Because the Financial Independence Hub is being moved today to a new server to accommodate ever-rising volumes of web traffic, for today we have taken the liberty of posting the normal Monday “Hub” blog here at sister site FindependenceDay.com. The guest blog below is on optimizing CPP benefits: the same subject as my Financial Post column that ran online today under the headline: Optimizing Your CPP is no trivial exercise. Now let’s get it from the horse’s mouth: Doug Dahmer. — Jonathan Chevreau
By Doug Dahmer, Emeritus Retirement Income Specialists
Canadians are an easy going and trusting people. Every year thousands of people, across the country, carelessly start their CPP payments and in the process are forgoing hundreds of thousands of dollars in payments to which they are entitled.
I call this “The Great Canadian Pass Up.”
To ensure you fully appreciate the value of making the right decision, before you elect to a start your Canada Pension, Emeritus Retirement Income Specialists have created a powerful tool CPP Optimizer. Give it a try here.
Most people seriously underestimate their lifetime CPP income entitlement:
Your CPP benefits are a big deal. For a couple, where both spouses have regularly contributed to the CPP plan, the lifetime CPP income they can anticipate will likely exceed $700,000. Consequently it represents an important strategic contributor to the creation of a sustainable retirement income. Therefore, decisions about this benefit need to be taken seriously.
Reliance upon “conventional wisdom” can be costly
My latest MoneySense blog features 30-year old millennial and financial writer Sean Cooper, who is having a mortgage-burning party tonight to celebrate his paying off his mortgage in just three years. See Mortgage free by 31.
In an early guest blog here at the Hub, Cooper credited my financial novel, Findependence Day, with inspiring him to seek early financial independence himself. See also a second millennial’s story at Two millennials well on the way to achieving early Financial Independence.
The book argues in particular that “the foundation of financial independence is a paid-for house.”
Cooper apparently took this message to heart because. He doesn’t even turn 31 for a few more months and has set his next goal to achieve a net worth of $1 million within four years. Well done, Sean, may you serve as an inspiration to your generation!
Click on the above link at MoneySense to find the full Q&A I conducted with Sean or see below.
Email Q&A with “Findependent” Sean Cooper