AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
Financial planning software for individuals11/19/2023 ![]() ![]() ![]() Here’s a summary of the strengths and weaknesses of each program: Better Money Choices/Retirement Navigator Dahmer calls the “work optional” stage, which is pretty much my personal definition of financial independence: working because you want to, not because you have to, financially speaking. Since we are not anonymous, we can’t divulge specifics of our financials: suffice it to say we’re now at what Mr. Dahmer’s words) and to spend a little more in retirement. The programs encouraged us to “live a little” (Mr. Viviplan certified financial planner Morgan Ulmer said we could annuitize if we wished, but there was no compelling reason to do so and it could be deferred to later. (Once we are both no longer employed, we plan to keep earning some business income on a freelance or consulting basis, which the programs can accommodate). Seeing as we have minimal defined-benefit pensions, one question we had was whether to partly annuitize in our mid- or late 60s for example, convert a portion of our RRSPs to life annuities through a life insurance company, thereby mimicking DB pension plans in their ability to guarantee not outliving our money. For us, two programs suggested a conservative mix of 60 per cent fixed income to 40 per cent equities for couples of our age and investment temperament. While the big decisions tend to be common with these programs, they vary in things like the order of withdrawing retirement income: Some say to draw down non-registered accounts first, others suggest drawing down registered accounts first, although they agree that tax-free savings accounts (TFSAs) should be the last to tap.Īsset allocation isn’t the main focus of the quantitative output, but it is addressed in the formal recommendations. ![]() These programs are particularly valuable for those where at least one member of a couple – or a single person – lacks a traditional employer-sponsored defined benefit pension plan where payouts are guaranteed for as long as you live, no matter how financial markets perform. That’s what the other programs also recommend for us, with accelerated registered retirement savings plan (RRSP) drawdowns in the lower-income years between 65 and the registered retirement income fund (RRIF) commencement date after 71. For example, I had already decided to collect OAS when I turned 65, even though BMC recommended deferring it, as well as CPP, to the age of 70. Wait until 65 and you may find yourself running out of certain options. Ideally, you would try one of these programs five or 10 years from your projected retirement date: the sooner the better. The programs tote up your net worth so you’ll want a guesstimate of the value of your principal residence or other real estate, any business assets, collectibles, automobiles and anything else with resale value. And you need to think about your future lifestyle, particularly travel plans in retirement or potential health issues. You’ll also need a handle on expenses: bank and credit-card statements, charitable donations, utility bills, property taxes and the like. Some, such as Viviplan, accept downloads of the actual documents. All require you to input data from tax returns, brokerage statements, Service Canada projections of Canada Pension Plan/Old Age Security income, employer pension plan statements and any other sources of expected retirement income. These cloud-based packages work on either PC or Mac computers, although on the Mac I found BMC and Viviplan work best on the Chrome browser. Then early this fall I looked at Viviplan, created by Rona Birenbaum, founder of fee-for-service financial planning firm Caring for Clients. Things were getting more real this summer, by the time I encountered Ian Moyer’s Cascades Financial Solutions Inc., which helps financial advisers make projections for clients. Emeritus founder and chief executive Doug Dahmer likens the former to a do-it-yourself gym membership, and the latter to a personal trainer. The first was a duo of packages from Emeritus Retirement Strategies in Burlington, Ont.: Better Money Choices (BMC) and Retirement Navigator. To that end, I consulted retirement planning packages from three Canadian firms. As Ruth puts it, “We need a financial plan and a life plan.” But when my wife Ruth, one year my junior, said she will follow suit next year and leave her executive position, I knew it was time to get serious about planning our actual retirement cash flows. While I reached the traditional retirement age of 65 last April, I continue to work steadily in semi-retirement (a.k.a. ![]()
0 Comments
Read More
Leave a Reply. |