3 Retirement Mistakes YOU MUST AVOID In 2023

hi my name is Adam welcome to the channel thanks for joining us today today we're going to talk about three retirement mistakes I've seen in 2022 and I saw them back in 2021 and I'm seeing them become more common and common going forward so I wanted to share these and these come from our clients I always say you know I want to take what we're seeing in our clients and people that I talk to on a daily basis and pass this information on to you so that it can actually help you out and make better decisions as you get close to and into retirement the very first mistake I see is people selling their principal residence buying a motorhome and living in that full-time and I will say this having a motorhome is a lot of work buying a motorhome is a lot of work I actually just got back today from buying a motorhome so our family is kind of transitioning into motor home phase my wife and I both with motorhomes or trailers I grew up with a tent trailer we love camping and we want to spend more time kind of just camping through the summer and spending time with our family and you know bringing those memories together so we bought a motorhome to vacation and we're going to use it maybe 20 to 30 nights a week for people that sell completely sell their principal residence buy more home to live in and like no matter just go and they've never done it before now I think a lot of you are looking to do that or have done that and it might work because you've owned a motorhome you've done that before you lived in there for three six months but there's people that we talk to that are doing it cold turkey like they've never owned a motorhome they've never traveled they've never lived in a motorhome for more than two days and they're going full all in both feet which is a little crazy to me and we've seen the repercussion with a few clients where they've actually done this they don't like it and they have to come back to where they live before buy something maybe a little bit smaller they've lost 100 000 to realtor fees maybe the market cooled off a little bit all that there are some issues that can arise so just be aware if you're looking to sell your principal residence and buy a motorhome or go live in a trailer somewhere full-time I would get your feet wet first try it out see if it's for you before you go in with both feet we've talked to people that have gone both feet in and they've had to come both feet out it's a very expensive mistake especially as you enter into retirement so don't do it the wrong way the second retirement mistake we've seen in 20 20 and again going back to 2021 and I know we're going to see this more and more is people downsizing but they're not making wise decisions where they're downsizing to and how they're downsizing a lot of you you might live near a big city you might live near Family Support people that care about you infrastructure Health Care all of that I've talked about the healthcare piece before what you're doing is you're downsizing from the house which maybe you don't need that much room so it's great but you're moving like way out of the city out of the province maybe and you're moving too far and you're moving too far for a few reasons either your support like if you're near family friends that kind of stuff your support system you don't want to go too far Healthcare is another thing a lot of you move far away and you move away from health care and as you age Healthcare is something you need more of not less of so be very aware of that you don't want to move to somewhere where there's no health care or very little support I talked about in a video not too long ago we'll link it up above here on Healthcare some clients of ours have actually moved too far away where there's no in-home care support they may not need it today but you might need it one day so as you downsize that house which I think is a great idea for a lot of you a lot of you don't need all that space as you're you know walk through retirement just be aware where you're downsizing to maybe you downsize closer to family that's a great option we have a lot of clients that have moved across the country to actually downsize and retire closer to family they've done their job where they were they're moving across the country to where you know their support network is which is a great idea so who's around you who's your support system is there Health Care is there you know Transit if you need that all these little things that come into play as you get older there's a lot to think about but make sure you kind of go through that checklist before you just jump into the downsize process now if you're someone that's maybe looking at downsizing not sure if you have to downsides a lot of people we talk to say look at them we'd love not to have to downsize but we don't know if we we're going to need to we might need some of the equity in our home to live off in retirement and that's the reality for a lot of people if you don't know if you don't have that answer and yeah we might have to download says I don't know when I come what happens when you downsize your home late in retirement it gives you a big lump sum of money so if you do that in your early 70s let's say 7 25 you downsize your house which is great now you have maybe 100 to 5 million dollars sitting in your bank counter big lump sum of money that you can use to live off of but did you actually enjoy your Go-Go years of retirement maybe from retirement to age 75 and adjust that plan spend a bit more knowing that you're gonna downsize I think as you head into retirement it's very important to know do we want to or do we need to downsize that house and how does that impact the plan now if that's you whether you don't know if you need to downsize or you know you're going to but not sure kind of how that lump sum comes into play down their own taxes using it for cash flow and all that kind of stuff you need to get a financial plan done in place so talk to your financial advisor no if you don't have one find someone if you can't find someone our office is always available we do offer fee-for-service Financial plans you can visit parallelwealth.com planning and learn more about our fee for service offerings what you don't want is kind of you know pinch the pennies up to 75 and then sell the house and have a whole bunch of money but you're maybe too old or unhealthy to travel and do a lot of things that you would have done earlier so so just make sure you understand what the cash flow looks like if you're going to downsize the house the third and final one is people that sell their property and move out of the country and this is becoming way more popular and there's many reasons I think there's Financial there's political there's a lot of stuff that goes on not going to get into that but there's definitely a huge jump in people leaving Canada in retirement permanently like leaving Canada and becoming residents you know permanent residents eventually of other countries now I'm gonna do a video coming up on what are the best countries to go to but if this is you if you're looking to leave Canada you need to make sure you do your homework I talk to way too many people that have no idea what the tax treaties are what the tax situation is how to become permanent resident how to get in and most importantly a lot of people miss this point what happens when you leave Canada there's something called exit tax if you are someone that is thinking about leaving Canada and you don't know what exit tax is you need to talk to your accountant and or financial planner your accountant is going to be the one that kind of manages everything together other but make sure you get that plan in place now I'll say this we put plans together for a lot of people that leave the country now I am no tax expert in cross-border stuff I'm not a tax treaty expert in any other country I'm not but our specialty is building Financial plans based on Canada so if you move to let's say Portugal the tax system is a little bit different there so when you get a financial plan the purpose behind it is to understand roughly how much you can spend now if the taxes are a little bit less in Portugal than they would be in Canada you can make an adjustment is it perfect no but I would say personally it's way better having a really good general idea of cash flow where it comes from and taxes and all that and have no idea and so a lot of the plans we put together for clients that are leaving the country or already out of the country that have some Canadian income and assets we always say look it's not going to be perfect but it's going to be really close and it's going to give you a really good general idea where cash flow how much cash flow you'll make sure you don't hit a big tax bill down the road all of that so when you leave the country again there's there's no such thing as someone that does a financial plan for for a Canadian leaving to Portugal it'll be a financial planner like us who will have a general idea on your stand and if we don't look into the tax treaty we'll have a general idea of how all the moving parts are coming together but there's no you know Canada Portugal or can the U.S or Canada Mexico financial planner that's going to have a financial planning software that kind of integrates both tax systems so just be aware of that again exit tax understand that understand the tax treaty understand how you become a permanent resident a lot of countries require a capital investment within their country how much is that how long you know do you have to have it there what's the rate of return like all this kind of stuff there's a lot that goes into leaving Canada and there's a lot that goes into joining or moving into another country so just make sure you understand that so those are the three biggest mistakes I see and again I see them over and over and over again like these are things that come across from a plate on a daily basis any of these three a lot of you will fall into one of these I would say 90 of you will fall into one of these three categories you need to understand kind of the other side of the coin on each one make sure you do homework watch videos like this watch a lot of other videos travel videos you know all that kind of stuff but there's a lot out there so you can do your research online get good information and then take that and move forward so thank you for watching this video I really do hope it helps out and we'll see in the next one

Channel: Parallel Wealth

Views: 19,477

Keywords: Financial Planning, Retirement Planning, Retirement, Tax Planning, Investing, Wealth, Parallel Wealth, retirement mistakes, mistakes in retirement, when to retire, how much to retire, 3 retirement mistakes, full time motorhome living, motorhome living, moving abroad from canada

Id: GR1ES3cq-Yg

Length: 8min 14sec (494 seconds)

Published: Mon Aug 08 2022