Episode 92: Do You Have a Retirement Plan or Retirement Prayer?

Are you prepared for a financially secure retirement, or are you leaving your future to chance?

In this episode of the Canadian Wealth Secrets podcast, Jon Orr and Kyle Pearce delve into the crucial steps needed to achieve financial independence and secure your retirement. They explore your FIRE (Financially Independent Retire Early) number or FIRN (Financially Independent Retirement Number). Whether you’re just starting your financial journey or are close to retirement, their insights will help you build a robust plan that aligns with your lifestyle goals.

• Discover how to calculate your “fire number” (FIRN) and understand the amount needed to retire comfortably.
• Learn practical strategies for asset accumulation and the importance of a solid decumulation plan.
• Gain valuable insights into setting and regularly reviewing your financial goals to ensure you’re on track for a secure retirement.

Listen to this episode now to take control of your financial future and start building a retirement plan that ensures your financial independence!

Resources:

• Three in Ten (29%) Canadians Say They’ve Never Created a Budget for Themselves or their Household 
• The future of defined-benefit pension plans (2020)
• Pensions: A snapshot of fund values, payouts and memberships
• Dig into our Ultimate Investment Book List
• Book a Discovery Call with Kyle to review your corporate (or personal) wealth strategy to help you overcome your current struggle and take the next step in your Canadian Wealth Building Journey!
• Follow/Connect with us on social media for daily posts and conversations about business, finance, and investment on LinkedIn, Instagram, Facebook [Kyle’s Profile, Our Business Page], TikTok and TwitterX.  
• Looking for a new mortgage, renewal, refinance, or HELOC? Reach out to Jon to share some options.

Calling All Canadian Incorporated Business Owners & Investors:

Consider reaching out to Kyle if you’ve been…

• …taking a salary with a goal of stuffing RRSPs;
• …investing inside your corporation without a passive income tax minimization strategy;
• …letting a large sum of liquid assets sit in low interest earning savings accounts;
• …investing corporate dollars into GICs, dividend stocks/funds, or other investments attracting cordporate passive income taxes at greater than 50%; or,
• …wondering whether your current corporate wealth management strategy is optimal for your specific situation.

Are you prepared for retirement? In this episode of the Canadian Wealth Secrets podcast, Jon and Kyle discuss essential strategies for financial freedom, including understanding your pension plan, maximizing RRSP contributions, and calculating your “FIRE” number. They also explore Canadian investing, income tax strategies, infinite banking, and the benefits of participating whole life insurance. Learn how to minimize taxes, plan your estate, and navigate advice from experts like Dave Ramsey. Don’t leave your future to chance—start building a secure retirement today!

Watch Now!

Detailed Episode Summary 

Understanding Retirement Goals and Financial Independence

Jon and Kyle discussed the importance of understanding one’s retirement goals and financial independence. They highlighted the fact that many Canadians do not have a retirement plan or budget, which can lead to financial insecurity in the future. They also discussed the concept of a “fire number,” which is the amount of money one needs to retire comfortably. The conversation emphasized the need to understand current spending habits as a step towards achieving future financial goals.

Planning for Financial Independence Strategies

Kyle and Jon discuss how to plan for financial independence by understanding current spending and projecting future expenses. Kyle emphasizes calculating the amount needed from income-generating assets to cover spending without running out of money. Jon stresses the importance of knowing one’s “financial number” – the capital required for investment income to cover expenses – to make informed decisions on building wealth for the desired retirement lifestyle.

Setting and Reviewing Financial Goals

Jon emphasized the importance of setting and reviewing financial goals for future planning. He stressed that having a specific number in mind, adjusting for inflation, and considering future expenses are crucial steps towards achieving financial independence. Kyle agreed with Jon’s approach, highlighting the need to think about one’s lifestyle and expenses in retirement. He also expressed a preference for being over-prepared rather than under-prepared for future financial needs. Both underscored the importance of continuous learning and being proactive in managing one’s finances.

Understanding Personal Financial Goals and Strategies

Kyle discussed the importance of understanding personal financial goals and the potential strategies to achieve them. He emphasized the 4% rule, which suggests that individuals can withdraw 4% of their assets each year to cover living expenses, with the caveat that this strategy may not always be sufficient. Kyle also highlighted the need to consider tax implications, the importance of having a well-diversified portfolio, and the necessity of regularly reviewing progress towards financial goals. He stressed the importance of setting specific, measurable goals and understanding the timeframe required to achieve them.

Strategies for Financial Freedom and Decumulation

Kyle discussed the various strategies for achieving financial freedom through asset accumulation. He highlighted the need to consider the potential tax implications of different asset classes, such as dividend stocks, real estate, and index funds. He also emphasized the importance of having a clear understanding of the decumulation strategy, or the approach to be taken when withdrawing income from the accumulated assets. Kyle noted that this strategy could lead to a decrease in net worth each year, which could be psychologically challenging for some investors.

Creating a Concrete Retirement Plan Strategy

Kyle emphasized the importance of having a concrete retirement plan rather than relying on luck or prayers. He advised listeners to consider their current and future spending habits and to set clear, achievable goals. Kyle also offered assistance through Canadian Wealth Secrets, encouraging listeners to reach out for help in creating a plan. He stressed that the information shared was for informational purposes only and should not be construed as financial or legal advice.

Transcript:

00:00:00:03 – 00:00:25:21
Jon Orr
Are you prepared for a financially secure retirement or are you leaving your future to chance? In this episode, we’re going to talk about do you have a retirement plan or a retirement prayer? Here we go.

00:00:25:23 – 00:00:30:23
Kyle Pearce
Welcome to the Canadian Wealth Secrets podcast with Kyle Pearce and Jon Orr.

00:00:30:24 – 00:00:44:19
Jon Orr
We are recovering high school mathematics teachers and education consultants whose entrepreneurial spirit led us to begin multiple businesses in real estate investing, digital courses and coaching and consulting after the bell rang at dismissal time.

00:00:44:23 – 00:01:05:08
Kyle Pearce
Fast forward a decade later where we’ve grown our portfolios and our time freedom to the point where we can now help entrepreneurs, business owners and investors to grow their wealth into a legacy that lasts generations through hidden investment and tax secrets. Your financial advisors won’t believe our true.

00:01:05:10 – 00:01:26:18
Jon Orr
In this episode, we’re going to dive into two crucial steps needed to achieve financial independence and secure your retirement. We’re going to discover with you how to calculate your firm number, which is not your fire number but related to fire. Stick around and learn about what your burn number is and how to calculate that burn number so you know when retirement is likely for you.

00:01:26:22 – 00:01:56:03
Jon Orr
You’re going to learn practical strategies for asset accumulation. You’re going to gain valuable insights into regularly reviewing your financial goals. Here we go, folks. Let’s listen in. When we think about retirement, we think about putting money away and we think about budgeting. And I think people are scared to go like, hey, I know I should have a budget, but I maybe don’t have a budget right now or I have a rough idea of my budget, but I don’t know specifics.

00:01:56:05 – 00:02:19:08
Jon Orr
And I think what we are talking about here today is extrapolating that and going like are you going to be able to say, retire or when you want to retire or some people call it retire early. We’ve talked about, you know, the fire movement, financial independence, retire early. In this episode, we want to talk about like, how much do you really need and are you thinking about that number?

00:02:19:08 – 00:02:40:02
Jon Orr
Because there is a number right now that you can figure out what is the number today, that if I have this in, say, passive income, then I’m great. I could retire. Because if you can match your expenses with your passive amount of income, this is not our term, but this is your fire number. This is your financial independence.

00:02:40:02 – 00:02:54:06
Jon Orr
Retire early number, because if you offset that, then you don’t have to bring in any new income. Your passive income is going to pay those expenses. So what we want to explore is not necessarily the fire number. We want to talk about the fire number, but we want to go like, do you know what your fire number is?

00:02:54:06 – 00:03:15:08
Jon Orr
And if not, are you planning to know? And what would be the fire number when you want to retire and then maybe you don’t even want to retire. So we’re going to get into all of those things today, specifically thinking about how much you’re planning to do to offset your expenses with the income you have so that you have the freedom to do whatever you want to do.

00:03:15:10 – 00:03:24:04
Jon Orr
If you’re a business owner, if you’re on a pension plan, if you’re not on a pension plan, we want to talk all things like that. Today. You’re in the right spot if you want to hear it.

00:03:24:06 – 00:03:49:17
Kyle Pearce
I love it. I love it. We discussed how we were going to talk about whether you have a real retirement plan or just a retirement prayer going on. And we actually went back to the stats and actually something that jumped out at me. We weren’t planning on talking about budgeting at all. But the reality is that what we found and this was from an Ipsos article, it says three in ten Canadians say they’ve never created a budget for themselves or their household.

00:03:49:17 – 00:04:10:23
Kyle Pearce
So right there, that like kind of stopped me in my tracks when I was trying to think of, okay, it can only when I pull the numbers for who has a retirement plan or who’s actually thinking about retirement, my gut suggests that it’s probably lower than that amount simply because if I’m not thinking about my budget now, how am I actually thinking about my budget later future?

00:04:10:23 – 00:04:32:12
Kyle Pearce
Kyle I actually don’t know who future Kyle is going to be. I didn’t know who I am today ten years ago and the same is going to continue repeating. So fundamentally there’s a challenge there and that’s a really, really scary thing. And we actually pulled numbers here and we found that in Canadian households there are goals, financial goals.

00:04:32:12 – 00:04:58:18
Kyle Pearce
And this was from another article actually, I think it’s the same article from the Ipsos article there where according to polls they had 17% of households has had saving for retirement as their primary goal. They had 34% were. It was their secondary goal. However, if that’s the case, though, first of all, those are really low numbers, meaning like less than half of Canadians actually have that.

00:04:58:18 – 00:05:16:20
Kyle Pearce
As you know, one of their main financial goals or secondary goals. So that’s scary. But then also, if we know that three out of ten Canadians aren’t actually planning a budget or considering a budget, I’ve already admitted I’m not great at budgeting. You’re way better at it than I am. But what I do see is I see the money coming in and I see the money going out.

00:05:16:22 – 00:05:44:07
Kyle Pearce
Some of it’s a mystery to me on where we’re spending it Now is not good. I would beg me, but why I’m saying that is because there’s people like you listening, John, and there’s people like me listening in for both of these types, right? You have to at least be thinking. And in my mind when I look at and I go, if I enjoy my lifestyle now, I want to at least be considering how much money I have going out the door right now.

00:05:44:09 – 00:06:15:00
Kyle Pearce
And I’m not even worried about the fact that some of those expenses are related to the kids. Some of those expenses are related to my mortgage. Some of those expenses are related to things that may or may not be there in the future. But what I will say is that I have a funny feeling that even though we spend a lot of money on our kids or on our mortgage or on some of these other things, is that when I’m at that point in time where maybe the kids aren’t here or maybe I want to spend more time with my wife, I know I’m not the type of person that’s going to save that extra

00:06:15:00 – 00:06:51:15
Kyle Pearce
money and then go sit in a corner and read a book like you, John. But I’m going to think that was a sharp place. Yeah, well, you like that. You like reading and that sort of thing. You know, me, I like, fill the time. So the moral of this story, though, is that if you can at least understand your spending habits now and use that as an actual starting point to just try to project out into the future to go, when will I be at a place where I have enough income generating assets, be it through a D cumulus machine process, meaning I have to sell stocks or I have to sell assets, or whether

00:06:51:15 – 00:07:21:13
Kyle Pearce
it’s actually passive income coming from assets, be it dividends, be it rental income, be it whatever it is for me to be able to go, wow, the amount of money that I spend on average every month or every week or every year, however you want to look at it, is now able to be covered by those assets and for a long enough period of time where I won’t feel as though I’m running out of money and having to actually shift my lifestyle.

00:07:21:15 – 00:07:39:19
Kyle Pearce
So this is something that we’re going to nudge you towards and we’re going to give you some steps, like action steps here today that we want you to think about for yourself. And the first one is going to be how much money are we spending? If you know that the spending is going to change between now and that place when you maybe aren’t working so much?

00:07:39:19 – 00:07:57:20
Kyle Pearce
Again, I want to warn people, if you’re working a lot, if you work 40 hours a week, if you are like us business owners and entrepreneurs, where we work a lot of times more than 40 hours because we enjoy it, if you all of a sudden don’t have that time being eaten up, are you going to be doing things that cost more money?

00:07:57:22 – 00:08:18:20
Kyle Pearce
Are you going to be doing things that don’t cost money? Because here’s the thing. Right now you’re probably committing a good chunk of your life each week to making money, and you’re basically going to pull the rug on that. And then you’re going to have to also figure out, what do I do with that extra time and what’s that going to look like from an expenditure standpoint?

00:08:18:20 – 00:08:41:23
Kyle Pearce
Do I like very expensive things to fill my time or do I actually enjoy things like exercising more or going on walks or just hanging around the house and gardening? Right. These are things that we have to think about, but at least start with what am I spending now and how will I at least be able to replace what I’m spending now, given what I know?

00:08:42:00 – 00:09:00:11
Jon Orr
Yeah, you want to kind of figure those out? Yeah. You don’t have to get to the same detail of where each dollar is going at this point, especially if you’re trying to do future planning. But I think if you are trying to plan for the future and if you’re listening to this show, you are like you are going, I want to build my wealth.

00:09:00:11 – 00:09:22:08
Jon Orr
I want to get a grasp on accumulating the assets that I have, say, a reach or like I can reach or bring into my ecosystem. We are in this process of trying to figure out what that is. So if you are on that pathway, there were being like, I am trying to build my financial future, I am trying to get to a place where I don’t have to be really concerned about money.

00:09:22:08 – 00:09:46:04
Jon Orr
I want those assets to build so that I have say that passive income, if you are on that pathway and if you have not done the thinking to know what your financial number is right now, I like to go like, if I did the accumulation strategy right now, how much would that cover of my, you know, expenses, the money that’s going out?

00:09:46:06 – 00:10:05:06
Jon Orr
If I extrapolate that in ten years, like this is a good thought exercise or is might might not even be a thought exercise, it might be like an actual exercise where you have to get some numbers together. Because if you haven’t done that, then the question is, are you actually on the pathway to financial freedom or are you actually on the pathway to build your financial wealth in the future?

00:10:05:06 – 00:10:26:06
Jon Orr
Because I’m going to argue if you don’t know that number, then you’re not like you’re not there, you’re not in a position to make good decisions around your investments. I would say you’re not in a great position to say decide whether that asset or that rental property over there is worth a buy if you don’t know what that number is because it’s like you’re throwing spaghetti at the wall to go, Hey, I’m going to try that.

00:10:26:06 – 00:10:42:10
Jon Orr
I’m going to try that. I heard I should do that. I should heard I should do that. And I’m going to go ahead, do it when not know what your intentionality is in the end, because I think you have to have a very clear picture of what you want, say, ten years from now, looks like 20 years from now, looks like.

00:10:42:12 – 00:11:05:11
Jon Orr
And I’m going to push you on this, have a number so that you’re like, I know that that’s the number that I should hit. And if I hit it, I’m good. But you have to have that number. So that you can make a good financial decision now. And I like to reverse engineer it, to go, okay, that’s the number then with inflation and say time value of money, what’s the value of that today?

00:11:05:13 – 00:11:21:09
Jon Orr
And am I set up to hit it by then? Because if I’m not, then why am I buying a rental property? Or like, maybe that’s the plan, but I mean, if I don’t have the amount of money to contribute here, here and here, what am I doing to get there? Like, what’s my next step to get on that pathway?

00:11:21:09 – 00:11:37:13
Jon Orr
If I add this asset in? Okay, that gets me a little bit closer and what’s my maybe more with my three year goal. You have to have these plans if you are serious about achieving, say, fire, Right. And that’s assuming you want to retire early.

00:11:37:15 – 00:11:42:01
Kyle Pearce
Yeah, absolutely. Yeah. We almost think of it as more like Fern at Fire.

00:11:42:03 – 00:11:43:02
Jon Orr
As it sounds like we’re.

00:11:43:02 – 00:11:54:02
Kyle Pearce
Looking for like the retirement number. Because I know for you and I, John and Mats, the same as like, we have actually no ambition to stop doing what we’re doing. We are doing this because we are passionate about.

00:11:54:03 – 00:12:08:10
Jon Orr
And I used to do, I used to write like I was the person be like, Oh, I’m going to hit 55. I want to take my number. My age was going to be 56. That was when I was a teacher and I was like, I’m going to like retire and I’m going to go on the beach and I’m going to read and I’m going to use my pension, my defined pension plan.

00:12:08:10 – 00:12:23:19
Jon Orr
I don’t have to do all that thinking if I have a pension plan that actually I think in the numbers you reported, maybe all those teachers aren’t even part of that because they don’t even have financial goals for the future because they have these defined pension plans that do it for them, like I was that person and I’ve completely redesigned.

00:12:24:00 – 00:12:45:15
Jon Orr
I almost want to shake myself the goal. Like I would think I would have had a hard time getting to that point. And then not having a plan to do every day or work towards building it. We said this many, many times is to say like, you can’t unlearn what you learn. So when you’re on this pathway to learn as much as you can about building your financial independence, then you can’t unlearn it.

00:12:45:15 – 00:13:02:19
Jon Orr
And then therefore it’s like, Am I going to retire? And I’m using air quotes here if you’re listening. But I mean, like, am I going to retire and do nothing and travel? If people say I’m going to retire and travel and I’m like, You’re going to travel for a certain amount of time. And then what? So what is the plan when you do retire?

00:13:02:19 – 00:13:12:21
Jon Orr
And if you’re on this pathway like we are, we’re going to probably go out on a limb here and say, if you’re like us, you’re going to be like, what does that look like? And I’m probably going to continually try to build my assets.

00:13:12:23 – 00:13:38:23
Kyle Pearce
Right? Absolutely. And that’s another piece I’d like to chat about a little later here in the episode. And so you’ve identified something really important is like thinking about who or what you want to be set up for when you get to retirement. I think reading articles and just, you know, obviously informing yourself is helpful, but you just have to be cautious because again, it’s like when you talk to a retiree, every time you chat to a retiree, you should ask them sort of like, how’s it working out?

00:13:38:24 – 00:14:00:06
Kyle Pearce
And of course, you don’t want to get too personal where they sort of start crying about how miserable things are for them. But the reality is, is that if I go from one lifestyle and then literally the very next week, once I retire, my income drops to a point where it’s like hard to live a comfortable or an enjoyable lifestyle as compared to when you were working, that’s a problem, right?

00:14:00:12 – 00:14:19:02
Kyle Pearce
So for us, we want to make sure that we know what we’re spending. At least know what you’re spending now and you can adjust up or down for that. That’s a you think so? I want to make sure that I at least can maintain what I’m spending now, despite the fact that I think my expenses will go down based on children not being here.

00:14:19:02 – 00:14:42:16
Kyle Pearce
But I will also have this big gap of time. So being the guy and being the financially we’ll call it, it’s wanting security, financial security to the max. I would rather be over planned than under plan. That’s just who I am. So a question you have to ask yourself is, okay, what am I doing now? So if you know this number and I go, okay, well I’m going to need X number of dollars.

00:14:42:16 – 00:15:02:09
Kyle Pearce
And we use the 4% rule, which a lot of people we’ve had an episode about it. We can go back and find the episode number and put it in the show notes, but you use a 4% rule. The 4% rule is this idea that you can essentially use 4% of your assets and be good for most likely be good.

00:15:02:09 – 00:15:23:08
Kyle Pearce
That’s the hard part. It’s not 100% success rate. It’s like I think it’s like 80, 80 something percent of the time you will not run out of money over 30 years. So that’s another hard part. So if like if you’re 50 and you’re thinking about this, I’m hoping to live to 110, like that’s 60 more years, right? But if you’re only hoping to live to 80, then, hey, it might be a good rule to use.

00:15:23:10 – 00:15:44:08
Kyle Pearce
So you’ve got to figure out what that number is in order to achieve that goal. So if your expenses are 100,000 per year, then you’re looking at about $2.5 million being good for about 30 years. But here’s a caveat. It’s 100,000 of after tax dollars. So where’s that money? Is it all in a TFSA? Well, that’s going to be hard to do.

00:15:44:11 – 00:16:04:21
Kyle Pearce
You better be taxing your investments in there real fast. If it’s all in your RSP, then you’re going to be getting taxed on that amount each and every year. So you have to be cautious about this fact. That is, if it’s spendable money, this is after tax dollars or borrowed funds. If you’re using a leverage strategy as real estate investors like ourselves often use.

00:16:04:23 – 00:16:32:11
Kyle Pearce
So that’s really important. Figure out that number. If it’s $200,000 a year, you’re looking more like 5 million. But again, that’s assuming that everything is going well over those 30 years in that your proper design, like your portfolio, is properly designed to deal with down years and so forth. We have an episode about that using insurance as a strategy to help you in those down years so you could stay aggressive and continue to reach your goals.

00:16:32:13 – 00:17:00:01
Kyle Pearce
But now here’s another question. So if you know, John, I need X number of dollars before I can start confidently pulling the amount of money I want for my firn numbers, so to speak, or to cover those expenses. Another question is what are your rates of return typically right now? Because here’s what is problematic. First of all, people I chat with oftentimes don’t know how much they are earning in their investments.

00:17:00:03 – 00:17:23:05
Kyle Pearce
And those who do oftentimes like to share the one bucket that has a certain rate of return. But remember, that’s not the average of your entire portfolio. So what I mean by this is if you have 20% of your investments in, say, a growth ETF and on average it’s earning 12% per year or something like that, that’s great.

00:17:23:05 – 00:17:44:17
Kyle Pearce
But if you also have another 20% bucket that is earning 2% per year, we were looking at a client recently. You had a large chunk in this 2% bucket. Well, that’s pulling from the 12% bucket. That average is coming down. So you need to be aware of what is the average rate of return that I can anticipate based on what I’m doing now.

00:17:44:19 – 00:18:06:23
Kyle Pearce
Can I improve that? Maybe. But we want to make these assumptions based on today’s numbers, based on your reality. If you’re in real estate, like we are running the numbers routinely, just buying a property and then letting it roll is not the way to go. We want to see how have markets shifted, What is the value of this property, How much equity did we build up?

00:18:06:23 – 00:18:37:12
Kyle Pearce
We know we wanted to build a certain amount with this particular scenario, but at the end of the day, we want to make sure that we actually know what is happening and when will we achieve that goal if we continue to go on this path. Now, as we calculate that number, you need to pause and ask yourself, okay, if I need X number of dollars, let’s say it’s $5 million that you have for your particular goal.

00:18:37:14 – 00:19:04:14
Kyle Pearce
All right. You need a $5 million portfolio. And you know that based on current returns that you’ll need to contribute a certain amount of dollars each and every year, month, week. However you want to approach it, you now have to start asking yourself, am I actually on track and on track by when? So is this a number that you’re going to get to by age 65?

00:19:04:14 – 00:19:27:19
Kyle Pearce
Is it a goal you’re going to get to by age 55? Or do you have a goal sooner? We have a goal sooner to reach our financial freedom number. We want to get there sooner, but with no goal of actually changing anything. We’re just hoping to continue doing what we’re doing because we enjoy doing it. But knowing that that goal is sort of checked off of our list.

00:19:27:21 – 00:19:51:03
Kyle Pearce
So these are things that we all have to really understand and trust. The last piece, once you figure out that number that you have is really starting to think about like what sort of asset classes are we going to do this in? Is it all going to be in the markets? Are we going to use index? ETF says the plan if you want to go with dividend stocks right.

00:19:51:03 – 00:20:24:22
Kyle Pearce
That I think is a slower way than it needs to be to get there. Maybe down the road you might turn to dividend stocks, but currently if you want growth, you probably want to do something a little bit different. However, whatever your plan is as you’re doing this, you have to also think about what will actually happen when we start to take advantage of this asset bucket that you’ve been accumulating in order to help you sort of live financially free and not need you to work if you chose not to work.

00:20:24:24 – 00:21:02:17
Kyle Pearce
What I mean by that is will it be a accumulation strategy? Meaning I have to sell assets in order to receive that income, noting that with selling certain assets there may be capital gains, likely capital gains tax that we have to account for. Is it going to be a dividend approach where, hey, I own all of these different companies and every month or every quarter, every year I’m getting a certain amount of dividends being paid out, keeping in mind that dividends again, can also be taxable depending on which bucket they’re in and how they’re coming out to you.

00:21:02:19 – 00:21:25:09
Kyle Pearce
Or is it going to be something like real estate, Right. I have real estate. Am I going to sell the property? Experienced a capital gain, potentially experience, all of the additional depreciation amounts that we now have to deal with on the back end. All of these things that I have to deal with when I sell a property or am I going to utilize a leveraged approach?

00:21:25:09 – 00:21:55:14
Kyle Pearce
Am I comfortable and confident with that approach? So thinking about the psychological pieces is really important as well, because what you’ll find is that as people approach their financial freedom years, they’ll get to this place where they’ve worked their entire life towards hitting this goal. And then the very day that they start to pull money from those assets, what they see happening is their net worth starts to slowly decrease depending on the situation.

00:21:55:14 – 00:22:20:23
Kyle Pearce
Right? So if I’m pulling from assets, no longer is my net worth increasing each year, you actually start to see it decreasing each year. And am I okay with that? Do I feel comfortable with that? As a real estate investor? Sometimes I get a little spooked with the idea of selling a property because I’m like, But I had X number of doors and now I have X minus one door or x minus five doors or whatever it is when we’re selling.

00:22:21:04 – 00:22:46:15
Kyle Pearce
These are things that can psychologically sort of alter how you behave once you get to those goals. So in this particular episode, I hope that you, my friends, the Canadian wealth seeker community, are thinking about your retirement plan and actually thinking about it as a plan instead of as a prayer, earning a high income, having a successful business.

00:22:46:19 – 00:23:17:11
Kyle Pearce
However, it is that you’re choosing to go about things. You can have a high level of success now, but still be using a retirement prayer method if you’re not actually thinking about and planning for the spending habits you have now, the spending habits that you may have later, or that’s the spending habits that you want to maintain later and for how long, as well as how much I should actually be contributing to quote unquote, pay myself first.

00:23:17:13 – 00:23:56:22
Kyle Pearce
Do not blindly do 10% or 15% of your income, because let’s be honest, if you do 10% of your income and you earn 50% returns per year, you’re in a very different place than if you do 10% of your income and earn 2% per year. Right. So of course, those are extremes. But at the end of the day, knowing what your goal is and then working backwards to make sure that there’s a clear, concise plan is going to help set you up to not only give you clear goals that you can work towards and you can actually make happen, but also to make sure that down the road you don’t get there and start suddenly

00:23:56:22 – 00:24:27:18
Kyle Pearce
realize that everything you were hoping for or praying for actually didn’t come true for you. If you are a Canadian well, secrets listener and you’re listening until now, you’re probably interested in this topic. And that might mean that you’re looking for a little bit of handholding as you think about your retire payment plan. We want to help take that prayer and turn it into a more sustainable concrete plan for you and those you care about.

00:24:27:18 – 00:24:51:20
Kyle Pearce
So feel free to reach out to us so we can hop on a call and help you with the next step in that real estate, or I should say retirement planning journey, not necessarily real estate, although that is one of our favorite asset classes will help you with your plan and make sure that you have some actionable steps in order to help you get closer to that goal.

00:24:51:22 – 00:25:32:09
Kyle Pearce
All right, my friends, reach out at Canadian Wealth Secrets dot com forward slash discovery and book that call today once again it’s Canadian wealth secrets dot com forward slash discovery and we look forward to hanging out with you next time Just as a reminder this content is for informational purposes only. You should not construe any such information or other material as legal tax, investment, financial or other advice.

00:25:32:11 – 00:25:54:18
Kyle Pearce
And John. Or is a mortgage agent with bricks. Mortgage License number m23006803. And Kyle Pierce that is me is a licensed life and accident and sickness insurance agent and the VP of Corporate Wealth Management with the PAN Corp. team, including corporate advisors and Pan Financial.

Canadian Wealth Secrets is an informative podcast that digs into the intricacies of building a robust portfolio, maximizing dividend returns, the nuances of real estate investment, and the complexities of business finance, while offering expert advice on wealth management, navigating capital gains tax, and understanding the role of financial institutions in personal finance.

OPTIMIZE YOUR FINANCIAL FUTURE