In my over 40 years in the planning business, I have found that many people accumulate money for their retirement, but few have an actual plan in place, one that turns their savings dollars into income for their retirement years.

Unfortunately, most of the information readily available in the marketplace today is about the “savings or accumulation years”.  You don’t have to look far to find information about rates of returns, or low fee options, but trying to understand how it all fits together in the future… that information is a little harder to come by.  

So, how do you get to spend and enjoy your money in the future, with peace of mind that it won’t run out?  

Well, this is where the value of a Financial Advisor and a Retirement Plan come in.

Why is having a plan so important?

Taxes: As you earn and accumulate money, the government takes a larger and larger chunk of your financial future, in the form of taxes.  Whether you pay your taxes up front, or pay them in your retirement years through your RRSP and Pension Plans, either way, you have to pay.  However, with a well-crafted financial strategy, you can minimize taxes during your earning years while ensuring a tax-efficient income in retirement. By focusing on smart planning today, you can preserve more of your hard-earned money and create a sustainable income stream for the future.

The Income Plan:  Part of the goal in retirement is to be able to enjoy a nice lifestyle, while not paying too much in taxes.  To do this, your plan needs to be “tax efficient”.  This means that you need to have multiple sources of income that are not all taxed the same.  In addition to RRSPs, employer pension plans, and government pensions (CPP & OAS), it is important to have money accumulated in TFSA (Tax-Free Savings Accounts), and non-registered savings plans.  By diversifying income sources, you can balance taxable and non-taxable income, reducing your tax burden. Our goal is to help you enjoy retirement while minimizing taxes.

Flexibility:  One of the most important things in a retirement plan is flexibility.  Life has a way of throwing curve balls at us along the way.  Many people I meet have very little flexibility in their financial lives.  Some of them have their money tied up in GICs, or only have “fixed income” pensions, that don’t allow for taking additional money as needed when the challenges of life show up in the future.  A well-designed plan has money set aside and readily available when needed, ideally without triggering a bunch of tax to use it.

Longevity:  A well-designed retirement plan considers living a long life or your spouse outliving you. It's crucial to have enough savings for these scenarios. The question of whether you have enough money to retire comfortably is a common concern in my financial planning business, emphasizing the need to assess retirement readiness.

Leaving a Legacy:  After years of hard work, and building up your nest egg for retirement, it would be nice to know you have enough to spend and enjoy during your lifetime, while also leaving a lasting legacy for your family.  Financial tools like life insurance, will and estate planning can help you make a meaningful impact that extends to future generations.

If you would like to know more about how to have a personalized Retirement Plan, please reach out to us for an Introductory Meeting.  This one-on-one meeting is typically 30-45 minutes in length and can be done by phone, Zoom, or in person, depending on your preference.

Simply click here and press the “Schedule A Meeting” button: 

www.bgip.ca

As you evaluate your retirement goals, remember that every step you take today can lead to a more fulfilling and adaptable tomorrow.

See you soon,

Brian Gribben and the BGIP team.