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Discussion Starter · #1 ·
59 yr old with 5-7 yrs to retire: when to hire CFP/looking at Robo advisor?

I'm a telco worker with hopefully another 5-7 yrs to work.
i am trying to save as much as possible over this time period
have 22 yrs DB pension so far.

i have met with one CFP so far who wanted $1500/fee based who
would review my estate planning and investment mix
(on this note I have another appt this week to meet a different CFP
..and a third one to talk with next week..still in the discovery stage)

but am wondeing if it's better to take a CFP on now or better to delay it when i'm closer to actual retirement?
(sure i could diversity my $200k (rrsp/tfsa) in mostly Telus stock to other equities...but do i need to pay $1500-2k for that?)
instead I should just save as much as i can into a good balanced equity fund...in the meantime i'm saving $8-10k/yr
and have maxed my TFSA and RRSPs...and debt free but hold no RE equity...at least the employer I am with
will give me a DB pension when I finally retire...maybe a buyout too.

back to the Roboadvisor: i know Rob Egenn of Boomer and Echo has made an interesting case
for using both a CFP and roboadvisor: Using a Robo-Advisor in Retirement: A Wealthsimple Case Study.
wealthsimple interests me until i read of disgruntled people talking about delayed transactions etc.
 

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I am about 17 years into retirement and still have the same questions :) After talking to brokerages and researching other possibilities, I decided my retirement job would be to do all our own investing. It has worked out well, but we are fast approaching a time when I will need to pass the baton :(
 

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but am wondeing if it's better to take a CFP on now or better to delay it when i'm closer to actual retirement?
(sure i could diversity my $200k (rrsp/tfsa) in mostly Telus stock to other equities...but do i need to pay $1500-2k for that?)
instead I should just save as much as i can into a good balanced equity fund...in the meantime i'm saving $8-10k/yr
and have maxed my TFSA and RRSPs...and debt free but hold no RE equity...at least the employer I am with
will give me a DB pension when I finally retire...maybe a buyout too.

How much of your regular costs will the DB/CPP/OAS cover?
If the answer is "all of it," then you may not need the financial planner.

Your plan to swap your Telus stock for a balanced equity fund is elegantly simple. It is low-cost and low-risk. I cannot imagine an advisor coming with a better plan that will be worth its cost.
 

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Discussion Starter · #4 ·
Thanks....but a few questions please. Is telus stock still good to have for retirement because of the dividend and stability? We're not a good financial planner at least give me some idea of how to move my funds around to avoid taxes.... I am doing my own research suggesting I should try and delay taking CPP and OAS until age 70 and instead use my tfsa and rrsp from 65 to 70....
Thoughts? ... Hopefully I'll be blessed enough to get a buyout as well that might be another $100,000.... In the meantime I'm trying to save as much as I can and get into a cheaper co-op place ( though my rent is good now...I don't own any RE equity... My biggest regret for not getting in 10 years ago when I should have)
 

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An important aspect is how much of your regular spending needs you expect to be covered by pension + CPP + OAS. If those will cover all of your expected spending, then planning becomes less important. If you will depend on your own savings for a lot of your spending needs then planning and careful investing become more important. If you don't know how much you will get from workplace and government pensions, those are things a financial planner can help with, or you need to do a lot of thinking and planning on your own.

A fee-only planner can look at your current income, assets and spending and do future predictions to develop a retirement plan that projects cash sources, cash uses and assets for your expected lifespan. They would include expected returns based on your investment risk tolerance, and also tax effective investing and spending. They use software that can analyze taxes to get the highest after-tax returns and minimize the likelihood of OAS clawback and loss of government benefits like HST tax credit and in Ontario, Trillium benefit and home owners' tax credit. Based on your Telus pension maybe you are in AB or BC, so I don't know if those provinces have similar programs that are sensitive to income level.

Here is a link to a file I developed for interviewing financial planners:
Questions to ask a financial planner

Telus is a quality stock, so should be a good retirement hold. Is it in an RRSP or TFSA? If so I would look at diversifying. Personally I would not use a roboadvisor, since they add a fee of about 0.4-0.5% above what the MER is for a simple asset allocation ETF that would be just as diversified.

Should you delay CPP & OAS? Deferring CPP to 70 increase it 42% from taking it at 65, and delaying OAS to 70 increases it 36%. If your Telus pension won't cover all your expected spending needs, then deferring CPP/OAS gives more guaranteed, indexed lifetime income, lessening the chance of outliving your money, especially if you experience high inflation and/or a significant bear market. Deferring means spending more of your own money early in retirement in exchange for greater certainty of income later in retirement. Is you pension indexed? If not, with 2% inflation it will lose 1/3 of its spending power over 20 years.

If you want to get a CFP to do a plan for you I would do it now rather than later. It will give you a better idea now how much you should be saving and how long you need to work.
 

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Discussion Starter · #6 ·
Thanks...will consider a CFP...have interviewed one last week...have another one tomorrow...still sitting thru.
 
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