New posts

How much do you know about financial independence?

March 7, 2022, 5:04 p.m.
Posts: 16793
Joined: Nov. 20, 2002

Posted by: Vikb

My combined CPP/OAS expectation is ~$15K/year in 2022 dollars which is not going to allow me to retire if I had no other income, but it's more than half of my minimum spend so it will definitely make a difference if the markets are not kind to me.

I trust you plan to hold off on claiming OAS/CPP until age 70 to maximize the benefit?

March 7, 2022, 5:12 p.m.
Posts: 2467
Joined: Nov. 23, 2002

Posted by: KenN

Oh, and FYI, all Canadians with funds in CPP are owners of Tesla stock. They hold 483,016 shares as of Q4 2021.

Huh, now I know why I don't like CPP.

March 7, 2022, 5:23 p.m.
Posts: 1463
Joined: Sept. 10, 2012

Posted by: KenN

I trust you plan to hold off on claiming OAS/CPP until age 70 to maximize the benefit?

Good question Ken. My estimates are for taking both at 65. I need to do a detailed calculation of my CPP. I have the spreadsheet I need, but I have to sit down and jam in the numbers to get something more accurate. One issue I have to look into is that I'll have a number of low or zero earned income years before 65-70. They will drag down my CPP benefit amount so I have to wargame it a bit and see what my likely payment will be at 60-65-70. Waiting until 70 may be counterproductive.  

The other thing I need to consider is that due to my age I have a large RRSP and a small TFSA so come 71 I could have significant mandatory withdrawals. If so high CPP/OAS payments might not be great as they'll be taxed heavily.

Lastly since my retirement is mostly funded from the stock market if I get a good run of returns between now and 60 I'll be less concerned with CPP/OAS than if I get a crappy run of returns and really need them to shore up my finances. No way to tell in advance.

Sorry long way of saying I am not sure when I'll take CPP/OAS. It's an important question. I'm just turning 53 so I have a few years until I reach 60 and I have to have my mind made up for CPP at least.

March 7, 2022, 6:17 p.m.
Posts: 1481
Joined: Feb. 17, 2009

Posted by: syncro

Posted by: KenN

Oh, and FYI, all Canadians with funds in CPP are owners of Tesla stock. They hold 483,016 shares as of Q4 2021.

Huh, now I know why I don't like CPP.

That's only CAD 500M at today's closing price. A rounding difference.

March 7, 2022, 7:57 p.m.
Posts: 15548
Joined: Nov. 20, 2002

i took an old CA skiing around the local hill, he bought me lunch and advised me to  take the early CPP, i forget his rational was but he was  quoting numbers in  fractions which i thot was wierd but those old CA's  can be rather eclectic, same guy discovered  he was a year older than he thot was so he bought a new PU

March 7, 2022, 8:33 p.m.
Posts: 1276
Joined: May 4, 2006

So how is everyone planning around the shitshow that's unfolding in Europe?

Talk of a very severe recession caused by massive escalation of fuel and food prices killing consumer demands...

Anyone care to forecast how that could impact Canada?

March 7, 2022, 9:19 p.m.
Posts: 25
Joined: Nov. 22, 2021

Posted by: SixZeroSixOne

So how is everyone planning around the shitshow that's unfolding in Europe?

Talk of a very severe recession caused by massive escalation of fuel and food prices killing consumer demands...

Anyone care to forecast how that could impact Canada?

and rising interest rates, you forgot rising interest rates.

March 7, 2022, 10:14 p.m.
Posts: 18367
Joined: Oct. 28, 2003

Don't forget about Inflation too!!

https://www.mrmoneymustache.com/2022/01/11/inflation-should-we-be-worried/

March 8, 2022, 5:05 a.m.
Posts: 1463
Joined: Sept. 10, 2012

Posted by: SixZeroSixOne

So how is everyone planning around the shitshow that's unfolding in Europe?

In terms of how I am going to adjust my investment plan? No changes at all. My plan is designed to work when Russia invades Ukraine or whatever comes down the pipe the next 50 years. 

What I will adjust is my spending. High gas prices? I'll drive less. High food prices? I'll buy less meat. Due to COVID I had already cut my booze, eating out and travel down to near zero.

March 8, 2022, 5:16 a.m.
Posts: 1463
Joined: Sept. 10, 2012

Posted by: XXX_er

i took an old CA skiing around the local hill, he bought me lunch and advised me to take the early CPP, i forget his rational was but he was quoting numbers in fractions which i thot was wierd but those old CA's can be rather eclectic, same guy discovered he was a year older than he thot was so he bought a new PU

There are benefits for taking benefits early, "on time" or late it just depends.

Taking early benefits your monthly payments are lower, but you get them for longer. If you compare taking CPP at 60 to taking it at 70 the payments at 70 will be a lot higher, but it will take quite a few years before you get enough "extra" money to make up for the delay in taking the benefits. If you end up retiring and realize you don't have enough income to live off of maybe taking benefits early is a necessity? Maybe you realize all the adults in your family died fairly young so taking benefits late seems like it will not pay off for you?

Taking benefits late you get more money each month and it's almost guaranteed to not fail so it's like a DBP or an annuity. If you are like me and don't have any stable income in retirement [mostly stocks] that can be very attractive. Perhaps the adults in your family live a very long time and you are a bit worried you might run out of money at the end? Waiting to take benefits late is a nice way to ensure you'll have at least a base of reliable income in extreme old age.

If you are not sure and can't decide you can take benefits "on time" and split the difference.


 Last edited by: Vikb on March 8, 2022, 6:02 p.m., edited 2 times in total.
March 8, 2022, 7:39 a.m.
Posts: 450
Joined: June 17, 2016

Posted by: Vikb

Posted by: SixZeroSixOne

So how is everyone planning around the shitshow that's unfolding in Europe?

In terms of how I am going to adjust my investment plan? No changes at all. My plan is designed to work when Russia invades Ukraine or whatever comes down the pipe the next 50 years. 

What I will adjust is my spending. High gas prices? I'll drive less. High food prices? I'll buy less meat. Due to COVID I had already cut my booze, eating out and travel down to near zero.

The nice thing about being used to living well within your means and consistently saving and investing is that it makes you more resilient against economic adversity. You build up bandwidth to either adjust your lifestyle to reduce your spending or, if necessary, increase your spending to maintain a minimum quality of life.

March 8, 2022, 10:30 a.m.
Posts: 15548
Joined: Nov. 20, 2002

Posted by: Vikb

Posted by: XXX_er

i took an old CA skiing around the local hill, he bought me lunch and advised me to take the early CPP, i forget his rational was but he was quoting numbers in fractions which i thot was wierd but those old CA's can be rather eclectic, same guy discovered he was a year older than he thot was so he bought a new PU

There are benefits for taking benefits early, "on time" or late it just depends.

Taking early benefits you monthly payments are lower, but you get them for longer. If you compare taking CPP at 60 to taking it at 70 the payments at 70 will be a lot higher, but it will take quite a few years before you get enough "extra" money to make up for the delay in taking the benefits. If you end up retiring and realize you don't have enough income to live off of maybe taking benefits early is a necessity? Maybe you realize all the adults in your family died fairly young so taking benefits late seems like it will not pay off for you?

Taking benefits late you get more money each month and it's almost guaranteed to not fail so it's like a DBP or an annuity. If you are like me and don't have any stable income in retirement [mostly stocks] that can be very attractive. Perhaps the adults in your family live a very long time and you are a bit worried you might run out of money at the end? Waiting to take benefits late is a nice way to ensure you'll have at least a base of reliable income in extreme old age.

If you are not sure and can't decide you can take benefits "on time" and split the difference.

I think the general advice I read in printed articals is to get it early while you can, the difference between taking early CPP at 60 vs 65 is a 30% reduction in monthly payout so you get less $$$$ faster and break even in the total payed out is I think age 73, not sure what the % is for waiting to age 70 but you gotta last till till then

I got a defined benifit pension, those things are great, I'm not worried about running out of $


 Last edited by: XXX_er on March 8, 2022, 10:33 a.m., edited 1 time in total.
March 8, 2022, 5:55 p.m.
Posts: 16793
Joined: Nov. 20, 2002

Posted by: XXX_er

i took an old CA skiing around the local hill, he bought me lunch and advised me to  take the early CPP, i forget his rational was but he was  quoting numbers in  fractions which i thot was wierd but those old CA's  can be rather eclectic, same guy discovered  he was a year older than he thot was so he bought a new PU

Well, your CA is dead wrong.

March 8, 2022, 7:23 p.m.
Posts: 15548
Joined: Nov. 20, 2002

could be but you don't know the questions he asked

in any case most articals I have seen say take the money and run

March 8, 2022, 8:19 p.m.
Posts: 14710
Joined: Feb. 19, 2003

Don’t take retirement advice from someone with a DBPP unless your question is how to get a DBPP.

Forum jump: