If carefully planned for the retirement years may indeed be the golden years!
The objective is to retire to something, not just from something. The key to a satisfying retirement is to start
early. If you start thirty five years before retirement you may only need to set aside $250.00 a month,
whereas if you wait and start fifteen years before the retirement date you may need to save $850.00 per month to achieve the goal.
Financial Independence
Starting early to save for financial independence provides you with options in the later years that might not otherwise be available.
Getting Started! - Questions that need to be answered:
- When do I want to make work optional?
- What kind of lifestyle do I want when I retire?
- How much money will I need to fund that lifestyle and how long does the money need to last?
- Do I want to consume the capital or will I live on the income generated from the capital?
- How many income streams will I have?
> Will I have a pension am my place of employment?
> Will I qualify for government pensions?
> When do I want to start using income from my RRSP?
> Will I be relying solely on my savings?
- Am I saving through RRSP's and benefiting from the tax deferral?
> Have I used all of the RRSP contribution room available to me?
- Does my retirement plan take into consideration rising medical costs?
> Do I have living benefits insurance in place to offset those costs?
- Do I have private long-term disability insurance in place through my working years?
> Having to deplete retirement savings because of disability is devastating and might have been avoided with the right risk management strategy in place.
- Do I need to modify my current lifestyle in order to ensure financial independence?
It's better to know that now rather than later when it's too late.
Retirement Planning takes all of the above into consideration and is the key to providing peace of mind for the future.
|
