5 CPP Tips In 5 Minutes

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5 CPP Tips In 5 Minutes

Рет қаралды 70,111

Күн бұрын

➡️Fee For Service Planning: www.parallelwe...
➡️CPP Calculator: www.cppcalcula...
➡️Doug Runchey: www.drpensions...
In this video we'll go through 5 CPP tips that will help you maximize your benefit in retirement.
If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to find a certified financial planner in your area or book a consultation with us to get your retirement plan on track.  You can learn more about our services at www.parallelwe...
Financial Resources I personally recommend:
➡️Retirement Income for Life: Getting More without Saving More (Second Edition): amzn.to/3tvIdVN
➡️Parallel Wealth Masterclass: www.parallelwe...
➡️Future Value Calculator: amzn.to/3EA6Qqv
➡️Neo Mastercard - no annual fee and average 5% back! - join.neo.cc/pa...
➡️Free Credit Report with Borrowell: bit.ly/borrowe...
➡️Maximize your Savings with EQ Bank - bit.ly/EQBankPWFG
The above affiliate links are provided for your convenience. If you click on a link and end up purchasing a product or service, this channel may receive compensation for the referral. We have personal vetted each product and service we provide links to.
OUTLINE
0:00 - Tip 1
1:21 - Tip 2
2:02 - Tip 3
3:00 - Tip 4
4:03 - Tip 5
This presentation is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter. Every effort has been made to ensure the accuracy of its contents. Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Returns are not guaranteed and past performance may not be repeated.
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.

Пікірлер: 66

@bdgies2721 11 ай бұрын

As a stay-at-home mother and rancher, my CPP was $325/month. That included the Child Rearing Provision. I started at age 60 because there was very little incentive to delay. The only reason I have any decent CPP now is because my husband died 10 months ago and I get the Survivor portion. My financial plan was/is robust as there was no way I was going to depend on CPP. 😂

@Rachidasister 11 ай бұрын

Waiting means you waste some good years when you are probably healthier and have more energy, too. The government placed these tricks on us so that we wait and wait. Paying attention now while I am far from retirement age.

@scrappyquilter102 6 ай бұрын

Still working F/T and almost 72. Triggered CPP at 70 - maxed out. All I have to do now is stay alive until that decision makes sense!

@mikejohnston6796 11 ай бұрын

Instead of the calculator call and ask. My wife and I called about child rearing years and years with no contributions and the person on the line was very helpful and answered every question we had and worked out various scenarios for us.

@ParallelWealth 11 ай бұрын

Wow, never heard this before. Good to know. I assume pre-2021 when they trimmed staff?

@mikejohnston6796 11 ай бұрын

It was about four months ago.

@wcg66 11 ай бұрын

Five minute video that's five minutes long! That's precision. As for my plan, I'm taking my CPP at 100 where it will be $10,000/mth. Checkmate government!

@ParallelWealth 11 ай бұрын

Bahahah

@eileendoonan 11 ай бұрын

Great video as normal Adam, thanks for sharing...just a note on Doug - he is not taking any new clients as of this past June ... the business has exploded and is more than he anticipated as he tries to wind down into his own retirement ... SO, you go on a waitlist and wait if he reaches out...if at all. Just wanted to share that info, as maybe there are others now that are starting to doing the calc's the way Doug was.

@James_48 11 ай бұрын

My calcs from Doug show it’s fine to cease work at 60, absorb the five non-contributory years and take CPP at 70 while I melt down my RRSP / RIF. The idea of working from 60-65 is a non-starter 😜

@ParallelWealth 11 ай бұрын

👌

@rb239rtr 11 ай бұрын

People also need to really understand that it is calculated on your best 39 years of contributions, not your last five years like some other pensions. In my case, early contributions lowered by university, 5 years non-contributing in my 40s, and 4 years non contributing after 61, yet still a healthy CPP well above the average at 65 (I will take it at 70)

@MC-do4dw 11 ай бұрын

Hi! Thank you for your comment above. If you don’t mind me, may I please ask you a question as I see myself partly in your situation. I lost my job recently and I am 61 years old. I am currently looking for a job, but it’s very daunting. I am just thinking if it’s viable to retire now, but get my CPP at age 70 so it can grow more. That would mean that I will have 4 years of not contributing to it from age 61 to 65. Do you think I will be penalized heavily if I do this? Will it also be OK if I wait nine more years and get it at age 70? I may be wrong, but I hear of some horror stories that when you wait too long, you lose it. I hope not! Please reply at your convenience, and I appreciate it very much! Thank you.

@rb239rtr 11 ай бұрын

@@MC-do4dw you will need your statement of contributions for CPP contributions. Of the 47 working years between 18 and 65, subtract your worst 8 years. So perhaps these last 4 will be zero, plus some other low years. I believe I had 31 top earning years, 7 mediocre to low years, and 8.75 zero years. The government site will also give you three estimates: now, at 65 and at 70. It does not matter which year you got to maximum, it is the sum of the best 39 years. If you are into the 39 years, and you have a zero, so 38 max and 1 zero, your pension is reduced by around 2.5%. This is way less a penalty then taking it early. Meanwhile, after 65 these good 38 good years and 1 bad year get compounded until 70. So still better delayed then early. Long winded but don't worry about the next 4 years re CPP. THE HOST can answer this better

@dwcoleman 11 ай бұрын

@@MC-do4dwSee above contact info for Doug Runchey, I believe he can assist with a CPP calculation based on your scenario for a nominal fee.

@rb239rtr 11 ай бұрын

@@MC-do4dw also look up Frederick Vitesse, he has a website and book that espouses the same principles as this channel. Re horrors, your pension is based on your best 39 years, not your last 5 years. So these last 4 years are not the issue your friends may say. I also availed myself to DR Pension to do a number of calculations, he can answer all your questions re horror

@garth217 11 ай бұрын

@MC-do4dw any time you delay past 65 you get a bump in CPP. If you wait until 70 it's a 42% increase

@kimh 11 ай бұрын

It is very true that what one makes early in their working life counts much more for one's eventual CPP than what one makes late in one's career. I have the estimate for the CPP my wife will get at 65 which assumes she will work until then, but I worried what she would get at 65 if she stopped working at 60 as we plan to (still waiting to take CPP at 65). It turns out she will lose less than 3%!

@garth217 11 ай бұрын

I retired ( the first) at 54. Had Doug Runchey pull my CPP numbers. There was a difference of $15 a month. Well worth doing it. My numbers will be a little different now because I went back to work part-time.. and with my pension, I'm making the same money as when I was working full-time.. and my CPP is going up as well. The thing is, the non contribution years do affect your actual pension but not significantly..and that whole " loss" can be made up with a delay to 66. For me, my magic number is 63...

@kevinsmith5318 11 ай бұрын

I don’t understand why you have to pay tax on CCP and OAS. You payed into it over the years, payed INCOME tax. But CCP and OAS should not be considered income. Am I wrong? No matter. I am going to pester/lobby politicians to make CPP & OAS tax free “benefits.”

@DavidWilson-ps8gx 6 ай бұрын

This is a very good video and I agree with your approach. However, how would my Cpp non-contributory years affect the decision on when to start. I have read and done my homework, so I know it will impact any decision I might make. I understand that if you have 8+ years of non-contributory years, I should consider taking Cpp earlier even if I do not need it. I also have a defined pension plan with bridging that will be dropped at age 65. I also have sufficient RRSP to cover the drop in bridging for an additional 5 years. But as I said, that would push my cpp non contributory years from 8+ to 13+, which starts working against me with regards to the 17% dropout rule that would come into play. Therefore would it beneficial to take Cpp at 65 or delay it to 70 despite getting an additional 42% at age 70 as opposed to 36% at 65? Adjusting for my diminished bridging by implementing a RRSP meltdown? What's your opinion? No one has to date covered how non contributory years affects your Cpp or OAS?

@JoeGarreck 10 ай бұрын

Hi Adam. Question. The CPP Calculator that you show. Is the amounts shown in today's dollars or in future dollares?

@tonysimone2043 11 ай бұрын

retire at 60 or 65 the big debate. The bottom line if you need the money take it at 60

@victoriamacpriest7130 11 ай бұрын

Thank you

@garth217 11 ай бұрын

The one thing that I haven't heard on this video is that CPP is adjusted evey year. So if you pull your numbers now from the Government web page and see your estimate at 60 65 and 70. Those actual number increases each year for inflation

@TerriWiebe-hq3rz 11 ай бұрын

Unfortunately from what i gather, the government does not index the full amount of inflation.

@ParallelWealth 11 ай бұрын

That's why I mentioned to use the calculator. Should help solve this issue

@liberatski 11 ай бұрын

If you take your CPP at 60 and invest that money but continue to work and contribute till you retire at 65, then you're ahead. That means you're enjoying the money while still continue to contribute.

@KnockOneOutYT 11 ай бұрын

I've seen that thinking before but a guaranteed 7% return by delaying seems better than taking and investing. All depends on your tolerance for risk I suppose.

@ParallelWealth 11 ай бұрын

False, have a video coming next month showing the data behind this.

@James_48 11 ай бұрын

I think this is a bad idea. Taking CPP while still working means one is likely paying higher tax on the CPP income reducing what is actually left to invest. Not to mention the temptation to spend CPP rather than invest it. I’d like to see case studies of people who tried this approach and what is the range of outcomes. Getting a guaranteed 7.2% PLUS inflation consistently year over year is a tough challenge.

@kimh 11 ай бұрын

@@James_48 Very good points. But as Adam's chart points out at 0:20, the year over year increase from delaying CPP after 60 actually averages over 9%.

@joeappleton5285 11 ай бұрын

Your calculator does not work, entered all my statement numbers manually as per requested , no worky .......

@ParallelWealth 11 ай бұрын

Used it 100s of times. Not sure what to say. I would try again.

@DL-bl6qp 11 ай бұрын

Try a different browser and see if that helps.

@KnockOneOutYT 11 ай бұрын

Best CPP and OAS calculator that takes into consideration child rearing years and any other variables is at The Measure of a Plan. Don't think I am allowed to include a link.

@ParallelWealth 11 ай бұрын

Also a great calculator

@lemino10 11 ай бұрын

Now that I'm retired, my cpp amount is going down. I have a part time job but I don't contribute a large amount to my cpp. I was thinking of using the meltdown strategy of my rrsp and delaying my cpp until 71. Will this amount keep going down for the next 10 years before I get to 71. Thank you.

@VieilleCroute 4 ай бұрын

Yes

@CentauriCentauri 11 ай бұрын

Hi Adam. Here is a scenario. Lets say I retire at age 55. I still want to delay CPP till 70. That would mean that I have not contributed to CPP from 55 to 65. Will I get dinged a little? I understand that they will not count 8 of those years. Is this true?

@blackwatch7151 11 ай бұрын

Your CPP will be a lower % at 65 than at 60 if you retire at 55. I am retiring at 55 and got Doug to run my numbers. At 60 my CPP is worth 87.3%/max. At 65 it's worth 75%/max. It's always better to take it later but my break even point was the month I turn 78. I will take it at 60 and have more money total in the first 18 years when I will travel and have less money after 78 when I am sitting at home most days.

@KnockOneOutYT 11 ай бұрын

@blackwatch7151 For me, I will feel more comfortable getting more money later simply because it's guaranteed. Which is why retirement is not a one size fits all. But then if I get an inheritance later in life, I'll have too much money. Sometimes it feels like there is never a clear choice.

@ParallelWealth 11 ай бұрын

It will be less, but when we run the numbers it still makes sense financially for most to delay CPP. Very situational though.