How Much Do Rich People in Canada Need to Retire?

Retirement Amount for Canada’s Wealthy

First Published Date: January 27, 2017

A recent poll done by BMO Harris Private Banking found out how Canada retirement would look like through the eyes of affluent people in Canada. The number stands at a staggering amount of $2.3 million.

Further, rich people are more confident than average people reaching their retirement goals. 95 percent of the wealthy said they are more confident in reaching their goal. On the other hand, only 69 percent of average people are confident in reaching their goals.

However, don’t let these numbers deter you from reaching your own goals. Your personal retirement amount can be totally different than any other person. As there are many unique factors that play a role in determining each person’s retirement needs, it is possible to retire with a much smaller amount than the amount for the wealthy ($2.3 million) or the average Canadian amount (about $900,00.00).

A Dawn Journal has a retirement section featuring lots of retirement articles and I encourage you to go through it.

Rethink Your Retirement

Smart Retirement Moves

First Published Date: February 12, 2017

If you are planning to retire soon or in the near future, you will need to always look out for options and strategies to make your retirement years comfortable and smooth, as retirement conception is always changing. Today, I will talk about a few things that you can consider that would be unthinkable in the past.

Changing Country – Although there is a dark side to retiring abroad, it is possible to find your piece of heaven in foreign lands. Moving to a different country is a reality now and people are already doing it. The main reason people do it because of the extra power your hard-earned money gets when you move to a low-cost country. There are tools and help available online to research on this further, including some articles I have written here in the A Dawn Journal Retirement Section. Always research well and visit the country you plan to move to first before your final decision. Search online by putting these keywords to start research: “International retirement”, “low-cost retirement countries”, “best countries to retire abroad”, etc.

Not Retiring Is The New Normal – As technology is making us live longer and healthier, it is becoming a norm not to retire at all. This can mean different things for different people. Some people would love to reduce work hours after a certain age, while some may choose to do something totally different than what they have been doing at work; some want to open a small coffee shop somewhere they find peaceful, or some of us would like to start travelling full time. The point is that retirement does not have to be sitting at home, doing nothing, and counting the minutes. Find out things that really matter to you and redirect your passion or new career towards navigating that path. It will open up new vistas and not only you will be happy, but it is also possible to make income out of some of these new passions.

Start Saving For Retirement Now If Just Started Your First Job

Retirement Saving Now

First Published Date: October 11, 2016

If you are new to the workforce or in the workforce for a while and still haven’t thought of retirement, follow these simple tips to start your retirement planning journey.

The Time is Now – It is never too late or too early to start your retirement saving journey. Start now if you haven’t started already. You need to get rid of your all excuses to start saving. Don’t wait.

Author/Copyright: Ahmed Dawn www.adawnjournal.com

Start With Any Amount – If you are putting off saving because you can’t contribute large amounts, change your approach. As a start, don’t worry about how small or big the amounts are. Start with anything you can right now, even if it’s $25 a month. And gradually increase your monthly contributions.

Stick to It Like Crazy Glue – Use automatic electronic deductions from your bank account to invest for your future. Stick to investing like crazy glue and make it a lifetime habit. Do not allow yourself to take out money from your retirement savings, regardless of how urgently you need the money.

Guaranteed Income Supplement (GIS)

The Guaranteed Income Supplement

Published Date: May 11, 2016

As we get older in Canada, there are many things in place to ensure that you have money after you retire. The Canada Pension Plan, which you pay into, will help pay those bills, as will Old Age Security, which is taxable. However, if you are a low-income pensioner, with very little or even no income, then you can look at supplementing the Old Age Security you receive through the Guaranteed Income Supplement (GIS). GIS is non-taxable and the amount you receive will depend on how much you make, whether or not you are married and the age of your spouse.

Currently, the maximum you can receive through the GIS program is $597.53 per month, and this is if you have no other source of income. If you and your spouse both collect from the GIS program, then you can each receive a maximum of $392.01.

Since your annual income changes each year, and since the GIS program is based on your income, you need to renew your GIS every single year.

Most seniors can easily renew their GIS automatically by filing their income tax return by April 30. If a tax return is not filed because there is no income, then you can request a renewal application to be sent to you. Once you do this, you will receive a letter in July that explains to you the new amount of your monthly payment.

In order to qualify for the GIS, you need to be first eligible for the Old Age Security pension, meaning you need to be over 65 years of age, a Canadian citizen, and have lived in Canada for the past 10 years.

Currently, the Old Age Security Act provides a GIS earning exemption of $3,500, up from $500 in 2007. This means that a single pensioner who earns $3,500 or more, will be entitled to keep an additional $1,500 in their annual GIS benefits.

If you get married, separate from your spouse, or your spouse dies, then you must contact the GIS program to let them know about the change. If you separate due to reasons beyond your control, like your spouse is put in a nursing home, then you can both be considered a single person and that will give you a larger monthly payment.

Since the GIS program is based on income, what counts as income then? Here is a quick rundown:

1.    Canada Pension\Quebec Pension Plan

2.    Private pension income

3.    Foreign pension income

4.    RRSPs cashed during the year.

5.    Employment insurance

6.    Interest on savings

7.    Capital gains and dividends

8.    Rental property income

9.    Employment income

If you want to get an application for the program, you need to contact 1.800.277.9914

The GIS program can help you get a little extra money to live on each year, making being in your retirement and golden years that much easier for you. All you need to do is apply and start receiving your benefits from the government.

Myrtle Beach Vacations, Retirement and Real Estate

Just Completed Myrtle Beach Trip

First Published Date : May 21, 2016

Just returned from Myrtle Beach about two weeks ago. Today, I am posting my Myrtle Beach short video film and will talk about a few things based on my experience.

Lots of Canadian snowbirds go to Florida every year to spend the winter and they own properties in Florida as well. However, I never hear that much about Myrtle Beach. After visiting Myrtle Beach, I am convinced that Myrtle Beach maybe a better place than Florida to go on vacation, escape the harsh Canadian winter, and buy properties.

For those who want to go for vacations, the reason I like it better than Florida is because of its shorter distance (only one and a half hour flight from Toronto) and the sort of people I have seen are mainly family-oriented beach/ocean loving people. Florida is nice; though you possibly will come across lots of party lovers and it can be overcrowded as well. Of course, it depends on where you go and different places may have different appeal.

For the same reasons I mentioned above, snowbirds will find more peaceful neighbourhoods in Myrtle Beach and can spend quality retirement time in isolation if you live little bit off the main city core. The main beaches surrounding the city centre can be crowded in the summer, but it’s still a lot less crowded than big beach attractions in Florida.

Another thing that astonished me was the low value of real estate properties. I have seen many one bedroom ocean front condos, literally in front of the ocean and with a 30-second walk to the beach, going for $60,000 to $100,000. This is hard for someone like me who lives in downtown Toronto to believe, as in my area a tiny one bedroom lake-view condo would start at $400,000.

If I plan to spend my winter in retirement in a warm location, Myrtle Beach will definitely be on my list to consider. And for going on a vacation again? I will consider that again as I really liked Myrtle Beach and wouldn’t mind going back again.