Want To Retire At 55? Your Plan Will Need This
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- čas přidán 24. 08. 2023
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no tax break for single seniors not fair
Most of these are based on couples. Not for us if we are single.
I agree, it's DISCRIMINATION!
Get over it...
Thanks Adam for this video. I am on a 55 plan currently. Appreciate the insight
Retired at 49 years old due to alot of hard work and over time .There's no easy ways of doing it . I've loved every minute since get up in morning to answer to no one apart from my daily jobs cleaning, washing and all the house work.
May i ask what you have to retire with. I have roughly 800 thousand but cannot touch all of it right away. I’m 55, cannot touch pension till 62.
Great video. Kneading was the word you were looking for.
You are wonderful Adam. Thank you!
Thanks! Always appreciate the support.
“You have to work the dough”. Love what you did there 😂
Great video. Something else to mention if the withdrawls from a spousal rrsp is within three years (2 +contribution year) then the income is included in the contributers income for tax purposes, potential bumping up the tax rate. I think in your example the income was withdrawn from the correct source, but some viewers might have missed this.
Also, min RRIF withdrawals have no income attribution in the worse case scenario!
Anyone can retire anytime...if they have the money. Simple as that. I'm retiring at 54 but only because I am putting everything into my (employer matched) pension, an rrsp, a TFSA and a hefty savings account. Even with less cpp contributions, deferring to 70 for cpp and OAS will mean a pretty decent claim on those when I take it in 2044 (accounting for a minimal 1% increase per year for index inflation). The only thing that does suck is as a single woman (and no plans to change that), I get absolutely no breaks regarding tax. Most people OVERESTIMATE the amount of $ they will actually need in retirement so they work probably 5 yrs longer than they need to. Adam is right - you NEED a plan and professional advice! The sooner the better!
I retired at 54. But went back to work out of boredom. Great pension, now double dipping and working part-time. My expenses dropped significantly..
I’d rather die than work to 65
Exactly. That’s how i feel.
I would tell my younger self to just work hard and suck it up. Cause if you think working sucks when your young, its really gonna suck when your older. Better to do it when your younger.
Agree, and the younger generation needs to hear this
I think I can retire at 47-50, but it would be nice to have someone review my plan to make sure it's realistic.
Great video.
I found it confusing on net assets before withdrawal.
How did it all add up to over 3 million from what they started with?
@cirodirosa6752 The couple in this example does not have over 3 million dollars to start with. There is an assumption that investments grow over the years in their RRSP and TFSA accounts. In this particular example the retirement couple retirement incomes include withdrawals from their RRSP/RRIF accounts, TFSA accounts, CPP and OAS incomes and they would have gotten over 3 million dollars during their entire retirement years.
I'm wondering whether I should collect my CPP early @ 62, the difference is only $225 that I would give up. So my CPP would be $950 instead of $1175 @ 65.
By doing this it would extend the life of my RRSP, as I was thinking of melting down my RRSP to zero - using it to live off for the next three years from 62 to 65.
This would effectively also give me more room if I were to get into an OAS claw back situation.
Also if my math is right , my breakeven would work out to age 78
Basically $950 x 36 mths = $34,200 divided by the difference of $225 = 152 mths divided by 12 mths = 12.666 + 65 = 77.66 yrs
Make sure to integrate with the rest of your income sources. Tax planning around the whole picture is vital
Hi ! Do you know where i can find planning tool like yours ? Thanks
Currently nothing out there for general public use. What is, is limited.
You can create this yourself if you have the excel skills. You’d be missing the massage portion though which is pretty critical.
Hi Adam. Can you comment( or do a video) on any drawbacks to retiring at 55 or later but prior to the magic 65? I know there is a Cpp calculation but does not working for those 10 years hurt your Cpp at 65?
More precisely, not contributing to CPP (which requires income) affects the CPP benefit payment. To get maximum CPP you need to contribute the maximum amount for 39 years relative to the YMPE. Less contribution years and/or less contribution amount results in less CPP payout. So, retiring at 55 with no earned income does impact CPP. Deferring to 70 can boost it.
@@signal8375 You can remove the worst 5 years of contributions . These can be from yrs 55 and up. This will help CPP benefit payment rate
Actually if you’re not contributing for a number of years before 65 it can make sense to take it early.
Do you have a plan for young adults just starting out?
My 10c which I’ve told my kids. Save and invest. Aim for growth. Take risks. Keep it simple with SPY and similar ETFs. Keep doing it, don’t stop. Don’t get distracted by too many toys etc. Be realistic about life milestones impacting the plan and be ready for those.
What if they invested in income paying ETFs… then they could live mostly off dividends and not draw down principal as much. They’d also probably need less $ initially
Those high yield ETFs typically have a decreasing NAV, so result can be decreasing yield in $$ over time
Hi Adam. I’m planning to retire at 55. Does it make sense to start my CPP at 60? I do have a DB pension plan. Looking at melting down my RRSP before my CPP kicks in at 60. Thanks
Adam has a 7 part series on CPP on this channel. He also has a video on DB pensions and and another combining both subjects. If you have a DB pension with a bridge, taking CPP before the bridge disappears is *probably* a bad idea. I have a DB pension with a bridge to 65 and it makes no sense for me to take CPP until then.
Can you income split a defined pension at 55, even if the other spouse in her 40's?
Defined benefit pension you can.
what 55? I am on a 45 radar! still can travel around the world every year.
Freedom 55 - work for 55!years then retire
I always say freedom 55 is when your kids are 55.
51 forced retired sucks
I think I can retire at 47-50, but it would be nice to have someone review my plan to make sure it's realistic.
Hire Adam.
I would second that 1st comment...lol