Retirement may seem far away, but having a plan can help to ensure that you are financially secure when the time comes.
Here are some important points for you to consider:
- The first step is to think about how much you will need once you retire. The longer you live, the more money you will need. Research the options and costs of long-term care facilities long before you might ever need to consider moving to one. This will help you plan for possible costs down the road. Keep in mind that health costs could greatly increase during your later years.
- Starting to save early will allow you to reach your goals within a shorter time span.
- Be sure to pay off any debts as soon as possible so that you can focus on meeting your savings goals.
- Review your investment portfolio regularly –once per year or when your financial circumstances change. Talk to your financial advisor about your financial needs in retirement and the level of savings and types of investments that will help you get there, keeping in mind your comfort with risk and your ability to handle risk.
- Set up a power of attorney for property – someone you trust to handle your affairs in the event that you are unable to do so yourself. Once you have chosen your power of attorney, complete the appropriate documentation. Talk to your power of attorney about your wishes and let your advisor know who you have chosen. It is important to make sure that everyone is aware of your instructions.
- Be sure to have a will in place with details about your desired arrangements. In cases where there is no will, a court will decide how to organize and distribute your estate and this can be expensive.
- Take advantage of registered savings plans, such as Registered Retirement Savings Plans (RRSPs) or Tax-Free Savings Accounts (TFSAs). The tax advantages of these plans will help you reach your goals sooner.
Retirement is not a one-time event, but rather a life stage. Many people have active, vibrant lives in early retirement and live many years before requiring long-term care.
When planning for your retirement, be sure to consult with your financial advisor. Your advisor can help you plan to achieve your goals so you have peace of mind and are well-prepared for your later years.