William Barreca, CFP®

Retirement planning for executives & business owners 50+. Helping you retire with confidence & reduce your tax bill. Book a call ⬇️

[William Barreca, CFP® @willbarreca]

The Canada Pension Plan (CPP) is one of your most valuable assets in retirement

But most people aren't optimizing CPP to its full potential

This can mean hundreds of thousands of dollars in lost benefits

Here is a breakdown of how to get the most out of CPP:

[William Barreca, CFP® @willbarreca]

@wealthy_barber You’ll be missed

Congratulations on retirement!

[Jason Pereira @jasonpereira]

I honestly don't get how Canada's horrific SPVIA numbers aren't bigger news this year.
Sub 2% of managers added alpha in the last 10 years vs the domestic index
That stat says it all

https://t.co/bsIm2llesd

[William Barreca, CFP® @willbarreca]

@AravindSitham @montano_serg Yes. Yes, I was 😅

[William Barreca, CFP® @willbarreca]

This is why it’s funny when financial companies use “pension style management” as a marketing tool

[Andrew Coyne 🇺🇦🇮🇱🇬🇪🇲🇩 @acoyne]

My latest, on the continuing fiasco at the CPP investment fund, which has now spent more than $50 billion over twenty years to lose about $100 billion relative to what it might have earned, for an equal amount of risk, if it had just bought the relevant indexes — or flung darts at the stock listings.
https://t.co/293Q8BwwCq

[William Barreca, CFP® @willbarreca]

@TaxHacker They always make it sound good…

You’re right to be skeptical

[William Barreca, CFP® @willbarreca]

Permanent insurance is not a retirement income strategy

What you're being sold: Access to cash tax-free, banks financing your lifestyle etc.

Here's the reality: you're borrowing against a life insurance policy. Interest compounds. The loan is repaid when you die.

[William Barreca, CFP® @willbarreca]

@CameronBWilson Big problem when people are only insurance licensed

Because then insurance becomes the solution for everything

[William Barreca, CFP® @willbarreca]

@TpfeifferCFP Exactly

[William Barreca, CFP® @willbarreca]

Melting down your RRSP isn't always the smart move.

Everyone talks about drawing it down to avoid your "RRSP getting too big"

It also means paying CRA earlier than you need to.

It can make sense. But make sure you actually crunch the numbers to see if it makes sense for you

[William Barreca, CFP® @willbarreca]

@AaronHectorCFP What’s right for one person can be completely the wrong move for someone else

[Aaron Hector, R.F.P., CFP, TEP @AaronHectorCFP]

I am in full agreement with this.

Personal finance is personal, it's not everyone-every-time finance.

[William Barreca, CFP® @willbarreca]

@amredman One example where it can make sense is pulling money out of your RRSP in a really low income year and reinvesting it in your TFSA

[William Barreca, CFP® @willbarreca]

Proximity is not the same as insight.

So many people with employer stock plans think they have special insight into their company.

The risks that blow up companies often come from the outside.

Make sure you're properly diversified.

[William Barreca, CFP® @willbarreca]

People who complain about being taxed on RRSP/RRIF withdrawals in retirement are usually forgetting the benefits they got along the way

Tax deductions on every contribution

Tax-deferred investment growth for decades

RRSPs remain the best retirement savings vehicle for a lot of Canadians

[William Barreca, CFP® @willbarreca]

Getting the portfolio right is important.

But a sole focus on investing is leaving so much value on the table.

A proper financial plan covers cash flow, estate, tax planning, retirement planning, insurance, and makes sure every piece is coordinated and working together.

I
The cost of getting these wrong isn't just financial. It's the stress of realizing mid-retirement that something could have been done differently.

[William Barreca, CFP® @willbarreca]

The great majority of DIY investors I talk to only focus on their investments.

But a financial plan is more than a portfolio.

And the parts that have nothing to do with picking investments? That's where some of the most costly mistakes are hiding.

Here are 6 blindspots I see regularly:

[William Barreca, CFP® @willbarreca]

Blindspot #6: No spousal RRSP to split income in retirement.

If one spouse has a significantly higher income in retirement, you're likely paying more tax than you need to.

Only 50% of your RRIF income can be split with your spouse. And that’s only available once you turn 65.

A spousal RRSP funded during the earning years, gives you the ability to draw income from both spouses more evenly.