Common Withdrawal Mistakes Most Retirees Make

[@ChristopherAbelman]

People are facing a tough retirement. and it's even harder for workers to save due to low-paying jobs, inflation, and high rents. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire in.

[@DaliaCohen2230]

The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.

[@PennyBergeron-os4ch]

It's recommended to save at least 20% of your income in a 401k. Sonya Lee Mitchell taught me to estimate how much you should save based on your age and income. I've been with her for years now and her decades of experience in the markets translate to chunks of value in so may ways! She has upscaled my portffolio and even got me reading self help books haha

[@HildaBennet]

That's an intriguing outcome. How can I contact your Asset manager?

[@PennyBergeron-os4ch]

Google Diana Casteel Lynch and do your own research. She has portfolio management down to a science

[@HildaBennet]

I ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.

[@Berit-Cathrine]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[@Berit-Cathrine]

@Elijah-Brian That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well

[@Berit-Cathrine]

@Elijah-Brian I will give this a look, thanks a bunch for sharing.

[@psychette8846]

That reads like a political announcement. Goods cost less than they did in the 1980's. What has gone up is food and shelter and transportation. As long as you own your home, shelter is not a concern at retirement, transportation - take public transportation and food who cares your CPP/GIS and OAS will cover that and increase with inflation. In short don't listen to people with a political axe to grind, I can assure you that those people are not worried and are not negatively impacted the way they claim. It is all FAKE NEWS.

[@ddavidson5]

I am 9+ years retired and for sure the mindset change from accumulation to decumulation is the most difficult change you need to make when you retire. When you are saving for retirement you think it will be easy to spend once the time comes but the habits of a lifetime are hard to break. Don't underestimate the difficulty of changing.

[@user-od9iz9cv1w]

Agreed. My mom was a great role model. She lived a happy active life to 99. In the last few years at a long term care facility, she'd dress in her Sunday best each day. Her favorite saying was "What am I saving it for?" The company that ran the facility use her as an advertising model. Now she lives on front and center on all their advertising material.

[@ddavidson5]

@@user-od9iz9cv1w That's a great legacy for your mom. "What am I saving it for?" is what I try and tell myself about my retirement savings. If I didn't save it so I could spend it, why did I save it?

[@markd8469]

That’s a great story, you mother was a wise woman

[@johnbelt5204]

The key to becoming comfortable with spending is to KNOW that you will not run out of money. Use a financial advisor or some kind of program like "Newretirement" to help set up a spending plan. Then test that plan through numerous derivations until you're sure you're ready.

[@carolyntrudel8901]

Hands down, this is the most generous information share for Canadians that I’ve seen on the topic of spending in retirement. Thank you!

[@ParallelWealth]

Glad it was helpful!

[@rbollhorn1]

Thank you so much for these videos. It is so nice to get some straight forward, Canadian based information.

[@ParallelWealth]

You are very welcome. Thanks for watching.

[@user-od9iz9cv1w]

Right on. My wife and I struggle with the idea of spending principal. We planned for the go go period but when COVID shut the world down we became pretty contained. We lack for nothing today and will leave a philanthropic bequest to an organization that does not know we exist. I would have preferred an active adventurous retirement, but my wife has health and mobility issues so our lives are centered around home and our adventures are online/virtual. At least I live a life of luxury with my best friend. We laugh every day. It could be a lot worse.

[@nickyfurlano8531]

Buy long term corporate bonds at 5+ percent and be wealthy forever. No worries about ever spending the princple amoount.

[@joannego856]

You and your wife definitely have the right attitude. How can it get any better than this? Your gratitude for what you both have together is the greatest gift and benefits all those around you, as well.

[@glennet9613]

I question the assumption that everybody wants to spend more and that anybody who isn’t drawing down their assets is denying themselves. Many people just enjoy a lifestyle which they can easily afford.

[@ParallelWealth]

Absolutely - and keep on doing that. But for many that want to spend more, can spend more but don't. That's the message.

[@PJBHolden]

Your beneficiaries will thank you

[@johnbelt5204]

I'm not planning on leaving anything to my kids. I raised them, paid for college, helped them along the way. Now is the time for my wife and I. I do live fairly frugally but I'm not going to deny myself in any way.

[@glennet9613]

By the time the “kids” get their inheritance they are usually retired or close to it and shouldn’t need it. Most will be better off than their parents were when they retired.

[@Bugnetblue]

I just retired at age 71. I still intend on spending less than the increase in my invested stocks. I doubt I will ever be able to change that thinking process. I will never go into a retirement home. Just too expensive and I don't want to. I can live in my own home and pay people to do yard work and snow shoveling. Besides I can just wait until the snow melts. I don't have to go any where. Everything can be delivered to my door step. Life is good. Looking forward to just being a grumpy old man, happy, and in control of his life. I don't think it gets any better than that.😁

[@dennisspackman7147]

I am 62 and am doing a slow drawdown of my RRSPs. Been retired about five years. Spent the extra income the first three years on travel. Found I could live on my pension I receive from the provincial government job I had. Last two years the money taken from RRSPs is diverted into Tax free savings accounts.

[@FredGorrell-j5w]

It has taken me time to adjust my thinking on when to drawdown my RRSP however, your videos and have converted me to the strategy of drawing it down between ages 60-70 while delaying CPP - for the various reasons you noted. Thank you for articulating things so well.. I also appreciate your comments regarding spending and the go-go/slow-go/no-go phases of life - simple and logical.

[@garth217]

The RRSP meltdown works well if that is all you have for retirement. But if you have a good pension or one with bridge benefit until 65 all that does is drive you into the next tax bracket and OAS clawback. It's not one size fits all. I actually worked part-time last year, I got pushed into the 42% marginal tax bracket. If I meltdown next year for 10 years I'll be close to 42% for the next 5 years until my bridge drops off. At 65 my OAS would be cut around 50% . I'll do a slow burn for 20 or 25 years take CPP at 63 ( $12,000/ yr) vs $20,000 at 70). Since I don't need the money until 65..I can put $24,000 into my TFSA

[@FredGorrell-j5w]

Each person’s situation is different and being in a 30% plus tax bracket is not a bad problem to have… my situation is likely similar to yours and I can also do pension splitting @@garth217

[@user-od9iz9cv1w]

I did the same. Now at 71 have just converted to RIF/LIFs and will be forced into higher income/tax than I need, but it would have been worse without the RSP burndown. Also cool to have a bigger pension which is indexed.

[@nickyfurlano8531]

I go go on the po-po yes the runs aplenty and plenty of them. Great retirement huh?

[@garfieldirwin]

It's not the cost of LTC that I'm concerned about, it's the cost of a retirement home with assisted living. Around here (South-west Ontario) the cost for a studio apartment in an "full-service" assisted living facility is over $6k per month and that doesn't include personal spending money for incidentals!

[@marysinclair1214]

Why do you have to retire in South-West Ontario?

[@Thebignagro]

Come chill with us manitobians we have cheap livings and the blue bombers kick ass! 😂

[@garfieldirwin]

@@marysinclair1214 Only because it's where I grew up and where family is.

[@gwarlow]

@@garfieldirwin Then, maybe they can chip in and help support you? Worth a try.

[@tonylourenco4393]

@garfieldirwin sounds like you need to retire in a different province/region/country and save on your monthly expense and when you wish to see the family just fly/travel to see them

[@nickyfurlano8531]

I retired at age 35 thirty years ago. I bought 13,000 cases of Seagram's whisky which will last me to at least age 100. I've been catching up on my drinking the last 30 years. All bottles are 26-ers of Seagram's whisky vintage year 1968.

[@jeffho1727]

If you're out West, let me know if you want company!😅

[@M22Research]

We live next door (actually north of the Detroit River/Lake Erie pointy bit!) to Ontario in Michigan - while some of the Canada-specific savings terminology is different, the general principles and difficulty of shifting from a saving to spending mindset apply on both sides of the border! Thank you.

[@serendipity9138]

Thank you for sharing amazing tips as usual. All your videos are extremely insightful.

[@Rob-ob3sh]

The cost of retirement living facility is very expensive and if you spend too much in your go go years what happen if you can’t afford the retirement facility then what live in a tent $6000 a month is crazy

[@nh154321]

When you are so unwell that you need help with everything, does it really matter? Would you rather work several more healthy young years to afford extra few months at the end of life? Either state will pay for it, or you will die. At that point is it really living if you can’t do anything by yourself?

[@Rob-ob3sh]

@@nh154321 so your basically saying don’t worry about and let others worry about you and leave the burden on family

[@harveythompson6951]

The last thing I'm thinking about now that I'm retired is not spending and hoarding money for long term care which may or may not come. Living like that would be the ultimate sadness.

[@nickyfurlano8531]

Renting a house in southern Ontario is about the same $6,000 a month.

[@johnfrankes8992]

Great video Adam. You hit the naill on the head as why I needed your help. Take away the unknown and anxiety of where to take what, etc. No need to worry in retirement.

[@simpleshoes]

I wouldn’t say there needs to be a no-go phase. I meet people travelling all the time who are in their 80s and 90s. In fact I meet a lovely lady on a cruise who was 99. And she walked around unaided! We just need to take care of ourselves! And try to dance as much as you can.

[@user-wj9xq7ig2v]

I dont think enough people consider liquidating their houses in southern Ontario. Whats the point in dying in a box worth 2 million. I'm considering selling and buying somewhere cheaper in my golden yrs.

[@JDRichard]

My big plan is to go into retirement home at age 82, just so I can hang out with other people that live during the same period, I lived and be able to discuss the same things I like to discuss. As well, I fix pocket watches for a hobby and do close-up magic and a little bit of comedy so retirement home just gives me an audience that can’t go anywhere.

[@kmac2482]

⁠@@JDRichardas a health care provider who has worked a number of years in retirement and long term care homes, (and this is more specific to Ontario) there are not enough LTC beds so people are moving into retirement homes instead. Retirement homes as a result are becoming very much like LTC (locked Alzheimer’s units, providing more health care). It basically becomes another type of institution. I didn’t see many people living there who were completely independent, still driving, going out, traveling. I wouldn’t recommend it as a preference.

[@nickyfurlano8531]

@@kmac2482 Half the units or places I'm at are empty. I'm in a century house built in 1873 in Markham. The furnace never works right so I just leave the pressure switch off it indefinitely.

[@rolfgaidies9971]

Being frugal throughout your life carries on into retirement as well. Having a solid 'spending plan' is part of your tax planning as well. I try to maximize my withdrawal from my investment portfolio to the point that I do not negatively impact government benefits or pay out too much to the tax man. It is a balancing act but a nice problem to have. One would hope that you have a solid plan and targets that you are monitoring with a bucket list that is realistic. Don't forget to share the wealth with family 'before' your final days.

[@stancoleshill8925]

I would like to buy some things like a new car but new cars are junk. I'm going to fix up my old one so I don't have to keep going to the dealer to repair the new one every week.

[@168mooncakes]

Great content Adam. Love your insights with money management to various stages of life. 😁

[@RossiPopa]

Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

[@RichardMoore-jg5tl]

as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management

[@RusuSilva]

Agreed, the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around 300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.

[@FusunTumsavas-cq7tp]

this is huge! mind if I look up the advisr that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future

[@RusuSilva]

Karen Leigh Owens is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

[@FusunTumsavas-cq7tp]

I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.

[@garth217]

Great video. I have a great pension with a bridge, you nailed my concern...taxes...just about to flip to a RIFF at 60. But as you said I don't need the money right now. So the RIFF will fund my TFSA until 65. But I won't melt it down because of taxes..I'd rather Have a 20% withholding tax than 30%. I'm also trying to figure in OAS clawback. I'm not planning on delaying CPP until 70 because the extra boost has to be considered in taxes and clawback as well.

[@nickyfurlano8531]

With no gift tax in Canada I figured I could give several million dollars apiece to my niece and nephew as my only heirs and shove the rest into gold bars to avoid the total OAS clawback.

[@garth217]

​@@nickyfurlano8531 I know that Justin legalized marijuana, but you need to lay off hitting the bong so often

[@Marie-up7fb]

My 91 year old mother moved into long term care (public) 1 year ago. Cost per day is $75. She might spend $75 total more in the month. So expenses are minimal. Can’t take it with you.

[@ParallelWealth]

This is very common and average pricing across the Country

[@unclemick-synths]

The issue with LTC in Ontario is the fact that non-medical decision-makers can now send you anywhere they choose just to get you out of a hospital bed regardless of the impact on the patient or the family. The risk of that is one spouse dumped into a remote LTC and the other spouse unable to afford to travel or move to spend time with them. It's outrageous considering the lack of efficiency in the system due to lack of medical staff e.g. doctor shows up, orders tests, but doesn't come back to review the tests until the next day, orders more tests etc., so the patient stays in that bed for way longer than necessary. The answer is not turfing out patients, it's putting the taxpayers money into actual medical staff, not feathering the nests of LTC owners who have friends at Queen's Park.

[@ChrisHann-q7c]

These videos are fantastic Adam! Unfortunately, I find I'm a bit of a unicorn approaching retirement. I just turned 50, planning to retire in 6 years with a fully indexed defined benefit pension of $200,000 annually. I know, I know, terrible problems to have. My problem is finding information on high pension unique issues as they relate to income splitting, CCP dates, OAS, RRSP draw downs, TFSA and especially tax planning. Keep up the good work!!

[@ParallelWealth]

Funny we were just talking about this an hour ago in the office as we are doing a plan for a client with a DB plan of $290k/year indexed....it's a great problem to have, but a tax problem none the less.

[@mikeflair6800]

After 10 years, my assets are 150% of the beginning. Why? I fear for Americas's (and my heirs) future...it is not the same anymore. Why spend down money that I don't need to? Why not save and help them, rather than waste money because advisors say so?

[@rustykatt3870]

Inflation has doubled or tripled our food and utility costs. Spending a lot of money believing everything will carry on as before this inflation period would bring people to ruin. We have to be financial grown ups.

[@patwelch1373]

Thank you once again for the clear messages so helpfull.

[@WayneAtkinson]

I would love to have a second opinion for my plan, I just don't trust the industry: too many are biased and/or not trustworthy.

[@rickciardella]

I retired and moved to Thailand. The cost of living here is so low that a couple both collecting CPP and OAS could live extremely well, including travel and entertainment. Drawing down assets in this environment is extremely difficult.

[@chriscowan6630]

Excellent content as usual Adam! Long time viewer and approaching retirement shortly...very helpful information thanks!

[@ParallelWealth]

Very welcome

[@josephjuno9555]

I live in Michigan 🇺🇲 but info is still good.

[@nickyfurlano8531]

Say hello to Tommy Hearns for me.

[@Alex77439]

For sure at 100% my wife and I will make a plan with you before retirement, love your videos, 🙏 thank you

[@ParallelWealth]

Awesome! Thank you!

[@sunfun2010]

This is good information for us, 7 figures in Lira/rrsp and home paid no children to leave it to. We are going to change our spending, We were frugal to get to this stage now is the time enjoy it. Thank You Adam

[@dwaynejohnson6277]

Adam, I notice you are always recommending drawdown strategies to minimize tax. Rather, it should be to maximize after tax dollars. Have you ever looked at it from that angle to see if it changes things? Over 30-40 years, maximizing the after tax dollars may not be the same as minimizing the taxes paid.

[@ParallelWealth]

I usually show both. After tax in your pocket is priority...and paying less tax along the way is a side bonus, which usually happens with the RRSP meltdown

[@johnnyretires]

Considering that price levels can double in 15-20 years have the same or more savings later in retirement is actually a requirement for most nest eggs

[@careymeaway2024]

you get a good plan and then the rules change..

[@Snoopysnoopy255]

Adam is right telling people to check on care home. My dad and father in law was both in a carehome and they take approximately 80 percent of your pension. If there is a spouse that relies on the spouse pension plus their own it will be difficult. For low income But higher income with investment or dividends should not be a problem at all

[@GaneshD123]

Excellent content! Thank you!

[@shawnasomers9127]

Great information! Do you have a video on income splitting for tax benefits?

[@Andy-w7t]

Hey good video, but would be nice to have a video for people with larger non registered accounts and how they would draw down the RRSP given the tax rates

[@robertk5441]

If you end up in retirement home on the floor called :'memory lane', 1 month of stay sets you back 16K, or even more. Dementia doesn't kill in one month, however. One might easily spend 10 years on that floor. Hope for the best, plan for the worst.

[@dvdvno]

It would be interesting to see what that software would have suggested. I retired in May 2022.

[@IsmaelDiaz-p8z]

Hi there ! Great video ! What's the software that you use for your plans ?

[@ParallelWealth]

We use Snap Projections. Have to be in the industry to get licensing to it.

[@kevinwelsh7490]

at 6:00 Eric Seto ad pops up: How to grow your wealth in retirement.

[@APICSKH]

Nice but leaving some wealth for loved ones is also the factor. The ultra rich people got a kick start from their parents wealth. Nothing wrong with leaving wealth for your children or grandchildren. Just saying.

[@AMG-BENZ-1]

You’ve been recommending the RRSP meltdown strategy for several years already. It truly is the best strategy for most, specially once the emotional part has been taken out of the equation.

[@GarryMurray-i1y]

I don’t understand what you mean when you say a person is going to build that money back up as they get older? How is that possible when they are depleting these assets every single year. That would have them with less money wouldn’t it?

[@wayneandrews1022]

Doing our best to spend more now, but two years into retirement we have more than we started with! Thanks in no small part to some good investments and gifts from parents who didn’t spend enough early.

[@nickyfurlano8531]

The only good investment is a safe investment. Most in the stock market will lose everything and more when it corrects to fair market value.

[@wayneandrews1022]

@@nickyfurlano8531 “most”? I disagree completely. The only way this happens is under circumstances of global societal collapse. Then we’ve all got bigger problems than money.

[@dt8787]

Why is it considered a mistake to not spend if that's what a person wants to do? Shift your mindset? People may not change because they are quite content and happy the way they are. I wouldn't call it a mistake, I would call it a choice.

[@superduckie767]

If you are understanding that you are going to spend less, then you can save less. Spend more pre retirement or in those go go years. Many people don't want to have a massive estate to pass on & get taxed.

[@dt8787]

@@superduckie767 This is great if you can see the future but people can't. Many people have no idea how much to save but just do the best they can.

[@dt8787]

@@superduckie767 What? ??? It's still a choice. Not a mistake if people want to do it.

[@superduckie767]

@@dt8787 and people are welcome to do so if they wish, but if they do not know then it may be a mistake. That is all. If you do not know, then what choice did you have?

[@dt8787]

@@superduckie767 You are not listening or reading to what I'm saying. Get lost.

[@jeffreyetherton3185]

I don't get it, why should I force myself to spend it ?

[@isay207]

Saving your principle amount creates generations of wealth

[@ParallelWealth]

Absolutely, but can you live on just the interest?!

[@kasmca]

While this is certainly one point of view (die with zero), with inflation and the cost of housing in the Toronto and Vancouver areas, I'm still planning on preserving my principal in retirement to ensure generational wealth for my children. That being said, I do have a spend plan and have adopted the go-go, slow-go and no-go phases.

[@nickyfurlano8531]

I call it the po-po phase due to my health. Inflation sure hit toilet paper.

[@Slab1vision]

How do I withdraw my cpp now to help my unemployment situation?

[@gaildevaney6074]

I think it is naive to believe there is anywhere near enough LTC capacity for the massive numbers who will need it. For this reason, I don't even bother factoring it into my long-term budget.

[@georgeskrzypniak2731]

The way it goes..., inflation and rising taxes will do a retiree decumulation in foreseeble future.

[@Andy-w7t]

Good video

[@ParallelWealth]

Glad you enjoyed

[@mrslcom]

You can go from accumulation phase (pre-retirement), to maintenance phase (first few years of retirement), then to drawdown phase (rest of retirement). That would be easier to adjust psychologically.

[@nickyfurlano8531]

I still have the very first penny I earned and saved as a child. Never ever touch your principal amount.

[@piethermanus8777]

After 20 years inflation reduced your assets by 60% even if the dollar amount is the same…

[@GarryMurray-i1y]

This makes zero sense. If you have anything short of 500 k then you won’t have a dime left by the time you are 85 for a single. Makes no sense that anyone could have money left. I’ve done the math numerous times with everything to the Canada retirement calculator and others.

[@anniez14]

Is there a good pension calculator out there?

[@ParallelWealth]

Not that I have seen - at least for general public use. Many pension will have online access with an internal Calculator thatcan be ok specific to your pension

[@anniez14]

@@ParallelWealth My spouse & I are both pension Veteran. I recently completed a financial literacy course... mostly to see if were on track. Unless we can figure out the worth of our pensions. We are no where near the million point three they say we need. OOPs!

[@izwaterloo]

How expensive will it be to hire a retirement financial advisor in Ontario?

[@ParallelWealth]

A plan is around $4k typically

[@izwaterloo]

@@ParallelWealth Thank you! And how often and how expensive is an adjustment?

[@johnfrankes8992]

It seems like a lot of money, but I dare to guess that in most cases the plan will pay for it self in the long run by saving on the taxes. And the peace of mind is worth that much as well.

[@laundrygoddess4]

​@@johnfrankes8992 these plans take a lot of gathering information and setting parameters. It takes a very long time to do a thorough job including multiple interviews

[@colingoldthorpe5918]

$4K for them to manage your money you earned and saved. Find a rep that has a if you loose value in your plan their fees follow suite. I use a local Sun Life rep who has this. So your losses in the down turns are not subject to a financial reps fancy living lifestyle 🤷‍♂️🤷‍♂️🤷‍♂️🤷‍♂️

[@e_valley2707]

Wait, what? If I have a 'plan' I'll do better than my neighbour because it will not cost me 'thousands of dollars' - but didn't you say that I should spend more? What's wrong with spending it on taxes? And, how about setting up a trust for my offsprings?

[@GT-tm1ft]

Well, if you really want to pay more taxes than necessary, go right ahead. But you do realize that will mean less money for your kids, right?

[@e_valley2707]

@@GT-tm1ft ... seems it's about the control of capital ... social obligation seems to be a separate topic ... context changes everything

[@GT-tm1ft]

@e_valley2707 of course it's about controlling capital - yours. Adam is simply providing information to make people aware that they may have blind spots when preparing for retirement and to watch they don't pay excessive taxes. That's the context here. He's not saying don't pay taxes- just don't pay more than you have to.

[@MaryEavey-dc3sk]

I am 66 and want to retire relatively soon. In a year or so: my full retirement age date is January 2025. I have no idea who to talk to about what to do and how to do it. Between my IRA/Annuity assets and my 401k less than the million- 3 million that I "should" have saved. At my age I cannot make up this difference. I am single and this is all up to me. WHO do I talk to??????????????????? Every one I have talked to has said You should have more saved and youre 66. Sucks to be you!! This is not helpful!! I am a renter. so I dont have a house to sell to finance this. What should I do?????????????????

[@my3dviews]

Sounds like you are an American due to IRA and 401K remarks. This channel is about financial planning for Canadians, where the rules aren't always the same.

[@MaryEavey-dc3sk]

yes. But besides the financial investment side, I know I should be doing "something" to prepare but not sure what. I am out of debt; that is a good thing.@@my3dviews

[@tiffanyalberti2029]

Is it really worth it to have a retirement plan?? Wouldn't it be better to just save 12K a year in a savings account for retirement or take that 12 K a year and invest it wisely?? I am taking steps and studying to become a back end software engineer which means that I will be making over 90K a year.

[@my3dviews]

The point of an RRSP is to reduce your tax in high income years and withdraw during retirement when you have a lower income. The interest in your savings account also adds to your taxable income. At least use up all your TFSA contribution room each year, so that you don't pay more tax on the interest.

[@johnwong6696]

Where is Dave and Ruth's CPP and OAS?

[@ParallelWealth]

It's there.

[@Toomanydays]

I’m not wasting money just to keep my assets from growing.

[@micheltremblay2544]

Great job with your videos...I typically don't really write comments or ask questions on KZbin but this is too important so I thought, I would give it a try. I'd like to hear your opinion. I am now 61 with a relatively small investment account as I have been buying properties. The little that I have $520K is with Fidelity and managed with someone for .7% I am really disappointed in our return in the last 24 months. We are finally making money +16% and up . I met a young but sharp financial planner at RBC recently. As you may know they have their own investments options etc so I would have to cash in my stocks and therefore pay capital gain tax. We are looking at about $5400. I am also considering managing some of the portfolio say 1/3 on my own with various ETF etc. and / or talking to TD etc. What is your opinion and what would you do if I may ask? Thanks in advance.

[@blaineturner2528]

Are the sums on the chart are adjusted for inflation?. If not, the people with "100%" of their initial capital left have, in reality, at a low 2.5% inflation rate, less than 50% buying power after 20 years.

[@ddavidson5]

Even if they aren't adjusted for inflation, you are in your 80s and you STILL have half of your money left, and as Adam often says; spending typically drops considerably when you are in your 80s in the no-go phase. Do you really want to die with a bunch of money still in your retirement savings so that the government can tax it highly? I try and take the view that I saved it so I could spend it, and if I didn't, then why did I save it in the first place? It's still hard to change your mindset from saving to spending but that what I try to tell myself.

[@nickyfurlano8531]

Inflation is stil around 10 to 12 percent not 2.5 percent in Canada.

[@rozinant1237]

@@nickyfurlano8531 you're dreaming.

[@theowenssailingdiary5239]

People don't want to spend their principal! They want to leave a legacy. You can't tell people how to spend their own money!! I won't even touch my principal, but I plan on having enough such that I won't need to. There's no reason to piss it against the wall.

[@pismomann]

150% after 14 years. People need to reduce their lifestyles and discretionary spending. plus joint last to die estate insurance and joint first to die for the surviving spouse. we can spend an extra 40% of our savings before the first death and its all returned tax free via permanent life insurance bought 25 years ago. You must plan at age 45 and work backwards from death to today to beat the system

[@Wayneman50]

Unfortunately, because i retired at 61 1/2 i have to cover healthcare expenses through ACA. That means my spouse and i have to watch our over all income. Since she is already collecting ss, i have opted to use my cash until age 65 when i can go on medicare. The system is not kind to early retirees.

[@mikethomas6715]

@2:50 Am I understanding you well here. Someone in retirement that has a lot of money 💰, that is what you or retirees show try to avoid? 😮 That is a curve ball to me.

[@AmeliaJohnson-ow6ew]

As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $670K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

[@VerleneSchwanebeck]

Well the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals

[@jjdelamo6246]

My real estate portfolio + high yield covered call ETF (QYLD) give me net $4k-$5k/mo passive income. I am not touching principal at all. My 401k is mostly in S&P500 and i dont plan to touch it unless I have to. I am 58, single, divorced healthy bachelor. At 62, I will collect SS. I retired in Manila and Las Vegas (50/50). In Manila, I live like a king on $2k/mo. In Las Vegas, about $4k/mo is my budget. Good luck to all.

[@jeanraymond9114]

If you have everything you want why spend the principle

[@ParallelWealth]

Because you may need to...and for tax planning. Unless you are ok paying CRA more than you need to

[@heatherbrownlie2350]

Why are you telling people to spend their money. They aren’t spending g so their children might actually be able to LIVE once they are gone. The way the economy is going parents will be the only light in the tunnel for the middle class

[@rustykatt3870]

Heather- I agree. Great comment. Society wants to drain $ from us, and then do it to the next generation. Good luck to us all!

[@onlywenilaugh6589]

Typically people who don't get help, get it wrong is insult. Diyers research, learn, read and get educated. This is advert for paying a "professional"

[@duper1025]

Adam!!! Told you that I was ready! I have engaged Parallel Wealth for a retirement plan. Hope you can jump on my call on April 17!!! B&L with J at noon EST.

[@celiakulrich255]

Men are from Mars and women are from Venus!

[@helenkerkhof3734]

???

[@andrewmosley9476]

@@helenkerkhof3734 It’s a book reference.

[@swamprat69er]

I am still working, 4 months of the year because I cannot afford to retire. Just the taxes and every day bills are enough to chew up CPP and OAS. Now what do i eat? 2 RRSPs aren't enough to survive on either. Heat 5 grand/year, taxes $1200.oo+/year, hydro $12-1500.oo/year, $3600.oo/year for phone, insurance on the house and vehicle $3000.oo/year, snow removal $1,000.oo/year. total $15,300.oo/year. CPP and OAS only pay me $16,000.oo/year. So you tell me how I am going to live (EAT) on $700.oo/year. I think you are just a goobermint entity trying to convince people to blow all their hard earned retirement savings.

[@brucesprung6431]

Curious, where do you live? My guess either on the east coast or west coast.