Create your Retirement Paycheque™
You have a vision for your retirement. But do you know
how much your retirement paycheque™ will be? Or
how to manage your cash flow in retirement? Or how to
ensure your retirement income will last for all your retirement
years?
Multiple retirement income sources multiply the complexity
Throughout your career, you receive a paycheque from
your employer or business. When you retire you could instead
receive multiple paycheques made up of the income you
receive from registered and non-registered investments,
pension and savings plans, insurance plans, and other
assets that are included in your total investment portfolio.
The sum of all these will create your retirement paycheque™.
Financial management can get confusing when your income
derives from multiple payment sources that arrive on different
schedules and in various amounts. But Investors Group
can help you cut through the confusion to get a firm grip
on what your retirement income will be – and maximize
it.
Here are the four keys to maximizing your retirement
paycheque™:
1. Know Canada's retirement income system
Understanding Canada 's pension system can help ensure
a financially secure retirement. Essentially, Canada 's
retirement income system consists of three tiers:
Tier one: Government benefits such as Old Age Security
(OAS), the Guaranteed Income Supplement (GIS), an Allowance
available to low-income individuals and the Canada Pension
Plan/Quebec Pension Plan (CPP/QPP).
Tier two: Nearly 40 per cent of Canadians belong to employer
pension plans and/or group RRSPs1. The retirement income
from these sources will depend on the type of plan(s)
you have and many other factors, such as the amount you
and/or your employer have paid into the plan(s) and your
years of service.
Tier three: Personal savings are the essential building
blocks that can help provide financial security through
all your retirement years.
All of these investments can provide various amounts
of money on a variety of schedules and will often demand
that you make informed decisions to keep them producing
the income you need. There is a simple solution, however,
and that's where The Plan™ by Investors Group comes
in.
2. Maximize your retirement paycheque™
You know it's important to have an effective investment
strategy – and it's equally important to have a
customized plan for withdrawing retirement income from
the investments you've nurtured over the years. Otherwise,
your retirement paycheque may end up being a lot less
than you expected.
Establish the level of income you'll need in retirement.
Some people use a rule of thumb that you'll need 70 to
80 per cent of your current household income to maintain
your lifestyle in retirement. But you may need more or
less, depending on your personal retirement goals.
Let Investors Group help design your plan for retirement.
In retirement, your money will still need to grow to outpace
inflation and inevitable cost-of-living increases (including
the potentially increased costs of medical and health
care as you age). Investors Group can help design your
portfolio to include a mix of investments that guard against
the downturns while also delivering a cash flow that will
sustain your retirement lifestyle.
Your plan should create a steady income stream. You can't
afford to lose sight of the fact that you may require
an income for 20 years or more. So you must protect yourself
from outliving your savings – and the right withdrawal
strategy can help ensure you'll have a steady income stream
throughout your retirement.
3. Be tax-efficient
An effective retirement savings withdrawal plan will
also allow you to take full advantage of the tax benefits
that may be available to you, such as the age credit,
the pension income credit and other tax credits, while
possibly avoiding OAS clawbacks. Talk to an Investors
Group Consultant to find out about many more tax-efficient
retirement income strategies.
4. Consolidate and simplify
As you move toward retirement, start thinking about simplifying
the administration of your assets by allowing us to consolidate
your various investments, savings accounts and registered
plans.
Investors Group can help you simplify your various sources
of retirement income, minimize taxes and develop the right
retirement savings withdrawal plan for your unique situation
and retirement goals. And if you'd like to continue planning
your life in retirement around a regular paycheque –
just as you did during your career – we can do that
for you, too.
It all starts with The Plan™ by Investors Group
You've spent a lifetime preparing for your retirement
– and you still have many important decisions to
make. Investors Group will look at your complete financial
life and design a comprehensive plan specifically designed
to fit your cash flow needs through all the years of your
retirement. Making your life vision into your life reality
– that's what we do best.
Talk to Stephen Blaszk - your Investors Group Consultant
soon about creating a single, simple – and vision-achieving
– Retirement Paycheque™ just for you.
stephen.blaszk@investorsgroup.com
Phone (403) 256-5890 ext. 259
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This article, written and published by Investors Group,
is presented as a general source of information only and
is not intended as a solicitation to buy or sell investments,
nor is it intended to provide professional advice including,
without limitation, investment, financial, legal, accounting
or tax advice. For more information on this topic or on
any other investment or financial matters, please contact
your Investors Group Consultant.
© Copyright 2007, Investors Group. All rights reserved.
Do not reproduce without the express written consent of
Investors Group.
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