Oh, Canada! Just as we Canucks dream of cross-country road trips and summers at the cottage, we also dream about the day we’ll hang up our work hats for good. But before you start daydreaming about lake views and leisurely coffee mornings, let’s talk cash. How many loonies and toonies (or perhaps, more accurately, how many thousand-dollar bills) should you have stashed away if you plan to retire at 40, 50, 60, 70, or even 80? Let’s dive into those details!

Retire at 40?

Travelling after Retirement?

Leisure at 50

Retire at 60?

Stepping down at 70

Living it up at 80

Retiring at 40: More Time for Hockey, Eh?

Amount needed: Upwards of $2.5 million or more.

Aiming to retire by 40? Then you’re the Wayne Gretzky of the financial game! But retiring this young requires some solid puck handling:

  • Longer Retirement Span: Potentially, you’re looking at 45+ years without a working income. That’s a lot of years to fund!
  • Healthcare: Though Canada boasts an enviable healthcare system, not everything is covered. Consider potential expenses for medications, private care, or treatments not covered by provincial health plans.

Travel and Lifestyle: Sure, you might love winter, but do you really want to face 45+ more of them without escaping to a tropical paradise occasionally?

Swapping Work for Leisure at 50: The Northern Dream

Amount needed: Approximately $2 million to $2.5 million.

Hoping to retire while you’re still young enough to explore every nook and cranny of Canada? Here’s what you should consider:

  • CPP (Canada Pension Plan) and OAS (Old Age Security): You’ll be waiting another 15 years before tapping into these. Your savings must hold you over until then.
  • Investments: This is where having a diverse portfolio of RRSPs, TFSAs, and other investments will come in handy. And don’t forget about those dividends!

Slowing Down at 60: The Almost-Golden Years

Amount needed: Around $1.5 million to $2 million.

60 might be the new 40, and here’s what you’ll need if this is your target retirement age:

  • Government Benefits: You’re getting closer to accessing CPP and OAS, but they won’t cover everything. Ensure your savings can make up the difference.
  • House Decisions: Many Canadians consider downsizing at this age, selling their family home in exchange for something cozier. The proceeds can boost your retirement nest egg substantially.

Stepping Back at 70: More Time for Timmies

Amount needed: $1 million to $1.5 million.

At 70, life might be more about coffee with friends and time with grandkids. But that doesn’t mean finances are any less crucial:

  • Maximizing CPP and OAS: By now, you should be able to benefit fully from government programs. But remember, they’re designed to cover basic needs, so your personal savings will still play a big role.
  • Part-Time Work?: Many septuagenarians find joy in part-time work or consulting roles. This can keep you engaged and supplement your income.

Living it Up at 80: Retirement… Finally?

Amount needed: $500,000 to $1 million.

Some folks love their work so much they just can’t let go. But if 80 is your magic number:

  • Government Benefits: These will be your primary income sources. Plan accordingly and budget for your desired lifestyle.
  • Healthcare: With age can come higher health expenses. Though Canada’s health system is robust, it’s still wise to plan for unforeseen costs.

Regardless of age, retiring in Canada is as much about enjoying our beautiful country as it is about money. Whether you see yourself in a Vancouver high-rise, an Ontario farmhouse, or a Newfoundland seaside cottage, start with your retirement vision and work backward.

Remember, it’s not just about having enough to live, but having enough to live the life you want. So, keep saving, investing, and planning. And maybe, just maybe, throw in a few more trips to Tim Hortons along the way! 🍁🏒☕

Selfies have become a popular way for people to document their lives and share their experiences on social media. However, they can also have an impact on insurance, particularly when it comes to health and life insurance.

In the case of health insurance, some insurers are using this type of technology to help prevent fraud. For example, insurers may require policyholders to submit selfies along with their insurance claims to verify their identity and ensure that the claim is legitimate. This can help prevent people from using someone else’s insurance information to make fraudulent claims.

In the case of life insurance, some insurers are using selfies as part of the underwriting process. Insurers may ask applicants to submit selfies as part of the application process, which can be used to verify their identity and assess their health. For example, insurers may look at factors such as a person’s weight, skin tone, and posture in the selfie to help assess their risk of health issues such as obesity or heart disease.

While the use of selfies in insurance may be seen as invasive by some, it is becoming increasingly common as insurers look for new ways to prevent fraud and assess risk. It’s important for consumers to be aware of these practices and to understand how their selfies may be used by insurers. Consumers should also take steps to protect their privacy, such as being selective about what they share on social media and using strong passwords to protect their online accounts.

Ever wonder what that Selfie you took could have to do with planning your retirement? Find out here: Selfies and Retirement.

Last week, we wrote about the importance of choosing a Guardian . This week, we are writing about the importance of choosing an Executor and all that entails. This individual is someone appointed by you to look after your estate and assets after your death. Just as choosing a Guardian can be a difficult choice, choosing an Executor for your Last Will and Testament can be hard. Before selecting someone to be your Executor, however, consider what an Executor does:

  • The role of this individual can be complex and time consuming: this person secures the assets and estate of the person who has died (in other words, the Executor looks after all of your stuff when you are not around anymore and takes inventory).
  • The Executor has to make sure that your assets (particularly heirlooms and antiques) are properly appraised and evaluated (i.e. find out how much these items are worth). See this real-life example.
  • Paying off any debts you owe : this is a huge part of why a Will is so important. When you do not have a Will in place, that means that your estate has to pay extra legal fees to hire a lawyer to figure out to where all your things go.
  • Make funeral arrangements – sounds like an easy task but comes with emotional baggage and extra financial costs which are taken from the estate.
  • Forwarding mail, canceling subscriptions, etc. In order to cancel mail or subscriptions the Executor has to provide proof through a death certificate.

Those are just SOME of the tasks an Executor has to take care of. Which is why you should consider the following when it comes down to CHOOSING the Executor for your Last Will and Testament :

  • Is this person up for the task? Given the administrative, legal and financial headaches the role of an Executor can bring (on top of having a full time job), does this person have the ability and time to take on this role?
  • Where does this person live? Consider the fact that if you choose a sibling or parent to take on this role, does he or she live in the same province? If the answer is no, are there special requirements or paperwork for that person to fill?
  • Who can you trust to be impartial? Who will follow your wishes? Does this person whom you have chosen to be your Executor have a stake in your Will? Is their judgement skewed in favour of him or her getting more of your estate because of all the extra work they are taking on in their role as Executor?
  • Does the Executor get paid from your Estate? What provincial laws are there regarding this?
  • If you use an independent third-party to be your Executor, such as a bank or a lawyer, how much comes out of your Estate to pay that independent third party? Can you trust this third party to be neutral? See this $4 billion costly mistake JP Morgan made.
  • Just like a Guardian, consider the fact that the person who is not chosen as Executor may take offense.

Some of the most common choices for appointing someone to be an Executor tend to be a spouse, adult child, parent or sibling. This is particularly true in situations where such individuals will be the ultimate beneficiaries of the Estate.

The оnе person Donald Trump ѕауѕ he’ll nеvеr fіrе іѕ hіmѕеlf. Though he turnеd 70 thіѕ уеаr, thе rеаl estate and reality TV ѕhоwmаn insists thе thоught оf retirement nеvеr оссurѕ to him. “Mу fаthеr, whо wоrkеd untіl hе раѕѕеd аwау аt 93, uѕеd tо always say, ‘tо retire іѕ tо еxріrе,” Donald tоld SmаrtMоnеу.соm. “And I feel thе ѕаmе way. I lоvе what I’m doing – and whеn you lоvе whаt уоu’rе dоіng, уоu dоn’t retire.” Surе he’s abandoned vаrіоuѕ еntеrрrіѕеѕ оvеr the уеаrѕ, but Trumр – a mаn of a thоuѕаnd саrееrѕ – ѕаіd he соuld nеvеr ѕtор wоrkіng.

Hе’ѕ not аlоnе: Thrее ԛuаrtеrѕ оf Americans рlаn tо work wеll bеуоnd rеtіrеmеnt аgе, a 2015 Families аnd Wоrk Inѕtіtutе ѕtudу fоund. Whіlе fоr mаnу thіѕ іѕ a funсtіоn оf economic necessity, a third of thоѕе surveyed ѕаіd thеу fеаrеd wіthоut wоrk thеу’d bесоmе bоrеd and less vіtаl.

Donald ѕауѕ hе саn undеrѕtаnd whу mаnу of his frіеndѕ wоuld рrеfеr tо ride оff іntо the ѕunѕеt on a golf саrt, but claims he’d rаthеr рut up a new golf соurѕе thаn рutt оn оnе. “Pаrt оf thе bеаutу оf what I do is thаt just сhесkіng оut mу рrореrtіеѕ mеаnѕ gоіng to glаmоrоuѕ рlасеѕ,” hе ѕауѕ. “Thаt is wоrkіng, fоr mе.”
Not thаt thеrе’ѕ аnуthіng wrоng wіth not wоrkіng, Trump said. “I wоuldn’t ѕау rеtіrеmеnt is for lоѕеrѕ – іn fact I hаvе a lоt оf friends who are grеаt winners іn rеtіrеmеnt – but I аlѕо hаvе a lоt оf grеаt friends who, аftеr they rеtіrе, juѕt nеvеr lооk thе ѕаmе.”

Wіthоut nаmіng names, Trumр said hе’ѕ ѕееn several prominent buѕіnеѕѕmеn turn tо mush once thеу stopped wоrkіng. “A friend, who wаѕ a bаnkеr, looked fоrwаrd tо his retirement, but аѕ ѕооn аѕ he gоt thеrе hе bесаmе lеѕѕ vіbrаnt — he аgеd a lоt,” Trump ѕаіd. “I think реорlе wоuld lіvе lоngеr іf they kept wоrkіng.”
Kееріng active is keeping youthful, Trumр said. “In rеаl estate, people nеvеr retire – they keep making dеаlѕ untіl thеіr 80s and 90s,” hе ѕаіd. “Rеаl estate реорlе don’t hаvе tо gеt fасеlіftѕ to keep looking уоung, wе give fасеlіftѕ to buіldіngѕ.”

Frоm dеvеlореr оf luxurу apartments to саѕіnоѕ tо beauty раgеаntѕ tо political рlаtfоrmѕ, fеw can claim a more vаrіеd роrtfоlіо оf careers. “I dоn’t thіnk аnуоnе hаѕ been аѕ diverse as mе. I оwn Mіѕѕ Unіvеrѕе, Mіѕѕ USA. I own a lоt оf different companies,” he ѕаіd. “But thаt’ѕ nоt whу I don’t want tо rеtіrе. When you fіnd whаt уоu lоvе dоіng, you keep dоіng іt. Whеn уоu stop loving іt, then уоu rеtіrе.”

However, for people like Trump, with a vast wealth of resources and connections, it would be easier for someone in his position to work because he loves it. His fellow Americans may not be so lucky.