Common Retirement Goals are to have a mortgage free home and money to travel the world.
Unfortunately there are many obstacles that can come between you and your vision.
If you’re nearing retirement and feel you are not prepared, you’re not alone.
The goal to retire young and rich doesn’t always happen although optimism keeps the dream alive.
What we consider young and rich differs from person to person.
Today I’m discussing how we created our retirement goals plan for yearly milestones until we retire.
The goal is to motivate everyone to think about today and tomorrow by setting realistic goals.
Retirement Goals With Purpose
Retire with purpose by creating a retirement checklist that outlines everything that you want or need during your retirement years.
This is something you should do well before you retire so you can set retirement goals ahead of time.
Basically, you need to be realistic with your retirement goals and they must serve a purpose for you.
Don’t just say you want to travel the world if it won’t bring you joy and you hate airplanes.
How To Set Retirement Goals
Costs Of Retirement
Retirement costs are based on whether you still have a mortgage or pay rent.
Perhaps you drive and have to include gas and maintenance as you do with a home.
If you can’t do the maintenance yourself then consider the costs of hiring someone to do it for you.
When there is no health coverage and you need it this may cost you out of pocket.
Consider the costs to be transported to hospitals out of town using a van service is $400-$1000.
Dental can get costly as well based on what your needs are.
What about getting glasses replaced?
As you can see most of what your retirement costs will be based upon your personal needs.
Create a retirement checklist and ensure that you include the expenses you know you will have.
Create A Back-Up Plan Just In Case
Back-Up Plans are and should be a part of everyone’s financial plan not just for retirees.
The reason for a backup plan is because you could;
- Leave your job because of a critical illness
- Get Fired
- Go to Jail with a spouse and kids at home or single
- You get sued for whatever reason
- Move to a new job with lower pay
- Changes to government funding for retirees
- Get divorced or separated
- Investments go in the wrong direction when you plan to retire
- You pay your mortgage off early (although this is great the extra cash needs a place to live)
I’m sure the are millions of reasons as to why a back-up plan is important at all stages before retirement.
Whatever you do, consider this as important even if you think about what you might do.
Your best bet is to brainstorm ideas and keep them in your retirement file folder.
Invest Early To Reach Retirement Goals
When you’re young investing doesn’t always come to mind however by utilizing the power of compounding is golden.
Plus if you’re younger you have more time to be risky with your investments as opposed to someone near retirement.
Saving for retirement in your 20’s as we both did was probably one of the smartest investments we made.
Although we weren’t budgeting as we do today we knew that investing young meant we were thinking about our future.
We both think it was our upbringing that motivated us to save our money and invest it wisely.
I invested in buying homes and Mrs. CBB invested in her registered retirement savings portfolio.
Distinctively, Mrs. CBB can remember a time she was chatting about money with her best friend.
They were both in their early 20’s and her friend had said that her grandfather had bought her stocks in the Coca Cola company.
She was jealous in a good way because she had someone to talk to about financial planning where she didn’t.
The only thing Mrs. CBB did at that point was save her money in a TD Bank Savings Account.
Employer Pension Plan
When she turned 24 and was earning $21.00/hr her employer had offered a pension plan called a LIRA or locked-in retirement account.
It wasn’t much but it was better than nothing.
She went to a meeting with her employer and a financial advisor to explain what a LIRA was.
At that point she had no investments so she jumped at the opportunity especially since her employer was matching up to 3%.
That where she began thinking about investment goals and went on to invest with a company called Primerica.
Manulife Retirement Investments
After I moved to Canada we both concluded the guy had little experience so we moved to Manulife Canada.
He just didn’t give me the feeling that he knew what the heck he was talking about.
We are still with our Manulife advisor today and absolutely have built a great relationship with him.
Not everyone knows how to invest the financial side of their retirement goals so having a trusted advisor is critical.
Health Care For Retirees In Canada
In fact, just the other day I sent him a blog post from my buddy Mark at My Own Advisor along with Brian So a life insurance agent in Vancouver, Canada to read and get feedback.
The post is titled, “Healthcare Insurance Benefits For Retirees In Canada” and the next morning he had sent back an email.
He agreed that the post was well written, researched, and outlined the options for retirees very clearly.
However since we are in our 40’s we won’t need to worry about this right now.
Since I have an excellent benefits plan and adequately covered by my employer that we could explore the option when I retire.
Out Of Country/Province Healthcare Insurance For Retirees
His final remarks were that the single most valuable provision in Healthcare insurance plans at retirement is the 30 days out of country/province coverage that you can add as an optional benefit.
If you want to travel when you retire and you are reasonably healthy obtaining travel insurance is the single biggest obstacle.
Every time you travel, you need to provide medical evidence and there’s no guarantee that you will be offered coverage without an exclusion.
On the other hand, if your health insurance policy has 30 days of Travel Insurance baked into the policy, you don’t have to worry as you are covered for emergency medical insurance while out of Ontario.
Even travelling to a different Province means you may be subject to significant medical bills during an emergency. Travel insurance included in your health insurance ensures that you are covered.
Dental Coverage For Retirees In Canada
The second is dental coverage which is a most valued feature by his clients and I agreed.
My mother-in-law pays out of pocket for her dental and it adds up quickly especially for dentures and check-ups or emergency dental.
If you’re unable to get to the dentist for health reasons there are hygienists that visit long-term care homes, retirement homes or private homes.
This is the service we get for my mother-in-law and she does a fantastic job taking care of her teeth.
Typically the cost for this visit is around $150 but with no dental coverage she must pay the full amount.
Dental Care For Low-Income Seniors
For seniors over 65 check out the Dental Care For Low-Income Seniors
The new Ontario Seniors Dental Care Program is a government-funded dental care program. It provides free, routine dental services for low-income seniors who are 65 years of age or older.
- check-ups, including scaling, fluoride and polishing
- repairing broken teeth and cavities
- removing teeth or abnormal tissue (oral surgery)
- treating infection and pain (endodontic services)
- treating gum conditions and diseases (periodontal services)
Dental prosthetics (prosthodontic services), including dentures, will be partially covered. Please speak to your local public health unit for more information.
Set A Retirement Goals Timeline
When it comes to retirement it’s all about the planning and your vision for the future.
Having a portfolio today is a dream for many people because it’s just not in the budget.
I can honestly say that I don’t think I’d have as much invested as we do so young had I not moved to Canada.
My pension back in the UK from my employer is around $14,000 pounds and that’s similar to what Mrs. CBB did with her employer with her LIRA.
The biggest contributions came after we paid our mortgage off so certainly it has been a big help.
In terms of setting a retirement goals timeline we set expectations of how much money we wanted to be saved at each milestone.
As you will notice our retirement goals are quite basic as we want to live a simple life as we do now.
Balance Retirement Goals For Today and Tomorrow
We also planned on doing travelling while we were young just in case something were to happen.
My dad and mum won’t be coming to Canada again because of the high costs of travel insurance.
This is why it’s important to consider your health if you plan on travelling after you retire.
For all you know health declines whether mentally or physically can put everything in the back-seat for good.
I believe setting retirement goals has to be balanced with living for today and saving enough for tomorrow.
You get the best of both worlds when you do what you want now just in case it’s not possible down the road.
Besides, they are in their 70’s and getting on airplanes for long periods of time doesn’t appeal to them.
Retirement Goals By Age Milestones
What we noticed when we wrote our retirement savings goals that they got biggger as the next milestone came around.
This is normal as life changes, we get older and we end up having more experience with a better understanding of retirement.
20’s Retirement Savings Goals
20’s retirement goals to set up investment portfolios and continue saving for a house and car. Talk about starting a family and the impact to our savings and retirement.
30’s Retirement Savings Goals
30’s retirement goals to buy a house, invest with the employer and financial advisor. Also to get life insurance. Talk about health care, illness, and death to see if we want extra coverage.
Discuss what we want to do after we retire. Travel, Road Trips, Blogging on CBB, Reading, Visiting family. Another consideration is how much money we would receive from the government upon retirement.
As well, there’s nothing wrong about discussing the possibility of loss of independence now. It could happen anytime so that’s what we’ve done.
Talking about your last wishes, where you would like to be buried, long-term care homes, illness possibilities and so forth.
This will give you a better vision of what retirement could look like.
It’s not always wine, travelling and fun. It can be the complete opposite.
- Old Age Security (OAS) Guaranteed Income Supplement (GIS)
- Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)
- Retirement Savings Plans (RRSP, TFSA, RRIF, Annuity, Pooled Retirement Pension Plan PRPP)
40’s Retirement Savings Goals
40’s retirement goals were to pay off our mortgage although we completed that in our 30’s. Ramp up our investments Tax-Free Savings Account, Registered Retirement Savings, Life Insurance, and Non-Registered investment portfolio.
Convert our term life insurance into whole life insurance with investments. We later added creating a Will and Power of Attorney which we completed.
In as little as ten minutes, anyone legally living in Canada between the ages of 18-74 can receive a quote and apply for coverage.
Besides Manulife I also recommend Sun Life Go which I have for my work benefits and Policy Me.
Sun Life Go gives people the flexibility to help meet health and financial needs with convenient access to insurance coverage. Sun life Go.
The online life insurance that has you temporarily covered the moment you apply. Providing solutions to help meet your needs, choose coverage ranging from $5,000 to $1 million.
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Check it out for yourself and Get A Quote.
Anything after our 40’s is subject to change based on current life circumstances so be aware that not everything is set in stone.
50’s Retirement Savings Goals
50’s retirement goals are to continue monitoring our investments, invest more, visit estate planning, and will to see if there are any changes that need to be made.
Policy Me is the second life insurance company that I’d think is worth looking into.
Life insurance is a must if you have assets or a family you may leave behind when you pass away.
Ensure we are on track financially according to our financial plan with our advisor.
Downsize our belongings and buy a small country home away from the city so we can raise chickens and live happily ever after.:P
If you’re someone who has a cottage consider selling it if you don’t use or move into it permanently.
The idea is to make a clean break from the fast-life and settle into something comfortable and peaceful.
No rules, no rush plus leaving less for your children or power of attorney to sell in the event you have lots of stuff is helpful.
60’s Retirement Goals
60’s retirement goals I believe you will see me continue working until 63 and then go in on a part-time basis. This would get me over $125/hr based on the year and possibly benefits but that’s something I plan to discuss with my employer.
I also want to find out if my health benefits continue after retirement as some do. (fingers crossed).
As well, if all goes well this blog will be running and I get to come back and read this post to update it to let you know how things unraveled for us.
Retirement is not a set it and forget it type of path you should take.
Don’t be that person who thinks everything will be good in the end when you could die today.
You have to follow up yearly at a minimum with your investors to make sure they are handling your money the way you want them to.
Estate Planning And Revisiting It Often
Lastly, I want to talk about estate planning and the importance of it. I know I’ve discussed it before on the blog but it’s fitting for this blog topic.
You don’t need to spend $1000 as we did to have a lawyer sit with us to build our Will and Power of Attorney. That was our choice.
There are two online resources that I recommend and they are Legal Wills and Epilogue Wills for Canadians.
Canadian Legal Wills allows people to create common legal documents in a very easy, convenient, private, secure, and cost-effective manner, without the need to pay the high expenses of a lawyer.
LegalWills.ca – Write your Will from the comfort of your home (click here to get 15% off)
Custom-made for your Province and lawyer approved, at one-tenth the cost.
Epilogue is a simple, fast, and affordable way for Canadians to create their Will and Powers of Attorney online.
All you do is answer a series of straightforward questions. A legally binding Will can be made in 20 minutes at home.
You won’t need to visit a lawyer’s office either as Epilogue was founded by two estate planning lawyers who know what they are doing.
Discussion: When did you start planning your retirement goals? Have they changed over the years? If you have not considered retirement why not? Share your comments below as I’d love to hear your feedback on this topic.
Net Worth Losses and Gains
Where our money went in April.
Up and down the markets go as does our investment portfolios however that’s just the way it is.
We’re in this for the long-haul so fingers crossed that when we retire and need the money that it’s a good year for us.
We also spent $3000 on hair removal services which I will discuss in a later blog post.
I also spent a chunk of money on landscaping materials and gardening.
Plus, we have a new kitten that set us back $300 to purchase plus all the extras but it was worth it.
P.S A house like ours just sold for $900,000 this week! Incredible isn’t it. You’ll notice I left our house price in the chart above at $345,000. Who knows what it will be when we decide to sell.
How was your net worth for April? Let me know in the comments.
Calculating Net Worth 101
Do you know how to calculate your own Net Worth?
We like to calculate our net worth every month so we know if we are still on track.
Some people calculate it yearly or quarterly but it’s up to you and how informed you want to stay.
Net Worth is only an estimate and not everyone uses the same type of figures to tally it up.
Some of you may not include vehicles like we do or leave out assets inside the home as we have.
You might be that person that believes that your house should be excluded.
It depends on what you want to calculate or what you can sell today and make money for tomorrow.
Figuring out net worth is fairly easy as long as you know your monthly financial numbers.
Net Worth is adding up all your assets (what you own) then taking away your liabilities (what you owe) which will give you a net worth number.
Understanding your net worth will help you determine if you are on track meeting or beating your personal financial goals.
It doesn’t get any easier than that.
Determining Your Net Worth
Net Worth = Assets – Liabilities
Why not go ahead and calculate your own using our Free Money saving Tool Net worth Calculator (Canadian Budget Binder 2012)
When budgeting anything is possible, we are proof of that although we still have a long way to go in our journey.
These are our numbers and our goals, not a means of comparison towards your own goals to others’ target goals.
We don’t care how much money others earn or if they have a high net worth or if it is lower than ours as it’s not a competition.
I hope our experiences will help guide you along your financial path working towards debt freedom.
Not Everyone Follows The Same Path
Some of you may have had to start over like I did or go to school a second time and now have OSAP loans to pay back.
Others may have divorced, lost money in the stock market or other investments, suffered job loss, fell ill or injured on the job and so on but you can’t let that stop you from achieving your financial goals.
You may have been given trust funds, paid-for homes, educations, or other perks that give you a financial kick-start and that’s OK too.
Earn It, Save It, Invest It, Build It
Remember what I said, “It’s not about how much money you make, it’s how you save it”.
The reason people accumulate wealth is that they know how to save or invest even if inherited or a lottery win.
The smallest improvements should mean big strides in working towards reaching your goals.
Sometimes we have to fail to learn and we’ve all been there.
Money can be evil for some people especially those who have a negative attitude towards their financial situation.
Be optimistic and little by little with determination you too should see improvements if you want that to happen.
Canadian Budget Binder Net Worth Updates 2021
Click the links below to read our net worth updates for the year 2021.
That’s all for this month’s net worth update but please check in the middle of June 2021 to see how we made out in May 2021 with our financial portfolio.
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