That’s kind of where we are at, except my husband thinks he can only retire at 65.

Yup. You’re correct. That’s because we had to stay in the budget of 400k. If we increased the monthly budget to account for rent on top, then the money would run out much sooner. So this couple would need to pay rent out of the current budget we listed. It would be harder to do for sure, for sure.

Good luck while paying rent

😂

I’ll keep ‘em coming. Just did one on Suzie Badoozie a few weeks back. And she’s single.

​@wellbuiltwealth which video is that ? would luv to review it

But Susie Badoozie had a ton of dough. How about a single person with a more humble realistic savings. 400 to 500 k. No defined pension because 2 percent have one. Maybe a small LIRA , some Rrsp and some tfsa. All invested at approximately 5%

80 is not the life expectancy here - especially once you have already made it to your 60s.

Way too many factors, housing market collapse, banking crisis, medical problems that could lead someone not being able to work until they're 65, a house fire, a spouse dies...etc. There can never be enough money. People will need to have a home paid off and over 400k to retire, no many will be able to achieve that in many parts of the world where the housing is unattainable for the average income earner.

@@D33Lux Don't forget wholescale nuclear war, complete ecological collapse, more deadly pandemics, a meteor striking the earth, the Maple Leafs winning the Stanley Cup. Lots of things can go horribly wrong.

Thank you! :)

Thank you! And there’s definitely wisdom in planning more conservatively :)

One also has to account for economic woes like a housing crash and banking collapses like we saw earlier this year in California. The national debt is over 1 trillion in Canada and over 30 trillion in the U.S. and that is perpetual as the debt can never be paid off. We may not see an economic collapse in 5 or 10 years, but it will eventually happen and the people who are in their teens will have to deal with that later on in life. Eventually the banks are going to call in all debts.

I can’t speak to your portfolio as I don’t know what you have, but these are actually the standard return rates in the industry for a balanced portfolio. And it’s certainly what my clients with balanced portfolios have seen over the years. Interest rates have definitely been low over the last chunk of years which pulls down the returns of bonds and GICs etc. But equities (the other chunk of a balanced portfolio) have performed reasonably well over that period. But all that said, I’m just using historically normal rates of return for a balanced portfolio. History isn’t a guarantee of what will happen in the future, but I see it as a reasonable guideline. Cheers

Yeah, if it’s an option you can stomach, the math is usually pretty clear.

It’s what I did, I don’t regret it.

You people always neglect the break even point in taking early against late withdrawal

@@georgek3398 I’m not worried about a break even point I’m worried about maximizing my retirement income over the full length of my retirement

Thanks!

Fair comment :)

Good call. We always do that kind of stress testing in our planning. A premature death can hurt or help things financially depending on the situation. And there are ways to mitigate that risk with life insurance and pension options etc. All part of good planning. But good call :)

I was just going to comment on that. With the death of a spouse the final years of the surviving spouse would be cut in half if I am not mistaken. No OAS survivor pension and CPP survivor pension would be negligible?? because they are already at their max as mentioned in the video. People survive on that all the time but it will hurt!

You definitely could. But this vid is about retiring with 400k. So we can’t increase the retirement income too much or we’d need more.

@@wellbuiltwealth In that case, it sounds like this video is really about retiring on $900,000, because that's what the Dodds have to their name at age 64. Even in the scenario where you remove the home, they are mysteriously provided with free housing by some external unaccounted-for source.

Or they just have to survive on less. I have clients who have sold and moved to areas where this is entirely doable for them.

Yeah, excessive taxes are a killer in so many ways. And high inflation is profoundly terrible.

True that. Just using round numbers to keep it simple. But you are totally correct.

It’s called Conquest. And you bet, we do these plans for people across Canada. See here for details: www.wellbuiltwealth.ca/service-options

You bet. We’ve assumed inflation in there and it’s stated in the assumptions section. So those numbers are all in todays dollars. Cheers

@@wellbuiltwealthok awesome!! Thanks for the reply! I know you said it was adjusted for inflation but wasn’t sure that it applied to the monthly expenses as they were not increasing by the 3%. But I see now that it’s adjusted to show the same dollar amount. Cheers!

Mint.

Conquest

The fact remains that many don't want to put their faith in a landlord's hands, particularly in the later years of life when turning things around are a lot more stressful. A condo (or home ownership with contracted maintenance) enables one to feel secure in their own home without worrying about the collateral maintenance.

Yeah, this is my concern these days too.

Thanks! I’ll put that scenario in my queue.

@@AMG-BENZ-1 totally agree with your comment. My wife and I are a few years away from retirement and have always known the house we raised our kids in is far to big for us as we age. We’ve talked about renting as a option but honestly a condo is where we will probably end up as it gives us stability and future financial growth as homes increase in Values. Just curious how 800k on top of our investments would look like in the future tho…we are open to other options

@@RC-fh2lk For some, a reverse mortgage is an option that’s out there for consideration.

Good idea. I’ll put it in the queue.

We’ve done work for people in Quebec. QPP is very similar. Some “interesting” nuances with how it mingles with certain pension plans though.

@@wellbuiltwealthgood to know, maybe a future video 🤔

Great idea!

I think in your calculations you are not drawing down on the capital. Only the growth. Most people will need to drawn down both.

They are definitely in decline! No doubt about it.

If only I had the chance to come and hang out in Newfoundland before making this video, then I probably would’ve known all that. It’s on my list of things to do soon!! :)

Thank you! But sorry, I’m not aware of any that are even close to this comprehensive.

What is the software you are using? Thanks!

Conquest. The link is in the description :)

🤓

All sorts of variables we can play with. For sure. You can spend hours and hours on this stuff. And I do 🤓

about 34% of Canadian home owners are mortgage free

🤓

@@wellbuiltwealth 👍 You’re doing great! ✅

Thank you! And I appreciate your eagle eyes :)

@@wellbuiltwealth 👀 💰 👀

Conquest. And yup, it’s Canadian and can factor in as much eligible dividends as you can dream up.

Nice. 😊

Conquest

Most will retire with nothing but a big --- negative. Sad reality.

Correct. We look at those kinds of scenarios with our clients all the time. This is just a quick snapshot. Financial planning is best done on a regular basis. Doing it once and then never reviewing it again wouldn’t be recommended.

@@wellbuiltwealth Yes, I developed my own spreadsheets to model scenarios and look at them every week! What software do you use?

Right on. We use Conquest.

They had a lead time of a few years before they retired (which affects the math). This couple is retiring right away.

@@wellbuiltwealth Thank you!

Sorry. Not that I’m aware of.

Conquest

You’re definitely welcome to plan your future however you like. That’s the beauty of software like this. It enables a gazillion scenarios. By the way, my wife’s granddad is 102 :)

According to the Society of Actuaries, a 65-year-old male, in average health, has a 35% chance of living to 90; for a woman the odds are 46%. That's nowhere near zero and high enough where people should be planning to live to 90.

Taken from US Social Security Data 2023, live expectancy for a male at 65 is 16.94 years or 81.9 years, for a female at 65 is 19.66 years or 84.6 years This is a very complex subject but given that people under estimate risk and over estimate their health, here are actual population numbers… Total number of Canadians of both genders 65 to 69 2,308,041, number of Canadians 90 to 94 260,583 - Based on these population numbers for Canada in 2023, there is a 11.2% chance of a person who were once 65 to 69 living to the age of 90 to 94

6k (2024=7k) is the annual contribution room, 70k (or whatever) would be the cumulative amount. You carry forward unused room from previous years.

You may wanna watch this video: kzfaq.info/get/bejne/hZuqeLSFndaVhXk.htmlsi=YNfWHQTl6AQU7lWa

@@davidhughes6048 O.k. thank-you for explaining.

@@wellbuiltwealth Thank-you kindly for the information.

Easy to have well over 100k tfsa if you contribute to it and invest in good ETFs or good dividend paying stocks. Very simple really.

Glad you think so!

We cover three scenarios in this video. Sounds like you maybe missed the third one.

@@wellbuiltwealth My bad, you are correct. After ten minutes of listening to details of scenarios relying on the inclusion of a half million dollar house, or an additional quarter million pension to pad the numbers, I cancelled out and did miss the last 90 seconds where you do indeed talk about the actual subject detailed in the video title. Apologies for my initial tone, but at more than 80% of the way through the video, it didn't seem worth the time to continue listening, when the scenarios were so divergent from the postulate, and I was annoyed at having ten minutes wasted with a click-bait video title. Maybe (as a suggestion?) in future multi-scenario videos, you could list or outline the video content, allowing your audience better clarity as to the actual scenarios to be covered, rather than burying the lede on the assumption that everyone will watch 100% of the video. It is far easier to criticize than to create, and good on you for doing so - all the best.

@@RandomContent0 That, sir, is a totally fair comment. I loathe click bait and didn't intent to mislead anyone. I will try to find a way to do what you suggest.

You may be onto something there ;)

Awesome!!!

Do the math. Math is honest.

What’s your point? The answer is not “probably not”. It’s yes you can. I never made more than 50k in any year of my working life and my nest egg is more than 400k. I don’t have a union pension or even the max cpp. Sarcasm isn’t going to get you to a goal. Hard work gets you to the goal. But hey…you do you, it’s ok. Maybe that lottery win will work out

@@derekcox6531Do you have a house . . . or not? That’s a handy backup that a lot of people don’t have, for any number of legitimate reasons. :)