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Are you looking at financial planning now that you're retired? If so then you're in luck because today we're looking at financial planning after retirement.
With us today to talk about it is Adam Buss, a Wealth and Estate Planning Specialist for Canaccord Genuity Corp.
1) Firstly- in retirement, where is the majority of your cashflow coming from?
a) personal savings b) company pensions c) CPP d) OAS (old age security)
2) Next question- what about my lifestyle in retirement? People say you need 60-80% of your income in retirement. What about that?
a) I don't like the general rule of thumb of 70% because it sets people up for failure. Maybe it is that for some people but others may spend more (if they want to travel in retirement) Everyone has a unique situation whether they need level spending, will it go down, be sustained, etc.
3) Let's look at the basics of retirement planning. What are we looking at?
a) the amount of total assets b) all the income streams c) any potential income streams d) and putting these together to find the optimal cashflow needed for you as an individual living in retirement
4) What about income splitting? How does that work?
a) after age 65, if you have a spouse or common law partner, your money from a pension plan can be split between you. b) As an example, Spouse A with $50,000 of pension income can be split between each partner $25,000 each c) Prior to age 65, you have to be more proactive because you can't split some and you need to be careful splitting d) also, you can't split an RRSP but you can split a RRIF e) so if you have a large RRSP and incomes are uneven between partners, you may want to look at converting that RRSP to a RRIF f) either way, too much left in an RRSP or a RRIF can be a big tax bill so it's better to try to draw that down beforehand
5) Let's talk about some emotional issues about retirement? What have you seen and any tips?
a) some people need permission to spend their money and need an advisor to reassure them. It gives them peace of mind
6) What about TFSA, non-registered assets or corporate income? How would we optimize and draw form that?
a) It comes down to the right plan to address those things and which buckets to draw form b) looking at what qualifies for income splitting and what doesn't c) If you have a TFSA and non-registered, you'll normally draw from non-registered first since the TFSA is compounded d) It's also important to take advantage of TFSAs with growth investments and not just cash in those
Thanks Adam for your words of wisdom.
📽 Watch our other video on How to Retire Early with a Sound Retirement Income Plan: https://youtu.be/niDS2iZfB0s
