The #1 Retirement Fear That You Must Be Ready For

75% of retirees fear that they will run out of money. In this video we'll go through why many people feel this way, and some measures you can take to make sure this does not happen.

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TIMESTAMPS
0:00 - #1 Fear of Retirees
0:48 - Living Longer
1:13 - Cost of Living
1:58 - Healthcare Costs
2:41 - Market Uncertainty
3:43 - Cashflow Plan
6:18 - Income Sources
8:46 - Have A Clear Plan
12:19 - Healthcare Buffer

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DISCLAIMER: This presentation is for informational purposes only and should not be considered financial, investment, tax, or estate planning advice. All investments carry risk, and past performance does not guarantee future results. Any forward-looking statements are based on assumptions and may not reflect actual outcomes.

The content on this channel is for educational purposes only and does not provide specific investment or planning recommendations. Viewers should consult a qualified professional for retirement, tax, or estate planning guidance. Parallel Wealth and Adam Bornn are not responsible for any decisions made based on this content.

[pokergeniusordonkey]

I've been watching these videos for years. Not everything applies to my situation, but I am more confident about the different possible scenarios.

[ddavidson]

We deferred our CPP & OAS to age 70, I get max CPP, my wife 80% and we both get max OAS. We started them both last year and combined we have very nearly 70K a year coming in from just those pensions guaranteed and indexed for as long as we live, they will never run out for as long as we are alive. This is why I think all this focus on the CPP (and OAS) "break even point" is just a distraction when the idea is to plan such that you don't have to worry about income for as long as you live. If you end up getting more money by deferring then great, statistics say that you likely will though of course none of us are a statistic, but if you die early then is how much you managed to squeeze out of CPP really going matter to you?

[johnnyboyvan]

Recovering from heart ❤️ surgery. Thanks for all the well wishes. I am in a long recovery now. Parallel Wealth showed me how I could retire at 58. 😊

[desiv]

Good points. One thing to consider is what does making that two year reserve mean for when you can retire?
I agree you want to make sure you want to be prepared and you don't want to not be able to do something during the GoGo years...
But if you are thinking that you need to continue working in order to fully fund that two year reserve, that time continued working is eating into your active GoGo years...
So, if you can build it up before you want to retire, that is great. But if you are closer to retirement and the two year reserve isn't fully funded, you have something to talk about with your financial advisor...

[marie-louisewcislo]

Your CPP & OAS are only “there for you” if YOU are there to receive them. So it is an individual decision for each person, between getting a lower amount now, while you are still here and healthy enough to enjoy it OR deferring these income streams based upon the belief you will still be around and able to enjoy the income years into the future. No single right answer. Individual decision which each person has to accept responsibility for. I took my CPP at 60 and have hugely enjoyed spending every cent of it every month since ! 😊

[rbenjamin]

It’s great how well you explain things! Clear, articulate, helpful and friendly, while also lively. Thank you!

[Coyotehello]

Hi Adam,
3yr of cash flow = at the very minimum 130-140K$ just to survive... That is a fair amount of $$ to put in low return investments.
As for CPP, I am 63 now so it is becoming irrelevant but what I would like to see is this:
If one takes CPP at 60 and invest this in TFSA and RRSP (between $758.32-$1, 364.60/M) lets take 1K$/M so 12K/yr so 7K$ in TFSA and 5K$ in RRSP. In that scenario making an average 6% on the investments+dividends and re-investing that money for 5yr between 60 to 65 yr old. That person made more $$ than waiting to start CPP at 65yr old. Is my calculation wrong?
Oh and if that person's die at 66 year old his/her partner receives that 6 yr of money instead of 1.

[ronwiebe]

well put - So much vague information on how to optimize income in retirement - Parallel does a great job explaining it and better yet, putting a plan in place for us in retirement - Thanks

[paulgee]

Adam- Great video again and I admire your relentless messages to encourage clients delay their CPP/OAS benefits . You mention that OAS/CPP are like a defined benefit pension plan. One thing that I'd add to that comparison is, DB work pension plans can be maxed by working longer (example 35 yrs of service for Fed Govt Workers)... but many Fed Employees decide to collect their work Defined Benefit Pension plan early too. So is that a financial mistake to take your work DB pension early? If it's like taking your CPP / OAS benefits early? I'd be interested to hear anyone's thoughts.

[colinmagee]

Have thought of this question a number of times during previous videos and figured I'd ask here. The 3 stages of retirement and a laddered income make perfect sense. Question though, have you ever put together plans and/or had client questions around a more gradual transition between stages rather than sudden transitions of thousands from 1 year to the next?

[Coyotehello]

Hi Adam, I do have a question you could do a video on.
That is:
Why do I pay taxes in my TFSA?

Dividend
MICROSOFT CORP
CASH DIV ON 25 SHS REC 05/16/24 PAY 06/13/24 NON-RES TAX WITHHELD
MSFT:US -
- 25.73 Canadian dollars$25.73
T: Jun. 13, 2024
S: Jun. 13, 2024
Canadian dollarsCAD
Tax
MICROSOFT CORP
MSFT:US -
- Negative 3.86 Canadian dollars-$3.86

Cheers,

a.

[OurRetireEarlyJourney]

We aren’t retired yet and we still have that fear! We have some time to work on switching our mindset before we are there. We also won’t retire until we feel comfortable that our money will outlast us. We hear you on groceries as there are 5 of us in our household. 😊

[urbanoutdoorsman]

By following the RRSP meltdown strategy, I find that while I am drawing down my registered accounts, my non registered dividends are being reinvested. Thus, I am able to take advantage of dips in the market

[Wlachancegofordividend.]

Thanks Adam! Our countdown to retirement is on. Hopefully sooner than later 😊

[lw]

This is one of your best video's, Adam. Very important points

[anm]

Great advice and articulation Adam..as always! Thank you

[stanleber]

Great insights and solid advice. Thank you. Just a point of clarity on defined benefit pension plans though. I have one, but it is not indexed so my purchasing power declines every year with inflation. Huge difference between indexed and non-indexed DB plans. Fortunately, we also have a reasonable portfolio of dividend stocks within both registered and non-registered accounts. Most companies increase their dividend on a regular basis (at least the ones we own do) so this acts as a hedge against inflation. This cash flow from dividends also helps to alleviate concerns over market fluctuations too.

[huib]

My biggest fear is dying with too much money left over. I did a Monte Carlo Analysis and in more than 75% of the calculations it runs to 100 (the last age I did a calculation for) with an average of 100’s of thousands left over. I need to spend more earlier on.

[brassj]

I am lucky to have two DB pensions from the UK and will get full UK state pension from 67. If i take CPP and OAS at 65, i will get 60% of full benefit. I can probably delay that as i will have a substantial RRSP to draw down until i am 80. By then, my TFSA should have grown sustantially to see my days out.

[neilrankin]

Thanks Adam! This is a perfect topic for an online course.