Retirement Money Confusion

I just helped a buddy move over the last couple weeks. I showed up to lend a hand on 3 different occasions. Why 3 times you might ask? Fucked up and disorganized is why.

Worst move ever and I'm going on 63 years old, so this was not my first. To save money it was friends with trucks helping out like always.

I would have paid the $5-6K and kept my sanity and the happiness of my friends. Why do people cheap out on this expense. If and when I ever decide to move again, I am definitely hiring movers. If not at least bring in packers so everything is squared away before your friends arrive.

The most intriguing part of the final day of the move was sitting around over beers and talking about retirement, pensions and money. It is always amazing to me just how many people don't know anything about their pension plans.

This is not a personal finance blog so I don't spew advice on what you should or should not do with your money. It's simply about strategies I use to help grow my money.

Here are some of the burning questions some of the guys were asking;

• I'm still working, should I take my CPP?
• should I tap into my LIRA?
• where do I find out my CPP payment schedule?
• do I have enough to retire on?
• I pay too much in taxes, what can I do?

So much confusion about what to do for guys all in their sixties. Crazy really. I really was shocked how some people are just complete misfits when it comes to money and how to stop working and enjoy the rest of life.

The first thing I suggested was opening a 'My Service Account' with the Government of Canada so you could see all the info on your CPP and what your payments would be should you decide to retire now or years from now.

I'm a big believer in collecting at 60 and if you're still working deposit it into your RRSP. You could do that or use the money to improve your life. Anyways, that was step one.

I'm 62 make $80K a year and have $300K in a LIRA. Should I tap into it?

Again everybody's money situation is different. I don't know how long your going to live or how much your day to day expenses are. So it's painfully hard for any amateur investor to tell you what you need to do with your money and life.

My advice was to go spend some money and seek professional advice from a financial planner that doesn't sell investment products. Instead get a plan made for you as a guide on how much a month you'll have to live on and whether it's enough. It's just too complicated drinking beers and seeking financial advice with six guys sitting around the kitchen table. What I do is not going to apply to your situation.

In Sum

Yes take your CPP NOW. Open a My Service Account. Pay to get a plan and use an RRSP to save on taxes if you pay too much. When your comfortable let's talk what stocks to invest in to help grow your retirement money.

It never ceases to amaze me how many people are so unprepared with what their facing as they age. There is no need to be confused about how much money you'll be making in retirement. This number is vital in knowing whether you should stop work or not.

Buy some books like any of the ones suggested here and go see a professional and never ask your senior friends to help you move. Have a heart and some compassion for their aging backs.

NEVER GAMBLE WITH MONEY YOU HAVE SAVED FOR RETIREMENT!

Looking for Saving Ideas So You Can Invest? 

If you are looking at ways to save money this new book The Cashflow Cookbook can help you find some savings to then use to invest.

If you are having trouble getting your financial house in order and organized then you need to read Worry Free Money. 

If you are further looking for portfolio ideas then you might find my review of The 6-Pack Portfolio a way for you to get started on your investing journey. All of our retirement money is invested in this manner. We just hold more than 6 positions.

If you want to read more about the theory and methodology of some of Canada's professional investment/portfolio managers then you need to pick up a copy of the book 'Market Masters'. Robin Speziale conducts interviews with top money mangers in Canada using a set of pre-arranged questions. This will give you a real insight into how others invest money and how they think. A must read!