Your Retirement Plan: Staying The Course

During the past several months, a few clients have expressed concerns about world events and the potential impact on their investments. Concerns cited have included the ongoing Russia-Ukraine war, rising interest rates, inflation, recession, and weak economic news and so on.

If you have questions about current economic news this is a good opportunity to refocus on the long-term picture. The first question to ask yourself is what are your long-term financial goals? What are your objectives over the next 5-10 years, and have they changed?

Some readers may suggest that these questions are used by financial people simply to brush off concerns or to avoid answering tough questions. But as we dig into these questions, the real concern is usually: “Is my plan still on track?”

When it comes to your overall financial plan you probably fall into in one of two broad camps. The first camp (the largest) are people still building their financial assets. They are growing their portfolios, Government or corporate pensions and other assets so that in retirement they can enjoy a desired lifestyle - without having to work for extra income.

Consumer surveys published by the financial press commonly state that average Canadians desires a $50,000 retirement income. Assuming an ROI (return on investment) of 5%, assets of about $1,000,000 would be needed to achieve the desired retirement income goal and maintain enough capital to help offset any future inflation or taxes increases.

Please note this is a very simplified model and if you are in the top 10% of all wage-earners, or your retirement income spending goals are higher or lower than $50,000, then the math gets more complicated - but the principle remains the same.

Also, if you qualify for the maximum CPP and OAS, that indexed retirement income would be equivalent to about $400,000 of retirement assets - assuming a 5% ROI. RRSP, TFSA or unregistered investments can then make up the remaining $600,000 needed to reach the retirement income goal.

The second camp are those Canadians who already have enough assets to fund their retirement lifestyles or who have wealth beyond that which is needed solely for lifestyle income planning. These individuals need different advice and tactics to achieve their long-term wealth goals.

We encourage those in the first camp to keep their eye on the long-term big picture. Stick to the plan of contributing regularly to a retirement savings plan, having a cash reserve, emergency food, money, and so on - according to specific needs.

Scenario planning gets more complex as more variables are added like your age, time horizon to retirement, health, longevity expectations, inflation, taxes, etc. but having a solid written strategy can help you stay on track with your retirement plan - no matter what is happening in the world around us.

Please contact our office should you want to review your specific situation.


Copyright © 2022 AdvisorNet Communications Inc., under license from W.F.I. All rights reserved. This article is provided for informational purposes only and is based on the perspectives and opinions of the owners and writers only. The information provided is not intended to provide specific financial advice. It is strongly recommended that the reader seek qualified professional advice before making any financial decisions based on anything discussed in this article. This article is not to be copied or republished in any format for any reason without the written permission of the AdvisorNet Communications. The publisher does not guarantee the accuracy of the information and is not liable in any way for any error or omission.

What our clients are saying...

  • When working with a financial planner, my expectation is to work with someone who is responsive to changes and who can devise a path forward as we age for the benefit of ourselves and our children. I valued the depth of detail and explanation along with the disclosure of all the variables at play. I would certainly recommend Anthony to my family and friends!

  • I was looking for a financial planner who could provide clarity and show me the best possible way to structure and plan for my retirement. Anthony’s expertise was clearly evident. He is professional, punctual, and answered all my questions and concerns. I would definitely recommend Anthony to my family and friends.

  • We expect a Financial planner to be thorough, detailed and have a strong understanding of their clients' needs. It was a pleasure working with Anthony and his team. He delivered a tremendous package and reviewed his findings in great detail. Anthony's attention to detail, solutions, recommendations and in-depth reports provides a great deal of confidence in his recommendations. We would absolutely refer our family, friends and associates to Anthony.

  • I expect my financial planner to review and discuss my financial goals along with how my goals can be achieved. I valued Anthony reviewing my investments and the projections of what they will equate to when I reach my eventual retirement. Anthony has certainly met my expectations and I would be happy to refer my family and friends.

  • My expectation was to be provided with the best possible advice specific to my situation (as it evolves) and to be provided with objective, evidence-based solutions which will provide me with the maximum financial benefit (and peace of mind). I valued the very thorough process of gathering all pertinent information regarding my estate, pension, income and expenses in order to produce a very detailed and fulsome projection of my current and future financial situation. I really appreciate the time Anthony has taken to answer all of my questions and provide sound advice based on my goals and concerns. I am really looking forward to continuing my investment and financial planning journey with Anthony. I would certainly recommend Anthony to my family and friends!

  • We valued receiving a detailed report and explanation of our finances. When working with a financial planner, we expect to have our questions answered with adequate detail and to have a plan developed to help grow our money. Our expectations were clearly met and we would be happy to recommend Anthony to anyone looking for a Financial Plan.