Weekend Reading – Planning your own retirement edition

Weekend Reading – Planning your own retirement edition

Hey Friends,

Welcome to my latest Weekend Reading edition.

You can read some previous editions below:

Why you should focus on cashflow for your portfolio, and

Why most stocks are duds!

Earlier this week, I posted this comprehensive article: 10 ways to master your money.

Have a great weekend and we’ll see you in the comments section!

Mark

Weekend Reading

Great stuff here when it comes to calculating your rate of return. Thankfully, my brokerage does this work for me and with low-cost ETFs, given I don’t make frequent purchases (just a few lump sum purchases each year) it’s pretty easy for me to keep track. 

Interesting video here from the BBC: why it takes 30 years to buy a house in Canada.

Cool tool here – The Steadyhand Volatility Meter.

As per Steadyhand: “Some asset classes zig while others zag, which is why it makes good sense to hold a diversified mix of securities.” I would agree although I have a bias to common stocks.

From the recent archives on my site – in reply to a reader question this week: can you retire on a lower income?

Can you retire early on a lower income?

From Freedom Thirty Five Blog: don’t feel guilty about taking any government benefits.

Congrats to Rob who is improving his passive income.

The Canadian Financial Summit is on – right now!

The Canadian Financial Summit is on – and I’m there!!

2021 Canadian Financial Summit

Check out 35+ personal finance experts, including yours truly, to discuss a host of personal finance and investing subjects.

Topics discussed in this year’s FREE online Summit include:

  • Buy back your family time with FIRE
  • How much does it cost to travel FOREVER?
  • Are dividend stocks in a bubble?
  • The risks of investing in cryptocurrency
  • Should I have Bitcoin in my Portfolio?
  • Maximize the New Aeroplan and Post-Covid travel plans
  • Don’t let FOMO ruin your investment returns
  • Maximize Work From Home tax tips in a Post-Covid World
  • Will the Canadian Housing bubble finally pop?
  • How to setup a corporation, invest within it, and then pay yourself
  • The BEST ETFs in Canada
  • Why self-made dividends are better than ordinary dividends in every way!
  • And more!!

My session was yesterday on September 24th but you still have time to check it out alongside some of the best in this space:

  • Mahima Poddar – EQ Bank’s Group Head of Personal Banking to share the best solutions for your RRSP and TFSA, as well as EQ’s new USD accounts. 
  • Ed Rempel – on how to reliably maximize your retirement income – is the 4% rule really “safe” and a few retirement rules of thumb!
  • A MoneySense panel with Jonathan Chevreau, Ben Felix, Kornel Szrejber – who discuss the Best ETFs in Canada for 2021 and more!
  • Peter Hodson – considered one of the “Warren Buffetts of Canada” who shares his top lessons learned from over 30 years of professional investing, including his best stocks to own in 2021-2022!
  • Kristy Shen and Bryce Leung – Canada’s original FIRE couple stops who discuss the rewarding side of financial independence.
  • Barry Choi – learn how to optimize your post-covid travel plans. (I mean, who doesn’t want to get out and explore?!) 

The Summit is only free for a few more days – so just head on over to the Canadian Financial Summit and sign up for free with my link here.

My link gives you access to all the talks – you won’t miss a thing – and you can watch and listen from your couch or patio!

When the Summit starts, you’ll be sent an email each day with the link to the sessions that go LIVE for the next 48 hours. That’s it. There’s no paperwork. No need to put in payment information that you have to cancel later. No worries.

Planning your own retirement? Read on!

Are you planning your own retirement? Like I am? Good on you. Thanks to a reader question this week, I’m going to highlight some things that could go wrong if you don’t consider the following when planning your own retirement. Let me know your thoughts and I hope I helped this reader out!

1. One mistake people make is not understanding how much your might need to retire. If someone needs $50,000 per year and has saved $1 million for retirement, they may think their savings will only last 20 years. Not so. That money invested is likely to last much longer than that given your capital should continue growing and working for you. 

I know our retirement number and here are some tips to get a better estimate of yours:

Determining your Financial Independence Number.

A reminder you can hire me if you need help with your retirement projections!

I also run a great site called Cashflows & Portfolios, a site dedicated to helping you manage your cashflow and portfolio wisely including any retirement drawdown plans.

Cashflows & Portfolios

After visiting the site, hit me up on our Contact page to find out more about our services. Because I’m not in the business of providing any direct financial advice, the cost of these services is well below what any financial advisor would charge! I/we do provide very detailed reports based on your facts, your data, that you can tailor for your own plan. 

While there is no easy answer for everyone, I will say it seems common for people to inaccurately estimate their expenses in retirement or semi-retirement. So, track your financial journey with discipline to help you out.

2. I believe some retirees make the mistake of starting their government pensions too early. Most people start their Canada Pension Plan (CPP) retirement pension at age 65 or earlier and their Old Age Security (OAS) at 65 – I believe this is a mistake. Deferring CPP or OAS (or both!) after age 65 results in an increase in both pensions for every month of deferral. And, don’t forget, both CPP and OAS are inflation-protected benefits. 

Here is a great read about when to take your CPP benefit.

3. Retirees often think they must decrease their stock market exposure as they age. Nope! In fact, some experts (Wade Pfau and Michael Kitces in particular) often make the case for increasing stock exposure in retirement based on their 2013 study, Reducing Retirement Risk with a Rising Equity Glide-Path.

From Kitces site:

Should Equity Exposure Decrease In Retirement, Or Is A Rising Equity Glidepath Actually Better?

Based on their work: for sustainable retirement income, and/or to reduce the potential magnitude of any shortfalls in retirement, portfolios that start off in the vicinity of 20-40% in equities (for safety) and rise to 60-80% in equities generally perform better…

As I close on this subject, for this week at least, here is some of my work below – let me know your thoughts!

Overlooked retirement income and planning considerations

Some final articles to check out:

On Cashflows & Portfolios we shared some of our favourite Canadian dividend ETFs to own. 

A big thanks to Rob Carrick for mentioning our site in The Globe and Mail:

“TODAY’S FINANCIAL TOOL

Cashflow$ & Portfolios is the name of a website built to help people learn how to reach their long-term financial goals with budget and long-term investing. Brought to you by a pair of veteran personal finance bloggers.”

It’s always good to at least try to make sense of the markets with this standard MoneySense column.

More FREE My Own Advisor content:

How I invest in dividend paying stocks is always found here.

Why I invest in low-cost ETFs – along with dozens of articles about ETFs can be found here. 

Looking for free calculators, tools, or even my support? Check out my Helpful Sites page here. 

Save, Invest, Prosper!

As always, check out my Deals page.

My very own personal BMO promo code remains available!  Use that BMO code to get hundreds in cash back when you open investment accounts with BMO like your RRSP, TFSA, taxable account and more! What’s even better with BMO now is they have commission-free ETF investing. Yup. They are now offering commission-free investing for more than 80 Exchange Traded Funds (ETFs), via their self-directed BMO InvestorLine clients. The ETFs cover a broad range of asset classes, geographies, management styles and popular themes from Canada’s largest ETF providers, including BMO, iShares and Vanguard. Simply awesome and I hope more big discount brokerages follow their lead. 

I’ve got a new partnership with EQ Bank – just look at the banner in the margin! EQ Bank typically offers the best savings account rates in Canada. I hope to park my cash wedge for retirement there!

With 5i Research, take a no obligation FREE trial for your ETF and stock research.

My name is Mark Seed and I'm the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I've surpassed my goal and I'm now investing beyond the 7-figure portfolio to start semi-retirement with. Find out how, what I did, and what you can learn to tailor your own financial independence path. Subscribe and join the newsletter! Follow me on Twitter @myownadvisor.

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