Advice by Design: Retirement Planning

October 1, 2017

Retirement planning is strategic

There are many factors to consider to develop a strategic financial plan. This is why financial advisors apply their trained expertise to organize a strategy in the following key categories designed for your future retirement security:

  1. Net worth Add up all your assets and subtract your liabilities to get your financial net worth.
  2. Retirement income resources Within your assets of your net worth, determine the specific amount earmarked as saved for retirement from which to draw an income for a lifetime. Bear in mind that some of your assets will be fixed (not liquid for cash) such as your residence.
  3. Weigh debt interest against investment interest Debt accumulation must be mastered as it will drain any good retirement plan.
  4. Expiration potential of income resources  Based on how long you might live – your life expectancy – calculate just how much cash the funds can deliver for your lifetime per month. Then based on how much you determine you will really need to cover expenses per month, calculate when the money would run out or if you have enough saved to last a lifetime. Add in pension income sources. Income resource planning needs to accommodate reasonably achievable long-term goals while considering your risk tolerance.
  5. Investment action plan A systematic method of investing helps counter the effects of inflation.
  6. Invest with a mind to save tax Utilize all the tax planning strategies available with the government’s registered accounts.
  7. Invest for wealth creation If you have five or more years left you must invest if you haven’t reached your necessary accumulation from which to draw an income. Seek investment advice from a professional advisor.
  8. Invest for wealth preservation Once you have accumulated your nest egg, develop strategies to help protect against a capital loss, yet remain invested in suitable vehicles for your age. The following graph will denote how much money is necessary for a prolonged period of time in retirement.
  9. Get good investment advice There is the need to use a financial advisor who works in the realm of financial calculations while looking at your future income needs.

 

 

 

Publisher's Copyright & Legal Use Disclaimer

All articles are a legal copyright of Adviceon®Media.

The particulars contained herein were obtained from sources which we believe are reliable, but are not guaranteed by us and may be incomplete. This website is not deemed to be used as a solicitation in a jurisdiction where this representative is not registered. This content is not intended to provide specific personalized advice, including, without limitation, investment, insurance, financial, legal, accounting or tax advice; and any reference to facts and data provided are from various sources believed to be reliable, but we cannot guarantee they are complete or accurate; and it is intended primarily for Canadian residents only, and the information contained herein is subject to change without notice. References in this Web site to third party goods or services should not be regarded as an endorsement, offer or solicitation of these or any goods or services. Always consult an appropriate professional regarding your particular circumstances before making any financial decision.

Mutual Funds and/or Segregated Funds Disclaimer

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investment funds, including segregated fund investments. Please read the fund summary information folder prospectus before investing. Mutual Funds and/or Segregated Funds may not be guaranteed, their market value changes daily and past performance is not indicative of future results. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision. Talk to your advisor before making any financial decision. A description of the key features of the applicable individual variable annuity contract or segregated fund is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. Product features are subject to change.