The 9 things you need to know before you can retire comfortably.
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In This Episode
In this edition of The Key To Retirement, we’re going to talk about the 9 things you need to know before you can retire comfortably.
Bonus Segment
In today’s bonus segment we’ll talk about the non-financial side of planning to retire comfortably – your health.
And if you’d like to get a jump start on finding the answers to your key financial planning questions, using our proven system, you can book your risk free, no-obligation initial meeting. One of our specifically trained Certified Financial Planners will be pleased to walk you through The KAIZEN Financial Planning Process. Visit us online, at ironshield.ca, to obtain our contact information, then simply call or email to book your free initial meeting.
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Episode Transcript
Episode Title: 9 things you need to know before you can retire comfortably.
1. Show me the money! (What is your net worth)
This is important why?
- Important to have a clear picture of where you are financially, today.
- Important to have a listing of everything you own and owe, not only so you know where things are but for executors also.
2. What are your retirement revenue sources
This is important why?
- Get very clear about where all of your income in retirement is going to come from, how much you will receive and when (if at all) those sources will either last or when they will change in amount.
- It’s important to map out your retirement income in a retirement income plan to ensure you are aware of how these income sources will be affected by taxes and potential claw backs.
3. What are your retirement expenses
This is important why?
- Outlining all of your retirement expenses, how long they will last and when they will change will provide you with some comfort in knowing what your obligations are throughout retirement.
4. What is your debt management plan?
This is important why?
- If you are going in to retirement with debts, it is important to develop a debt management plan to get these debts paid off as quickly as possible.
5. What does your base plan look like
This is important why?
- By developing a “base plan” (which is a financial plan which simply maps out your current financial position right now, you will become very clear about whether or not what you are trying to accomplish financially is even doable.
- Also, this step answers your most important question: “Can I retire with the lifestyle I have become used to?”
6. What if??? (What if discussions – to build confidence)
- Is your plan Goals based or Cash Flow based?
- This is important why?
Goals based financial planning provides you with a clear idea of what you need to do to retire at a certain age with a certain level of income. However, it is less precise because of how the assumptions are set up. Discuss tax component.
Cash flow based financial plans do a much better job of mimmicking your actual retirement income and the taxes associated with the cash flow received from your plans.
7. Does your paperboy qualify for the same investments you are investing in? (Investing in appropriate solutions that you qualify for)
- This is important why?
- All too often we see the investment solutions clients are using have not kept up with their level of wealth. In other words, let’s make sure the investment solutions you are using are what you qualify for because if you qualify for a certain level of investment solution and are not using it, you are losing out on strategies and services that can make it a lot easier to generate the returns required to continue to accomplish your investment goals.
- Mutual Funds
- Pooled Managed Solutions (Al-in-one managed mutual funds)
- Discretionary wholesale investment programs (eg: investment counsellors and portfolio managers).
8. Help, I’ve fallen and I can’t get up. (Risk management)
- This is important why?
- We all have three eventualities
- Live long and healthy
- Live long and unhealthy
- Die pre-maturely
- A look at how each eventuality could impact your financial plans ability to provide for your family will reveal to you where you are exposed to financial risks.
9. Estate Planning
- This is important why?
- A review of what happens to the families wealth on the death of the second spouse is quite alarming. It is amazing how much CRA takes by way of taxes.
- Review what this amount is expected to be
- Put strategies in place to save against this tax erosion.
- Discuss the 5 legal canadian tax shelters.
Action Steps: Here’s what you can now do with this information…
Once you have answered these questions and are very clear about the details, your confidence level will rise.
Also, please go to the comments section and leave some feedback. Are there other topics you would like discussed?
Bonus Segment
In today’s bonus segment we’ll talk about the non-financial side of planning to retire comfortably – your health! We’ve talked a lot today about the financial side of retiring comfortably, but let’s not forget your health. Without your health, your financial planning may be all for naught.
If you haven’t had a physical in a while, maybe it’s time to book an appointment with your doctor. Have that nagging ache or pain checked out, or any other symptoms you’ve been too busy to deal with. And, remember, your emotional health is as important as physical health. Symptoms of sadness, guilt or hopelessness, or a loss of interest in your usual activities may be signs of depression. Depression is not a normal part of aging and can be treated.
Maybe it’s time to consider a comprehensive health assessment. There are now private clinics that offer this complete analysis of your health. Scott & I experienced first-hand the services of such a clinic – the Medcan Clinic in Toronto and found it was time and money well-spent.
Medcan’s flagship service is their Comprehensive Health Assessment which includes 12-15 sophisticated diagnostic tests, all performed at one location within a single 4 hour visit. Medcan’s objectives are to not only pick up early signs of disease, but also to give you a strategy to improve your health.
Check them out at www.medcan.com.
