I Made It To Retirement!

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Cadillac

We all get older. 

At some point in life, we will exit the workforce and take control over how we live our lives.

I graduated from Brandon University in 1982 with a degree in Mathematics and Computer Science.

After 35 years in the IT sector, I left Manulife Financial in 2017 and a six-figure position responsible for developing enterprise applications and leading their development.

A job in the IT sector lasts around five years. I worked for eight employers. I managed to surf on the changes in the IT sector such as changing technology, outsourcing and learn new skills.

I am single with no dependents.  My retirement plan involved a few simple steps:

  1. Pay off all debts
  2. Save all you can
  3. Plan for a major change in lifestyle.
  4. Figure out how much you need to live on.
    For me it is $2,500 per month in Toronto. My Canada Pension Plan and old age security pays for the rent and that lowlife company Bell Canada. My RSP pension plan income pays for the extras. I take only what the plan earns. That way, the plan value never goes down.
  5. Be wary of taking money out of your RRSPs. Your CPP and OAS is based on your income in the last year you filed with the Canadian Revenue Services Agency. OAS will claw back the amount they paid you while sitting on a beach in Spain funded by an RSP withdrawal.
  6. Don’t play the stock market with your RRSP.
  7. Make a list of things like cars, mobile phones and your house or condo that will require periodic funding that you can’t afford on your target income.
  8. Live simply:.
     As John Lennon wrote:   Imagine no possessions – I wonder if you can. First thing to do is throw out stuff that is never used.  I had 800 vinyl LP’s but never listened to them. I gave them to  my nephew
    1. Rip all your CDs and movie DVDs saving them to separate terabyte USB drives.
    1. Make a box of keepers and a box of discards. Take the discards to a used CD/DVD shop.
    1. Sort out books into keepers and discards. Take the discards to a used bookstore  or dump them in  a recycling bin.
    1. Call 1-800 Got Junk for an appointment to cart away the stuff taking up space in your home.
    1. Reassess how big a space you really need and make the steps to downsize to a place you really want to live in like Victoria or Niagara on the Lake.
    1. When I moved from Winnipeg to Toronto, I moved all my stuff into a storage unit and locked it with a combination lock. When It was time to move my stuff to Toronto, I gave the mover the combination and location of the storage unit.

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Jim

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