The day is drawing closer. After years of planning and investing in your future, your retirement date is just around the corner. However, are you sure you’re financially ready to retire? I can help answer that question for you. It’s estimated that roughly 35% of Canadians approaching retirement have little to no savings. It’s important to look at your retirement from all perspectives to make sure you have all your boxes checked off. If you’ve completed these three very important steps outlined below you’re well on your way, but if you’d like a second set of eyes to review your plans we can set that up too.
1. You have reviewed your current investments
Firstly, it’s important to review your current savings and evaluate if you have enough. Are you unsure of how much you need to have saved before you retire or worried about any financial setbacks you might have had? There is no need to stress! Speaking with a trusted financial advisor can assist you with that by helping you discover your savings in areas like your insurance policies which you may have overlooked. In Canada, there are many opportunities available for you to maximize your savings and invest more in your retirement. Have you looked into RRSPs and TSFA accounts? Do you know their true value and how to convert those investments into retirement cashflow? Visit this area of our website and review these and other investment options. If you’re unsure whether you’ve got what you need to live your retirement in comfort let me know and together we will find the answers to your looming questions.
2. You have planned your expenses
You have money saved, but have you reviewed your living expenses? It’s important to take into account the total cost of bills, healthcare or other expenses you may have in retirement. One idea is to track your spending over the course of a few months to better understand what you will need to have saved. It’s very important not to randomly estimate the amount you might be spending as well. That’s fine to do years in advance, but not when you’re just about to approach your retirement. You should have a monthly financial plan prepared.
Have you also reviewed any major expenses you might have when entering retirement? Are there any major house repairs in your future such as a new roof or other renovations? Be sure to review your life from all angles and ensure that there are no surprises hiding around the corner.
3. You have paid off your debt
You do not want to enter retirement with debt. Are you still making mortgage payments, your children’s or even your own education or car loans? If so, have you calculated them into your living expenses? It’s recommended that when entering retirement, you do so debt free to alleviate stress on yourself and your living expenses. This can also affect how you save and invest your money as well. When you don’t have debt to worry about, you can be more flexible with how and where you spend your money.
Your retirement is your time to finally relax and live stress-free without that pesky 9 to 5 grind – so don’t let any forgotten expenses or debt stop you from living well in your golden years. Have a plan, be prepared and commit to your future. Have any questions or concerns about your investments or saving for your retirement? I’d love to help! At Synergy Life Financial, my goal is to help you make the most of your money and help you invest wisely so when you are ready to retire, you can do so with ease. E-mail me, Darryl Smith today at info@synergylife.ca to review your portfolio and evaluate where you stand with your retirement and what steps you need to take to make the most out of your savings.