Balance Your Commitments
Early in our working lives, we often have the responsibilities of young children, a mortgage, a full-time job and other obligations. As you near retirement, you can look forward to more time for yourself and doing the things you enjoy, but you may still be feeling overwhelmed by certain commitments and the decisions you feel you need to make.
Here are some strategies that can help:
- Continue to pay yourself first—no matter what.
You're still earning an income from work, so remember that you have more time to continue building your nest egg. There are a number of different investment options available to you as you transition into retirement.
For example, now is the time to maximize your RRSP contribution if you haven't already. You could also explore different ways to take advantage of other tax-efficient investment strategies. The Tax-Free Savings Account, coming in January 2009, is a great new solution that can help you reach your investment goals.
An RBC advisor can help by ensuring that you are investing your nest egg in the right way as you get close to retirement.
- Balance your desire to help others with your own needs.
If you're like many people approaching retirement, you still want to provide for others during your retirement years. For example, you may wish to give your grandchildren unique educational opportunities, help your son or daughter buy a home, or continue supporting your favourite charity.
We know these gifts are important to you. The right financial partner will help you think about how to balance these gifts with the income you need during your retirement, which
Avoid the temptation to make large expenditures in the first year of retirement.
Many new retirees forget that they are on a fixed income and without the benefit of workplace bonuses or raises. Even if you feel that you are comfortable, a planning session with your RBC advisor can show you how to plan for those large purchases without jeopardizing your government benefits or receiving a surprise tax bill.
- Talk things over with your family.
Consider including family members or friends who are important to you in your plans. Talk to them about the things that concern you and let them know what it is you want to achieve during your retirement.
Achieve Your Retirement Goals
With the right planning and the help of an RBC advisor, you can live a comfortable retirement and still give to the people and organizations you care about.
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