[originalhypa]

So, who here is thinking about retirement?

:awwyeah:




http://tu9srvbirvvtnyr3cg1lzglhlnzhbmnvdxzlcnn1bi5jb200.g 00.vancouversun.com/g00/2_dmFuY291dmVyc3VuLmNvbQ%3D%3D_/TU9SRVBIRVVTNyRodHRwOi8vd3BtZWRpYS52YW5jb3V2ZXJzdW 4uY29tLzIwMTcvMDIvZGVidC1yZXYuanBnP3F1YWxpdHk9NTUm c3RyaXA9YWxsJnc9ODQwJmg9NjMwJmNyb3A9MSZpMTBjLm1hcm suaW1hZ2UudHlwZQ%3D%3D_$/$/$/$


RRSPs: For gen-Xers and millennials, saving for retirement is a huge challenge

Living paycheque to paycheque, drowning in red ink, struggling to make ends meet: They’re all clichés that fit Stephanie Yan’s finances.

The 47-year-old health care worker had been battling debt even before she bought a condo in Surrey more than a decade ago. But carrying a mortgage — even one for $130,000, a paltry sum compared with today’s norm — almost proved too much.

“I decided I needed to move out of my mom and dad’s place and I didn’t want to rent, so I managed to save up enough and with a little help from my mom and dad, I had enough for a down payment for a home,” says Yan.

“At the time, I didn’t think about the debt load I was already carrying and got myself into trouble.”

She soon landed in debt counselling to tame a personal deficit that was putting on her a path to losing her condo.

Even today, after becoming a meticulous budgeter, she still battles the bills. With the RRSP deadline approaching, the marketing urging Canadians to make last minute contributions fails to resonate.

“To me, is it’s just another year without RRSPs because unfortunately I have no money to put into it,” she says. “There just isn’t the money there to save for anything.”

Yan is in good company in the Lower Mainland.

For many in Vancouver who are struggling to pay down debt, retirement seems more and more out reach.

And, in general, Canadians are increasingly indebted. Statistics Canada indicates that on average Canadians owe than $1.68 for every dollar they earn — the highest level since the agency began measuring the ratio in the early 1990s.

But the picture in Vancouver is bleaker. According 2014 data, Vancouverites owe more than $2 for every dollar earned.

Generation Xers like Yan — those in their late 30s to early 50s — often face the most difficulty, says Scott Hannah, CEO of the non-profit Credit Counselling Society.

“They are generally the most heavily indebted citizens,” he says, adding the average age of people seeking help from the Credit Counselling Society is 43.

It’s around this age that many individuals experience “the most expensive period of their lives,” Hannah says, adding they reach many milestones about a decade later than the baby boomers did.

“They’re just now settling into careers in a home with a big mortgage, lines of credit and raising families.”

This demographic was the first to experience economic troubles that have only deepened since turn of the century.

“They came of age when wages lost the most ground,” says Paul Kershaw, a professor at the School of Population and Public Health at UBC. At the same time, “housing prices really started to take off.”

Although the following generation, the millennials, face the same challenges — perhaps even more so on home ownership — people in their late 30 and early 40s are often more indebted. Because they had a larger window of opportunity to get into the housing market, they took on more debt than previous generations.

Moreover, they’ve often dipped into the growing equity in their homes to make up for lost wage growth.

Consider this point: even though people ages 35 to 44 have had their individual wealth grow go by about $180,000 since 1999, “they had to take on $135,000 in additional debt,” Kershaw says.

That means “for every dollar of wealth they’ve accumulated over the last couple of decades, they had to take on 75 cents worth of debt,” says the founder of Generation Squeeze, which advocates for Canadians under 50 in government policy decisions, which are often driven by the concerns of older people.

“Compare that to somebody who is like 55 to 64, or over 65.” Those older age groups gained even more wealth but at much less cost.

“For every dollar of more wealth they’ve accumulated, they have taken on nine cents or two cents (respectively) of debt,” he says.

For gen-Xers, the result has been they have less money for retirement, Kershaw says.

Moreover they’re just the vanguard of the problem. Millennials — ages 18 to 34—are even worse off, he adds. Their net wealth “has barely changed — up just $1,000 since 1999 while debt is up by $20,000.”

So for every additional dollar of wealth, they’ve taken on $20 worth of debt.

Although younger generations are profoundly challenged to save for retirement, Vancity wealth adviser Sophie Salcito says they should still try to stash away some money every month in the RRSP. Even $25 a month is a start.

“At least try rather than just be defeatist about it,” Salcito says.

Of course, finding extra cash can be difficult, and that’s where the lost art of budgeting can come in handy — something people who grew up in the Dirty 30s had to master by necessity.

These days budgeting “is a dirty word for a lot of people,” says the certified financial planner who frequently raises the issue with even her boomer clients.

“Their eyes glaze over, but these are basic principles you can’t get around; you need to know how much money is coming in and how much is going out.”

Without tracking expenses, most people struggle to cut costs and save, Salcito adds.

Even with a budget, saving remains a challenge for Yan. And that makes retirement feel like another cliché: a pipe dream.

“It does seem like that,” Yan says. “But at least my home should be paid off when I retire.”

In the meantime she is ever-mindful of money, worried about sinking deeper in debt.

And often she can’t help but think whether she made the right choice.

“It’s nice having a home, but at the same time is it really worth it?”

http://vancouversun.com/news/local-news/rrsps-for-gen-xers-and-millennials-saving-for-retirement-is-a-huge-challenge?utm_medium=Social&utm_campaign=Echobox&utm_source=Twitter&utm_term=Autofeed#link_time=1487701943



TL/DR: Those born from 1960-1976 were the last generation with a low asset to debt ratio. 1977-1990 is not quite as lucky. 1991-present is fucked.

[CivicBlues]

pssh, I doubt anyone on RS can relate.

We all make over 100k living in million dollar townhouses drivin' the latest luxury cars while munchin' on all day McDicks' breakfast.

Try Reddit.

[6o4__boi]

It's ok...WW3 will fix everything.

[unit]

just pop over to the RE thread, everyone owns a place in coal harbor

[Hondaracer]

How much does the first woman make in that she can't carry a 130k mortgage?

25 year amartization on 130k is like 1000 a month, you could probably even go lower than that if you wanted to.

Rent and build onto your savings and RRSP's. I think sooner than later a shift has to occur where the dream of owning a "home" is gone and renting is seen as a completely viable option for life.

The definition of home has changed over the last 10 years from a detached home in Vancouver to a condo in maple ridge. Live within your means and be smart with your money. Imo the first woman's surrey condo probably didn't appreciate at all and may even be worth less than when she bought it so a depreciating asset doesn't help

[320icar]

My work has an RSP for me, but realistically I have zero private retirement savings, and same goes for every single friend I know. If I want to live now, then I just won't later.

[GS8]

Population goes up
Jobs don't

Cost of living goes up
Wages don't

Invest in school
Can't find job

---

I found the only way to put money into savings / investments is to live cheap and be on a strict spending budget. Monitor your income and expenses. Don't buy unnecessary shit to get that 15sec high of showing people your new swag. Make sacrifices.

I find the job scene in Vancouver to be utter shit. 5 years experience to make $19 hour when the industry standard is at least $24? Yeah, fuck you.

BUT DAT SUNSET DOE

[Gh0st]

^ Honda Racer -- very true.

Looks like the only retirement plan she has now is selling the old Surrey condo.

I used to work in the healthcare industry for a government agency in a position of hiring. They are underpaid and overworked! Based on the financial information listed above, it's very unlikely she is a nurse. She is probably a Residential Care Worker or Community Support Worker. They make 17-18/ hour. Just a guess!

That comes out to give or take 35k gross a year. Approx 28k net.

1000 a month mortgage sounds about right lets do a quick sum of basic expenses - I will try to stay conservative where possible.

1000 monthly mortgage
125 property tax spread monthly
150 monthly strata
200 car insurance (business required in healthcare industry for RCW/CSW's)
200 gas
400 food
100 misc/going out
50 cellphone
50 internet/subscriptions
50 emergency

Total: 2325 monthly payments or 27,900 annually.

TL/DR - Renting and cutting out driving is perfectly normal. Opting to rent in an older one bedroom Vancouver apartment (850/month and taking transit can save you lots. My friend is renting around Fraser and 44th inner street) it beats paying strata and taxes on a run down depreciating Surrey Condo.

[syee]

She doesn't really seem too financially responsible. She was living at home and was already battling debt at that point even before getting her mortgage. I think it's time for her to move back home and get her finances in order first. Also, with housing prices and rental availability the way it is in Vancouver, it certainly seems more logical living at home while putting money aside for the future. (or in her case, paying off her debt)

Many employers do RRSP matching and if you're in this situation, it's well worth it to scrape together any money you might have and contribute to your RRSP so that you can get this extra bit of "free money".

[ZN6]

The 47-year-old health care worker had been battling debt even before she bought a condo in Surrey more than a decade ago. But carrying a mortgage — even one for $130,000, a paltry sum compared with today’s norm — almost proved too much.


That's her problem. Have debt issues? Ok! Let's lay on more debt.

[Hondaracer]

Population goes up
Jobs don't

Cost of living goes up
Wages don't

Invest in school
Can't find job

---

I found the only way to put money into savings / investments is to live cheap and be on a strict spending budget. Monitor your income and expenses. Don't buy unnecessary shit to get that 15sec high of showing people your new swag. Make sacrifices.

I find the job scene in Vancouver to be utter shit. 5 years experience to make $19 hour when the industry standard is at least $24? Yeah, fuck you.

BUT DAT SUNSET DOE

Sounds like you're in a pretty terrible industry when crack head temp laboirers on construction sites with experience pushing a broom can make 18-20 almost anywhere.

[Rallydrv]

people gotta know that in another 20-30 years (maybe sooner), pension/cpp (gov't funded )and/or others will not exists anymore.

lol .i really like it when RRSP ads from bank take returns at >5%/ seriously?

[ZN6]

I went to work two jobs while in university to try and borrow as little as possible. Got good grades and in effect got some scholarships to help pay for school. I came out of school debt free WITH savings.

You want something, work for it. I don't think it's so much of a problem with the system, it's just that there are too many people expecting a handout.

How many university students do you know eek-in then take the most useless courses to fulfill the credit coming out expecting a 100K job?

I knew too many people who went into university asking "What's the easiest course to get my upper-div credits? Oh philosophy 300? okie dokie."

[originalhypa]

We all make over 100k living in million dollar townhouses drivin' the latest luxury cars while munchin' on all day McDicks' breakfast.


It's fitting that some guy posted today that it was a great day to drive around in his Maserati.

I have a haiku for this.....

No need to working
Great day to drive Italian car
Prince of Vancity

:troll:


just pop over to the RE thread, everyone owns a place in coal harbor

:awwyeah:

Couple that with their 1995 Porsche worth $100k, and a Fendi man purse.


She doesn't really seem too financially responsible.

I think that is the point of the article. She isn't very good with her money, which is a big problem with my generation. I know many peers in their late 30's and early 40's who carry a ton of debt, and still do a $7k vacation to Disneyland every year. They just don't care.

Sounds like you're in a pretty terrible industry when crack head temp laboirers on construction sites with experience pushing a broom can make 18-20 almost anywhere.

agreed.
My buddy owns a company that makes displays for supermarkets. He had 5 welders, about a quarter of his crew call in sick yesterday. These guys are not educated, but they run a welding machine and make $24/hr.

If you show up sober, and you're not an utter idiot, it's fucking impossible to not make money in the trades these days. There is a shortage of people willing to work hard.

[ZN6]

She doesn't really seem too financially responsible. She was living at home and was already battling debt at that point even before getting her mortgage. I think it's time for her to move back home and get her finances in order first. Also, with housing prices and rental availability the way it is in Vancouver, it certainly seems more logical living at home while putting money aside for the future. (or in her case, paying off her debt)

Many employers do RRSP matching and if you're in this situation, it's well worth it to scrape together any money you might have and contribute to your RRSP so that you can get this extra bit of "free money".

If I were her and battling old debts, I'd definitely move home and rent out the damn surrey condo. Let someone else pay for your mortgage.

[Tapioca]

One of her downfalls during her peak earning years was not getting married or securing a long term relationship and acquiring or building assets through that.

Her ace in the hole is an inheritance from her parents.

[Hondaracer]

agreed.
My buddy owns a company that makes displays for supermarkets. He had 5 welders, about a quarter of his crew call in sick yesterday. These guys are not educated, but they run a welding machine and make $24/hr.

If you show up sober, and you're not an utter idiot, it's fucking impossible to not make money in the trades these days. There is a shortage of people willing to work hard.

Trades? Eww that's dirty

[CivicBlues]

One of her downfalls during her peak earning years was not getting married or securing a long term relationship and acquiring or building assets through that.

Her ace in the hole is an inheritance from her parents.

God dang if I ever heard a pick up line like that...

Hey baby, wanna enter a long-term cohabitation agreement so that we can build assets and leverage our peak earning years to secure a greater retirement income?
:love::love::love:

[Mr.HappySilp]

Many employers do RRSP matching and if you're in this situation, it's well worth it to scrape together any money you might have and contribute to your RRSP so that you can get this extra bit of "free money".


Mine work does that and what happens is they deduct it off your pay cheque depend on how much you want them to deduct (I set my to 10% every pay cheque and the my company will contribute up to a maximum 5% each pay cheque). The amount is so little that you don't even notice that that money is missing and when year end comes you will be surprise how much money you save for RRSP. I do the same thing with savings every time I get pay 30% of it gets transfer to my investment acct so I don't even see it. It works for me since I know what i have left is to pay bills, spend etc etc so I can spend all I want.

[dat_steve]

another tip/note for workplace RSP matching. try not to get locked into contributing into some sort of portfolio/fund with your monthly deductions (investments), as that seems to be what happens to most of my coworkers who don't know any better. these tend to have huge fees (2%+) and you won't be left with much growth. choose to have your contributions put into a self directed account, do a bit of research, and dump into low fee ETF(s) of your choice, or what have you.

[MarkyMark]

If people think this generation is fucked, wait a couple of more when only rich people's parents own a property here and everyone else rents. Sorry kiddos but no cool million dollar property to pay off all your debts.

[Nlkko]

“I decided I needed to move out of my mom and dad’s place and I didn’t want to rent, so I managed to save up enough and with a little help from my mom and dad, I had enough for a down payment for a home,” says Yan.

Great decision.

“At the time, I didn’t think about the debt load I was already carrying and got myself into trouble.”

Thinking, what's that.

[ZN6]

“I decided I needed to move out of my mom and dad’s place and I didn’t want to rent, so I managed to save up enough and with a little help from my mom and dad, I had enough for a down payment for a home,” says Yan.

Great decision.

“At the time, I didn’t think about the debt load I was already carrying and got myself into trouble.”

Thinking, what's that.

She rather just pay someone else than her parents, that's all. Because living at home means you shouldn't have to contribute and fucking spend all your shit right? I feel no sympathy for people who make one wrong decision after another.

First of all, maybe those savings could have paid down interest incurring debt, second her credit is probably shit, third, goes to get a mortage on a place. Lastly, not moving home so she can have at least another source of income.

What people fail to understand is that a person can have more than one source of income and one occupation is not an end all, be all.

Why do people have assets? To generate income. There are many, many people who come from far worse off situations who have made it because they make smart decisions.

Kinda hard when she doesn't think about the shit hole she's already in.

[GS8]

Sounds like you're in a pretty terrible industry when crack head temp laboirers on construction sites with experience pushing a broom can make 18-20 almost anywhere.

In my industry, the companies open satellite offices in places like Mumbai and just hire people there. They get paid less and do very streamlined tasks (monkey work, not racist). Data transfers via Cloud.

Why pay 5 people a normal wage when you can pay 15 people a sub-normal wage?

<3
:awwyeah:

[twitchyzero]

I'm convinced retirement will only be for the well-off for millennials and beyond.

We'll be working until we're literally physically unfit for work.

Most of us will probably have better life balance throughout our careers though, so it's not sucha gloomy outlook.

Anyways, am I the only one who feels kinda bad for her?

closing in on 50's and struggling with a 130k mtg? This is without a children in the picture.

before all perfect examples here go 'lol should've stayed at home'...just put yourself in her shoes for a split second.

We don't even have the full picture here...let's not be so quick to judge?

I went to work two jobs while in university to try and borrow as little as possible. Got good grades and in effect got some scholarships to help pay for school. I came out of school debt free WITH savings.

it is not white and black...so many factors here.

amazing it worked out for you...those trying to do more than 10-15 hours a week on top of full-time studies is generally at the expense of their grades.

Not every program is equal either...In my third year I had 40+ credits while others had 25.

and there are students who not only have no family support but may have dependents...a child..a sick parent, etc.

refer to the image I posted in the 'where should I send my kid to kindergarten' thread

[Euro7r]

A lot of people I know have no fucking financial literacy, even the most basic common sense. They feel that by a certain age, gotta "grow up" and move out of parents home since that appears to the "thing" or "norm" to be done these days. If you can't save shit while out out there on your own, how the heck do you retire since you can't work forever. They rather pay someone else' mortgage than live at home....

Times have changed and grown up adults still live at parents basement. I get called out a lot on "living at home" which I don't give a damn since it's my life. I'm not living a life to satisfy anyone. Just my personal thoughts, not everyone will agree =P

[Manic!]

Guys don't worry in the future governments will tax robots and everyone will get a minimum living wage.


Bill Gates? answer to robots: tax them | The Seattle Times (http://www.seattletimes.com/business/economy/bill-gates-answer-to-robots-tax-them/)

[Traum]

A lot of people I know have no fucking financial literacy, even the most basic common sense. They feel that by a certain age, gotta "grow up" and move out of parents home since that appears to the "thing" or "norm" to be done these days. If you can't save shit while out out there on your own, how the heck do you retire since you can't work forever. They rather pay someone else' mortgage than live at home....

Times have changed and grown up adults still live at parents basement. I get called out a lot on "living at home" which I don't give a damn since it's my life. I'm not living a life to satisfy anyone. Just my personal thoughts, not everyone will agree =P
The obvious problem with living in your parents' basement is... "managing your love life". It's one thing to sneak a girl into your room when you're 16. It's quite another when you are 26. And if you are 36 -- well... in that case... I really don't know what to say anymore.

:pokerface:

[twitchyzero]

They feel that by a certain age, gotta "grow up" and move out of parents home since that appears to the "thing" or "norm" to be done these days.

lump me in with that group

the day i turned 25 i knew i overstayed my welcome

being independent is starting to shrink in this city because of the high cost of housing

most of my peers are still living with family and asks me why

but paying for someone else's mortgage is the cost of growing up to me

[hud 91gt]

There's living at your parents because you are really trying to save, then there is living at home because you can't afford to leave (Because you've been there for ages and have been accustomed to the cheap living).

Sometimes many people need that boot to get out and realize what real life is. Depends on the kid.

[320icar]

the day i turned 25 i knew i overstayed my welcome


Psh i was 19 or so when I hit that point. Sure it's expensive living on your own, but I wouldn't ever choose to move back home unless something happened where I had no choice, or responsibilities for looking after aging parents

[Tapioca]

Living at home when you're at the point in life where you can be self-sufficient is the ethnic immigrant way.

The more ingrained in the culture you are, the better it works. You will likely find a significant other who's fine with you living at home. If you're Western in your ways, it can be a grind.

[MG1]

I don't think it's an Asian only thing. Family oriented cultures like Eyetalians, for example. My neighbours have married children living downstairs.

Whatever works, man. And who are we to judge?

[ZN6]

it is not white and black...so many factors here.

amazing it worked out for you...those trying to do more than 10-15 hours a week on top of full-time studies is generally at the expense of their grades.

Not every program is equal either...In my third year I had 40+ credits while others had 25.

and there are students who not only have no family support but may have dependents...a child..a sick parent, etc.

refer to the image I posted in the 'where should I send my kid to kindergarten' thread

Life choices; it was definitely tough getting through that especially when I had 3 labs per week with two other courses. My parents kicked my ass hard and having a single mom who looked down on me didn't help at all. I was out on my own right after graduation at 23. Packed my bags and said "Peace" to my mom.

Like I said, there will always be people who have it worse off who make it further. It depends on peoples' resolve. Where I focused my time was not partying/clubbing but working. You ever see those club Taiwanese Associations at school? People join those clubs just to go clubbing and drinking.

It's not really that hard to distinguish black from white. Like you said, and like what I said, there are some who go through university who have it easier than others. I took the hard path, sciences will always trump any arts degree in difficulty. Some go to school in GT-Rs or lambos at school and get a degree in "general studies".

[twitchyzero]

Psh i was 19 or so when I hit that point. Sure it's expensive living on your own, but I wouldn't ever choose to move back home unless something happened where I had no choice, or responsibilities for looking after aging parents

agreed

I wanted to finish undergrad, did two years in the work force before going for more independence

back on topic though...it's true that the majority in their 20's-30's do not have retirement savings even on their mind

majority are just settling in their career and overwhelmed by housing expenses...not what happens around ages 60-70

those Gen X in approaching 40's etc, when did you start seriously think about retirement?

[SumAznGuy]

those Gen X in approaching 40's etc, when did you start seriously think about retirement?

I've always jokingly said I was going to retire by age 55.
Then it hit me hard when I had health issues last year which caused me to miss out on most of the summer.
After getting much needed surgery, I thought I could enjoy this summer but the same issue has reoccurred. While not life threatening, it does affect my quality and enjoyment of life and puts extra stress on my wife.

[underscore]

How much does the first woman make in that she can't carry a 130k mortgage?

25 year amartization on 130k is like 1000 a month, you could probably even go lower than that if you wanted to.

Even with a terrible interest rate it should be a lot lower than that, $130k for 25 yrs at 2.9% is ~$600/month. Tack on a strata of say $200/month, you're at $9600/year. Unless she's taking home less than $25k/yr that shouldn't be a problem.

[The_AK]

The obvious problem with living in your parents' basement is... "managing your love life". It's one thing to sneak a girl into your room when you're 16. It's quite another when you are 26. And if you are 36 -- well... in that case... I really don't know what to say anymore.

:pokerface:

Tell me about it. Coming from an Eastern European family the culture is definitely support one another as much as possible but at the same time love life is compromised when you hear about it all the time when at home. As much sense as it makes to stay at home financially and save as much as possible it almost comes at a cost of your sanity if parents don't approve of your partner, you're trying to start a family or whatever it might be. At a point moving out becomes a necessity if you want to progress in your life.

Been saving aggressively for past 2 years and become frugal with my spending (sold mountain bike, no vacations, worked a second weekend job at friend's bakery as a driver for a few months, only maintenance stuff for car except when gf surprises with something nice) to finally buy something for myself.

[DGN23]

people gotta know that in another 20-30 years (maybe sooner), pension/cpp (gov't funded )and/or others will not exists anymore.

Your source?

[Tapioca]

Your source?

The claim is a crock of shit.

The government raised CPP contribution rates to ensure the long term sustainability of the fund.

An analysis done by actuaries in 2014 claimed the fund was sustainable until 2075. Assessing the Sustainability of the Canada Pension Plan through Actuarial Balance Sheets (http://www.osfi-bsif.gc.ca/Eng/oca-bac/as-ea/Pages/ascpp.aspx#toc-Ic)

[DragonChi]

It should be doable, but as others have mentioned, it's her spending habits that are the issue here. She had pre-existing debt before getting the place. I don't think those habits have changed.

[Digitalis]

The source will be Trudeau's immigration policy he keeps bringing people in without taking care of citizens first and we will go belly up.

[DragonChi]

How would you take care of this type of citizen?

[dark0821]

Tell me about it. Coming from an Eastern European family the culture is definitely support one another as much as possible but at the same time love life is compromised when you hear about it all the time when at home. As much sense as it makes to stay at home financially and save as much as possible it almost comes at a cost of your sanity if parents don't approve of your partner, you're trying to start a family or whatever it might be. At a point moving out becomes a necessity if you want to progress in your life.

Been saving aggressively for past 2 years and become frugal with my spending (sold mountain bike, no vacations, worked a second weekend job at friend's bakery as a driver for a few months, only maintenance stuff for car except when gf surprises with something nice) to finally buy something for myself.

frugal but drives bimmer lol... :troll::troll:

but jokes aside... I admire all those people who has made it on their own. I pretty much had a free hand out where my parents in law paid for my down payment 140K on a 850K house (or else I will never be a home owner lol well 1/3 of it)...

My brother in law and his wife, me and my wife and parents in law lives together.

My brother in law and me just pays the monthly mortgage nowadays + property tax/upkeep, utilities. Whatever works I guess.

Parent's in law pays most of the groceries though, but its on us if we wanted to eat anything "fancier"?

back on topic though... I basically started RESP the moment my kids were born, and max out my RRSP and TFSA every year since I was like 24?

Special note *** am looking forward to the day kids start Elementary so my wife can start working again. Even just part time, the extra income will be nice.

[Mr.HappySilp]

agreed

I wanted to finish undergrad, did two years in the work force before going for more independence

back on topic though...it's true that the majority in their 20's-30's do not have retirement savings even on their mind

majority are just settling in their career and overwhelmed by housing expenses...not what happens around ages 60-70

those Gen X in approaching 40's etc, when did you start seriously think about retirement?

Mid 30s and every since I had a full time job I always put at least the maximum credit I can put on RRSP for tax credit purpose.

I still live at home and save around 150k for my apartment already (half of the cost of the apartment.). My parents don't mind they actually encourage it. I thin one of the reason is that having me at home I usually help out with the house work and the bills and pay rent (mind you is still cheaper than renting a $1200 apartment). Is also healthy for me. Home cook meals everyday, closer ties with my parents and actually have someone who isn't afraid to give me shit if I step one of the line (not washing my own dishes, bringing food in my room, not eating fruits, sleeping late on a weekday). It might seems to annoy you at first but once you think about it all they want is for me to be healthy.

[The_AK]

frugal but drives bimmer lol... :troll::troll:

but jokes aside... I admire all those people who has made it on their own. I pretty much had a free hand out where my parents in law paid for my down payment 140K on a 850K house (or else I will never be a home owner lol well 1/3 of it)...

My brother in law and his wife, me and my wife and parents in law lives together.

My brother in law and me just pays the monthly mortgage nowadays + property tax/upkeep, utilities. Whatever works I guess.

Parent's in law pays most of the groceries though, but its on us if we wanted to eat anything "fancier"?

back on topic though... I basically started RESP the moment my kids were born, and max out my RRSP and TFSA every year since I was like 24?

Special note *** am looking forward to the day kids start Elementary so my wife can start working again. Even just part time, the extra income will be nice.
hahah I can see how people can see that as a contradiction. In all fairness I did a bit of research before buying the car and its the perfect combination of bang for the buck (rationalized in my eyes). Car has already depreciated enough that relatively speaking I won't be losing a whole lot more on depreciation (if anything, at this point it should hold its price pretty well in the used car market given its a 330 and 6 speed with an example being my e46 330ci msport in manual when it was written off), low mileage and "diy'able", no worries about turbos or hpfp, and most importantly I get a big smile each time I drive it. From an economics perspective this car (for me) has significantly more utility than say a Honda Accord for more-or-less the same price (which btw are flooded on craigslist when they get older).

[Gh0st]

Mid 30s and every since I had a full time job I always put at least the maximum credit I can put on RRSP for tax credit purpose.

I still live at home and save around 150k for my apartment already (half of the cost of the apartment.). My parents don't mind they actually encourage it. I thin one of the reason is that having me at home I usually help out with the house work and the bills and pay rent (mind you is still cheaper than renting a $1200 apartment). Is also healthy for me. Home cook meals everyday, closer ties with my parents and actually have someone who isn't afraid to give me shit if I step one of the line (not washing my own dishes, bringing food in my room, not eating fruits, sleeping late on a weekday). It might seems to annoy you at first but once you think about it all they want is for me to be healthy.

If you're happy with your decisions and life then more power to you man.

Nothing like good old fashion love from the parents.. that's going to be the part I miss most!!

I think we share differently ideologies. I'm 25 - Asian (if that makes a difference in what follows)

While the thought of being taken care of (not financially) by our parents is wonderful and we should cherish it for as long as we can, I realized in my early 20's that I should be the one taking care of them both financially and emotionally.

Having 150k in savings is great. I commend you. Have you considered rolling 100k at the time you had it into a pre-sale of a townhome or apartment with a value of 500k? Save 50k for investment or emergency funds. You are still able to contribute and take care of them even if that means renting out the new place if times get rough.

I'm not saying this route is the best route or anything - just probing whether you had thoughts of doing something else? I couldn't imagine living at home past 25, let alone 35. That's a personal opinion only!

My sisters and I have successfully retired our mum because we contributed to the mortgage the last many years, mum sold when the market was hot, made her retirement money at 55 years old, fully bought and paid off a new 2 bedroom condo and just chills now. We downsized from our 3100 sqft Vancouver home because we all wanted a life of our own and after mum got settled in her pad, we went and bought places of our own without taking a dime from the sale of the home. She spends the retirement money however she likes. My two sisters and I all live in close proximity to her and visit, call, and eat dinner at home regulary so mums never lonely. Plus she's got a dog and new member to the family arriving soon (sister's boy). She will soon be a babysitter all over again.

My mom's a widow that immigrated here in the 90's and the word freedom was foreign to her. She doesn't speak English, worked labor jobs her entire life, lived in constant fear and worry of the uncertain future with 3 kids and no support. We grew up okay. My sisters a lawyer (28) and the other ones an accountant (26), and I work in professional services (25).

I guess that's a long winded way of saying I have a soft spot for parents that fall in this era because I saw first hand the difficulties they face just raising us in today's society let alone putting food on the table and a roof over our head. For that reason, the sooner I can contribute and give back, the better.

You make a very good point of being healthy. That's most important. Healthy and happiness. If everyone is both, all is well!

[twitchyzero]

I pretty much had a free hand out where my parents in law paid for my down payment

looks like you won the marriage lottery :victory:

and when everyone's saying they're maxing out RRSP...is it sitting there or being invested?

Cheers to everyone who's chimed in.

[The_AK]

looks like you won the marriage lottery :victory:

and when everyone's saying they're maxing out RRSP...is it sitting there or being invested?

Cheers to everyone who's chimed in.

Doesn't matter too much I think depending on your goals. The more you put towards it the higher tax return you get. Then you can pull it back out when buying your first home. As long as you repay the amount back at the end of 10 year turn you won't need to return anything back to government in form of taxes. For example sake why you might want to do this, $10k today is "a lot more money" today than it will be in 10 years times (inflation) so theoretically it should be easier to pay that back down the road when prices for everything increase (as long as you're making a contribute each month).

Someone correct me if I'm wrong or has a better idea lol

[iPee]

Doesn't matter too much I think depending on your goals. The more you put towards it the higher tax return you get. Then you can pull it back out when buying your first home. As long as you repay the amount back at the end of 10 year turn you won't need to return anything back to government in form of taxes. For example sake why you might want to do this, $10k today is "a lot more money" today than it will be in 10 years times (inflation) so theoretically it should be easier to pay that back down the road when prices for everything increase (as long as you're making a contribute each month).

Someone correct me if I'm wrong or has a better idea lol


I think it depends on the ROI on your RRSP. If it's a GIC type, chances are you are earning enough to cover inflation. If you invest in riskier products you'll have a higher chance of getting a bigger return but also risk losing what you invested. I'm lucky that my work matches my contributions up to 5%. So I just have that deducted from my pay cheque and put it into the company funds. We still have to pay a fee for the funds but it is significantly lower than what the clients are paying.

In theory it should be easier to pay down, assuming that you still have potential growth in your career. Hopefully you'll be making more in 10 years from today.

Lastly I don't contribute the max available to my RRSP each year. I put enough so I don't have to pay taxes or get a slight return. The rest I put into TFSA. My reasoning for that is when it's time to retire and you need to take money out of RRSP it could be taxed quite heavily depending on your other sources of income.

[Mr.HappySilp]

If you're happy with your decisions and life then more power to you man.

Nothing like good old fashion love from the parents.. that's going to be the part I miss most!!

I think we share differently ideologies. I'm 25 - Asian (if that makes a difference in what follows)

While the thought of being taken care of (not financially) by our parents is wonderful and we should cherish it for as long as we can, I realized in my early 20's that I should be the one taking care of them both financially and emotionally.

Having 150k in savings is great. I commend you. Have you considered rolling 100k at the time you had it into a pre-sale of a townhome or apartment with a value of 500k? Save 50k for investment or emergency funds. You are still able to contribute and take care of them even if that means renting out the new place if times get rough.

I'm not saying this route is the best route or anything - just probing whether you had thoughts of doing something else? I couldn't imagine living at home past 25, let alone 35. That's a personal opinion only!

My sisters and I have successfully retired our mum because we contributed to the mortgage the last many years, mum sold when the market was hot, made her retirement money at 55 years old, fully bought and paid off a new 2 bedroom condo and just chills now. We downsized from our 3100 sqft Vancouver home because we all wanted a life of our own and after mum got settled in her pad, we went and bought places of our own without taking a dime from the sale of the home. She spends the retirement money however she likes. My two sisters and I all live in close proximity to her and visit, call, and eat dinner at home regulary so mums never lonely. Plus she's got a dog and new member to the family arriving soon (sister's boy). She will soon be a babysitter all over again.

My mom's a widow that immigrated here in the 90's and the word freedom was foreign to her. She doesn't speak English, worked labor jobs her entire life, lived in constant fear and worry of the uncertain future with 3 kids and no support. We grew up okay. My sisters a lawyer (28) and the other ones an accountant (26), and I work in professional services (25).

I guess that's a long winded way of saying I have a soft spot for parents that fall in this era because I saw first hand the difficulties they face just raising us in today's society let alone putting food on the table and a roof over our head. For that reason, the sooner I can contribute and give back, the better.

You make a very good point of being healthy. That's most important. Healthy and happiness. If everyone is both, all is well!

Well I am thinking of renting the apartment once is ready. At least until I get into a serious relationship which most likely won't happen for awhile. Still going to pay rent/money to my parents even if I move out (My sister is doing the same so I am going to do the same.). I don't think my parents will downsize in the next 5 to 7 years at least. They like their house since they rent out the basement so it generates some income and also have a little garden for them to plant their vegetables.

They seem to live pretty well right now. The only thing they complain is how much property tax went up this year same. My parents never really like the idea of living an apartment or townhouse because they feel no only they lose out on rental income but they also have to pay starta fee.

[Tapioca]

The majority of Gen Xers are fine - middle management types or higher with detached houses. Some may be sacrificing their retirement for current expenses, like leased cars or kids' programs, but there are also a lot of Gen Xers who work in the public sector and have defined benefit pensions.

[dark0821]

I think it depends on the ROI on your RRSP. If it's a GIC type, chances are you are earning enough to cover inflation. If you invest in riskier products you'll have a higher chance of getting a bigger return but also risk losing what you invested. I'm lucky that my work matches my contributions up to 5%. So I just have that deducted from my pay cheque and put it into the company funds. We still have to pay a fee for the funds but it is significantly lower than what the clients are paying.

In theory it should be easier to pay down, assuming that you still have potential growth in your career. Hopefully you'll be making more in 10 years from today.

Lastly I don't contribute the max available to my RRSP each year. I put enough so I don't have to pay taxes or get a slight return. The rest I put into TFSA. My reasoning for that is when it's time to retire and you need to take money out of RRSP it could be taxed quite heavily depending on your other sources of income.

Ahhh iPee made a good point, that is actually what I meant when I say "MAX" out my RRSP, I just put enough to offset my income tax, and plus you will always want to save those margin just in case you get a bigger raise in the future to cut you down a tax bracket or two...

having said that, with a stay @ home wife and 2 kids, my year end income taxes becomes pretty manageable...

@twichyzero - you are absolutely right, marriage lottery for sure! Took care of housing, and bought an EVO with engine mounts lol... can't imagine any other responsible wife would do this... she spoils me too much.... not to mention all those Autoarts... mmmm :D:D:D

[godwin]

Most people dont' think about retirement cost.. eg a place in a retirement home starts at $5k / month. Ever wonder why Anbang wants to by Retirement Solutions?

[Gh0stRider]

i remember fucking up my credit in my early 20's, maxing out a few credit cards..oops.
I had to work 4 jobs just to recover from that, while living at home.

Now im still living at home, trying to save for a downpayment for my own place. I am forced to work 2 jobs at this time since housing costs are getting out of hand.

[Jmac]

I've never really had any debt issues, but I've been sick for significant portions of my adult life (usually 2-3 years at a time) which generally sucks my savings dry.

I'm hoping to get a house soon, but I'm a little worried about taking on the debt load for the next time I get sick. Another year until my benefits include long-term disability, which will give me some degree of peace of mind.

I haven't contributed to my RRSP since 2011, when my employer matched to 5%. My new employer doesn't and I prefer the ease of access of a TFSA for obvious reasons.

[Mr.HappySilp]

Most people dont' think about retirement cost.. eg a place in a retirement home starts at $5k / month. Ever wonder why Anbang wants to by Retirement Solutions?

The reality is by the time we hit retirement age the gov wouldn't even have any pension for us at all.

Why let someone take care of you when you can start now? Is always better to have your own life in your own control.

[Gh0stRider]

I've got a pension plan through work that im paying into, so hopefully its enough when i need it. Its not CPP