Retirement
3 Reasons To Take CPP At Age 60
It’s generally not wise to voluntarily take up to a 36% reduction in income, especially if that income is paid for life. But that’s exactly what happens when retirees choose to take CPP at age 60. I’m a big proponent of delaying CPP up to age 70 to help protect against longevity risk and enhance…
Read MorePutting Together Your Retirement Income Puzzle Pieces
One reason why retirement planning is so challenging to think about is because we often go from receiving one income stream (our T4 salary income) to juggling several different income streams throughout retirement. Even more confusing is the fact that those retirement income streams often can (or should) arrive at different times and may have…
Read MoreYour Ultimate Guide to RRIFs: Strategies, Pitfalls, and the Secret Sauce to Retirement Income
A Registered Retirement Income Fund (RRIF) is like an RRSP’s responsible older sibling. Once you hit retirement, the RRIF takes over where the RRSP leaves off – turning your savings into retirement income. Indeed, if RRSPs are the workhorse of your savings years, RRIFs are your retirement MVP. They take all that tax-deferred money you’ve…
Read MoreWhy You Should (or Shouldn’t) Defer OAS To Age 70
I’ve long advocated that anyone who expects to live a long life should consider deferring their Canada Pension Plan to age 70. Doing so can increase your CPP payments by nearly 50% – an income stream that is both inflation-protected and payable for life. If taking CPP at 70 is such a good idea, why…
Read MoreWhat’s Your Home Equity Release Strategy?
The majority of retirees want to remain in their homes and age in place as long as possible. Indeed, most of the financial plans for my retired clients project them to stay in their home, or a home of equivalent value, for their entire lives. That makes perfect sense if you plan on leaving your…
Read MoreWhen Should Early Retirees Take CPP?
When should you take your Canada Pension Plan (CPP) benefits? Like many personal finance decisions, the answer depends on your unique circumstances. In general, it makes sense to defer taking CPP until age 70. The caveat is that you need to have other resources to draw from while you wait for your CPP benefits to…
Read MoreDIY Canadian Retirement Planning With Kyle Prevost
“Will I be OK in Retirement?” “How much do I save this year if I don’t want to have to eat pet food when I’m 83?” “What do most Canadians spend each month after they retire? I don’t even know where to start with this stuff!” In response to questions like this, most mutual fund…
Read MoreRetirement Assumptions: Will They Make An Ass Out Of You Or Me?
Financial planners need to use assumptions about the future to paint a realistic picture for their clients. Since we don’t have a crystal ball, most rely on the projection and assumption guidelines put forward annually by FP Canada. These assumptions include estimates about inflation, investment returns, life expectancy, wage growth, borrowing costs, etc. Note that…
Read MoreA Two Fund Solution For Investing In Retirement
The transition to retirement can be hard enough without having to deal with a mess of individual stocks, mutual funds, and/or ETFs held across several accounts and institutions. Indeed, one of the most sophisticated moves you can make is to simplify your investment portfolio as you head into retirement. Consider Chris and Liza, a couple…
Read MoreHow To Think About Retirement Planning
We all need to think about retirement planning at some point in our lives. Relying on rules of thumb like saving 10% of your income or withdrawing 4% of your savings can get you part way there. But it’s also important to think about what retirement will look like for you. When will you retire?…
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