Retiring doesn’t mean that you should stop retirement planning. Here are top retirement planning steps that will serve you well before and during your retirement:
Calculate how much money you will need when you retire. Use realistic rates of return when calculating how long your investment will last and do not ignore the effect of inflation. - Review estate plans on a regular basis. Ensure executors, powers of attorney, beneficiaries of registered plans and insurance policies and charitable causes are up to date. Second marriages and death of a spouse are significant triggers for an estate review.
What will be your sources of income? Knowing where your retirement income will come from; government or company pension, registered plans such as a RRIF or RRSP, non- registered funds or tax-free savings accounts. Plan sources of income to best fit your tax situation. - Get professional advice and do not hesitate to get a second opinion if you are not sure you are getting the service or advice you need. The knowledge and recommendations of a financial advisor can help you to keep on track and reduce your stress level over your finances.
Day to day market volatility and economic news, good or bad, can be overwhelming at times. Knowing what is important and what to ignore is no simple feat in this day and age of instant information. If you are losing sleep over your current or future financial situation, seek professional advice. After all, your own happiness, peace of mind and security will make retirement all that it is supposed to be.