YNAB your retirement - the Canadian Edition 🇨🇦

Sorry! The title isn't meant to exclude people who don't live in igloos and have maple syrup in the veins and compulsively say Sorry!  

Saving for the future, beyond EFs and epic Disney vacations, is something I hope everyone (who's had a good run being young and foolish). 

Do you track your retirement savings in YNAB? Have you got a goal? Read any great books lately that are informative and encouraging when it comes to hitting savings goals in a world gone mad with consumerism? American friends, what's a 401K? Do you want to know what an RRSP is? How do you grow your retirement fund?

Let's get this old person party started!! 🎉

P.S. I am currently reading Wealthing Like Rabbits, as a follow up to The Wealthy Barber Returns.  Next on my list is Millionaire Teacher. Let's get some great resources going ❤️

18replies Oldest first
  • Oldest first
  • Newest first
  • Active threads
  • Popular
  • I track my (retirement) investment accounts in YNAB. I keep them up te date, once a month, once a quarter. When I feel like it.

    I've read a book about investing from someone on these forums, Jesse Mecham, you might have heard of him. I think his name is Green Paper (VGhlIGdyZWF0IFlOQUIgZ29k) on the forums. The book is $1.20: http://a.co/dznWarQ It was a nice read (and not expensive!). I haven't read any other books on the subject. I'm looking at /r/personalfinance, /r/investing and other online resources. And I also just don't worry about my investments (or try not to worry). Just adjust where needed once or twice a year.

    Reply Like 1
      • waterkip
      • waterkip
      • 1 yr ago
      • Reported - view

      Ps. How did you get that image in the title.. nifty

      Reply Like
    • Hey Aquamarine ! Looks like Purple used an emoji in the title of her post! 🇨🇦

      On a Mac

      • Hold down CTRL + CMD + SPACE. Voila!

      On a PC

      • Click the keyboard icon on the system tray.
      • Click the emoji button to the left of the spacebar. Rock on! 
      Reply Like 1
      • waterkip
      • waterkip
      • 1 yr ago
      • Reported - view

      Janelle - YNAB Team 
      I saw that later on mobile. I never use emoji's on a PC. :P

      Reply Like
  • For the record, I think it would be fine bordering on great to exclude/de-prioritize US YNABers from this discussion. We US folks talk about our 401(k)s and IRAs all over; it's nice to have a place where people can easily find others to talk RRSP. (Which I have only learned about because of my YNAB neighbors to the north.) 

    Reply Like 2
    • MissusTea
    • "The future belongs to those who believe in the beauty of their dreams" - Eleanor Roosevelt -
    • MissusTea
    • 1 yr ago
    • Reported - view

    Thanks guys! Aquamarine I have an emoji problem 😎 haha! I like your "leave it" philosophy, I suspect it's way healthier than obsessing over the daily/weekly changes in investments. I follow the Canuck versions of your mentioned reddits; r/personalfinancecanada and r/canadianinvestor. The Canadian Couch Potato is popular too but I,personally, don't feel well versed enough in investing to understanding everything he gets into...YET.
    Tan I do agree. There's great active discussions about 401Ks and US retirement  options in the FBook YNAB fans group but little about Canadian or other countries planning too! It can feel overwhelming with all the acronym flung around and banks and financial advisors can be terrifying in their own rights, I'd love to get a real discussion going about the options Canadians have and the goals people are aiming for. Also! just thought of this - for those of us with ties to the US (my husband works remotely for a SanFran tech company) you never know what the future might bring right? Info is power 💪

    Reply Like
  • At the moment , I’m only tracking what I’ve physically put into my RRSP and RESP. Should I be adding the gains and losses and manually adjusting? Also I wanted to take advantage of the TFSA, but I was told by my accountant that because I have Dual citizenship with the US that I can potentially get taxed by them. Is this a risk I should take?

    Reply Like
    • Slate Blue Cornet (d8e9dd56cc22) Adding in manual adjustments is exactly what I do to track the balance of my RRSPs, just so I have an accurate idea of my net worth. I just check my balance whenever it strikes my fancy and adjust as needed 😊

      Reply Like
      • ambergem
      • ambergem
      • 1 yr ago
      • Reported - view

      Chris Oliveros Sorry for the late reply.  My investment advisor strongly recommended against the TSFA for both my mother and myself - we are both Can-US dual cits.  I did get rid of my TSFA. For now they don't seem to be coming after them but I guess you never know.   

      Reply Like
      • ISuckatMaths
      • Where Budget and Math collide
      • ISuckatMaths
      • 1 yr ago
      • Reported - view

      ambergem Why no TSFA? I can understand there is a potential to get taxed in the US, but what people have told me you'd have to be pretty high income to get taxed in the US (if you live in Canada or elsewhere)... or is this incorrect? 

      Reply Like
  • I'm south of the border, but not very far, and we do have maple syrup (and cheese!) here.

    I have been tracking everything I can discover to track for a few years now. Net Worth is something I want to know. Retirement accounts are tracked monthly or quarterly, depending on when they come out with reports. Yes, I could check everything on the last day of the month, but it's not that critical. There is enough I could retire any time, but so far I am still enjoying what I do for work.

    Reply Like
  • I'm 10 years away from being eligible for retirement, although my plan is to work part time well into retirement.  Still...the fact that it's only 120 paycheques away seems uppermost in my mind. I'll be following this thread for any updates and discussions.

    My contributions to the resources listed here:

    MoneySense magazine.  An excellent online magazine publishing 8 issues each year packed with financial and planning articles for Canadians at every stage in life on topics ranging from consumer spending (cell phones, real estate, travel, credit cards) to longer term planning (i.e. education funds, retirement), and specific to Canadian tax and investment laws.

    Royal Bank Direct Investing will let anyone open a practice investment account with $100,000 imaginary dollars that you can buy investments in real time and watch how those investment picks perform in the daily stock market.  There's also a user forum, sample portfolios, and other resources.  You don't have to have a Royal Bank account to open the practice account.

    BNN television - start watching the talking heads on a recurring basis.  This channel is bundled into my provider's 'news bundle', and I think it's worth the $5/month I pay for all the news channels. You can also access a lot of their shows online without a subscription, but it takes a direct site subscription to watch the live feed online.  Prepare to be a little bored at first.

    Reply Like 1
  • South of the border, but I think I can be civil enough not to mention US-specific retirement account types.  In any case, I believe that many US-based people tend to confuse retirement account types (which are really tax vehicles) with investment types (which are the choices made for what to buy in the retirement account or brokerage account).  Strip away the US tax code, and it still makes sense to put money into some form of an investment account, and invest it to grow so it can support you in retirement.

    I have used various iterations of YNAB since January 1, 2008.  I retired on August 31, 2016.  I have *never* tracked investments in YNAB.  YNAB, is a fine tool for managing cash and budgets; it is inferior for managing investments.  Yes, you can put a number in; but that's about it.  A different solution is needed for managing the investments, and that's OK.  YNAB is great at what it does, but investment management is simply not part of its mission.

    When I was in the accumulation phase, my YNAB budget had categories representing what I hoped to "spend" by transferring money from the budget to investment/retirement accounts.  I would budget dollars to be sent to investments, and actually investing them (or at least transferring them to a brokerage account) looked like spending to YNAB.  That worked for me, because the question my budget needed to answer was, "How much can I afford to put into the investment accounts?"

    Now I'm retired, and the cash flows in the other direction.  It looks like income to my YNAB budget.  I do need a discipline to manage the cash within the investment accounts.  I borrow just a little of the YNAB zero based budget philosophy for cash within the investment accounts; all cash is assigned to either "Reserved for Budget," "Cash to Cover Puts," or "Cash Available to Invest."  I determine how much cash I need to keep on hand in order to never have a cash flow problem when I transfer money to checking for the budget.  Cash over that amount becomes Cash Available to Invest until I buy something, or until I sell a cash-covered put and need to reserve cash for the stock to get put to me. Then it's Cash to Cover Puts until it gets spent because the stock is put to me, or it gets released because I buy the put back or the put expires worthless.  These cash categories are tracked in a spreadsheet, because it's simple enough to do so and I can use the same spreadsheet for part of my investment management decision making process.

    Having cash Reserved for Budget is very, very important.  It's what keeps me from having a liquidity problem because I see too many attractive investments.

    Reply Like 1
  • Hello to all, well, I'm way south of the border living in Australia 😀  We track our retirement savings using YNAB & it's called "superannuation" here.  My hubby & I have never been on an income that has allowed us to purchase a home but we've always put some money into our super over the years & we hope to have enough to buy a little house of our own "out bush" when he retires in the next few years - we can't wait!  We have an off budget account in YNAB for his super but I'm only able to track his fortnightly contributions & not the whole of our super as his final payout is dependent on lots of other things.  At least this way, we get to see some of our money grow & look forward to putting it to good use.  We also have some small investments which we keep track of as well (off budget).  I will be interested to hear some of your stories as well and hopefully get some of the suggested books too.

    Reply Like
  • Not Canadian but spent a lot of time reading through every single article on the MMM website. Here are two posts about investments/savings specifically for Canadians which I think are very informative (apologies in advance if you have already read this):

    https://www.mrmoneymustache.com/2013/09/21/canadian-investing-with-mr-frugal-toque-part-1/

    https://www.mrmoneymustache.com/2013/12/15/canadian-investing-with-mr-frugal-toque-part-two/

    Reply Like 1
    • rake Thanks for this!  Was very helpful!

      Reply Like
    • eloquentz
    • Numbers Wizard (Accountant), Acoustic Artist (Musician) and Jill of all Trades (Wife & Mother)
    • eloquentz
    • 1 yr ago
    • Reported - view

    I started to track my retirement accounts in YNAB but it was annoying me somewhat to update the balances, so I stopped.  I do have my mortgage in there and am tracking the weekly principal payments.  I keep that in there because watching the principal payment creep up week by week just tickles my fancy.  I am 20-30 years from retirement so I don't want to hyper focus on my retirement accounts.

    Reply Like
  • Not Canadian but your question about tracking retirement savings seems country-neutral. I update my retirement accounts in YNAB whenever I get a statement. For accounts that have money deposited straight from my paycheck that I don't see in other accounts first I don't separate out the amount I contribute and any other amounts (investment growth/loss, contributions from other entities): I have a payee called "Change in Value" and I take the current statement, find the difference between the  current account balance and the previous account balance, and put that amount in with the Change in Value payee. When I am manually moving money into an account from my budget then my contributions are recorded as a transfer between my checking account and retirement account and the budget category of the type of retirement account. Any other activity is again recorded as Change in Value.

     

    I can't tell if you're asking a rhetorical question or not about 401(k)s, so I will go ahead and answer in case you are interested. This is a very lay-person definition from my own experience. A 401(k) is a tax-advantaged retirement account. They are set up/sponsored by an employer and the money comes directly from your paycheck. You do not pay tax on the money you deposit, so it lowers your tax liability for that year. You do pay taxes when you take the money out in retirement to use it. There is a limit for how much you can contribute per year. A 403(b) is the same idea for employees of nonprofit organizations. These accounts are named after sections of the tax code. When you change employers you stop contributing to the 401(k) at your previous employer and start contributing to the 401(k) at your new employer; oftentimes there is a wait period (must wait 3 months after starting work to contribute, for example) but that is decided by the company not the government. Many times employers contribute towards a 401(k) for an employee, usually expressed as a percentage of your wage. After one year of employment my current company will contribute 4% of my salary into my 403(b) without me doing anything. From day one of my employment my current company will also contribute a 1% match into my 403(b) -- that is, if I contribute at least 1%, they will also contribute 1%. There is often a vesting schedule for the employer contribution for a few years, so if I only work for one year and then I leave the company I will not get the full amount of the money the company put into my account.

    Reply Like
Like7 Follow
  • 7 Likes
  • 1 yr agoLast active
  • 18Replies
  • 2134Views
  • 19 Following