Retiring isn’t just about ending your career. It’s more about starting a new adventure and making the most of the possibilities that lie ahead.
Here are six tips to prepare for your retirement:
Review your financial projections
Review your retirement savings, including retirement plans, savings accounts, non-registered investment accounts, and registered investments. Then talk to your advisor to calculate the income you will generate for your retirement.
Look for other sources of income
Are you eligible for other sources of retirement income, such as the US Pension Plan and the Quebec Pension Plan (QPP), Old Age Security or the Guaranteed Income Supplement? Calculate the amount you can expect to receive, and determine when you will receive it.
Check if you are on track to achieve your goals
Make a budget of the expenses you plan to incur in retirement, taking inflation into account. Compare this figure to the total amount of your financial projections and sources of additional income. Could you afford to lead the lifestyle you want in retirement? Should you try to save more or adjust your expectations of the lifestyle you want to have in retirement?
Review your investments
Is your investment portfolio appropriate for where you are in life now? Consult with your advisor to ensure your portfolio is on track to meet the retirement goals you have set.
Get ready for your 71st birthday
Be sure to convert your Registered Savings Plan before the end of the year in which you turn 71 or you may incur tax consequences.
Make sure your retirement income will be sufficient
If you’re concerned about outliving your savings during your lifetime, you may want to consider supplementing retirement benefits from government or employer-sponsored plans with John Labunski Investment Advice that can provide sources of additional income in your retirement.