Tag Archives: financial plan

KEY003 | The 9 things you need to know before you can retire comfortably.

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.

Links to things mentioned in this episode:

 

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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
  1. Live long and healthy
  2. Live long and unhealthy
  3. 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.

KEY002 | The difference between financial goals and financial objectives, and how important it is that your financial planner understands the difference between the two.

The difference between financial goals and financial objectives, and how important it is that your financial planner understands the difference between the two.

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | RSS

WELCOME TO THE KEY TO RETIREMENT™ PODCAST!

To subscribe to the podcast, please use the links below:

If you have a chance, please leave me an honest rating and review on iTunes by clicking here. It will help the show and its ranking in iTunes immensely! I appreciate it! Enjoy the show!

In This Episode

In this edition of The Key To Retirement, we’re going to talk about:

    • the difference between financial goals and financial objectives, and how important it is that your financial planner understands the difference between the two.  Because, if they don’t, you will never know when you have accomplished what you set out to.

Bonus Segment

In today’s bonus segment, we’ll share with you:

    • how to get leading edge information on just about any topic delivered to you as it comes out.  And no, it’s not searching through google.

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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Mike Flux – Investment Review and Update Q2 2011

Hello everybody and welcome to another one of IRONSHIELD Financial Planning’s “Fly On The Wall” webinars.

If this is your first time tuning in to a “Fly On The Wall” recording, let me quickly explain to you what this is.

You are going to experience what it’s like to be a “fly on the wall” during one of my update calls with a member of our Top Guns Network.  This network is my personal network of specialists.

Every so often, I ask a member of my network to touch base with me to bring me up to speed on the latest happenings in their area.  And when they call me, I record the call so you can be a “fly on the wall” for that call.

On today’s episode

I invited Mike Flux, VP of Connor Clark & Lunn Private Capital to summarize for me what has happened in the global markets during the 2nd quarter of 2011.  He not only explains what happened but explains what their strategy is moving forward.

Please click on the video below to watch & listen to the call:

(Duration 26:11)

KEY001 | Three Critical First Steps In Determining If You Need To Work With A Financial Planner

Three Critical First Steps In Determining If You Need To Work With A Financial Planner

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | RSS

WELCOME TO THE KEY TO RETIREMENT™ PODCAST!

To subscribe to the podcast, please use the links below:

If you have a chance, please leave me an honest rating and review on iTunes by clicking here. It will help the show and its ranking in iTunes immensely! I appreciate it! Enjoy the show!

In This Episode

In this edition of The Key To Retirement, we’re going to talk about The Three Critical First Steps In Determining If You Need To Work With A Financial Planner

In today’s quick tip we’ll share a website you can use as a resource for finding a certified financial planner in your area.

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.

Bonus Segment

In today’s quick tip, we’re sharing a resource for finding a Certified Financial Planner in your area so that you can begin your journey towards hiring a financial planner.

Historically, the easiest way to get a list of names of firms to meet with was to go to your local yellow pages directory.  The problem with this is that you are only going to find firms who have paid to be in those books.  That doesn’t mean that they are all qualified.  It just means that they have paid to be there.

However, now you can go directly to the organization that’s sole objective is to promote and enforce the professional standards for financial planning in Canada.  The Financial Planning Standards Council of Canada has a ‘Find A Planner’ section on their website.  You can even use a Google Map Tool to show you all of the practicing Certified Financial Planners in your area.  Simply key in your postal code and it will generate a listing of all your local planners.  You can read their profiles and link to their websites to find out more about them before you actually call.

This website is www.fpsc.ca .

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City of Toronto Mayor, Rob Ford is proposing a once in a lifetime package offer for city of Toronto employees…

If you are a city of Toronto employee, you will be very interested in this post.  Because it could be a financial windfall for you.

The story goes like this:

Toronto City Hall is offering a buyout package to all permanent public service employees.  The offer will be three weeks pay for each year of service up to a maximum of 26 weeks pay (or 4 weeks for each year if your senior management).  All employees wishing to accept this offer are required to apply by September 9th, 2011 to then have their application reviewed.  They will then find out if their application has been accepted or denied by October 1st, 2011.

Here are my thoughts on this.

So far, after reading as many articles and notices I can get my hands on relating to this topic, not one of them has touched on the most important factor in helping people know whether this is a good deal for them or not.  The articles either touch on how bad it is for the city and how all of the “good” talent will be lost or how Rob Ford has reneged on his platform promises.  In my mind, the most important thing that needs to be looked at is how to we assist the tens of thousands of people in making the right decision?

I mean here is a group of people who have worked the majority of their lives for the city and who have relied upon “others” (unions, human resource departments, etc…) for all of their financial guidance.  And now, providing initially little to no information the City is telling these people that they will have to make their decision by September 9th as to whether or not they want to accept the package being offered to them.

Also, the articles and reports are currently paying lip service to the fact that a lot of these employees who are going to qualify for the full 26 week package (those who have worked almost nine years for the City) will also have to decide how to properly transfer their pension plan.  If you’re considering this package (and you should consider it), this one statement should bring a bead of sweat to your brow.

Why would you begin to sweat?

Well, consider that a long standing employee who has worked for the city for many, many years has build up an entitlement to a defined benefit pension plan.  And, that same employee (who up until now has viewed that defined benefit pension plan as an amount of cash flow they will receive during their retirement – $3,000 a month, $4,000 a month, etc…) will now have to decide how to properly manage the pool of capital that has been accumulating for them that was to pay their annual pension income.  But now, they are going to be asked to take this with them and manage it themselves.  This could be a decision on a sum of money that most only dream about receiving – from say a lottery.  But now, they are being asked to make a decision on potentially millions of dollars – their nest egg – in a few weeks.

Nobody has provided any counsel on the options these employees are going  to be faced with.

Who do you call?  Call a Certified Financial Planner.  What is considered the “gold standard” when it comes to licensing in the financial planning field.  This group will assist in analyzing the options.

And, what are some of the options that should be considered:

  1. Transferring to another pension plan (either a new employer’s plan or an Individual Pension Plan)
  2. Transferring to a locked-in registered plan
  3. Transferring to an annuity
  4. Opting for a deferred pension.

Working through the options with a qualified compensation specialist will provide confidence and piece of mind that is hard to come by.  When a package like this is being offered, you really should analyze all of your options first, so you can make a knowledgeable decision.

Should you be interested in keeping abreast of your options via email, please register below and we will send you updates and comments as new information presents itself.


Mike Flux – Investment Review and Outlook Q1 2011

I spoke with Mike Flux, VP Connor, Clark & Lunn Private Capital for an exclusive review of the significant events that took place in the first quarter of 2011.

We also spoke about what investment options need to be considered by investors today to take advantage of the current economic environment.

I recorded the online meeting I had with him so that you could have a “behind the scenes” look and listen to the conversation.

Enjoy!

Scott E. Plaskett, CFP

(Duration: 56:35)

On The Cutting Edge – Webinars

Webinar – A web-based seminar that we conduct – live – giving you the opportunity to hear directly from members of our team as well as creating a forum for education on a variety of financial topics.

In another “first”, we launched our new Webinar series in the last calendar quarter.

Now you already know that utilizing technology is nothing new at IRONSHIELD. We’ve always tried to make use of the efficiencies that technology can offer us – administratively. Next, we took it to our processes. The ones you’ll know best – to name but a few – The KAIZEN Financial Planning Process™ and the original Asset Mix Optimization Process™. Then, we used technology to improve access; access to online statements, access to online meetings and to reduce access; client data protection – and now, Webinars!

Our goal is to maximize technology, without losing the personal touch. And that seems to be getting notice. Dan Richards, President & CEO of Strategic Imperatives Corp. sought Scott out on Investment Executive TV to describe the technology platform he uses for effective webinars and online client meetings.

Back to the Webinar… The inaugural event featured an exclusive chat with Connor, Clark & Lunn’s  VP and Chief Investment Officer (CIO), Jeff Guise. As Chair of the Portfolio Strategy Team, Jeff is responsible for investment strategy within the Private Client Group and oversees both strategic and tactical changes in asset allocation.

Next up in our webinar series was – Stephen Lingard from Franklin Templeton. As co-lead manager for the Quotential Program, Lingard spoke about what drives security selection and what factors influence his decisions as a money manager.

And check out our website regularly for news of upcoming webinars…

2009 — The Year It Paid Off to Stay In

Congratulations!  You rode out the 2008 market correction without changing course – and now it’s paid off (and what a payoff).  Although we experienced an extremely tough year in global markets in 2008, those who stayed invested – and invested more – benefited from one of the biggest stock market rallies since 1979.  Close to home, the S&P TSX Composite Index was up 30.7%! Anyone who wasn’t invested in 2009, missed the steep and fast market bounce-back, which saw dramatic gains in stock prices.  And of course any new money you invested during the year benefited from the growth as well.

The sad truth is, for most Canadian investors, the gains of 2009 were left on the table – a January 2010 survey by Angus Reid and Franklin Templeton showed a whopping 87% of Canadians failed to invest because they were still spooked by the market meltdown of 2008 – moreover, they were completely unaware of the stellar market rally taking place around them.  In fact, only 20% of them knew of the TSX’s positive performance during the year.

This is a prime example of how skepticism and fear can cloud our judgment. There was certainly a lot of pain in the markets during 2008. Although it was a good time to take stock of your portfolio, the key was to avoid the temptation to panic. Your investment profile should guide your decisions, not only in up markets, but also in down markets. We urged you to stay the course – stick with your plan – and you listened. So take a moment to look back and appreciate your steely resolve – it served you well and kept you focused on your future during tough times. That’s the discipline that will see you realize the financial goals you’ve set!

And if your resolve starts to weaken, remember we are only a phone call or an email away…