In this episode, we delve into the best time to claim your Canada Pension Plan (CPP) benefits and welcome back Prof. Meir Statman to talk about the role of finances in well-being. Although the focus of this episode is on Canada, there will be many relevant and valuable insights for our non-Canadian listeners. In our conversation, we discuss the importance of understanding the intricacies of CPP benefits, the fundamentals, and how individuals can optimize their retirement income by making informed decisions. Explore the importance of understanding when to claim CPP benefits, how much future financial security a CPP offers, and why the CPP is one of the most valuable retirement assets for most Canadians. Gain insights into how wage growth ties into CPP benefits, the exceptions to deferring a CPP claim, and what made 2022 different regarding CPP claims. Then, we investigate the role of finances in well-being with Prof. Meir Statman through the lens of his new book, A Wealth of Well-Being. Discover why wealth advisors must evolve into well-being advisors and uncover the impact of finances on various life domains. From dating to education, we discuss the profound financial correlations shaping happiness and well-being. Join us as we uncover the nuances of CPP benefits and find out why it is better to give with a warm hand than a cold one. Tune in now!
Key Points From This Episode:
(0:03:25) Unpack the fundamentals of the Canada Pension Plan (CPP) benefits.
(0:10:04) How the timing of making a CPP claim is linked to the benefits.
(0:14:15) Ben explains the financial implications of deferring a CPP claim.
(0:21:34) Uncover common approaches to identify the best time to claim a CPP.
(0:26:06) Learn about the situations when it is best not to defer a CPP claim.
(0:31:12) Why the CPP is one of the most valuable retirement assets for most Canadians.
(0:39:11) Introduction to returning guest, Prof. Meir Statman.
(0:41:11) How well-being fits into the study of behavioural finance.
(0:45:48) Discover the role of finances in different domains of life well-being.
(0:49:38) Hear why wealth advisors need to change to being well-being advisors.
(0:53:55) Explore the relationship between finances, social status, and overall well-being.
(0:58:42) Whether too much self-control in spending can be a problem.
(1:01:42) The effect of finances on dating and marriage and how work plays into well-being.
(1:05:38) Find out how education fits into well-being and why it is a major regret for people.
(1:11:32) Gain insights into how religion and faith can enhance well-being.
(1:15:12) The after-show: ideas for the podcast, feedback, segregated funds, and more!
Links From Today’s Episode:
Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/
Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/
Rational Reminder on X — https://twitter.com/RationalRemind
Rational Reminder on YouTube — https://www.youtube.com/channel/
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/
Benjamin on X — https://twitter.com/benjaminwfelix
Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/
Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/
Cameron on X — https://twitter.com/CameronPassmore
Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/
Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/
Mark McGrath on X — https://twitter.com/MarkMcGrathCFP
Prof. Meir Statman — https://www.scu.edu/business/finance/faculty/statman/
Prof. Meir Statman on Twitter — https://twitter.com/meirstatman
Episode 258: Prof. Meir Statman — https://rationalreminder.ca/podcast/258
The Canadian Institute of Actuaries (CIA) — https://www.cia-ica.ca/
Society of Actuaries (SOA) — https://www.soa.org/
FP Canada — https://www.fpcanada.ca/
When Should You Start CPP? — https://www.youtube.com/watch?v=r9vYji99fhk
CE Drive with Jason Watt — https://cedrive.podbean.com/
Episode 137: David Blanchett: Researching Retirement — https://rationalreminder.ca/podcast/137
Episode 254: David Blanchett: Regret Optimized Portfolios and Optimal Retirement Income — https://rationalreminder.ca/podcast/254
Episode 289 - Retiring Retirement Income Myths with the Retirement Income Dream Team — https://rationalreminder.ca/podcast/289
Jason Yi on LinkedIn — https://www.linkedin.com/in/jason-yi-cpa-ca-56544446/
Episode 225: The Index Fund "Tipping Point” — https://rationalreminder.ca/podcast/225
Books From Today’s Episode:
A Wealth of Well-Being — https://www.amazon.com/Wealth-Well-Being-Holistic-Approach-Behavioral/dp/1394249675
Wealthier — https://wealthierbook.com/
The Algebra of Wealth — https://www.amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024
Sleep Well, Take Risks, Squish the Peas — https://www.amazon.com/Sleep-Well-Take-Risks-Squish/dp/0757324711/
Papers From Today’s Episode:
‘The CPP Take-Up Decision: Risks and Opportunities’ — https://www.soa.org/4a223f/globalassets/assets/files/resources/research-report/2020/2020-cpp-take-up-decision.pdf
‘Get the Most from the Canada & Quebec Pension Plans by Delaying Benefits’ — https://www.fpcanadaresearchfoundation.ca/media/5fpda5zw/cpp_qpp-reseach-paper.pdf
‘Financial Advisor Compensation Structure and Client Equity Allocations’ — https://www.tandfonline.com/doi/full/10.1080/15427560.2023.2294812
Episode 290 - Morgan Housel: Same as Ever
Episode 289 - Retiring Retirement Income Myths with the Retirement Income Dream Team
Episode 288 - Scott Rick: Navigating the Money Minefield in Real Relationships
Episode 287: A Practical Look at Private Equity w/ Steve Balaban & Epic Life w/ Justin Breen
Episode 286: Errol Morris: Tuning out the Noise
Episode 285: A Year in Review
Episode 284: Prof. Scott Cederburg: Challenging the Status Quo on Lifecycle Asset Allocation
Episode 283: When Volatility is Risk, and Introducing The Money Scope Podcast
Episode 282: Dr. Jim Grubman: The Psychology of Wealth
Episode 281: Lifecycle Asset Allocation, and Retiring Successfully with Justin King
Episode 280: Shane Parrish: Clear Thinking in Everyday Life
Episode 279: Stock Returns in Recessions, and FSRA's Approach to Regulation
Episode 278: Juhani Linnainmaa: Financial Advisors, and the Cross-Section of Returns
Episode 277: The Cash Wedge w/ Phil Briggs, and and the Four Ds of Tax Planning
Episode 276: Darin Soat: The Problem with Finfluencers, and Why it Won’t Get Better Anytime Soon
Episode 275: Live from Future Proof 2023: Decoding Financial Decision-Making with Hal Hershfield
Episode 274: A Live 5-Year Rational Reminder Retrospective (and Creating Superfans with Brittany Hodak)
Episode 273: Professor Samuel Hartzmark: Asset Pricing, Behavioural Finance, and Sustainability Rankings
Episode 272: Rob Carrick: Canadian Personal Finance in 2023
Episode 271: Expected Returns of the AI Revolution (plus People are Lying to you About Money w/ Anthony Walsh)
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