If you asked, most people could probably tell you home much they saved for their retirement. But how many can really tell you how much annual income they will need in retirement, or if their savings can provide enough for every year of their life? I believe our jobs as Financial Advisors is to help clients focus on the process, not the size of the piggy banks.

If you’re planning for retirement, you’re probably thinking about how much you’ll need, how long your money will last, how much you can safely take out each year, and when to take government plans like CPP and OAS. You need to recognize that in retirement there will be a balancing act between spending on your current needs, while also preserving enough for later.

These are all good questions- but do you know the most important ones to ask?

We believe it is critical to know these three questions about what your retirement will look like:

  • How much annual income will I receive every year in retirement?
  • Will my money last as long as I will?
  • After a lifetime of income,  how much will I leave behind, probate fee free?

You see, it doesn’t matter how big your piggy bank is. What is important to know:

  • How much do I need annually (and monthly)?
  • What are the sources of the money?
  • How much risk is associated with each type of income stream?

How confident are you that you will reach your retirement goal? I understand that COVID has thrown a monkey wrench in the gears, but did you really know if you were on target before the pandemic? For many, the worst financial scenario they could imagine is running out of money before they die. Our job is to ensure that doesn’t happen.

A good financial advisor can design a specific plan so you never have to worry about running out of income.

Is the goal of mountain climbing to scale the mountain? Sir Edmund Hilary was not the first person to successfully climb Mount Everest. He was, however, the first to successfully make it back down again. Focusing on the wrong goal is dangerous in retirement as well. Without the plan in place, will you worry about safely descending the mountain of life?

If you don’t have a plan or, worse yet, you haven’t heard from your advisor during this crisis, it may be time for a change. We would be happy to help.

Email admin@davlynfinancial.com or call 519-651-1246 to set up an appointment today!