# Retirement Planning do's and Dont's



## Shadow (Aug 31, 2016)

Do Start Early
Starting retirement planning early has many benefits. A survey showed that people who start saving for retirement in their 20s are 66% more likely to retire before age 60 compared to those that begin saving in their 30s. 

Do Know Your Risk Tolerance
Just like people want to do different things in their retirement, they also have different levels of risk tolerance. Each person’s risk profile depends on their wealth, income, and how far they are from the expected retirement age. For instance, the type of stocks found in a 20-something’s portfolio might not be ideal for someone at age 55. Therefore, before deciding on what to put in your retirement portfolio, always make sure you know how much you can afford to lose.

Don’t Put All Your Eggs in One Basket
We have all heard of this line before, but it is still worth mentioning. Sometimes an investment opportunity can look so attractive that you don’t think there’s a chance of losing money, and you just want to put all your money into it. This is when you should remind yourself not to put all your eggs in one basket.

Don’t Speculate
Speculating another big retirement planning mistake. Everyone loves triple-digit returns, and it’s always exciting to bet on “the next big thing.” But to get those returns, it almost always requires taking a substantial amount of risk. 

Any more suggestions??


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## Beaver101 (Nov 14, 2011)

Maybe the question: Are you mentally ready for retirement?


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## Daniel A. (Mar 20, 2011)

Good advice, I remember when I was in my early twenties looking at CPP thinking this is nothing at twenty five I went to work for a company that had a DB pension they paid for. Thirty years later I was able and more than willing to retire with a buyout offer. 
I know some that could not take advantage of the buyout offer only due to not having enough years in the pension to make it worth while.

I've been retired for almost seven years now the first 3.5 years I did nothing other than what I wanted at the moment no commitments, I wintered in Mexico for two years 4 months each time and that got old for me. I'm the type that needs to have a purpose not just sit around. 

The last couple of years I've worked a bit part-time where I'm in charge of the hours that I put in very limited but puts about 16,000.00 extra in my pocket a year not that I need it though it does come in handy such as when my daughter called me last month wanting to buy a house before the close of the one they have needing money for
the down payment. 

Mentally I was ready after putting in over thirty years at one job the idea that I could leave and go do anything I wanted. In my life since school I was only out of work for less than four months so had 38 years in CPP at full max. Then with my company pension I knew I had a good deal I've just in the past month put in for CPP that should give me another 900.00 a month their estimate. Between my wife and I we collect now 5500.00 a month both with great DB pensions and that will only increase with OAS.

There were so many times in the course of work that I wanted to walk away but knew I just had to stick with it.
After retiring my kids looked and thought boy you have it good but they don't understand what it takes to be where I'm at their journey is really just starting and they are faced with a very different world. 
Being a lifer with a company is not easy but then again neither is bouncing from one job to the next.


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## agent99 (Sep 11, 2013)

Beaver101 said:


> Maybe the question: Are you mentally ready for retirement?


As time goes by, some of us who have retired find we are less and less mentally ready. But the die is cast......


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## lonewolf :) (Sep 13, 2016)

Fund your retirement before RESP. The trend is for the baby boomers is screw their retirement in favor of enabling their kids to feel no pain have having to make their own money

If your having money problems figure out the problem with your personality & fix it.


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## new dog (Jun 21, 2016)

The thing with RESP's is you get the government grants and it is hard to say no to that.


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## Gwenstacy (Dec 19, 2016)

*Good Advice*

The do's and dont's is a very informative list for any newbie.


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## james4beach (Nov 15, 2012)

I'd add: Don't rush into anything

Make sure you take it slow, take time to read and consider different ideas. Don't make knee jerk decisions to go with one investment or one approach. And plans are not permanent... keep learning more and refining your strategy.


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## My Own Advisor (Sep 24, 2012)

Good advice lonewolf. 

I'll echo James' comment. Don't rush whatsoever.


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## mordko (Jan 23, 2016)

- Make a plan. 
- Write it up. 
- Stick to it.


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## Koogie (Dec 15, 2014)

If you can and circumstances allow, try semi-retirement first. 

I semi-retired in September 2015 and am greatly enjoying it. Psychologically, it is nice to still have income coming in the door
while trying out some of the soft benefits of full retirement. It can also lessen the effects of loss of identity that often comes 
to those who quit work full stop.


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## ian (Jun 18, 2016)

Keep your options open. Don't tie yourself down. Being somewhat flexible in the first few years of retirement may give you some options that you had not previously considered. This has been our experience over the past 4 1/2 years of early retirement.


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## steve41 (Apr 18, 2009)

mordko said:


> - Make a plan.
> - Write it up.
> - Stick to it.


- Revisit it when circumstances changes


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## kcowan (Jul 1, 2010)

Maximize your
-RESP
-TFSA
-RRSP
in that order.


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## 1980z28 (Mar 4, 2010)

Retirement is different for us all

For me it will be in April

I have been able to raise enough capital to last until 100 years of age,,,,very important to have fiances in order

Next would make sure your mental and physical health is at 100% 

Very important to have activities that you and your spouse will enjoy together

Go outside everyday and be happy with your life

Get wills and such iron out

Volunteer 

Just some of my thoughts


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## steve41 (Apr 18, 2009)

kcowan said:


> Maximize your
> -RESP
> -TFSA
> -RRSP
> in that order.


 Or not.


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## agent99 (Sep 11, 2013)

steve41 said:


> Originally Posted by mordko View Post
> - Make a plan.
> - Write it up.
> - Stick to it.
> ...


Rather
- Forget about plans
- Don't write anything 
- Do whatever you want. (Some days , just do nothing!)


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## Gwenstacy (Dec 19, 2016)

Thats a lot suggestions, thanks everyone.


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## new dog (Jun 21, 2016)

steve41 said:


> Or not.


The thing with RESP's is they grow quickly because of the grants. This doesn't mean you should not fund your retirement as well. Down the road you will kick yourself for not taking advantage of the free money when it was available.


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## ian (Jun 18, 2016)

I cannot imagine not using RESP`s if one`s financial situation permits it. We did it for our children. We are doing it for our grandchild. $500. a year plus a sheltered vehicle. One of the few tax strategies that are available to us.

Can`t understand why more people do not take advantage of it. We cannot think of a better gift for our grandchild.


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## Oldroe (Sep 18, 2009)

You need a new source of income about every 10 years. I'm 9 years retired and starting to feel inflation.


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## Benting (Dec 21, 2016)

Do budget more for travelling. Take extended time off every year to do things while you are still young. Delay your retirement to make up for it.


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