Author Topic: Yet another "Early Retirement is Dead" article, but Canadian this time  (Read 1972 times)

Chaplin

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http://www.vancouversun.com/business/Early+retirement+dream+dead/10329811/story.html

The article itself isn't bad, but the headline misses the point, of course.

The dream is dead for the featured people precisely because it was a dream rather than a plan.

taekvideo

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Re: Yet another "Early Retirement is Dead" article, but Canadian this time
« Reply #1 on: October 27, 2014, 10:22:10 PM »
and as usual, the comments are worse than the article hah

Quote
I think retirement will be a phased out word. Gen Y and possibly Gen X will change the definition of what we will be doing in our later lives. Financially most will have to continue working I believe.

RetiredAt63

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Re: Yet another "Early Retirement is Dead" article, but Canadian this time
« Reply #2 on: November 01, 2014, 04:56:38 PM »
A comment on the video.  Yes, we have to take out a larger % each year, but nothing says we have to spend it.  Spend what you spent last year, and take the excess and max out your TFSA.  Put the rest in investments that do not get big tax hits (dividend funds and flow-through funds come to mind).  Side advantage, if you do this right and still have money left when you die, your estate will be paying less tax on it than if it were still in the RRSP.

Also, just because we have to transfer the RRSP to a RRIF by 71 doesn't mean we have to wait until then.  The minimum is smaller when we are younger - so take it out and get it invested.  OAS kicks in at 65, so take the OAS money (you didn't need it at 64, you don't have to spend it at 65) and invest it.

Part of the issue in Canada is that people without work pensions had lots of room to contribute to RRSPs, but didn't.  Those of us with pensions had almost no room left for RRSP contributions, but we get insulted because of our "cushy pensions" that we paid for (contributed to instead of having RRSPs) during our working lives.  My "cushy pension" is not well indexed, and I am glad I have other sources of income as well that will do better with inflation.

Gerard

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Re: Yet another "Early Retirement is Dead" article, but Canadian this time
« Reply #3 on: November 01, 2014, 11:11:19 PM »
Part of the issue in Canada is that people without work pensions had lots of room to contribute to RRSPs, but didn't.  Those of us with pensions had almost no room left for RRSP contributions, but we get insulted because of our "cushy pensions" that we paid for (contributed to instead of having RRSPs) during our working lives. 

Yes, this. Very much.