Estate

At this point in your life, you're probably enjoying the fruits of a well earned retirement and have most likely reached this stage through a life of hard work and thorough planning. However, just when you thought the planning would finally cease there is one more element you may have not yet considered: your estate plan.

Here are some things to consider:

1. Wills – Have you put in writing what your wishes are should something happen to you? Is it of importance to you and your family who your various assets go to?
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2. Powers of Attorney – If something were to happen to you such that you become incapacitated, who will make medical and financial decisions for you? - Your spouse, your parents?
3. Establish a trust – Do you have "minor" children or grandchildren? Are you worried about misuse of inherited money? Would you like some of your money to go to a charity? Trusts can be very useful, but sometimes complex tools.
4. Insurance – If you have debt, heavy dependence on your spouse's income, or dependent children, then appropriate insurance is essential. Will your spouse be left with substantial financial strain or will your children lose out of future educational opportunities if something happens to you? More information

Retirement Planning

Although you may be caught up in the joys of your retirement living, one thing you may not have considered is planning out your retirement. Retirement can be a significant change in both lifestyle and financial obligations and it can come to some as quite a shock. Planning out this new stage in life, at least to some extent, can help alleviate the unanticipated stress and make for much more enjoyable "golden years".

Here are some things to consider:

• Do you have a retirement plan? – It is never too late to draw one up!
• Are you able to afford the lifestyle you want? (The concept of retirement is drastically changing and many people are finding an enjoyable balance between work and relaxation into their later years).
• Do you currently have any pension or retirement savings accounts? How are you withdrawing funds from them?
• What investment tools are you using? (TFSA, RRSP, RRIF etc.)

Income Replacement

We rarely want to think about bad things happening to us. However, the reality is that they can happen. You need to consider what protection you have in place for you and your family and whether or not it is adequate should something befall you!

Here are some things to consider:

1. Life Insurance: Do you have any debt? How would this debt be paid for if you died? Is your family protected?
2. Disability Insurance: If you become disabled, how will your monthly expenses be paid? This is one of the most important forms of insurance
3. Health insurance: Is your job providing adequate health and dental coverage for you? Most companies are cutting back. But fear not, there are ever-more privately funded options becoming available.
4. Critical Illness Insurance: Should you be stricken with a severe or even terminal illness such as organ failure, how will you pay for the best and most immediate care? How will your monthly expenses and lifestyle changes be covered?
5. Long-Term Care Insurance: The costs of caring for a person once they become older and increasingly incapable of performing daily tasks is exorbitant. Do you have a plan in place to ensure care for yourself when and if you reach this stage in life?

Mortgage Financing

At this time in your life you most likely already own a home or have settled into a comfortable state of long-term accommodation. However, life is never stagnant and your situation can change quickly. Whether you've decided to purchase a summer residence, a new home, or perhaps have fallen upon tough times financially, you may be considering or already have some sort of mortgage in place. Regardless of your situation, there is a lot of information out there, much of it confusing, some of it misleading and it is easy to become overwhelmed. The key is to get some expert advice before making a decision about one of the most important assets you will own in your lifetime. Depending on where you are at in your home ownership process the options can differ. We always advise clients to seek out the help of a professional mortgage expert before making any mortgage decisions.

Here are some things to consider:

• Is this your first mortgage?
• Do you have any other debt or lines of credit?
• What is the purpose of the mortgage?

Education

I think it would be safe to say that our children and grandchildren are the world to us. Ensuring they have a bright and successful future is paramount, yet increasingly expensive. It is critical to begin planning early so that neither you nor your loved ones will be burdened with exorbitant financial strain during one of the most important educational stages of their life.

Here are some things to consider:

• Do you plan on sending your children or grandchildren to college, university or some other post-secondary educational program? Do you want to assist them with the ever increasing costs of tuition?
• Have you begun a savings plan? What kind of investment tools are you using?

Ailing Parents

As you get older, you must not fail to remember that your parents will age as well. And as we age, things change and roles begin to reverse. For those we love dearly, it is a good idea to plan ahead for the inevitability of ageing- the increasing possibility that your parents will require help looking after themselves.

Here are some things to consider: (the following are applicable to both yourself and your parents as you will inevitably reach this stage in life yourself at some point)

• Who will look after your parents when they begin to be unable to look after themselves?
• Do you have a plan in place for financing and relocating them if necessary?
• Who will make the decisions should they become incapacitated. Please see estate planning, in particular Wills and Powers of attorney.

Tax Planning

You are most likely well aware of the immensely erosive power of taxes as you have spent your entire working career donating a significant portion of your paycheck to the government. Retirement, however, poses new challenges when it comes to tax planning. Depending on how they are managed, taxes can cost you a lot of money, or conversely, can save you a lot of money. We always recommend seeking the help of a professional tax advisor when making any decisions with tax consequences.

Here are some things to consider:

• Who prepares and files your taxes?
• Are you co-habiting with someone or are you married? Do both of you earn an income? (A variety of tax-savings strategies here).
• Do you own a company?
• What tax savings tools or investments are you using and have you consulted a professional before using them?
• Are you withdrawing money from an RRSP or RRIF?
• How do you plan to pass down your assets to your children?
• Most importantly, do you currently have a tax advisor (accountant)?

Major Purchases

You have now entered the golden stage in your life where you will most likely be making some considerable lifestyle changes. Depending on your situation you might be travelling more, engaging in a new part-time career, purchasing a second home or possibly even downsizing to a more comfortable residence. Regardless of what you're facing, there will inevitably be a lot of choice, but do not let this aspect daunt you. There is a lot of advice and plenty of tools out there to help you accomplish your goals. The key is to make sure you are not putting yourself in a vulnerable and financially stressful position.

• What kind of purchase are you planning on making (house, renovations, vehicle, cottage, etc)?
• What kind of planning, if any, have you done to accommodate this purchase?
• Do you currently have any outstanding debt (Mortgage, line of credit, loans, etc)?
• Do you have, or have you consulted with a financial or debt advisor?

Please contact our office for more information or to set up an appointment.
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