My latest MoneySense Retired Money looks in more detail at the National Institute of Ageing’s recent series of papers on CPP (and OAS). As the Hub reported on April 11th, few Canadians are aware that delaying CPP benefits to age 70 can more than double (2.2 times actually) eventual monthly benefits compared to taking it early at age 60. That blog reproduced a chart from the NIA that showed just how much money Canadians are leaving on the table by NOT deferring benefits as long as possible.

The other major chart from the NIA paper is reproduced above, showing just how important most retirees view the guaranteed inflation-indexed income that CPP and OAS provide. As the new column points out, for many retirees — especially those who worked most of their careers in the private sector and don’t enjoy a Defined Benefit employer pension — CPP and OAS are the closest thing they’ll have to a guaranteed-for-life inflation-indexed annuity.

The new MoneySense column focuses on how delayed CPP benefits not only generate higher absolute amounts of income  but also carry with it the important related benefits of more longevity insurance and inflation protection.

You can find the full column by clicking on this highlighted headline: How to double your CPP income.

It features input from several well-known retirement experts, including noted finance professor and author Dr. Moshe Milvevsky, retired Mercer actuary Malcolm Hamilton, author and semi-retired actuary Fred Vettese, TriDelta Senior Financial Planner Matthew Ardrey and the lead author of the NIA report, Bonnie Jean MacDonald.

Delaying CPP is “the best annuity-buying strategy you can implement.”

Milevsky sums it up well, when he says “delaying CPP is the best ‘annuity-buying strategy’ you can implement. Everything else is just Plan B.” Audrey makes a similar point: CPP is “an annuity and an indexed annuity at that … This helps protect the purchasing power of this income stream through retirement. Many people wish they had an indexed DB [defined benefit] pension and in fact we all do. It is the CPP.”

You’ll probably see much more press on this topic as the NIA is releasing a paper each month between May and December. May 8^th will be general education on the Canadian retirement income system while July 17^th will explain the mechanics of delaying CPP (and QPP) benefits.

Boating is an adventure at any age, but it often becomes a lifestyle for retirees. If you’ve ever considered trying to save up for a boat one day this could be a good read. With a couple of these financial tips, you’ll be well on your way to living your boating dream!

By Dan Coconate

Special to Financial Independence Hub

 Retirement is a time for relaxation, adventure, and a well-deserved break from the toils of work. For many, it’s the perfect time for ticking off items on the bucket list and enjoying activities they couldn’t do before, such as boating. Setting sail on serene waters has a draw that’s hard to resist, especially once you’ve reached your golden years, but it can unfortunately be an expensive hobby. With these financial tips, investing in a boat for retirement is within reach.

Why Invest in a Boat?

Investing in a boat can offer several benefits depending on your interests as well as your lifestyle. In many cases, the most common reasons as to why one would invest in a boat is for recreation/leisure, family time, and adventure!

In the financial world, large purchases are seldom one-dimensional. However, they can be gateways to new experiences or investment opportunities. A boat, with its allure of freedom and tranquility, often blinds potential owners to its financial complexities. With a good understanding of your needs and what’s available, you can spend your glory days in luxury and comfort.

Don’t forget that investing in a boat depends greatly on the individual themselves and what they are comfortable in affording. As great as it is to own one, you don’t want it to feel like you’re being submerged by a financial burden especially towards your later years in life. Find something that you can truly afford and go from there.

Understanding the Cost of Ownership

As mentioned above, owning a boat depends greatly on the individual themself and what they can afford. The financial commitments of boat ownership extend far beyond the initial purchase price. From understanding the dos and don’ts of marine craft maintenance to preparing your vessel for foul weather, upkeep can turn the investment into a bottomless expense if not managed wisely.

Here are some common costs that every prospective boat owner should consider:

• Purchase Price: The upfront cost varies widely based on the boat’s type and age.
• Maintenance and Repairs: Regular upkeep, including engine maintenance, hull cleaning, and repairs.
• Docking Fees: Charges for mooring or storing your boat at a marina or docking facility.
• Insurance: Protection against accidents, theft, and natural disasters.
• Fuel: Operational expense that can fluctuate with usage and fuel market prices.
• Safety Equipment: Initial purchase and replacement costs for items such as life jackets, fire extinguishers, and flares.

Understanding these costs is imperative, as they can tally up faster than the wakes behind a speedboat.

Legal and Financial Considerations

There are also key legal and tax-based implications of boat ownership. When considering the various forms of state and federal taxes on a boat’s purchase, operation, and potential resale, the financial burden can become relatively heavy. Annual or biennial fees can add up and make it difficult to ascertain the full price of boat ownership beforehand. Continue Reading…