DO YOU THINK ABOUT THESE THINGS?
How long will money last? Am I going to be okay?
How much can I spend so I won't run out of money?
When should I take my government benefits (CPP and OAS)?
Which accounts should I draw on first for income?
What is the earliest age I can retire, or can I retire by ‘XX’ age?
How much will be left for my children?
So many Canadians have these questions and when they go into the bank they are usually just presented with an investment plan (high fee/in-house mutual funds). This doesn't get to the root of the problem, and in many cases it just adds anxiety and more uncertainty for the client.
For example, Timmy wants to spend $55k a year when he is retired, and wants to know how sustainable that would be, based on his current situation(financial assets, real estate, and government benefits).
This 'one pager' puts those concerns on paper in a digestible format, which allows for an open conversation on all of Timmy's options moving forward.
It's important you can see what you're on track for, and how you can create a practical retirement that will give you peace of mind for the next 20-40 years. The earlier you start planning, the more control you'll have over your retirement.
Many advisors just focus on investment returns, but that is just scratching the surface. Of course we want to create an optimal investment portfolio, but more importantly, how does cash hit your bank account every month in retirement? How do we get there, and what are your expectations?
What are you investing for, and are you doing it in the correct accounts based on your future expectations?
That is exactly why this one page financial plan helps so many clients understand where they're at, and where they want to go in the most practical sense, that extends well beyond a yearly investment statement.
While it’s important to arm yourself with as much knowledge as possible to make sure you are in control of your retirement, it doesn’t hurt to seek help. You could consider working with a financial planner to help build your retirement plan
Comments