You should really try these retirement calculators
The ultimate question in retirement planning isn’t how much you’ve saved – it’s how much income you can expect each year once you’ve left the workforce. Of course, you also want to know how long the money will last.
I encourage you to consult with a financial planner to test your retirement readiness, but it’s not easy to find someone who will believe numbers and offer an opinion without trying to sell you products and services. I will have more to say about this in a future column. For now, take a look at some free online retirement calculators:
1.) The Personal Enhanced Retirement Calculator (PERC): Built by Fred Vettese, a now retired actuary who wrote a book called Retirement Income For Life: Getting More Without Saving More. PERC is intended for people aged 50 and over and designed to work in tandem with the book, but you can easily use it on its own. Answer questions about your financial situation and your retirement savings and the PERC will show you how much you can spend in retirement, and how you can improve that amount by taking steps like starting your Canada Pension Plan retirement benefits at 70 years instead of 65 or earlier. . Another good feature is that you can include your spouse.
2.) The Retirement Cash Flow Calculator: This is offered by on GetSmarterAboutMoney.ca, an educational website operated by the Ontario Securities Commission. Add personal details about your retirement and savings spending and find out the estimated value of your investments in retirement and how long your money will last.
3.) The Canadian Retirement Income Calculator: The federal government offers this detailed calculator, which does something particularly useful by advising users to collect certain information in advance. Set a goal for your retirement income, then see if you get close to it. If not, see what changes can be made to get you where you need to be.
4.) MoneyPages SmartPlanner: offers a detailed overview of your retirement finances and you can also add your spouse. See how well your retirement plan could withstand a stock market crash.
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Rob’s Personal Finance Reading List …
10 things to know about Air Canada
The Travel Hacking For Canadians website gives you insider information about Air Canada, some of which can be useful for saving on travel costs.
She started on an “adult allowance”
Determined to afford to travel, this millennial has imposed a daily budget that has forced her to evaluate every penny of her spending. His conclusion is that a per diem is the way to go if you want to take control of your finances.
Repair your broken porcelain with milk
Ten weird and wacky non-food uses for household food products. Apparently, a hot milk bath will repair the cracked porcelain. Now for some popular snack foods you don’t need to buy anymore.
Why they abandoned the FIRE movement
FIRE stands for financial independence, take early retirement. This means saving a lot so that you can retire from your full-time job or retire completely long before you turn 65. I wrote about my recent visit to an organized retreat for FIRE enthusiasts. Here, a blogger explains why she and her partner decided that FIRE wasn’t for them.
Question: My dad opened joint brokerage accounts for me and one for each of my siblings. I have long since taken over the management of my account, but my sister does not want anything to do with the management of hers. My dad is not getting any younger and he and I discussed what to do with the account when he’s not around to manage it for her. She will likely use it for retirement income in about 10 years. Do you have any recommendations for building a couch potato-like portfolio for retirement income?
A: Here’s an idea: Help your sister transfer the account to a robot advisor. She would get a couch potato portfolio (built with low-cost exchange-traded funds), with a reasonable additional cost for building and managing the portfolio over time.
Do you have a question for me? Send it my way. Sorry, I cannot respond to each one personally. Questions and answers are edited for length and clarity.
Today’s financial tool
A handy overview of annual contribution limits for Tax-Free Savings Accounts, with details on how to find the details of your own personal contributions.
Podcast of the week
I talk to Bruce Sellery on his Moolala podcast about why teens should have credit cards.
What i wrote about
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