Have you visualized your
retirement?
When retirement is a few decades off, most people
save for immediate financial goals, such as vacations, cars and
homes or education. They have difficulty visualizing what life will
be like when they don’t have to go to work every day.
“Many have no idea how they are going to
spend their retirement,” says Patricia Lovett-Reid,
Senior Vice President, TD Waterhouse. “While they may be
putting money away in an RRSP, they haven’t considered
whether they will continue to work, where they will live or what
their expenses will be.”
Lovett-Reid says that the difficulty in visualizing
their ‘golden years’ leaves many investors
without a proper plan to save and invest for retirement. However,
by considering some key factors, investors can more easily develop
a retirement plan that fits with their current lifestyle and
budget.
1. Will you continue to
work?
Some people decide to continue working for the added income, to
take on new challenges or simply to remain active and involved. By
thinking ahead about what your own needs and aspirations will be
when you reach retirement age, you can begin to answer this key
question.
2. Where will you choose to
live?
If you’re considering selling your current home, think
about where and when you might want to move. Family relationships,
the location of friends, the appeal of a warmer climate, or access
to good health care services and medical expenses’
coverage could all be considerations in your choice.
3. What are your ongoing family
responsibilities?
Even in retirement, you may still have children or parents who
count on you for support. Insurance strategies and estate planning
can be effective ways to manage these responsibilities.
4. What activities do you want to
pursue?
People are living longer and leading increasingly active lives. You
may want to take up new hobbies, travel, volunteer or continue your
education.
“Lifestyle choices and ongoing
responsibilities are huge factors in planning for your
retirement,” concludes Lovett-Reid.
“It’s very important to talk to a financial
advisor who can help align your financial assets with your dreams
and create a plan.”
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