5 Things You Must Consider BEFORE Retiring

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5 Things You Must Consider BEFORE Retiring

Рет қаралды 14,009

Күн бұрын

➡️Vanguard article: investor.vangu...
➡️Our financial planning services: www.parallelwe...
In this video we'll discuss a recent Vanguard article that discusses 5 things that everyone should consider in their retirement planning.
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
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OUTLINE
0:00 - Intro
0:16 - 1
3:01 - 2
5:47 - 3
7:20 - 4
9:06 - 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: 59

@murraytown4 Ай бұрын

A financial planner who’s not a budget guy. Love it.

@ParallelWealth Ай бұрын

Haha, I know - shame on me!

@peterpaulharnisch Ай бұрын

Great overall info, I’m sure. The challenge comes with many folks like me that don’t have enough money to retire, on paper (I’m 66), and who feel they must continue working well into their old age just to survive. Think there’s an aspect of “trusting the universe” that comes into play in the knowing that everything is going to be alright. Info like this is seems all left brain, logical. Well, if I apply this to my current situation, I would think I’m screwed. Blessings 🙏

@stephenm337 Ай бұрын

Do you have a video where one spouse is 4 to 5 years younger than the other. Great content.

@dennyd4848 Ай бұрын

I have recently retired on 50% of my pre-retirement income…but before I retired, I was only spending 50% of my income in expenses. The rest went to savings, pension, and RSP payments. Now that I don’t need to save or invest anymore…I am basically living on what I was spending before! I did almost all my travel before retiring too…so now I don’t feel like I want to travel (had some health issues too though)…so I’m living comfortably on what I’m bringing in…and I haven’t even touched my CPP or OAS yet. If you worked on your finances before, if you were smart, then there are no worries! I’m enjoying a simple life…finally! 🙏

@garth217 Ай бұрын

Taking CPP at 63. Had Doug Runcie run my numbers. 1000/ month. Defined Benefit Bridge drops off at 65. CPP is 100 bucks higher than the bridge drop. Collecting for 2 years means $24,000 goes directly into TFSA

@lw1405 Ай бұрын

Making a plan leading up to retirement to pay off debt is called a budget. Big difference between forecasting or "knowing what you spend in a month to the nearest $50" and living beyond your means and not saving for your true expenses.

@ddavidson5 Ай бұрын

Needing 70% to 85% of your pre-retirement income seems high to me. When I was working I was saving 18% of my income in RRSPs, I was also maxing out the TFSAs every year, and that means I had less than 80% of my pre-tax income to live on in the first place plus I when I was working I was in the 50% marginal tax bracket. I don't know what my overall tax rate was then, let's say it was 35% but it was probably higher. That means when I was working I was living on no more than 40%-45% of my income, maybe less. Add in I was also paying a mortgage for most of that time and raising a family, there was little left to actually "spend". These days, the kids are gone, the mortgage is paid off, and we are debt free. I am now in a 15%-16% overall tax bracket and I am not "saving" any of my income, it's all for spending. Wintering down south and 3-4 weeks overseas travel every year, life is good. Given all that, 9 years retired with about 50% of my pre-retirement income, I find I have more money to spend in retirement than I ever had when I was working. This is also the conclusion that Fred Vettese comes to in his "Retirement Income For Life" book. For most, if you have 50% of your pre-retirement income you should be doing just fine financially in retirement. If you are at 70% or more then you will be living very well indeed. Of course much of what this percentage is depends on what your income was when you were working. Someone that earned near the poverty line will need 100% or more of their pre-retirement income to retire comfortably while someone that made 7 figures can probably live on a tiny percentage of their working income. I dare say neither of those groups are watching this channel but for those of us in the middle my experience is that 50% of your pre-retirement income is more than enough.

@Ed6013z10 Ай бұрын

This is interesting, but most of our spending as we were on our two kids getting them through college and so on. So most of our money was going towards that. Both of our kids have graduated college debt-free and we supported with housing , cars, medical, cell phone and etc.

@tanyaldutton Ай бұрын

I’m only 55 and retired so private healthcare coverage for my husband and I is $220/month, not including pre existing conditions, so definitely more than your estimate! Physio, massage, prescriptions are not 100% covered, and no dental is covered….

@heidilevens6284 Ай бұрын

Always thought provoking. Thank you Adam!

@dannybhoy1961 Ай бұрын

Can you do a video on purchasing a vacation property (cottage) as a potential rental income after retirement. Cheers Dan

@papa7866 Ай бұрын

even at the age of 31 i find this super helpful thinking of the long haul. thank you for this!

@garth217 Ай бұрын

I started my retirement investments at 28

@papa7866 Ай бұрын

@@garth217 that's amazing

@APICSKH Ай бұрын

First contribution to. RRSP made at 23, now 55. All set for twilight years.

@papa7866 Ай бұрын

@@APICSKH that's great! I started putting money in at 26 but I dont have employer match yet so seems like I don't have much to show for it. Fingers crossed on finding a new job that matches 😒

@APICSKH Ай бұрын

@@papa7866 good lock with it. Employers hell bent on doing a drama of labour shortages to import cheap labour instead investing in available man power.

@sragga Ай бұрын

one way to pay some bad debt is by using that cash portion of your pension that you have to take. i got a little over 60k from the cash portion, and paid all credit debt, and the last 2 years of my car loan, and still had 12k left for anything else that popped up. since i now bring in more than i spend it get higher every month, and its now my traveling money. i no longer use credit cards except to buy tickets, but pay it same day out of my account. if you're swimming in debt with no way out maybe look at bankruptcy as it screws you for 5 years

@alljunk4824 Ай бұрын

Thanks Adam, always providing food for thoughts!

@richardli5530 Ай бұрын

I will apply CPP ASAP. I am an engineer, my decision is based on numbers governing my circumstances.

@tanyaldutton Ай бұрын

We will wait til 70 (we’re 55 now), still better for us to take it at 70 if health and finances stay stable….

@James_48 Ай бұрын

@@tanyalduttonsame! Although, my wife may take CPP earlier than 70 to mitigate the loss of her db bridge benefit.

@warrenwade8531 Ай бұрын

Healthcare in Canada is NOT covered...unless you want to DIE on a waiting list. Just as important to plan for your Healthcare as it is for retirement.

@dawnbarron-bommarito6093 Ай бұрын

Not a fan of budgets either, prefer cash flow projection for 12 months prioritizing paying oneself first, as well as an annual Balance Sheet growth of a minimum 10% year over year for decades. Prior to retirement/financial independence an income bucket allocation of 70% life and lifestyle, 10% saving (short term investing),10% long term investing,10% giving, over several decades along with zero debt, will get one to retirement easily. Once committed to not working, one's retirement income streams can fill the following 4 buckets: 1. Life, all basic living expenses 70% 2. *Hobbies/Healthcare, spend on hobbies & interests while healthy, any turn of event, spending switches to healthcare 10% (formerly saving allocation) 3. *Travel/Entertainment/big purchase bucket, enjoy while able, redirect funds for health support 10% (formerly long term investing allocation) 4. Giving bucket. 10% A great way to express appreciation for abundance :) *The dollars flow within the buckets 2 & 3 as health and ability dictates. Money is energy!

@hseidler541 Ай бұрын

Love all your videos. It took me awhile to understand all your methods to retire early than we thought both of us could. Nice to meet you yesterday too.

@ParallelWealth Ай бұрын

Great to meet you too, thanks for saying hi. And all the best for your retirement next year!

@andycaffrey3820 Ай бұрын

Hi Adam, great video as always! I'm just coming up for retirement and have always wondered about the 75-85% of pre-retirement INCOME as the ideal goal for the retirement years. I am fortunate to have a good paying job and my wife and I spend maybe 40-50% of our take home pay currently. Is the suggestion to increase our spending by 50% in our retirement years and 'splurge' on things we don't already do?

@sandray7609 Ай бұрын

That is up to you and what you can afford. Because of work and kids, we didn't travel a lot and saved. If we maintain our current budget, we aren't optimizing our retirement. We could spend more on travel. You need a plan with software like Snap Projections. I wish this was something we could do ourselves 😢 It can give you an idea of what you can safely withdraw, when to take CPP/OAS, your annual tax bill

@kevlar111 Ай бұрын

Hey Adam, have you ever done a video dedicated to CPP survivor benefits in regard to when to take your own CPP? My wife recently passed away and just looking for some guidance on this topic. Thanks

@ParallelWealth Ай бұрын

First off, sorry to hear about your wife. My condolences. We have done videos on survivor benefit, but not when to take it as it's case by case. Best to reach out to Doug Runchey to have him run your calculations. We have had many widows do this with him and it's almost always made sense to delay your CPP still.

@kevlar111 Ай бұрын

@@ParallelWealth thank you so much Adam. I’ve just turned 50 so I have lots of time to figure it out.

@DylanScott130 Ай бұрын

Although the firms in my portfolio are solid, this year has seen a standstill in it. I need to raise the roughly $50,000 that I have in reserve.

@RobertVega2 Ай бұрын

Look for stocks that at least track the market over time, or stocks with yields that outperform the market. To create a long-term plan that works, you should think about doing some good financial planning.

@douglacoursiere2269 Ай бұрын

Adam, what is your thought on the possibility of the Alberta government setting up there APP? We were at a meeting that showed how the CPP is doing worse that a basic S&P basic ETF!

@sandray7609 Ай бұрын

Right now US S&P is way up. A diversified portfolio would look worse - some Canada, Europe Australasia, and even Emerging markets. CPP has been managed very well. I think some planner is tricking you...

@freedomr4031 Ай бұрын

Will that word exist in Trudeau Canada? "Retirement". I won't be able to......

@garth217 Ай бұрын

Honk Honk

@sandray7609 Ай бұрын

What are you doing wrong then. Spend less than you earn...

@jenn2115 Ай бұрын

Many won't be able to unless they're a boomer, been married forever & worked a gov't job with a pension plan. No gov't cares, incomes aren't keeping pace with the economy.

@G5rry Ай бұрын

If you blame “Trudeau Canada” instead of improving yourself, you certainly won’t be able to.

@freedomr4031 Ай бұрын

@@G5rry I could have afford before now I can't. I am in the process of improving myself.

@darrenhorne432 Ай бұрын

I retired 2 years ago and I am doing great. Once I retired, I started using YNAB to budget. I find it works great and wish I started using it a few years before retiring.

@lauraw.704 Ай бұрын

YNAB?

@sandray7609 Ай бұрын

You Need A Budget! It's a website

@lauraw.704 Ай бұрын

@@sandray7609👍🏾 ahhh Gracias!