Approaching retirement is an exciting and significant milestone. It marks the transition into a phase of life where you can enjoy the fruits of your years of hard work.
However, it is also a time that requires careful planning and consideration. To ensure a smooth and worry-free retirement, Wealthy Roots Financial in Kamloops has the top five things to review as you get more serious about this new chapter in your life.
1. Pick an advisor: The first step is to choose a financial planner skilled in retirement planning, investment management, estate planning, and creating income projections. An advisor is invaluable not just for growing your wealth, but also for helping you plan for all aspects of retirement. The right advisor can guide you through complex financial decisions and provide personalized advice based on your unique situation.
2. Review your RSPs: As you near retirement, it’s crucial to reassess your portfolio. This is the time to carefully select investment funds that align with your need for income during retirement. Your financial planner should discuss strategies like an income wedge and help you plan for the retirement lifestyle you envision.
3. Understand your pensions: If you have a work pension, it’s essential to fully understand the options available when you start drawing income from it. Your advisor can help you navigate these choices, ensuring you don’t just opt for the plan with the highest monthly payment without considering other important factors.
4. Evaluate CPP and OAS: Government benefits like the Canada Pension Plan (CPP) and Old Age Security (OAS) are significant income streams in retirement. The decision of when to take your CPP isn’t one-size-fits-all. Discussing this with your planner is critical to making the right choice for your specific circumstances.
5. Health and dental benefits: Consider if you can convert your existing benefits to a private plan or if they will continue through your pension. An advisor can help you determine which benefit plan is not only most beneficial but also offers the best value from a cost perspective.
It’s also beneficial to meet with your planner and do income projections leading up to retirement. This helps align your vision of retirement with your savings, addressing the crucial question of: Can I retire?
Understanding each aspect of retirement planning can be daunting. Financial planners like Wealthy Roots Financial are available to ensure you don’t have to navigate this journey alone. They can take the stress out of decision-making, providing peace of mind.
Finding a financial planner with whom you can build a long-term working relationship is key. They will be your ally through retirement, offering guidance through market fluctuations and life changes.
The mother-daughter duo of Sandy Vollo and Shelby Seath at Wealthy Roots Financial have the experience, knowledge and compassion to guide you on your retirement path. To set up a meeting with the dynamic financial tandem, visit the Wealthy Roots website here.
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