If you came here looking for a smoking gun, I’m sorry to say the answer is: “It depends” An unfortunate truth of retirement—especially early retirement—is just how complex your finances can become. When it comes to optimal withdrawal strategies alone, retirees often ask: How can I maximize spending, especially in my “go-go” years when I’m young and healthy enough to seek adventures? How can I pay less taxes? What about those dreaded OAS clawbacks? What about maximizing my legacy and financial estate for my kids? What about the high taxes at death I keep being told to watch out for? When should I take OAS? CPP? What is an RRSP meltdown and should I use it? How to best use my TFSA? What should I do if I have a pension? To explore these questions and to provide guidelines to financial planners, FP Canada, the national credentialing body for financial planners, commissioned Doug Chandler, an actuary specializing in retirement research and an Associate Fe...
What if I said you can make a million dollars or more in one hour…and it doesn’t involve lottery tickets, gambling, or a bank heist? Would you believe me? No, of course not, and you shouldn’t! But I do earnestly believe that sitting down for just one hour and contemplating a few simple questions could set you on a path to saving far more over your lifetime, maybe a million more! Before we jump in, just remember that having an emergency fund, understanding your risk tolerance, staying invested by not panic selling, and having appropriate life and disability insurance are all critical and form part of a comprehensive financial plan. Am I throwing away free money from my employer? If your employer offers matching savings plans such as a group RRSP, you need to take advantage of this to the maximum extent possible. Now you might think that this is inherently obvious, and everyone must be doing it already, but the fa...