How Much Do You Need To Retire In Canada? It Might Be Less Than You Think

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One of the most important questions you can ask yourself...how much do I need to retire? There are obviously a lot of factors that go into this question: your age at retirement, your lifestyle, your pension, your OAS amount, and of course a lot more.
While the question is important, it can often leave Canadians stressed which is exactly the opposite what you want in retirement! This is where a financial plan can be extremely important. Everyone's situation is a bit different, so a plan designed for your situation will alleviate any stresses that you may have...plus, you may find that the savings number in your mind may be far higher than what it actually needs to be.
6 ways to level up your financial plan:
Personal Finance for Canadians for Dummies: amzn.to/308jzic
Free Credit Report with Borrowell: borrowell.com/...
Open an EQ Bank Account: join.eqbank.ca?code=ADAM8851
Financial Calculator I use: amzn.to/3qiFf6m
Financial Masterclass for Canadians: www.parallelwe...
20% off an online Will at www.willful.co use promo code: PWFG
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 savings plan on track.  You can email Info@Parallelwealth.com or call 604-256-1151 and we will set up a meeting with you.
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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.

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1 окт 2024

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Комментарии : 567

@MrGravity304 Год назад

Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million.

@NotyourBusiness-urto6 Год назад

This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.

@freedomisEexpensive-08 Год назад

@@devereauxjnr I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.

@freedomisEexpensive-08 Год назад

@@devereauxjnr I might have heard this name somewhere, but can't really recall. I'll be following her up. Thank you. Do you know if she manages family fund too?

@mrofnocnon Год назад

Trust me your parents did exceptionally well compared to the majority of us, no matter how hard we worked. Not everyone can have a government job.

@howardjamespatterson4119 3 года назад

I was stressed the first 2 years of retirement , started reducing my stress by volunteering locally after 6 months . Found out how fortunate I was . Learned to spurn debt early in life ( sometimes debt is useful to improve equity , purchase a home , transportation to improve employment ). Been retired over 10 years , took advice from real people that had been retired for a while and managed their own affairs . I enjoy the quiet life , travel at every opportunity . Spend less than you make , make a habit of saving , and enjoy yourself frugally between splurges .

@keith2515 2 года назад

COVID ocked up in your little apartment saves money...but TERRIBLE for physical and mental health! NOT retiring in 'Canada

@ridiculous_gaming Год назад

$40,000 a year in Canada, in the province of BC, is simply inconceivable. Living in the country is getting far too expensive.

@cindys7616 3 года назад

Thank you for the videos. Great information for Canadians. Nice to get Canadian information instead of USA information that’s not relevant.

@ms.carlson3904 3 года назад

You can plan your life so you live very cheaply. Ride a bike if you can. Cook all your meals - eat a lot of beans as they are extremely healthy and very cheap and filling - oatmeal and barley is not bad either - clothing can be all bought at garage sales or hand me downs from friends, and thrift shops. Furniture is free as people leave castaways on the street and you can get all second hand. Entertainment is the internet and Netflix and books that are free. You can draw pictures of things you like. Meditate. It is fun to live cheap and not have to work. Too bad though if you have an expensive hobby like horse back riding or collecting cars.

@ztekz 3 года назад

In other words “live like a hobo”!

@spud2727 3 года назад

In other words vote liberal and this will be a reality(already is) thanks Justine!!

@michaela3032 2 года назад

@@ztekz If living like a hobo means riding your bike and grocery shopping/cooking your own meals with healthy ingredient then YES, reward your body with this lifestyle. Past two yrs I put more mileage on eBike than new truck. Cook at home instead of dining out. luv it.

@TheBoomtown4 2 года назад

@@spud2727 you probably don’t have to worry about retirement because you’re too “stupid” to put away money.

@spud2727 2 года назад

@@TheBoomtown4 justin is that you??

@yarabamba 3 года назад

I don't see anybody addressing that you might have a mortgage after retirement. This is the big elephant in the room/

@JJ-ps9xe 3 года назад

You are screwed brother.

@meilingedm 3 года назад

you probably should have that paid off in your 40's

@yarabamba 3 года назад

@@meilingedm I will be done at the age of 75, I had to save money for several years before buying a house.

@JackdawWatcher 3 года назад

Wow I didn’t realize banks in Canada will give you a mortgage for that long. In my home country you have to be able to pay your mortgage off by 60 to qualify for it.

@meilingedm 3 года назад

@@yarabamba the older you are depending on your income streams the easier it is to get more money..... there is ways to navigate, but most of it is to bud massive passive income stream and live off the dividends.

@viperswhip 2 года назад

If you don't own your own place you are basically fucked unless you are a millionaire. That's Canada.

@jjlad5037 3 года назад

The secret to a successful retirement is don't get married. If you do get married, then don't get divorced.

@yukouchida9344 3 года назад

Divorce costs so much!

@jjlad5037 3 года назад

@@yukouchida9344 ...Usually 50%..plus residuals forever.

@cavelleardiel 3 года назад

And don't live with someone.

@kimberlini347 3 года назад

@@yukouchida9344 Divorce costs so much because it's worth it!!!

@yukouchida9344 3 года назад

@@kimberlini347 I think when you want to divorce, it doesn’t matter how much it will cost you.

@TheCaperfish 2 года назад

ok people at age 50 figure out how much you spend per year average to live , bills etc, then go into into bank and figure out how much money ya got and take that and divide it by 20 then take off what yer total bills for 20 years adds up to , that will tell ya how much ya can spend every year (spend it on something you enjoy) to be broke at 70 , ya want be broke at 70 cause at 70 ya probably be going into a home soon then and you won't have to pay for it , let all the taxes ya paid in yer life pay for it , and use and enjoy the money ya saved yer whole life before that magic age of 70 where all bets are off once ya hit it. ya can't use 90 for a target age dude who makes it that far and who needs any money from 75 to 90 ? if ya do make it that far , yer sitting in a seniors home with drool coming down yer chin don't need any money there , spend it while ya can and go out broke , this aint a dress rehearsal

@danirobi10 2 года назад

I really appreciate you differentiating between the 3 phases of retirement needs. I had a financial plan done not that long ago and they had told me I was in dire straights and had to contribute 100% of my take home money into retirement savings to ensure I wouldn't starve in retirement. Needless to say, not very comforting. I will reach out for a more common sense plan. Your video content is fantastic.

@manyhatershere1721 3 года назад

most people that doesn't have any retirement savings don't save because they don't have any spare income to put away. cost of living is high in this country and wages are low. the examples given show employment income like 80k, 160k... but most people are working with income more like 50k.

@-Ordinary-Average-Guy 3 года назад

I agree. There's a lot of Canadians who are retired that live hand to mouth. They live on very tight budgets. Not all of us can work for the government and be blessed with a taxpayer funded pension.

@mavrick6499 3 года назад

I applaud you for attempting to explain this complicated topic, considering how many variables there are. Of all of our friends and family we are the only ones - honestly, because we asked - who know what they spend every month in each category, who re-balance or take a good look at their portfolio twice a year, who can explain how inflation affects their retirement, and who have a decent idea of what taxes they have already paid and what more they will have to pay. Having someone who is able to explain retirement funding, specifically for Canadians, is so necessary. We have subscribed.

@mrofnocnon 2 года назад

So many are afraid to retire thinking they will not have enough money. For some people they will never have enough. Some think they need millions whilst others are happy with 40,000 a year. The important thing is when you have had enough with work, just retire, stop worrying live the time you have left.

@Laddie999 3 года назад

This is really great! So happy to have a HUMAN advisors and not sales person (aka investment advisors). My god, the 1% they take from the portfolio for 45 minutes once a year is criminal!

@ParallelWealth 3 года назад

Thanks! If there is no planning it can be expensive. If you are paying up to 1% and getting planning advice its worth it. There is also value in having someone to lean on when times get tough. Vanguard did a great study on this.

@wbuffett1 3 года назад

Here is the secret if you haven't saved enough move to Latin America with good health care. You can live great on $1500 to $2000 in most Latin American countries

@neolithic3 3 года назад

how do you access the health care though?

@wbuffett1 3 года назад

@@neolithic3 its cheaper and high quality

@Lineman052 2 года назад

@@wbuffett1 where does one find out how to do this? Our country is a dumpster fire.

@dereksbooks 2 года назад

Does that include Venezuela? 😏

@wbuffett1 2 года назад

@@dereksbooks si Derek. Pendejo

@TubeDeviant 2 года назад

Thank you for making this video. I'm one of the people who has a questionable savings plan for retirement. I am 41 years old though, so I still have time. This video is definitely reassuring and gives me some direction, along with the other videos you have made on TFSA's.. While it is a scary thought, not knowing if you'll have enough money in retirement, I also feel that people underestimate their own resourcefulness, grit, critical thinking. Of course, you don't want to be working in your retirement years, but if you take into account other current events like the debt and deficits of governments, I think we can all feel a little better knowing that we aren't exactly "alone"..

@Leftatalbuquerque 3 года назад

Do a show about how kids today will never be able to afford their own home, much less an apartment. How is any young person today EVER going to be able to move to a city where they can find their tribe and community and HAVE A LIFE? When I first moved to TO you could still find a bachelor for $350+, and it was doable. It was tight, but a young man could do it and still have money for a pizza and new jeans. And, you could BE where people like you existed, especially if you were from a small place in remote Northern Ontario. How is any kid supposed to do it NOW??

@ParallelWealth 3 года назад

It's a great point. I had a client yesterday say to me that she was told this as a teenager in 1981 when interest rates were 21% on a mortgage - but here we are. I'm generally a positive person and believe my 4 kids will find a way....or I'll have a big basement...🤣🤣

@steve8803 3 года назад

@Leftatalbuquerque If you can't afford to live in a certain area, don't move there. There is life outside the "center of the universe"!

@neolithic3 3 года назад

@@steve8803 Not as many jobs though. I'd love to get out of Vancouver but where should I go?

@steve8803 3 года назад

@@neolithic3 Jobs are no good if they don't pay enough for you to make ends meet in a certain area. As for where to go, depends what you're skilled in.

@steve8803 2 года назад

@Robert G Burke yet there you are with a roof over your head, food in your belly and an internet connection. First world poor still makes you richer than the majority of the world!

@21ZacDUDE 3 года назад

Currently 25 years old. Thanks for the video! Very informative.

@Inquisitive9 Год назад

If you are watching this at age 25, you are well ahead of millions of people.

@BetterYet Год назад

I have no intention of retiring in Canada.... way too expensive.

@MrBaza70 2 года назад

Nice one! Keep up the great work! I really appreciate that your videos are targeted towards fellow Canadians. :D

@thedailystruggles7539 3 года назад

Pay off my house and retire around 55 or younger. Go to philippines . I'm 28 btw

@may-jeanpowers7199 2 года назад

Go for it! Good plan. 😀

@cornstar1253 2 года назад

No thanks

@ronwiebe4816 3 года назад

Downsizing real estate is also another safety valve many people may have - eg. at 70 yrs old sell your $1M house and buy a $500k condo and add 500k to income bucket. These are great videos and Im sure you are putting some minds at ease. I will bring my accounts over to you guys soon with my general plan (i will retire Sept 2027). keep the videos coming - can you do one on types of safe income plans (MIC, Bond Funds, Dividend funds etc) that you use for accounts that need 5-7%

@Seektruth-59 2 года назад

Average CPP is around $550/mth, not $1,000 and are your numbers pre tax or net after tax?

@ParallelWealth 2 года назад

NET.

@mrofnocnon 2 года назад

Agreed I know of no one who gets full CPP.

@dianaphelan1961 2 года назад

Great info!!! I really like how you broke it down, gave examples and then gave the questions to ask when you speak to a CFP about creating a plan. And to include the estate planning component.

@doug7745 2 года назад

Great video. Looks like I might have enough money unless I live past 90. Most of my income is in a RRIF. Looks like this year we will have a recession so my nest egg is going to take a beating. 4% of $400,000 is lot less than 4% of $700,00. And I understand at my age ,72 I have to take out more than 4% according to government rules? I wanted to retire with $1 million but life got in the way but with my mortgage and car both paid off ,plus 2 years of Covid do nothingness I was surprised how little I needed to live on. Do I wish I had more money? Of course , but be realistic and budget and you should be OK.

@rosegirl9874 3 года назад

Yay, a Canadian financial RU-vid channel! Thanks for doing this!

@rosegirl9874 3 года назад

Can you talk about spousal rrsp?🙂

@davoshaunessy7481 2 года назад

Once I hear the K werd I usually just shut it offffff

@blomshell 2 года назад

This is amazing. Just what I was looking for. Valuable content delivered in a friendly, Canadian way. Thank you.

@ParallelWealth 2 года назад

Thanks Laura!

@abouttime5000 3 года назад

Stay in a one room house where the bedroom is in the kitchen to save on heating costs. Eat no name pasta and regular ground beef. That’s the reality.

@Pacman398 3 года назад

It wont be my reality. I have planned for retirement my whole working life. People who simply live for today and forget about planning for tomorrow are the ones eating the hamburger helper.

@traceygiles3972 4 месяца назад

My mom and dad planned for and looked forward to retirement. Dad was going to retire at 60...but mom passed away at age 57. Dad then remarried a witch who wanted a large house...so there went my inheritance. He then had to work after the age of 60...he got sick and died...never to enjoy retirement.

@oakmanzl1699 3 года назад

If you have a colleague in the GTA/Southern Ontario area I would like to contact them. Thank you and I appreciate the time and effort you are giving to help people. Thank you.

@ParallelWealth 3 года назад

I don't, we are based in BC. That said, we work with people right across Canada. We have MANY clients in Ontario/GTA.

@brucegarrod8674 3 года назад

We worked with Adam and his team. The fact we were in eastern Canada and they were in BC, was irrelevant. In fact the time difference worked well; we found we were getting quick answers in the evenings.

@andrewlander3299 Год назад

Also consider, moving abroad to a cheaper country might reduce your needs of income. Living in the Philippines i.e. and to keep your comparable lifestyle is 3:1. To live on 4.500 in Canada is equivalent to live in the Philippines on $1,500

@robertt9342 Год назад

People from some European countries mover to Canada to take advantage of the same thing.

@xbman1 2 года назад

That same money can be in RRSP(100% taxable), non register accounts(50% capital gain tax) - if it’s in corporate account(return of capital. Defer tax payable until initial capital depleted), TFSA (0% tax payable), permanent life insurance (policy loan @12%, it may very from company to company or collateral loan from bank). Details on that how it works is outside of the scope for this thread. Therefore, for example, when you see $100k in your account. You will not get $100k, unless it’s in TFSA. Note: Inflation have no boundary.

@user-od9iz9cv1w 3 года назад

Great advice. There are very few planners who create a plan this detailed. I have one which is even more detailed that I did myself. Trust me it is worth it's weight in gold. Once you have a full financial plan, your worries evaporate. Call this guy and get one done before you retire. It will make the retirement decision easy if you have been preparing. Or it will scare you to death and shock you into taking your future seriously.

@caperboy1169 3 года назад

Some people live paycheque to paycheque

@xtrickster6556 Год назад

Yup like me. I don't make near enough to save money to retire like he's talking about. Must be nice to be rich

@blairkinsman3477 Год назад

@@xtrickster6556 how much u need to save depends on ur age .. if ur 25, about $100/ paycheque gets u half million at 65 (7% ROI) .. if u put that in an RRSP before tax and ur tax rate is 24.15% (Ye, in Canada it’s that high) then ur paycheque will only drop by about 75 bucks .. if ur employer has a plan then they are already putting in a chunk of it (maybe even half) and if they match then u get another quarter of it that way .. if ur SO does the same it’s half again

@laurie113 2 года назад

What happens when you don’t…OMG

@urbanpeasant1238 2 года назад

Should this be based on pre-retirement "spending" vs. "income"? If you put away 50% of your income for retirement savings before you retire, there should be no reason why you should aim for 60 to 70% of your pre-retirement "income" in retirement. Make sense?

@ParallelWealth 2 года назад

Everybody has a different retirement need. 60-70% is 'normal, but some people veer off that drastically!

@vroomgc 2 года назад

Avg life expectancy is not 90 , so why use that number ? The average male lives till 80 and women 83. There is only a 35% chance the male will hit 90. I would have used 85 as something that is still longer than normal but much more possible.

@ParallelWealth 2 года назад

We will typically do tax planning until mid 80s and income planning to 95. We can adjust for any client, and in this case the client wanted these parameters.

@christianxzowner2958 2 года назад

Start stressing bout that and you won't live long enuf

@robquasi6153 2 года назад

Retired at 42 17 years ago, if anyone has questions?

@sean367 Год назад

Retired Canadians are now forced to return to the work force.Thanks Justin

@enjoythedreamlife5658 3 года назад

It is better to work with a Financial Planner like yourself, than doing it yourself. The fact, is and Im only talking about a good Financial Planner, will do better for you than doing it yourself. Why? Because do it yourselfers only focus on the bottom line. What is the return and that is the wrong way to look at it. like what is more important Mortgage Interest Rate OR Mortgage Interest PAID

@seanwilliams8833 3 года назад

I'm one of those lucky Canadians who has a defined benefit pension plan. I will retire next year at 54 with 31 years of service which provides for 62% pension. Still, I wish this type of information was available to me 30 years ago. I will make sure my kids are aware of the need to save for their retirement.

@davidgiles5030 3 года назад

Me too. Retired at 49 with 30 years. I have 66% with COLA. I've been retired just over 20 years and live very comfortably. My daughters are both treachers in Ontario. They will have an even better pension. I made sure they were aware of that when choosing a career.

@-Ordinary-Average-Guy 3 года назад

@@davidgiles5030 Can never go wrong working for the public sector. Although for taxpayers it's unsustainable to keep giving into public sector union demands. This is one reason why Ontario is broke.

@scottclarke8522 3 года назад

Retiring at 47 with no defined pension, all self directed investing using low cost index funds. :)

@bekesir12 3 года назад

@@davidgiles5030 you really left a good world behind. It's like a wake of environmental destruction and it's your fault.

@weskentner8037 3 года назад

@@davidgiles5030 I'm glad were giving government workers pensions for doing terrible overpriced sub par work. Pensions at the expense of the responsible I guess

@stephenbibby8650 3 года назад

I’m from the Uk so things are slightly different here . However the broad detail of your advice I have found very useful. Thank you 🙏

@ParallelWealth 3 года назад

Thanks for watching. Yes there will be a little difference in some topics, but overall most of the content will apply.

@Bondanalloy 3 года назад

Tfsaaaaa. So flexible and free, especially if you want to leave anything to children as it's not taxed like pension assets in an rrsp

@SeanONeill13 3 года назад

But it is, a) limited in how much you can contrib, b) money used to fund this, is taxed at a higher rate. Surprised you do not get that simple fact

@Bondanalloy 3 года назад

@@SeanONeill13 explain how it's taxed at a higher rate please. It's funded with after tax dollars if that's what you mean but thereafter all growth and distributions received after free and clear. but that has no bearing on its value if you understand tax rates and brackets. Even comparing the tax break you get by deferring via RRSP, you can't beat its ultimate value, and since I'm younger than 40 yrs old I have a long horizon to build the assets in it.

@Bondanalloy 3 года назад

@@David.Bergeron yeah! even so, the flexibility to me outweighs even the savings from tax for high income individuals. i love both programs but tfsa is just so much better overall for most people.

@-Ordinary-Average-Guy 3 года назад

Would you ever consider touching on the topic of retiring with debt? There are a lot of people in that situation. I know people in their 60s who still have a mortgage. At 55 my personal situation is I'm mortgage free since 2012 and I have just over $300K in RSPs. I have no financial plan for retirement. And I have not talked to anyone about it. At the same time I still don't think I have enough in my RSP to retire comfortably. With all levels of government constantly coming after us for more taxes I think it's getting harder and harder for people to meet their retirement goals.

@rifling7917 2 года назад

don't forget about the GIS as well if you qualify. remember its your income excluding was and supplement.

@misterlinesman968 2 года назад

Most people will never have an extra 1 million to invest and banks will pay you 0.4% not 4% interest nowdays.

@robrider838 3 года назад

When you are retired you should have no mortgage (mine is $30k/year) and you also won't be saving for retirement anymore (max saving for RRSP and TFSA is $33k/year that you'll no longer be "spending"). You'll also have way more time to shop around for bargains, etc. You will need way less than 60% - 70% of your current income.

@ParallelWealth 3 года назад

Definitely some do, but average we see from over a few hundred retirees is 60-70%. Traveling adds up quickly!

@panda55c 3 года назад

Totally agreed!! If you’ve been working from 25 to 65, should your house be paid off by now? No more savings for retirement, take those 2 factors out, then CPP, Old Age + some extra income (from your savings/investments buckets) is good enough to enjoy your basic retirement life. If you have more $$ then you can think of traveling, domestically or internationally, depending on your financial situation … Speaking from someone who used to worry so much before and now been happily retired for 3 years … LOL

@charlie-ot5ug 3 года назад

Retired 2019 at age 58. At the go go phase but I havent been able to travel since March 2020.

@jeromeleoterry 3 года назад

I've done OK, but I still feel behind. 43, paid for house, no debt, 6 months expenses in emergency fund, 135k in RRSP, 6 figure salary, single. Now's time to get serious and start building up the RRSP and post-tax savings. If all goes well, should be able to retire comfortably. Assuming good health and able to maintain working in the tech sector until retirement.

@kunallaungani1703 2 года назад

Thank sounds pretty solid to me. What comes after this?

@jeromeleoterry 2 года назад

@@kunallaungani1703 max out my retirement accounts next, and pile up cash for a replacement vehicle in a few years. After that, likely start investing into a taxable account

@mrofnocnon 2 года назад

You certainly have done ok. With those numbers at your age, stop worrying and enjoy life and look after your health, without that you have nothing. I manage on much less.

@StanTheMan-us3tp 3 года назад

I retired at 48 years old. No debt, that should be the goal. Change your lifestyle of ovespending, Clear your debt and you can retire.

@scottclarke8522 3 года назад

Nice. I'm 47 and will be next month. Agree 100%

@Canaca1 3 года назад

Much easier if you don't have kids, we have 3... No luck here!

@adamhero459 3 года назад

Unfortunately with the drastic increases in house and rent prices over the last few decades, that will be nearly impossible for people who are under30 today unless they make well above the average for where they live. And that is assuming no kids.

@scottclarke8522 3 года назад

@@Canaca1 I got news for you, I got 3 as well. People in our culture think kids are expensive. Its all in how you set your life up. Yeah - shipping them off to day care is expensive.

@tedpark6814 3 года назад

Had no debt since about that age too - that makes things much easier. I have my own business and I really like what I do, so why not keep going? I have the flexibility to take time off time when I want, so that that's good too. We're all working from home now, which is great since I can just get out of bed and go to my office but bad because the snacks are all stored here so I'm tempted to scarf them down.

@adamalmaouie9523 2 года назад

more like how much will you need to beat inflation just to live paycheck to paycheck

@vroddestroyer300 Год назад

We are retiring this year with a monthly income of just shy of 10,000.00 a month after taxes

@ParallelWealth Год назад

Good job saving Gordon. Enjoy retirement.

@fembot521 3 года назад

I live in Ottawa and my tax bill right now is $600 a month. It might be $1000 by the time I retire! I will be mortgage free but that tax bill is insane.

@robertk5441 3 года назад

Let me cheer you up a bit. When you retire you pay less tax. You will get basic exemption of about 13 K and age credit about 6K and pension credit 2K. If you're not getting any pension, just convert small portion of RRSP into RRIF and that does the trick.That means big chunk of your income is tax free. You're no longer contributing to CPP. Now if you have any income from dividends(you should) it's taxed at preferential rate. Example. My wife and myself total retirement income in2020 102K. Taxes paid, 5.6K. I am worried about inflation, dividend flow, Enbridge line 5 and socialism. Taxes in retirement should be considered and carefully planned. But I don't see reasons to worry. Unless they change the key to the lock.

@SeanONeill13 3 года назад

$12,000 tax a year is insane? Really??

@rozinant1237 3 года назад

Pretty sure he means his property tax is $600/mo.

@gwarlow 3 года назад

MOVE. :-)

@Snerdles 3 года назад

Come on out to the east coast. You can get an amazing house for a couple hundred grand and be paying like 4k a year in property tax. You could have a seafood feast every week and still not reach the difference in cost of living.

@Bendoofus 2 года назад

My guess was 60 cents and a moose.

@robertkat 3 года назад

About $10 million would do.

@ie6370 3 года назад

Very much enjoyed this video...planning on retiring in 3.5-4 years. Every little tidbit of info you provide is very useful and helpful.

@ParallelWealth 3 года назад

Thank you. Glad it's helping.

@Lioness_UTV 3 года назад

This was incredibly helpful, especially for those of us who are not in such a healthy position. Thank you.

@Davidjune1970 3 года назад

60 to 70% of your net pay per year for retirement? Your talking about people who aren’t even saving 10% of their income ... they are spending almost everything they make. Those people will never be able to cut their spending magically when they hit retirement. Most haven’t even accounted for the likelihood they will need long term care facility expenses let alone likely pharmaceutical costs for the battery of conditions they will have.

@Sky-um5cj 2 года назад

I am trying very hard to live as cheap as possible as cheap as absolutely possible and also I’m aiming for a very cheap place to live and lastly I don’t want to live many more years.

@catherineellen928 3 года назад

Great content on all your videos and finally Canadian! Subscribed.

@ParallelWealth 3 года назад

Many thanks!!

@robocop581 2 года назад

My Retirement Plan is monthly income equal to 3.5x my monthly expenses at age 55. I figure my monthly expenses will be consistent from age 50-70. 3.5x should easily cover increase in inflation

@johnmorrison9758 3 года назад

Don't forget that a lot of us have a house that is now worth a fortune. Sell and you have enough to rent for the rest of your life, no problem. No need to sit on all that cash.

@mrofnocnon 2 года назад

Rents are not cheap.Almost 3 grand a month around here. At 36,000 a year your cash won't last long.

@alan4sure 2 года назад

My wife and I found not having kids helps immensely. Same with pets. And instead of thinking of things you'd like to have or feel you deserve, think of why you DON'T.

@ImVeryBrad 2 года назад

Ya dude, kids are expensive. I have 2. They basically eat money haha

@alan4sure 2 года назад

@@ImVeryBrad Lol I remember being a teenager. 3 burgers at A&W for lunch🍔

@tonemeister2318 Месяц назад

4% rule is a great rough estimate. It does take into consideration inflation. Great if you do not have software and relatively close

@sresentertainmentsciences3340 2 года назад

Your videos are great!....and your background is very calming

@mikec886 2 года назад

If you include yourself and your grown kids it's basically a non starter lol

@mikedennington8856 3 года назад

Buy good dividend stocks in the TFSA. Have no debts, no mortgage, no car loan, no credit card debts. Then you have electric, internet, phone, gas, natural gas, house taxes and insurance, car insurance, food, dental, eye glasses. Thats it for me.

@adventureswithdougie 2 года назад

Well spoken and great presentation. Thank you for your time. 👍👍👍

@bugsysigal4949 3 года назад

The given table for projected years to come on 16:30 is a real joke. How can you say in years to come what will be inflation and tax rate? In particular with all money printing as result of pandemic. And later when economy improves and money flows to the market with consumer confidence and government looking to collect given stimulus money in a way of taxes back. I can remind you that between 1980 and 1982 the 3 years combine inflation was 50%. Who could predict that Europe will be living with negative interest rates since 2014? We will give you a retirement plan for next 25 years. Sure. Nobody knows what will be next year.

@ParallelWealth 3 года назад

Bugsy - just using historical averages...nobody knows the future. That's really all can work with.

@bugsysigal4949 3 года назад

@@ParallelWealth I know. You are right. That is exactly what you can do and what you actually do. The question is what it is worth? I cannot rely on it. I can't use it. The best retirement plan is to have tangible assets, not the digital ones it's value rely on money printing, interest rates, whatever...

@ZulfiqarAli-rf6fp 3 года назад

U are very smart person

@ParallelWealth 3 года назад

Too kind!

@Nonduality 3 года назад

The first thing is to define retirement for YOU. Don't let a financial planner, a relative, or a rich friend of a friend define retirement for you. This video assumes it knows what retirement is for YOU. If you let any financial planner decide what retirement is for YOU, you're already lost.

@ParallelWealth 3 года назад

A good financial planner won't define what retirement is for you, they will help you best fund your retirement- paying less taxes and allowing more to pass to loved ones.

@Pacman398 3 года назад

This is broad advice meant for a wide audience. Of course, individual circumstances must be factored in. Point is, you need a plan of some sort as early as possible.

@thrshwll1526 2 года назад

Exactly. Thank you

@tsifty1 3 года назад

Government should allow us to retire with other countries, cheaper, to maximize our pension without penalties. It’s our money and our life , Government should stay out of that.

@debb.7431 2 года назад

CPP vs PSPP.. where the public servants will make about 4k-6k per month from their PSPP , the money is mostly paid out out by the private sector tax payers, 1000 cad per month is a disgrace. I do make a lot but again this cpp oas is nothing vs the public servants pension plan.

@ParallelWealth 2 года назад

Completely different benefits. You can't compare them. PSPP has much larger amounts paid in, hence the bigger payout.

@dchen1010 2 года назад

Great video. I thought I would have needed a lot more! I was aiming for 4 million!

@spruceguitar 3 года назад

Thanks for the great vid. If you leave Canada at retirement: - What do you lose, the OAS …?

@spruceguitar 3 года назад

To clarify I will have been here 40 years by the time I am leaving Canada at 60.

@Gurkha9 3 года назад

@@spruceguitar Then you would qualify for full OAS. Only GIS is not available outside Canada. I also plan to leave at 60.

@spruceguitar 3 года назад

@@Gurkha9 Awesome thanks! 👍 My only other dilemma concerns working for public or private. - I have 5 years in hospitals. If I do another 15 years I can hope for a partial pension. Plus the contribution, where they add 100% of what you put in. I cannot reverse the 8 years I spent in the private. - If I make 70K in the public sector vs 100K in the private: Is it worth staying in the public sector another 15 years for the pension? Even if I put 15K / year aside in the private … I may not have enough money to rely on at age 60. What are your thoughts? Thank you 🙏

@Gurkha9 3 года назад

@@spruceguitar I never worked for big companies so I don't have a defined benefit pension plan. I saved and invested myself. You might be better going with the matched contribution plan in the public sector route. If I was going to do it over agin, I'd probably go that route, especially if the plan is indexed to inflation. But it all depends how disiplined you are in saving and investing. I am a lot closer to 60 than you are, just waiting for countries to open.

@ubonrat8653 2 года назад

I left and retired abroad, way cheaper & warmer

@AlwaysHappy494 2 года назад

Fantastic!!! Thank you for all your helpful videos. A suscriber.

@ParallelWealth 2 года назад

Thanks for the sub!

@bskinny9009 3 года назад

Sell your house and rent at 70.

@brentbyggdin3627 2 года назад

This is a Great site. Insightful expertise delivered with clarity and simplicity. The tip on ensuring the TFSA recipient is set up as a successor/holder vs a beneficiary is Hugely important in the event the TFSA owner dies prior to drawdown. Thank You. I am now another appreciative subscriber.

@ParallelWealth 2 года назад

Thanks Brent!

@radosuites7058 Год назад

You should switch the column headings - the nominal value should be the constant $69k, and the ‘real’ dollars should be the adjusted ones.

@ParallelWealth Год назад

🤷🏻‍♂️🤷🏻‍♂️

@daveatkinson1139 3 года назад

60 - 70% of current (working) net income required in retirement? Did I hear that right? So, if a couple are currently living on $5000 after tax income / month, we'd need between 3,000 and 3,500 / month. If CPP and OAS provide $2,700 / month for a couple, we'd only need an additional 300 - 800 / month? Seems low. I'd be interested in knowing how that 60 - 70% number is derived.

@ParallelWealth 3 года назад

Correct, this is based on country average as well as what we see first hand with our clients the past 16 years. We have retired couples spending less than $2k per month!

@daveatkinson1139 3 года назад

@@ParallelWealth Great to know, thank you. I'm new to your channel and appreciate the straight forward way you present things. I've been calculating needs based on maintaining close to the same income as we currently net (minus some costs that will disappear when the offspring learn how to fly on their own!). This makes my planning much more achievable.

@steve8803 3 года назад

@Dave Atkinson Before you retire, make sure your home and any renovation needs are done and paid for and your vehicle is paid for. You can even downsize your home and pocket some extra cash there. Then all you have to do is pay for utilities, food, insurances and property taxes. We have a registered 2 bedroom basement apt. in our principal residence which generates enough income to pay for our utilities and property taxes. So when we retire, we just need enough money to cover food, gas and insurances to make ends meet. $3k/month honestly would leave us living a higher quality life than now when we are working as our expenses are going to be greatly reduced.

@lovewasabipeas 2 года назад

I am a 35 years old working professional, never thought about retirement till this video…

@chrisfournier6144 2 года назад

You’re in the perfect place to secure a happy (financially anyways) retirement. Do it!

@mrofnocnon 2 года назад

At 35 enjoy life just put a little bit away if you can.

@mikedupuis9934 2 года назад

Thanks for your videos. Wondering in the “no go phase” of retirement how you plan for that expensive retirement/long term care facility you might have to move to. The monthly fee for them can be very high.

@reginacid6830 3 года назад

I came to this country as an adult, I don't have a 1000 /mo CPP waiting for me. Also, I dont have a house to sell. This is the reality of a lot of people here.

@SS-kg8rj 3 года назад

why do you think the government is so excited about immigration? new permanent renter class. Without the immigrant pressure, real estate crashes making it actually affordable.

@rajsharma2809 2 года назад

Good lesson.

@timw4369 2 года назад

It's always about what you want to do when you are retired.

@ParallelWealth 2 года назад

Agreed Tim!

@SeanONeill13 3 года назад

Your math assumes one retires at CPP age. Of one retires at say 60, and holds CPP to 65, there is no CPP supplement of course.

@ParallelWealth 3 года назад

Only fit in so many examples per video. I'll do more videos with different examples and suggestions down the road.

@RyanPatrickOwens 2 года назад

Long term care insurance will significantly cut back on the cost of the "no-go phase" and is one of the first actions to take when it comes time to think about estate preservation.

@ParallelWealth 2 года назад

Somewhat agree. LTC insurance has been out for years and I have been licensed to sell it for 16+ years. The issue is that the products available are all just sub par IMO.

@rb239rtr 3 года назад

Good post. Most other financial planners want their clients to die rich.

@ParallelWealth 3 года назад

Yup that's how they get paid!

@alexthibaultat 3 года назад

Depends if you also have a goal to pass money as a legacy to your children

@investmentinrentalproperti2163 9 месяцев назад

Just need little clarification on 3 % retrun, 3% of 274,139 = 8224.17 /12 = 685.34/month

@rogerbudgell4226 Год назад

I am look after my own retirement investment .. I pay NO FEE, NO TAXES , I invest in enhanced ETFs in a tfsa .. $1000 a month for every 100 thousand dollar investment ,regular income every month , never worry about capital de appreciation ..generational investment.. soooo easy 😊

@trungthieu6866 2 года назад

so 3% of ROI $500,000.00 is interest only. I will die with $500,000.00 principal in the bank! should I melt down $500.000.00 till I am 90 years old and I will depend on my OAS+CPP+TFSA?

@vinberube136 3 года назад

My goodness gracious, nice job on the background, lighting and camera.

@ParallelWealth 3 года назад

Thanks Vin - as a financial planner is took some time to work this out. Not exactly my strength!

@Jay-vr9ir 3 года назад

Great I shall be living on the streets with my CCP , Vancouver Island here I come .

@LooseArrowBoy Год назад

Just to simplify, on a 3% ROI you can withdraw about 5% for 25 years? On a 5% ROI you can with draw about 7% for 25 years? Is that a correct assumption? Curious what are the statistics of living beyond 90 years and what is the cost of living after that. Aside from that I think the 4% rule is a great goal for people planning for their retirement early in life or financial independence. It's an early lesson about the potential of wealth saved and invested early. For people that are approaching retirement it is more important to plan for what you will have rather than what you wish you had. Looking at your retirement as a draw down to 0 is much more feasible and is commonly practiced for the people who could not build a large nest egg.

@MG-et7lx 2 года назад

Hi, I make 50000 a year in Canada, I'm 63 in December 22, should I take my cpp now(800) and if I do how much tax will I have to pay, Planning to work another 4 years. Thank you.

@cathynoriega1795 2 года назад

Hi ..I want to know if I'm entitled to receive united states pension when I worked only 2 yrs ( 1972 to 1974) then back to Canada till now I'm 75 yrs old now and I don't receive CPP or US pension only OAS.up to now..can I still apply ? If I am entitled to the benefits? PLs reply. Thank You. .

@mpatm2607 2 года назад

So does it make sense to hold off on CPP and/or OAS to max out (perhaps) at the No Go Phase? Doesn't make sense to me; but every case depends on individual circumstances. I took early retirement at 62 after 42 years of service because I no longer enjoyed going to my job every day (politically correct description). Zippo retirement savings, major credit card debt and 5 years left on mortgage. The plan was to seek part-time employment to help pay off debt. Well the reality was, took early reduced CPP at just over $700 per month (would have received maximum if waited until 70), commenced Defined Benefit Pensions (x2), one included option of OAS equivalent until 65 when actual OAS kicks in and it ceases and could not find a part time job (have had to pay taxes since retiring). Lived on a strict budget and spent wisely also had some rental income. Instead of working a part time job, worked on getting as healthy as possible (losing weight) taking personal responsibility for keeping as healthy as possible. By the time I am 65, I will be mortgage free, debt free, stress free, prescription free, healthy (from what i can control) and free to travel if so desired, with guaranteed pensions that increase yearly with inflation and paid until death. If my spouse outlives me, they will continue to receive 100% of my private pensions, until their death. I can't complain.

@parkinggodess1720 2 года назад

Can my children be successors to the TFSA, or just a spouse?

@ParallelWealth 2 года назад

Just spouse

@lisat9707 7 месяцев назад

Looks good but inflation.... when we finally need the money in 20 30 or 40 years.... ya pretty sure a million might be just enough

@RicardoRoams 2 года назад

I'm an American and I'd like to retire to Canada. I'm 71 years old with a heart condition and diabetes. I control my diabetes through weight control, exercise and diet. No medication needed. I also have COPD because of life long asthma. But ironically, I'm as active as I've ever been. I still do serious hiking, aerobics, weight lifting, etc. But I'd still probably be barred from permanent residence in Canada because my age and health issues.

@louisehans9771 Год назад

In 2023, even tho' at a low risk investment fund, we are losing money. And the cost of everything keeps going up. I have been doing taxes for years and do all our monthly/yearly budgets. So I am not naive about the costs of living. We are both retired, do not travel & pay our bills on time so no interest. It is getting exhausting. Who can we trust to direct us in the right direction as we age. We live in Calgary, AB