Financial Life Stages

POST EDUCATION AND EARLY CAREER STAGE

You may be getting training, attending college, starting a career, or finding a life partner, and spending is often greater than income during this period. Life might be getting pretty busy, but it is still important to take some time out to think about your financial goals and what you can do to achieve them.

Your goals may include:

  • Paying for post-secondary education
  • Buying a car or home furnishings
  • Building savings
  • Paying off debt
  • Building a good credit history


Protecting your Lifestyle

Insurance is probably the last thing on your mind… but insurance is important at every age. Consider what would happen if you couldn’t work for an extended length of time because of illness or serious injury? What would you lose if something unexpected were to happen to you and affected your life financially? The best time to make decisions about your financial protection is when you’re young, fit and healthy.


Planning for Your Retirement

Retirement might be over 40 years away, but the choices you make now can have a big impact on your future, so it makes sense to start planning as soon as possible.
Here are some questions you might consider:
Do you know where your employer’s super contributions go?
Do you know how many super accounts you have?

SEE HOW WE CAN HELP YOU PLAN FOR RETIREMENT


FAMILY AND CAREER BUILDING STAGE

Your life as a family has started and things might be a lot different to when you were young and independent – the most obvious being more responsibility. Do you have appropriate Insurance coverage?

Life is not just about you anymore. There may be a partner and a small family that also need you. Your focus and priorities are different and you have to start thinking about, and planning for, the future. Consider your lifestyle now and what you could lose if something unexpected were to happen to you in the future and you didn’t have enough insurance. The best time to make decisions about keeping your financial future secure is right now when you’re young and healthy.

Your goals may include:

  • Buying a house and life insurance
  • Reducing taxes
  • Growing savings
  • Preparing a will
  • Opening and Registered Retirement Savings Plan (RRSP)
  • Starting a new business


PLANNING FOR YOUR RETIREMENT

With a young family, we know your time is precious and thinking about your 401(k) or ORA, etc. is probably the last thing on your mind. However, your retirement savings is one of the most important investments for you and your family, and it isn’t just a set- and-forget investment.

As your needs and priorities change over time, your investment mix and asset allocation may also need to change. Depending on where you are in life, you may be willing to take on more investment risk, while at other times, protecting the money you’ve saved will be more important. Other factors to consider include consolidating all your retirement accounts into one – where possible - and being aware of the tax benefits of these types of plans.

SEE HOW WE CAN HELP YOU PLAN FOR RETIREMENT


PRE-RETIREMENT STAGE

Your children are grown up and have most likely started their own lives and families, and your own work is winding down as well. This leaves you and your spouse with time to focus on the things you may have delayed because of family commitments. Your expenses may start to go down, and savings can really start to build. If you have children, you may help pay for their education and weddings, or possibly help them buy their first home.

Your goals may include:

  • Paying off a mortgage and other debt
  • Reducing taxes
  • Growing retirement savings
  • Sending kids to college or university
  • Starting a new business
  • Planning for retirement

Empty nesters, may find their debt decreasing, but may still have some financial commitments. So it’s important to consider how your spouse would cope if something unexpected happened and you were unable to work. Would you have to delay retirement, or would your spouse have to stay in work or give it up to take care of you?

Insurance is your safety net. It is there every day of the year in the event you become ill or seriously injured. It is important to make sure it’s always kept up to date – as your circumstances change, so too should your insurance.

Most funding for retirement is done from age 50 onwards, when you need the capacity to invest for your future. The great thing about insurance is that it protects you against loss of your income both before and after you’ve retired.


Preparing for Retirement

Retirement is just around the corner. And while many investors in their 40s and 50s are planning for 20 years in retirement, there is a good chance their retirement will last 30 years or longer. The risk of not having enough savings at retirement is one of the key challenges for retirees. That is why it is important to make sure your current plan is right for you and will provide you with enough money to live comfortably for the rest of your life.

In our experience, our clients' definition of a "comfortable" retirement varies, and it is challenging to know exactly how much money it will take to provide the lifestyle they may want. This is where we come in. We assist to identify how much to save, then plan how to achieve the retirement you want.

Often overlooked, in many cases, the client's identity is intertwined with what they do for a living, providing a sense of pride and purpose. Concerned that without the ability to earn a living, their worth is diminished, and therefore, it is no surprise that the word “retirement” may have a negative connotation, signaling a loss of this identity and sense of purpose. It often leads to the question, “What am I going to do now?”

We suggest that our clients not just retire, but to “re-wire,” (attributed to Jeri Sedlar, motivational speaker and author of “Don’t Retire, Rewire!”). It is a concept in which we strongly believe. We are here to assist!

We hope to see that individuals approaching retirement have a solid plan designed to achieve the financial independence they need to "re-wire" for the next chapter of their lives – one that is fulfilling and keeps them engaged and connected for the years to come.

SEE HOW WE CAN HELP YOU PLAN FOR RETIREMENT


Long Term Care Planning

As life expectancies in the United States continue to rise each year, people can anticipate extended youth and longer retirements. At the same time, the cost of any healthcare they may require continues to increase.

As a result, more and more people are looking at long-term care insurance (LTC) as a way to protect their lifetime savings. The decision to make long-term care insurance part of your financial plan is an important one that you should approach much as you would any other major spending decision.

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RETIREMENT STAGE

You may want to work less while your health is good enough to support an active lifestyle. Perhaps you want to travel, do volunteer work, or continue part-time work.

Your goals may include:

  • Starting a new business
  • Turning retirement savings and pensions into income
  • Managing taxes
  • Managing savings to last
  • Making changes to your will and estate
  • Considering options for assisted living


Making Your Retirement Savings Last

These days you can look forward to a longer retirement than ever before, with the current life expectancy for a 65 year old being 80 years for a man and 84 years for a woman. So while many people plan for 20 years in retirement, there’s a good chance your retirement will last 30 years or longer.

By understanding how much you’re likely to spend each year of your retirement, you can put a plan in place to make sure your savings last.

SEE HOW WE CAN HELP YOU PLAN FOR RETIREMENT


Long Term Care Planning

As life expectancies in the United States continue to rise each year, people can anticipate extended youth and longer retirements. At the same time, the cost of any healthcare they may require continues to increase. As a result, more and more pre-retirees are looking at long-term care insurance (LTC) as a way to protect their lifetime savings. Also, purchasing it at an earlier age, will save you a great deal of money. The decision to make long-term care insurance part of your financial plan is an important one that you should approach much as you would any other major spending decision

LEARN MORE