Retirement a distant dream for many Canadians

[Champion]

Originally Posted by Super Nintendo Chalmers

Worst case I personally know is a woman in her forties making $80K a year, single, no kids, lives with her parents and doesn't pay rent or for food. She has $60K in credit card debt. I just shake my head.

That is crazy! You just shake your head.

[Champion]

I'm not cheap when it comes to travel, going to dinner with big groups, or hosting people, but otherwise I make sure I never waste money. I'm not"bragging", but I make good money. Over 250K take home. I'm still a cheap guy. I cringe when my wife buys $5 Starbucks Coffees.

[DownhillGoat]

Originally Posted by Champion

Some people are like that. I have a lot of friends who make upwards of 130K per month take home

A lot of your friends make over 2 million a year?

[Champion]

Originally Posted by kunkstyle

A lot of your friends make over 2 million a year?

Yup. When you own MacDonald franchises (Multiple ones) you make that. Or Tim Hortons (depends on the location).

You can make 130K/per month off of one take home after tax.

A lot are franchise owners and home builders. I own a franchise as well.

[DownhillGoat]

Originally Posted by Champion

Yup. When you own MacDonald franchises (Multiple ones) you make that. Or Tim Hortons (depends on the location).

Not saying it's not possible, just didn't know if it was a typo.

[Champion]

Originally Posted by fotze

Hey buhdee, can you lend me a quarter?

Dude I am still paying off lots of debt/loans...

It sounds like a dream, but not your first few years...

[SeeBass]

Originally Posted by fotze

Hey buhdee, can you lend me a quarter?

hey don't hassle a job creator!!

[MoneyGuy]

Originally Posted by V

Hey, what kind of inflation percentage should you be using to project your present value of savings. For example, if I retire in 25 years from now, and I assume 3% inflation between now and then, my $1,000,000 is only going to be worth $477,000.

I did a quick google search, but I haven't seen what the experts would say is a reasonable assumption for inflation.

Most planners use about 3% in their financial plans. I use 4% to give the client a cushion. Inflation will be less than the historical average. Under-promise and over-perform!

[Oil Stain]

Originally Posted by kunkstyle

Not saying it's not possible, just didn't know if it was a typo.

It sure doesn't sound right to me.

[albertGQ]

I hope this isn't an inthread fata, but RBC becomes the first major bank to change fro DB to DC for all new hires

[SebC]

Originally Posted by albertGQ

I hope this isn't an inthread fata, but RBC becomes the first major bank to change fro DB to DC for all new hires

DB should be banned, IMHO. Hinders labour mobility and creates a big liability for (ultimately) taxpayers.

[Slava]

Originally Posted by SebC

DB should be banned, IMHO. Hinders labour mobility and creates a big liability for (ultimately) taxpayers.

How so? Are you saying that this creates a liability because of the bailouts?

DB plans are decreasing quickly as it is...

[macker]

Originally Posted by kunkstyle

Not saying it's not possible, just didn't know if it was a typo.

MacDonalds is a typo

[SebC]

Originally Posted by Slava

How so? Are you saying that this creates a liability because of the bailouts?

DB plans are decreasing quickly as it is...

Exactly. It's ridiculous that companies can promise compensation that, when they can't afford to provide it, the government steps in and provides in their place, at the expense of every other Canadian. (I hate the CAW so very, very much.)

[Slava]

Originally Posted by SebC

Exactly. It's ridiculous that companies can promise compensation that, when they can't afford to provide it, the government steps in and provides in their place, at the expense of every other Canadian. (I hate the CAW so very, very much.)

There are DB plans that are stable and effective though. Its easy to look at the obvious failures, and probably not prudent to base your system on these. Part of the problem is that companies making these promises have to fund the plans as they commit to though...that isn't always the case from my understanding.

[Sylvanfan]

Originally Posted by fotze

She's probably got a hell of a rack.

If she did she wouldn't be living with her parents.

[SebC]

Originally Posted by Slava

There are DB plans that are stable and effective though. Its easy to look at the obvious failures, and probably not prudent to base your system on these. Part of the problem is that companies making these promises have to fund the plans as they commit to though...that isn't always the case from my understanding.

DB doesn't have to be bad to justify its banning, it just has to be worse than DC. Which, IMHO, it is.

[Slava]

Originally Posted by SebC

DB doesn't have to be bad to justify its banning, it just has to be worse than DC. Which, IMHO, it is.

This seems so strange coming from you. I've seen a lot of DC plans. Honestly there is a huge cost here to taxpayers because people have no idea how to manage/invest this money. There are also many, many baby boomers who have DC plans that are not nearly enough to fund their retirement. People really don't understand their pensions (and benefits plans in general) and as a result the feeling is just "I have a plan at work." Thats great....until they're 60 years old and have $100k with which to sustain themselves for the next 35 years.

You might say, "well we pay CPP and OAS...and thats true. However now we have to build more public care facilities and pay increased care costs as a society because people can't take care of themselves. Because they have no income (basically) we collect less in taxes to pay for said services.

Don't get me wrong here; I make a good part of my living dealing with DC plans...but to suggest that they are somehow superior to a DB plan is a tenuous argument at best.

[GP_Matt]

I am a big fan of the mobility that comes with a DC plan. A DB plan seems like it would tie me to the same company for life.

[Rathji]

The fact that I have no idea what DB and DC are (unless you guys are taking about Databases and Direct current) means that I am glad I will just blindly shovel money Slava's way - once I have some that is.