tag:blogger.com,1999:blog-5465015914589377788.post3564402070517484404..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Calculating My Retirement GlidepathMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5465015914589377788.post-73228476647681513012020-06-19T09:24:59.082-04:002020-06-19T09:24:59.082-04:00Hi Larry,
I don't mind questions. To start, ...Hi Larry,<br /><br />I don't mind questions. To start, you need to figure out how much you'll get paid each month from these two pensions. OAS is easy if you've lived in Canada your whole life -- you'll get the maximum plus any bonus for waiting to start OAS later than age 65. For CPP, I recommend the following post:<br /><br />https://retirehappy.ca/how-to-calculate-your-cpp-retirement-pension/<br /><br />Once you have the payment amount, you need to calculate the present value of the income stream. I dealt with the in section 6 of the "Withdrawal Rates for a Retirement Glidepath" paper linked to in the body of this post. If you find it unclear in some way, don't hesitate to ask.<br /><br />Cheers,<br /><br />MichaelMichael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-91434512804493710062020-06-19T08:16:38.900-04:002020-06-19T08:16:38.900-04:00Sorry if I’m asking too many questions. Feel free ...Sorry if I’m asking too many questions. Feel free to ignore. How do you calculate the present value of OAS or CPP? I tried to find an online annuity calculator but I couldn’t with full indexing. I’d like to do for me and my parents. In my case, it’s a teacher’s pension...eventually. Thanks Michael. Larry C.https://www.blogger.com/profile/17718393493123680154noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-54397760679507639232020-06-11T10:26:37.574-04:002020-06-11T10:26:37.574-04:00That helps, thanks. That helps, thanks. Larry C.https://www.blogger.com/profile/17718393493123680154noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-58929261669511629502020-06-11T10:09:13.797-04:002020-06-11T10:09:13.797-04:00Hi Larry,
There are plenty of different theories ...Hi Larry,<br /><br />There are plenty of different theories on all this, but I can tell you what I'm doing now and plan to do in the future.<br /><br />I don't deduct dividends from my spending at all. I treat them as just part of the return from stocks. Receiving dividends will make me deplete my 5 years in bonds slower, and so I won't have to sell stocks as often to maintain the 5 years' spending in bonds.<br /><br />Before I start collecting CPP and OAS (I have have no other pensions), I include their present value in my portfolio value, but I don't deduct anything from my spending. After I start collecting these pensions, I won't include their present value in my portfolio. So, this effectively deducts these pension payments from my spending for the purpose of calculating the 5 years' worth of spending.<br /><br />Hope this answers your questions.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-16162467260206248812020-06-11T08:51:20.421-04:002020-06-11T08:51:20.421-04:00Michael, when you write you keep 5 years worth of ...Michael, when you write you keep 5 years worth of spending in bonds, would you first deduct OAS, CPP, work pensions, blue chip dividends from your yearly spending before multiplying by 5. I know you don’t collect government pensions yet but I’m thinking about my parents here. <br /><br />If you do, would you thinks it’s prudent to discount some blue chip dividends in case we have a a significant economic incident?<br /><br />Thanks,<br /><br />LarryLarry C.https://www.blogger.com/profile/17718393493123680154noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-88627863892852451822020-05-04T13:14:38.974-04:002020-05-04T13:14:38.974-04:00Anonymous: Glad you like it. It's doubtful t...Anonymous: Glad you like it. It's doubtful that many people could make use of the math I derived, but I'm hoping a few can, possibly including some advisors.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-83266575721449824722020-05-04T13:05:27.506-04:002020-05-04T13:05:27.506-04:00Posts like this are the reason why yours is the be...Posts like this are the reason why yours is the best personal finance site I've found. I appreciate the details in the PDFs as well.Anonymousnoreply@blogger.com