079 – Retirement planning vs income – with Tim

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Tim from Dynamic joins us for a tool episode – retirement planning and retirement income. There is a different mindset from when you are accumulating and saving to when you are actually ready to take an income. Accumulators, it’s all about feeding the machine, getting your assets and more growth. Then, when it’s time to take an income, you have to think how long do you want the income to last? 10 plus years? You have to make sure there is enough there.

You have to look at starting to create a portfolio that has an element of growth associated with it, to have a 25 plus, years strategy. People are living longer. You need to accumulate for the number of years you will need the funds. You need to speak with someone who can give you the advice and the handling of the portfolio. The first 40 years are about putting money in all the different buckets, then when you are ready for retirement, you have to turn on the tap.

The buckets all represent different sources of income, registered savings plans (RSP), Canada Pension Plan (CPP), retirement income funds (RIF), Old Age Security (OAS), all represent buckets, and in retirement, ensuring these buckets get accessed in the right fashion and the right order. Take these buckets and defer. Make sure you have the right buckets, when you are going to access them and when you are going to defer. What makes the most sense for you. There is no one way that is perfect, it all depends on you, and what successful retirement is for you. It is really unique to the person that you are.

Because there is no one way to do this, you will see, people with sources of income in their “retirement age”. Therefore, the buckets may need to be adjusted to include “revenue from income”, which may not have initially been accounted for. You are in control of the buckets, to suit you best. Many start planning for retirement in their 30s, when you have an earned income, in anticipation of your retirement age.

David Culig, from Dynamic, has been on the show previously about Dollar Cost Averaging (DCAF). There are a lot of great tools on the Dynamic website, to help with retirement planning. There are many things to consider when planning for retirement, so having the right tools and advice helps with the planning and what is best for you. The website is always being updated and evolving to keep up with industry changes. It can be difficult to do the financial planning and retirement planning on your own, it is good to have resources available.

Links:

Previous Episode with Trevor – Buckets

Previous Episode with David Culig of Dynamic

Dynamic website: Investor Tools

Dynamic website

About the author, Jurgen

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