OT ~ What are doing to save for retirement?

[SandraC]

Hi All ~ I'm 43 and dh is 48. We have been saving here and there for retirement.....the only work pension we have is rsp's equal contributions to 5%....we are doing that, plus trying to sock away rsp's when we can. dh thinks he'll have to work until he dies. I'm hoping to retire at 60!

What is everyone else doing for retirement? Any advice?

 

[DearDaisyinDurham]

Hi,
Have you heard of the What Color is your Parachute books? Author's last name is Bolles. He has a new book out, that is for retirement planning too.
HTH!

 

[sean-1966]

We started saving pretty heavy a few years back. I'm 41 nad DW is 38. We're hoping to retire at 60 and become showbirds. We have a nice stach of money put away now but I'm always convinced it's not enough. We stopped our monthly contributions a couple months back to pay off some debts and it's killing me. We're hoping to start again in March.

 

[DearDaisyinDurham]

Donald, Daisy loves your icon though you look a tad, um, crabby?

 

[FayeW]

Lotto tickets.

 

[FayeW]

JUST KIDDING!

We have a substantial amount in RRSP, plus a lot of equity in the house. We expect we will probably keep this (new) house for about 10 yrs, and then downsize to a smaller, less expensive home that we could either pay for in cash or have a small mortgage. Once the kids are out of the house we will no longer have to worry about living in a particular area because of access to certain schools or activities and could move to a less expensive, rural communtiy.

My husband works for the government so if he stays until 60 he will have a pension as well as our investments. (He's only been a civil servant for a year).

I plan on being a snowbird, too, because I despise winter, and everything about it!

 

[dancin Disney style]

We have our house, which should be paid off in 8 more years, and we put away only a few thousand into RRSP's every year. If I could afford to put away more I would but with 2 kids, 1 about to start college and the other in competitive dance, we can't afford it.

Our situation is a little different...I work with seniors in fragile health. I think because of that I'm far more inclined to live my life now than save up and wait for retirement.

My brother saves every dime he makes. They never eat out or go on vacation. I could never live like that because no one knows if they will be around to enjoy it. I'm guessing that my brother will retire young with a TON of money.

 

[Stittsville]

I suggest people talk to the financial advisor at their bank. (A free service.) You will discuss your saving plan, desired retirement age, and your expected financial requirements after retirement. Then you will find out if you are on track or not.

 

[drag n' fly]

I suggest people talk to the financial advisor at their bank. (A free service.) You will discuss your saving plan, desired retirement age, and your expected financial requirements after retirement. Then you will find out if you are on track or not.

Excellent advice. We have a financial planner who handles our investments and a advisor we talk to when we need advice through our bank. We have rrsp's, a very diversified portfolio (stocks, etc) and a healthy amount of equity in our home. We keep our debt low and our net worth high.

 

[SandraC]

We bought our townhouse 22 years ago and paid it off 8 years ago. So we have a little money there. But it's a townhouse so we are already in our downsized home. heeheehee. Paying off the mortgage early allowed us the travelling money for family trips and to sock away some RSP's. But not enough to retire on. I have used RSP bank calculators to forcast my retirement needs. If I stay at the rate that I am saving now, I'll only have one third of the money the bank says I'll need to retire.

DH thinks he'll have to work until he dies. But I'm trying to retire him at 65 and I'll be 60. I'd like to be a Snowbird too! Maybe have a little job in Florida....or even at DISNEY during the winter months! I'll risk the possibility of vanishing magic to work for the Mouse! heeheehee.

Sandra

 

[maryliz]

I have used RSP bank calculators to forcast my retirement needs. If I stay at the rate that I am saving now, I'll only have one third of the money the bank says I'll need to retire.

Hey Sandra ... is this something that you can do on-line, kind of like a mortgage calculator? I'd be interested to see where I'm at.

Thanks.

 

[Kurby]

Lotto tickets.

HAHA us too LOL

that and hoping our daughter will support us in our old age LOL


we're not doing anything - we're stupid......

we're just trying to stay above water now as it is - paying off our cc's and paying for dd's preschool fees is about all we can handle right now until she goes to school full time and i go back to full time work (just part time right now)

 

[SandraC]

I googled "rsp calculator" and oodles popped up! The TD Canada Trust one is misleading....it's gives you 8% for rsp interest rate. S

 

[maryliz]

Thanks! That was interesting. Well, if I want to retire at age 55, I'm in trouble ... age 60, and I'm right on the money

Come on Lotto 6/49 ... JUST KIDDING!

 

[fan1080]

Please, everyone, do yourself a favor and talk to a financial advisor. Most people have very different expectations for retirement, a financial advisor is the only one qualified to help you.

For me, I'm 43, DW is 39, we have 3 daughters, 16, 14 and 12. For many years we only contributed to my RSP. We weren't doing enough to save for retirement and it looked like we would not be able to retire until we were 65. 5 years ago the company I work for started an RSP matching program, so I jumped at the opportunity and took advantage of it by maxing out what they would match. A year later my wife starting working for the same company and she took advantage of the max RSP matching as well.

That was great, but by far our best retirement advice came from a financial advisor we met with 3 1/2 years ago. We were 3 years from paying off our house. He suggested we get involved in an investment plan that would take advantage of two key strategies: 1. use the equity in our house to invest, and, 2. Use that investment to pay down the mortgage faster, but more importantly, essentially allow us to make our "mortgage" payment tax-deductible.

This is a strategy that I was very skeptical about. However, after three years I can conclusively state it is by far our best investment decision to date. Our house was paid off faster using the strategy, and we are now looking at being able to retire by the age of 55, instead of 65.

If anyone is interested, google "Smith Manoeuvre". But, as I already stated, please talk to a financial advisor.

 

[Fellowship9798]

If anyone is interested, google "Smith Manoeuvre". But, as I already stated, please talk to a financial advisor.

Is anyone else out there trying this? I've been reading about it myself the last few days, but I'm not 100% sold on it. Does anyone else have any opinions of the Smith Manoeuvre?

 

[fan1080]

Is anyone else out there trying this? I've been reading about it myself the last few days, but I'm not 100% sold on it. Does anyone else have any opinions of the Smith Manoeuvre?

I was in the same boat you are in when we first started looking into it. I was extremely skeptical. I can honestly say that for us it has been great. I know a number of people who are involved in it, and they all feel the same way.

Do yourself a favor, go talk to a professional who knows how to implement it. There are, however, alot of financial advisors who do not know what it is, and will not be able to help you.