Financial Planning
&
Retirement & Pensions
CPP | OAS | RRSP/RRIF | TFSA
- Health & Aging ...
- See also: Planning
- AARP = American Association of Retired Persons (USA)
- CARP = Canadian Association of Retired Persons (Canada)
- FADOQ | Réseau FADOQ = Fédération de l’Âge d’Or du Québec
- Employment
- See EverythingZoomer
- Employment and Social Development Canada - Canada.ca - (formerly called Department of Human Resources and Social Development)
- Working while retired ...
- Working while retired | see Career Topics ... (SOHO, Telecommuting, etc.)
- ROAD = R.O.A.D. = Retired On Active Duty
- Glossary of Common Military Acronyms | Military.com
- Quiet Quitting vs. Loud Quitting
- Two-thirds of Canadian employees are quiet quitting, study finds - The Globe and Mail
- Low engagement or Disengagement - Result of daily stress, unclear expectations, high unemployment (= reduced choice in employment opportunities), family issues, health issues, inflation, other external factors, ...
- Gallup defines the trend as when employees “put in the minimum effort required” and are “psychologically disconnected from their employer.”
- Loud quitting = Taking “actions that directly harm the organization, undercutting its goals and opposing its leader” and not engaged in their work.
- It is better to have an employee flat-out quit (and to find a more engaged replacement) than quiet quit.
- Unemployment
- Fired / Laid off
- Insurance - Life
- The total guide to life insurance
- Universal Life = UL = a scam = a quack scheme
- Whole life insurance - Whole life insurance is a permanent life insurance policy with a fixed premium, death benefit and a fixed interest rate for cash value growth.
- Term life insurance - Term life insurance is valid for a specific period of time (10-20 years) and guarantees payment if a person dies within that term. It’s typically the cheapest form of life insurance because it only offers a death benefit for a restricted time and it doesn’t have a cash value component. You don’t get any money back if your policy term expires and you’re still alive.
- Life Insurance 101 | New York Life
- Insurance - Property
- RTOero.ca - Insurance products
- RTOero.ca - Financial products
- Estate Planning / Wills / Executor / Estate trustee
- Planning | Personal Financial Planning
- See also: RTOero.ca - Financial products
- See also: Calculators ...
- See also: Withdrawal
- See also: Investments
- Financial Planning = retirement planing, tax planning, investment planning, insurance planning, estate planning
Cash flow + Net worth + Financial goals
- Capital gains = difference between the book and market value of an asset such as stocks or investment real estate
- Retirement income sources go way beyond investments | Financial Post
- CFP = certified financial planner
- For every $50,000 in pre-tax income that you need, you should have $1 million in savings, not factoring in fixed-income sources that may exist.
- DB = defined-benefit pension plan will give you a pre-set, predictable income amount
- DC = defined-contribution pension plan builds a lump sum you will use to generate income independently from your employer.
- CPP = Canada Pension Plan
- OAS = Old Age Security
- Investments, RRSP/RRIF, TFSA, etc...
- You will need 80%-100% of your working income when you retire. The rule used to be 70%.
- The Baby Boomer Retirement Crisis Is Here. Why the Richest Generation Is Struggling. - MarketWatch
- Saving
- Investment Services / Banks
- Withdrawal = take out money from your investments
- See also: RRSP
- See also: TFSA
- See also: Investing
- See also: Planning
- Retirement spend-down - Wikipedia
- SWR = four per cent safe withdrawal rule
- Historically, closer to 7% is an average safe withdrawal rate and at other times withdrawal rates up to 13% have been feasible.
- Your retirement may be different than you expected | Financial Post
- The well-known four per cent rule, credited to a 1994 Journal of Financial Planning paper by William Bengen, has some merit. Bengen’s rule of thumb suggests that a retiree can withdraw four per cent of the portfolio value in the first year of retirement, then increase the dollar amount of that withdrawal by inflation each year and likely not run out of money. While there are many factors that can make this rate too high, too low, or totally irrelevant, the rule provides an easy retirement-readiness barometer and it’s a simple starting point.
The four per cent rule has been challenged in recent years for being too high, especially with people living longer and spending more time in retirement.
- Factors to consider:
- expected longevity (= length of retirement) (= health)
- changes in expenses or pension income during retirement = expected spending during retirement
- risk tolerance
- investment fees
- tax implications of withdrawals
- asset sales
- inheritances
- RRSP Meltdown Strategies to Save MASSIVE Taxes - YouTube
- Just-In-Case (of death) = JustInCase = Emergency Access ...
- FIRE = Financial Independence, Retire Early
- Simple Steps to Manage Your Money - Thanks to Erica Francis for recommending this site.
- 401(k) - USA - See: Canada > RRSP
- Lesson Plans on Finances & Real Estate - Thanks to Stacy Maxton for recommending this site.
- Personal Investment | Use this formula to decide how much to invest in stocks: (100 minus your age) | e.g. At age 25 you should invest 75% of your portfolio in stocks. At age 50 you should invest 50% of your portfolio in stocks.
- Warren Buffett ...
- How to Start Managing Your Money, For Those Who Never Learned Growing Up - Thanks to Caroline James for recommending this site.
- 5 investing tips for people who don't have a lot of money - MarketWatch - Thanks to Caroline James for recommending this site.
- The Ultimate Guide to Senior Finance: Fiscal Fitness for The Over Fifty Crowd – Assisted Living Today - Thanks to Mitchell Abbott for recommending this site.
- How to Retire Forever on a Fixed Chunk of Money
- Finance Strategists - Helping People With Their Finances
- 8 Things You Should Know For An Early Retirement In Canada - CreditWalk.ca
- Social Security & life insurance (USA) - Thanks to George Miller for recommending these sites:
- Financial Resources for senior citizens and retirement (USA) - | - Thanks to Brian Boyd for recommending these sites.
- MoneyTalksNews
- Retirement budget - Google Search
- Retirement budget worksheet - (PDF)
- Wealthica : See All your Investments in One Place
- 14 Key Signs You Will Run Out of Money in Retirement | GOBankingRates
- Shopping - discounts
- Travel
- Thinking of leaving Canada? More than personal tax rates to consider | Financial Post
- cost of living - including housing
- political stability -politics, political ideology, racism
- climate & weather
- the ability to legally reside in the new location
- the language spoken and overall culture appeal
- overall quality of life as compared to Canada
- health care - public, private, for-profit, non-profit, wait times, quality of medical services
- The U.S. does fund the national Medicare program for people 65 and older
- where family and friends are located
- taxes - resident/non-resident, disposal tax on required disposal of all worldwide assets (due upon departure), you must consult an experienced tax/financial specialist
- Retirement - TravelAwaits
- Calculators / Retirement Calculators
- City-Data.com - Stats about all US cities - real estate, relocation info, crime, house prices, cost of living, races, home value estimator, recent sales, income, photos, schools, maps, weather, neighborhoods, and more
- ElderAction - Thanks to Caroline James for recommending this site.
- EverythingZoomer - 45+ lifestyle magazine
- Financial Post | Personal Finance
- Fiscal Agents - Canadian Money Centre Site
- Google Search - Retirement Planning
- Harvest Portfolios Group - ETFs | Mutual Funds | Structured Funds - Just FYI. Not a recommendation.
- LeBelAge.ca - Retraite, argent, santé, voyages, loisirs et techno pour baby-boomers
- Life Insurance
- Lodging - Buy or Rent?
- Microsoft
- MSN
- NCOA = National Council on Aging
- NYTimes -|$$$|- (CDN$20/4weeks)
- Federal/Provincial/Territorial Ministers Responsible for Seniors Forum - Canada.ca
- The Montreal Gazette
- Arbor Memorial Inc.
- Service Corporation International = SCI
- Vancouver Jewish Seniors Directory
- Alan Simpson said it (NOT a Québécois senator).
- Alan Simpson, Senator from Wyoming, Co-Chair of Obama's deficit commission, calls senior citizens "the Greediest Generation" as he compared Social Security to a Milk Cow with 310 million teats. August, 2010.
- Although this retarded American senator said it, there are many other uninformed (ignorant) people who expound the same rhetoric without any logical or factual basis.
- However, the author of the response to this senator's stupid remark is really not known.
- Gratitude must be extended to this unknown author for explaining facts that any self-respecting politician should have verified before vilifying a whole generation of citizens.
- The response is brutally honest and correct even if the author is really anonymous.
- Did Alan Simpson or Dick Durbin Call Americans 'The Greediest Generation'? - snopes.com
Canada
- Opinion: Are we prepared for the wallop long COVID will deliver? - The Globe and Mail
- CPP = Canada Pension Plan
- In Québec, the equivalent is QPP = RRQ = Le Régime de rentes du Québec
- See EverythingZoomer
- CPP Investments - Canada Pension Plan Investment Board (CPP Investments) was created in 1997 by an Act of Parliament with the objective to invest the Canada Pension Plan (CPP) fund assets to maximize returns without undue risk of loss, having regard to the factors that may affect the funding of the Canada Pension Plan.
- RRQ - CompuPension = RRQ - Simulation des revenus à la retraite
- 13 Things You Need to Know About the Canada Pension Plan - Everything Zoomer
- Millenials do not support the plan.
- The Canada Pension Plan Investment Board (CPPIB) manages the fund’s assets. The proceeds from these investments are used to pay CPP benefits to retirees. Based on current projections, the CPPIB estimates the plan has at least 75 years of sustainability.
- Should millennials complain? No, in fact, thanks to efforts by CARP, which lobbied hard for CPP enhancements, when millennials retire, they’ll actually receive higher payouts than their parents or grandparents did.
- CPP Investments
- Public pensions - Canada.ca
- The best time to start CPP —if you don't know when you will die
- Bear in mind that, like most pensions and annuities, CPP and OAS are income streams that "run out" or reduce upon the passing of a spouse, unlike personal assets that have both a survivor and estate benefits.
What does this mean?
- One thing the "delay CPP" crowd often forgets is the tricky issue of Survivor Benefits. We looked at this earlier this year but Diamond says that while you can receive both a CPP retirement pension and a survivor benefit, the sum of the two cannot exceed the maximum CPP retirement pension payable at age 65. So if both spouses wait until 65 or beyond and are at the maximum payout, there would be no CPP survivor benefit for the one who outlives the other. And OAS has no survivor benefit nor an estate value (CPP has a $2,500 death benefit).
- Should I collect CPP early?
You can begin collecting CPP as early as 60 or wait until 70 at the latest. However, the government will penalize you (subtract 0.6 per cent a month before 65 if you begin collecting early) or incentivize you (add 0.7 per cent a month after 65) if you defer it. To illustrate the difference, suppose your annual CPP benefit is $10,000 a year, if you begin collecting at 60, you'll be penalized $3,600 over the five years. Conversely, if you delay to 70, you'll collect an extra $4,200. Runchey says if you live to 80 (the normal life expectancy), it doesn't matter what age you start receiving benefits: "Based on the math, by 80 the total payouts will be about equal."
- FNEEQ (CSN) = Fédération nationale des enseignantes et des enseignants du Québec
- OAS = Old Age Security
- OTPP - Ontario Teachers’ Pension Plan
- inquiry@otpp.com - 416-226-2700 or 1-800-668-0105
- The Canadian pension model, pioneered by the Ontario Teachers’ Pension Plan during the 1990s, is based on the principle that funds should be managed independently of both governments and unions and free of political interference. It calls for independent boards whose members are experienced in investments and finance.
- RRSP = Registered Retirement Savings Plan
- By the end of the year you turn 71, you need to either convert your RRSP to a Registered Retirement Income Fund (RRIF) or purchase an annuity (a monthly payment from an insurance company in exchange for your RRSP savings).
- RRSP .org - your rrsp mutual fund retirement and financial planning center
- Retraite Québec
- RRSPs: Registered Retirement Savings Plans, investing, taxes & more
- See also: Withdrawal
- RRIF = Registered Retirement Income Fund
- See EverythingZoomer
- Tax calculators & rates | EY Canada
- Understanding RRIFs
- You can convert your RRSP whenever you want - even before you retire. But you must convert it by no later than the end of the year in which you turn 71. That’s when it’s time to stop contributing to your RRSP and start drawing retirement income from a RRIF.
- Seven year-end tax planning ideas for retirees - The Globe and Mail
- "If you’re age 65 or over, you’re entitled to claim a pension credit on up to $2,000 of eligible pension income (generally, income from a registered pension plan, annuity or registered retirement income fund). Do this before year-end to receive that $2,000 with no or low taxes each year going forward."
- Withdrawals are taxable. All the money in your RRIF will continue to grow tax-free until you take it out.
- RMD = required minimum distributions = decumulation of retirement savings
- Your annual minimum withdrawal percentage gradually increases with age. For example, at age 71, you will have to withdraw 5.28% of your portfolio’s value; at age 82, it’s 7.38%.
- RRIF Minimum Withdrawal Chart | CIBC Wood Gundy
- You must start taking withdrawals the year following the year you opened your RRIF.
- Understanding the new RRIF minimum withdrawal rules | Manulife Investment Management
- In the year the RRIF is opened, the minimum withdrawal is nil. (probably the year in which you turn 71)
- Any payments (withdrawals) in excess of the minimum are subject to the following withholding tax rates: 10 per cent if the excess payment is less than $5,000, 20 per cent if the excess payment is between $5,000 and $15,000, and 30 per cent if the excess payment is more than $15,000.
- This withholding tax is on top of (= in addition to) the regular income tax on the full amount of the total withdrawal (minus the minimum allowable withdrawal).
- RRIF withdrawal rules for retirees need to be updated | Financial Post
- Strategies to Help Lower RMD Taxes - (USA)
- If you’re converting RRSPs from a number of financial institutions to a RRIF, it’s a good time to review your portfolio and consolidate your investments. Not only will you get a better overview of your investments, but it will also be easier for you to decide how much you’re going to withdraw each year and from which investments.
- Receiving income from a RRIF - Canada.ca
- A RRIF annuitant is the owner of a RRIF. The RRIF can be a designated benefit for a qualifying survivor.
- Investing for retirement goes way beyond RRSPs | IG Wealth Management
- 401(k) - (USA only)
- TFSA = tax-free savings account