Comments on: Retirement: Different Strokes for Different Folks http://www.gailvazoxlade.com/blog/archives/143 Thu, 20 Nov 2008 18:24:02 +0000 http://wordpress.org/?v=2.5.1 By: Wandabfree http://www.gailvazoxlade.com/blog/archives/143#comment-2165 Wandabfree Fri, 13 Jun 2008 16:20:04 +0000 http://www.gailvazoxlade.com/blog/?p=143#comment-2165 Thank you Gail! This site looks excellent and I will work on it this weekend. I do have to admit that I am seeing a Certified Financial Planner on Monday. I chose this person based on her several credentials, the fact that she is older and may relate to me more than say a young CFP (please forgive my bias as I am sure young CFP's are excellent). I am looking for a fee based CFP, but I can't tell if this person works on a fee or commissions. I don't want to be tied to buying investments right now but am really looking for a road map. One question to her will be 'Can I achieve the things I want to achieve within the timeframe that I have left to work?' It isn't that I don't work long and hard but 'How can I work smart?' I have worked with enought 'experts' in many fields to know that I need to tread slowly with this person before I make any commitments. Thank you Gail! This site looks excellent and I will work on it this weekend. I do have to admit that I am seeing a Certified Financial Planner on Monday. I chose this person based on her several credentials, the fact that she is older and may relate to me more than say a young CFP (please forgive my bias as I am sure young CFP’s are excellent). I am looking for a fee based CFP, but I can’t tell if this person works on a fee or commissions. I don’t want to be tied to buying investments right now but am really looking for a road map. One question to her will be ‘Can I achieve the things I want to achieve within the timeframe that I have left to work?’ It isn’t that I don’t work long and hard but ‘How can I work smart?’ I have worked with enought ‘experts’ in many fields to know that I need to tread slowly with this person before I make any commitments.

]]> By: Michelle http://www.gailvazoxlade.com/blog/archives/143#comment-2158 Michelle Fri, 13 Jun 2008 14:37:21 +0000 http://www.gailvazoxlade.com/blog/?p=143#comment-2158 Thanks all for the panic reducing advice. By the time we retire we'll have a nice property to add as part of our portfolio. We're not travellers, but I'm sure we'll find some way to fill our time. I plugged in the 4% because I was trying to be ultra-conservative, but yes, I am hoping for better returns than that when all is averaged out. And after the debt is paid I do intend to increase my RRSP payments, but I also intend to enjoy living on extra cash for a bit too...maybe a pool as our home retreat, paid for with cash of course! Thanks all for the panic reducing advice. By the time we retire we’ll have a nice property to add as part of our portfolio. We’re not travellers, but I’m sure we’ll find some way to fill our time. I plugged in the 4% because I was trying to be ultra-conservative, but yes, I am hoping for better returns than that when all is averaged out. And after the debt is paid I do intend to increase my RRSP payments, but I also intend to enjoy living on extra cash for a bit too…maybe a pool as our home retreat, paid for with cash of course!

]]> By: admin http://www.gailvazoxlade.com/blog/archives/143#comment-2156 admin Fri, 13 Jun 2008 14:10:59 +0000 http://www.gailvazoxlade.com/blog/?p=143#comment-2156 Michelle, relax. first, you're assuming you're providing your full pension from your RRSP. That won't necessarily be so. If you're entitled to the max in government pensions, then you'll only have to come up with $24,000 (in today's dollars) from your savings since gvt pensions would give you about $16K (in today's dollars). Second, you should be able to do better than 4% over the long term. And third, you're assuming you have no other assets to liquidate. It's important that you don't panic and stop saving. Who knows what the future holds. It's important that you do WHATEVER YOU CAN to provide for the future. But the present is equally important. So make sure you're also having some fun! :) g Michelle, relax. first, you’re assuming you’re providing your full pension from your RRSP. That won’t necessarily be so. If you’re entitled to the max in government pensions, then you’ll only have to come up with $24,000 (in today’s dollars) from your savings since gvt pensions would give you about $16K (in today’s dollars). Second, you should be able to do better than 4% over the long term. And third, you’re assuming you have no other assets to liquidate. It’s important that you don’t panic and stop saving. Who knows what the future holds. It’s important that you do WHATEVER YOU CAN to provide for the future. But the present is equally important. So make sure you’re also having some fun! :) g

]]> By: Jo http://www.gailvazoxlade.com/blog/archives/143#comment-2155 Jo Fri, 13 Jun 2008 13:10:38 +0000 http://www.gailvazoxlade.com/blog/?p=143#comment-2155 Michelle - your 4% return assumption is unduly conservative. If your investments are well diversified you can reasonably and conservatively assume a 6% return. Check out the "financial facelift" column in each Saturday's Globe & Mail. Michelle - your 4% return assumption is unduly conservative. If your investments are well diversified you can reasonably and conservatively assume a 6% return. Check out the “financial facelift” column in each Saturday’s Globe & Mail.

]]> By: Geoff http://www.gailvazoxlade.com/blog/archives/143#comment-2154 Geoff Fri, 13 Jun 2008 13:10:29 +0000 http://www.gailvazoxlade.com/blog/?p=143#comment-2154 Michelle, I had the same freakout. But usually these calculators are based on replacing 75% of your income, which for most people is excessive. A better way is to calculate how much income you need right now, once you remember to factor in that you won't be paying for a mortgage anymore (assuming its paid off), no need to save for RESP, no need to make any more contributions to RRSP, and no kids to pay for. Try calculating at 50% of your current income to see what you need. But be sure to know yourself - if you really enjoy travelling, you'lll likely want to do more when you're retired, etc which means more $. However, you may also downsize your home and buy a condo... lots can happen in 30 years. Sounds to me you have a good plan. Michelle, I had the same freakout. But usually these calculators are based on replacing 75% of your income, which for most people is excessive. A better way is to calculate how much income you need right now, once you remember to factor in that you won’t be paying for a mortgage anymore (assuming its paid off), no need to save for RESP, no need to make any more contributions to RRSP, and no kids to pay for. Try calculating at 50% of your current income to see what you need. But be sure to know yourself - if you really enjoy travelling, you’lll likely want to do more when you’re retired, etc which means more $. However, you may also downsize your home and buy a condo… lots can happen in 30 years. Sounds to me you have a good plan.

]]> By: Michelle http://www.gailvazoxlade.com/blog/archives/143#comment-2153 Michelle Fri, 13 Jun 2008 10:43:40 +0000 http://www.gailvazoxlade.com/blog/?p=143#comment-2153 Holy! I need to be depositing almost $50K into an RRSP each year according to the calculations I entered (modest returns of 4%, retiring in 29 yrs, living til I'm 90 on $40,000 a year)! And I thought I was doing well with $300 a month. Well, hopefully I can continue to be aggressive with debt repayments and have nothing left except a vehicle loan at $300 a month and our mortgage, so then I can bump up the RRSP contributions. Gail, why is it that whenever I've gone through any of the RRSP tools they all make it sound like it's going to be an unattainable goal? I mean, who has 2 children, contributes to RRSPs and RESPs and has some debt they're trying to pay down also has $40K a year floating around?? I'm putting my head back in my shell so I can continue the 'slow-and-steady' until I get my $40K windfall. Holy! I need to be depositing almost $50K into an RRSP each year according to the calculations I entered (modest returns of 4%, retiring in 29 yrs, living til I’m 90 on $40,000 a year)! And I thought I was doing well with $300 a month. Well, hopefully I can continue to be aggressive with debt repayments and have nothing left except a vehicle loan at $300 a month and our mortgage, so then I can bump up the RRSP contributions.

Gail, why is it that whenever I’ve gone through any of the RRSP tools they all make it sound like it’s going to be an unattainable goal? I mean, who has 2 children, contributes to RRSPs and RESPs and has some debt they’re trying to pay down also has $40K a year floating around?? I’m putting my head back in my shell so I can continue the ’slow-and-steady’ until I get my $40K windfall.

]]> By: admin http://www.gailvazoxlade.com/blog/archives/143#comment-2148 admin Thu, 12 Jun 2008 21:23:55 +0000 http://www.gailvazoxlade.com/blog/?p=143#comment-2148 Wanda, I've talked about the tools at Fiscal Agents before, and you should check them out. go to fiscalagents.com, click on tools and use the Retirement Savings and Income Calculator. good luck. g Wanda, I’ve talked about the tools at Fiscal Agents before, and you should check them out. go to fiscalagents.com, click on tools and use the Retirement Savings and Income Calculator. good luck. g

]]> By: Melaniesd http://www.gailvazoxlade.com/blog/archives/143#comment-2147 Melaniesd Thu, 12 Jun 2008 21:07:44 +0000 http://www.gailvazoxlade.com/blog/?p=143#comment-2147 Wanda, sounds like you have a great plan! I'm only in my early 30's. I have ways to go from retirement, but I really can't picture myself retiring early. I really enjoy working. (I know - give it time! lol!). Tracy: Sounds like you are on the right track! Good job! I also have a lot of longevity in my family ( Thankfully) and it's certinaly something we need to consider. If we are blessed with long & healthy lives, we need to be able to support ourselves. Geoff: I'd love to be able to max-out my RRSp contributions, but I really don't think it's realistic for most people. Sounds like you're on the right track too. Focusing on no debt is a big goal. Wanda, sounds like you have a great plan!

I’m only in my early 30’s. I have ways to go from retirement, but I really can’t picture myself retiring early. I really enjoy working. (I know - give it time! lol!).

Tracy: Sounds like you are on the right track! Good job!
I also have a lot of longevity in my family ( Thankfully) and it’s certinaly something we need to consider. If we are blessed with long & healthy lives, we need to be able to support ourselves.

Geoff: I’d love to be able to max-out my RRSp contributions, but I really don’t think it’s realistic for most people. Sounds like you’re on the right track too. Focusing on no debt is a big goal.

]]> By: Geoff http://www.gailvazoxlade.com/blog/archives/143#comment-2145 Geoff Thu, 12 Jun 2008 19:50:07 +0000 http://www.gailvazoxlade.com/blog/?p=143#comment-2145 Tracey -- personally I think you're doing great if you're saving 10% and have no consumer debt and presumably a mortgage and other demands on your income (BABY!). You have 30+ years before retirement at 65, you're young and besides you're not just starting. Personally, if my wife and I can get out of our 30s with having two kids (one in existence now, one planned) with our crushing Toronto mortgage and no debt I'll be quite pleased, even if it means we don't max out our rrsp contributions. Tracey — personally I think you’re doing great if you’re saving 10% and have no consumer debt and presumably a mortgage and other demands on your income (BABY!). You have 30+ years before retirement at 65, you’re young and besides you’re not just starting.

Personally, if my wife and I can get out of our 30s with having two kids (one in existence now, one planned) with our crushing Toronto mortgage and no debt I’ll be quite pleased, even if it means we don’t max out our rrsp contributions.

]]> By: Tracy J http://www.gailvazoxlade.com/blog/archives/143#comment-2144 Tracy J Thu, 12 Jun 2008 18:05:58 +0000 http://www.gailvazoxlade.com/blog/?p=143#comment-2144 Gail; I undersatnd the magic of compound interest is inyour favour most when you are young. My question is, when do I stop being "young"? I have been putting away bits and pieces into RRSPs since my early 20's. And I FORCED my husband to start putting $200 month away since we had babies 10 years ago. Suddenly I came to the realization that I am in my mid 30s!!!! I have always had the comfort that I was young to save, but now I feel a minor panic. Is 10% of your income still the accepted amount in this day of low returns??? I feel the pressure is on to save for my golden years. Women in my family tend to live to be ANCIENT (in their 90s)!!! And what if my hubby beats the odds and lives to be old too? Gail; I undersatnd the magic of compound interest is inyour favour most when you are young.
My question is, when do I stop being “young”?
I have been putting away bits and pieces into RRSPs since my early 20’s. And I FORCED my husband to start putting $200 month away since we had babies 10 years ago.
Suddenly I came to the realization that I am in my mid 30s!!!! I have always had the comfort that I was young to save, but now I feel a minor panic. Is 10% of your income still the accepted amount in this day of low returns???
I feel the pressure is on to save for my golden years. Women in my family tend to live to be ANCIENT (in their 90s)!!! And what if my hubby beats the odds and lives to be old too?

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