowboard. So I guess that won’t work :(
@@wellbuiltwealthskiing / boarding- same same. But you’re the one getting scalped
🫠
Next a video about hair stages - Grow, Grow…Slow Grow….No Grow. 😂. Great work BTW Rhys. Please keep it going.
Bahaha! Awesome idea :)
And thank you!
Love the end. I guessing things could get pretty hairy in your situation. Thanks for the good hairless advice!
Ha! 🤓
Both times I watched this, I chuckled at the "crazy backstory that you wouldnt believe even if I told you."
Awesome! Glad you hear I’m amusing more people than just myself :)
Can you explain why GIS doesn't kick in when there is a cash flow shortfall later in life?
At this point, this software does not automatically model in GIS. Needs to be done manually.
So,spring break in Turkey?
😂
Confident men embrace their bold ,bald look ,while utilizing sharp clothing and crisp facial hair to be their natural selves.
Being confident, exercising self control ,looking after your physical health and maintaining a solid financial plan are the most valuable qualities a man can possess.
Thanks for sharing your wisdom with us all ❤
🤓
This is what my 22 year son (started losing hair at 18) is doing. Tough for him to adjust, but he is trying by doing this.
@@Pkeats817 your son is a wise young man, make sure you reinforce these positive characteristics with him , so his self esteem and confidence remains high just the way he is.
@@theliftexpertSadly, his confidence isn’t as high as it used to be, but he is working on it.
A few sad bits I won’t bring up, but thank you for your words. I will do my best.
$7k per month seems like a bare bones poverty income for a retired Canadian couple in 2024.
More like when we retire, how much am I willing to spend to get my own hair implant ! Need to put that in the chart!!
$6k - $7k / month in retirement is a royal income, only a very few get that in Canada.
Royal income? lol Not even close !!! That is slightly above a middle class household income.... a couple with NO savings and NO private pension plan can easily pull in $4000 a month just from CPP X 2 and OAS X 2 ... that is a basic income for many lower income couples.
@@rdefacendis As you say 4K a month in retirement isn't all that difficult. My wife and I deferred our CPP & OAS to age 70 (started last year) and our income from just those 2 sources is 5.3K a month or almost 64K a year. Those pensions are guaranteed for life and indexed, "running out of money" seems unlikely.
@ Yes, only if they both have lived in Canada for at least 40 years and been putting into CPP pretty much all their lives.
If you have a fully paid for house, $6-7 grand per month is far from being “Royal”. Food alone for a couple can easily run $1,500 per month.
@@Andrew21882 "only if they both have lived in Canada for at least 40 years and been putting into CPP pretty much all their lives"
That does pretty much describe my wife and I as well as most of the people I know but then again I was born in Canada though my wife independently immigrated to Canada at age 21. For sure if you contribute less to your pension you get less, which only seems fair.
By ignoring inflation and taking a flat amount from your RIF over time would give you a similar decline in income as you age..Perhaps your income would decline too rapidly??
My son’s acquaintance just flew to Turkey for a second hair transplant.
They only do one hair at a time?
To hell with crazy ass hair loss treatments. Bald is sexy.
Seriously, though, I’m not convinced that, averaged out, spending declines. The spending profile, however changes.
In any event, I’m 60 and my retirement income will eventually be fixed (DB pension, CPP, OAS). So my income risk (which is the point behind this vid) will be transferred to the State. So it’s less of a concern to me.
💪
I agree on the shunning hair transplants. I shave bald sometimes, but usually it's a 1/8" buzz cut, diy style. People dont care that much about other's hair, it's more about the face (smiles, expressive eyes ) and the words coming out of the yap.
Im with you on the retirement scenario. There's no large retirement pile to leave to the heirs if you check out early, but there's no stress of "running out".
Hilarious. You look great as you are! 🫶🏻
🫶
I know a girl who went to turkey for some kind of plastic surgery, and she returned without her kidney…
Yikes!
😬
OMG!!!!!! 😂😂😂
Don't do the chia pet thing! Aaack.
🤓
elon musk did it
Wrong Wrong & Wrong!!The cost of long term for my spouse has trapped me into the exact opposite of enjoying retirement.Spend years because of the cost staying home with all the 40 years I worked for not being able to do the things I thought I would do after swinging tools for 35 years.Not complaining but would of like to travel and have a real home not a Condo down by a parking lot!👉👷☹️✅💁👈🏻
So, are you going to Instanbul or what? I can't imagine you with hair. It would be too weird. Keep the bald dude and thanks for the video.
Think I’m gonna pass on Turkey :)
😂
So, I guess it depends on your retirement hobbies. My husband (73 yo) has a very expensive Porsche hobby. GT3RS and multiple track days a year. No slowing down yet. Says he has “one more car” in him. 😂 I love to travel, so have travel plans ahead too. I still work, se we can make these things happen and budget for the future is ok too.
Interestingly, I have family members in their mid 80s who are still traveling, staying multiple weeks in 5* hotels etc. They see time running out and can’t spend it the money fast enough. Granted these people all worked hard and saved hard to have those kinds of funds late in life, but it just shows that slo-go can be delayed too if health and budget permits. Just another perspective. Glta.
First (useless) comment - :)
Sadly the whole Gg-go phase of retirement is total BS for anyone with kids -sadly the kids of today will like stay at home till their 30's, not marry and never have jobs that generate them the income or retirement benefits they need (gig economy). It also depends heavily on where you live. Toronto destroys you financially in retirement even with a paid down house. Put all that in your fancy models!!!
if u need 7K per month on retiremnt as this couple, u already know they're having an extravagant lifestyle and deserve to run out
Deserve to run out? Have you seen the cost of assisted living?
This fictitious couple is attempting to maximize their lifestyle without running out of the money they have accrued. It doesn’t matter if it’s $3K per month or $30K per month. The people who “deserve to run out of money” in retirement didn’t plan well.
This is wonderful advice that I hadn't thought of. Enjoy it while you can, is the bottom line. BTW...bald dude power. 🧑🦲💪🤘
💪🤘