Retirement refers to the transition between middle and old age, usually marked by the end of one’s career. Retirement is a bittersweet time in life. On the one hand, you bid goodbye to your career and middle age and become an observer rather than an active member of life. On the other hand, however, retirement also provides you with an opportunity to kick back, rest and relax, and do all the things you couldn’t do with an active career. Think sightseeing and vacationing, visiting loved ones worldwide, and taking up new and interesting hobbies.
There is just one little thing, though – all of these things require money. And when you are no longer earning, you no longer have a steady and stable income source. So what do you do? You plan, of course, with the help of a retirement financial planner.
Retirement Planning – What Is It?
When you no longer have an active career, you also no longer have a steady income. But, you still have expenses like medical bills, housing needs, and of course, your indulgences like travels. How do you afford all this?
Retirement planning refers to systematically saving money and assets so that you can use them once you retire. Though this may sound simple, it can lead to many questions – how much do you need to save? In what form? Does retirement saving mean you cannot splurge in your younger days?
Questions like these can be answered effectively by a retirement financial planner.
What Do Retirement Financial Planners Do?
A retirement financial planner is a financial expert who can look at your current lifestyle and income and determine your best retirement savings plan. Thus, the major services provided by a retirement planner include –
- Providing you with a rough estimate of how much money or assets you need to have to live a comfortable retirement.
- Give you a detailed account of how much you need to save every month for how many years to reach your goal.
- Give you a breakdown of what your expenses are expected to look like when you retire.
- Develop contingencies and plans for issues such as medical emergencies.
- Tell you in detail the lifestyle you can expect to live with your retirement money.
Thus, a certified financial planner can easily simplify the process of retirement for you. With a sound planner, you can let go of the future’s worries and anxieties and concentrate on balancing your current desires with your future needs.
Why Rope an Expert?
You have taken care of your finances all your life or have seen your parents do the same. Why should senior citizens turn to a Canadian retirement planner to help them fix their finances for the future?
Remember that retirement is not a one-size-fits-all. You will have to develop a plan based on your income, preferences, priorities, needs, and plans. You would also need to plan alongside your loved ones, such as your spouse and children. To unravel the complexities of long-term financial planning and ensure that you get the best outcome possible, it is best to rope in an expert to help you out.
When Do You Start Retirement Planning?
Many people do not think of retirement when they get their first job. But, experts agree that the faster you start planning, the better off you will be. Getting an early start on your retirement means that you can save smaller amounts over a longer period.
Early also enables adventures. You can use small sums from your savings to make speculative investments and see how they pan out if they get you a good profit, amazing! It is best to learn your lessons and be more conservative in your investments in the future.
Above all, there is a good rule of thumb that any retirement planner Canada will tell you. When you are young, you can have a more dynamic saving scheme for your retirement, meaning you can speculate with the money a little. As you grow older and get closer to retirement, it is time to focus on asset preservation. By your mid-thirties, you should have a stable sum and asset collection in hand and grow on it.
The Harm in Self-Speculation
Though you may be on top of your finances and know your condition very well, self-speculation can be disastrous in retirement planning. Here’s how you can go wrong if you do not take up an expert –
- You may underestimate or not account for all the problems that you can face in the future. Humans tend to ignore or avoid the possible calamities that can happen in the future but not having the money to face these can cause further issues.
- Further, there is always the risk of losing all your savings in a bad investment. You might also lose out in the form of cost-saving opportunities that you may not be aware of.
- Long-term thinking does not come to us naturally. Many working people with stable incomes often choose to ignore retirement planning in favor of living for the now. A retirement planner can help you strike a balance so that you do not suffer later.
Hence, it is always better to take up the services of a Canadian retirement planner when it comes to building an egg nest.
How To Know You Have Roped in the Right Person?
When you entrust a person or agency with both your seniorhood and your money, you want to be sure that you are selecting the right person. Here are some helpful pointers to ensure that you choose the best financial planner near me–
- Firstly, the retirement planner should be asking you for details instead of giving you out cookie-cutter plans. Instead of forcing you to choose a premade option, the planner’s focus should be to understand your preferences, priorities, and finances and help you out accordingly.
- Next, get a feel for the agency or the planner in general. What kind of people do they usually have as clients? What have been the reviews for their services? How long have they been working in the field? Have they had any significant scandals, civil or legal?
- Approach your retirement planner exactly like you would any other major investment, such as buying a car or house. Make sure that the retirement planner Ottawa is reliable and worth their fee before you commit to them.
- A good retirement planner also has to be a realist. This means putting out uncomfortable or disheartening facts clearly to you, even if you might not like it. Facts such as ‘you don’t have enough money for that’ may sting you in the short run, but they will help you live within your means with comfort and dignity in the long run.
- Good retirement planning does not only stop with collecting and preserving money. It also helps you chalk out how to spend the money. A good retirement planner is one who will help you understand how much you can spend in what areas, how much to keep for emergency funds, and what your average expenses should be every month or every year.
- Lastly, if you are working with a retirement plan for a while, you should not have any questions or concerns about your future. A good planner will not only give you the best financial plans but also peace of mind. If you still have lingering doubts or questions, then this is a significant red flag that warrants changing your planner.
Golden Tips for Retirement Planning
To help you get started on the retirement of your dreams, here are some tips that are commonly given out by experts to their best clients –
- Start early! It has already been said in this article, but it is worth re-emphasizing. The earlier you start, the more scope you have for mistakes, growth, and better savings.
- Cutting a little from your expenses now and then can build the path to early and comfortable retirement. Some smart savers can end up retiring even in their early fifties with a good egg nest to keep them comfortable for the rest of their life.
- Build your dreams into your retirement plan. Your retirement sum is not just to take care of your health. It is to travel, to take up new activities, and enjoy. So add in that world tour you have been dreaming of, and let it motivate you to save more every day.
- Include your loved ones in your plan. Talk frankly and honestly with your spouse and your children in particular about what your finances are expected to look like post-retirement. This can help in preventing discord and encourage everyone else also to step up their financial planning.
- Focus more on action rather than reaction. If you have been late to the retirement game, or have your savings wiped out by an unexpected calamity, fret not. There is always time to build-up and start anew.
And remember the best tip of all – rope in an expert! No matter how excellent your grasp is on your financial situation, an expert outsider can provide you perspective, cost-saving options, and help you prioritize in a much better manner. Retirement finances are all about striking the right balance between the reality of your finances and your dream plans, and a retirement planner can help you strike the balance you are looking for.
When you take up a retirement planner in Canada with Forest Financial Planning, you can make sure you get the best worth for your money. So go ahead and leave the experts’ planning and focus on making big savings and big dreams for your golden years!