9 Steps to Your Someday: Preparing for Retirement
Planning for retirement is about more than investment growth, something you can’t control; it is about what you want and that you can control! We can contrast and compare a variety of influences such as changing health, life expectancy, the desire for a range of activities and pursuits, family obligations, and the steady climb of the cost of living. We apply a friendly, personalized approach that produces significant results.
Determine out what you could have available. The idea that you may need several million dollars to retire can result in avoiding your numbers. The fact is the day you retire you don't take out all of your money; it sits there and continues to grow. Also, you could start receiving government programs like Old Age Security or Canada Pension Plan. Therefore, it's important that you follow # 2.
Ensure that you have a balanced nest egg. Have some investments in low-risk options so that you can pull out income on a monthly basis without having to worry about timing the market. Investing the rest of your funds according to your risk tolerance and timeline to benefit from growth is critical. People who are too conservative with all of their investments may not keep up with inflation resulting in less to live on.
Work with a financial coach or advisor. People who do, tend to have 3.9 times higher net worth after 15 years than those who go it alone. The Gamma Factor and the Value of Financial Advice, Montmarquette & Vienna-Briot 2016.
Explore and choose. Retirement is more than investments. You can control how much money you spend. Explore the things you want to do in retirement ahead of time such as big trips or small trips, new cars or previously owned, etc. You can focus on relationships and hobbies. You can control your debt. You can maintain your home and your health.
Practice living on your budget. It is a good idea to start living on your monthly retirement income 12 to 18 months in advance. You can make different choices and reduce surprises!
Consider your health needs going forward. Some of you will be coming off employer health benefit plans. Consider your future dental, medical and prescription needs and put a personal health plan in place.
Don't rely on downsizing as your only strategy. In the current housing market you could have less money than you planned in the bank after the sale proceeds of your home and the purchase of your new one. It may cost you more if you want a new updated residence.
Choose your estate goal. Do you want to skimp and save in retirement so you can leave a huge estate to your heirs? Do you want to spend it all? Or do you want to spend some and leave some? Set up your estate plan accordingly. P.S. If you choose to spend it all pay attention to point #9 below.
Be prepared for End of Life costs. Save in a small and separate tax free savings account (that has the executor as the beneficiary), or set aside money in a small insurance policy, or use funeral home policies.
Get ready! Book your Retirement Planning Sessions with
Fenske Financial Coaching.
Make choices for a comfortable & dignified life.
You choose how much planning you want. To keep the conversation going you can add as many sessions as you need and when you need them. Visit our website for more information https://www.fenskefinancialcoaching.com/retirement-plans