Early Retirement Years
If you have retired...
There are some considerations that you might look at as you build a plan. With the potential for years of retired life ahead of you, you have the opportunity to create that sense of financial comfort that will add to your happiness in the future.
While most retirees have plans in place, some discover gaps once they're put into practice. If you're re-evaluating the strategies you thought would work for you, you're not alone. Even the smallest adjustments can make you more comfortable about supporting your desired retirement lifestyle however it may change. Some questions to consider include:
- How can I maximize my retirement income and lifestyle?
- How can I budget for regular expenses and special needs such as travel, a move or medical requirements?
- If travel is part of my plan, do I have adequate insurance to ensure that unexpected events don't jeopardize my retirement income?
- If I plan to travel for extended periods, how can I access my Canadian accounts and what kinds of investments make the most sense?
Your RBC advisor can help by guiding you in the areas that you should think about in your planning. Basic financial considerations such as tax planning and the effective use of retirement income strategies such as layering your income to meet changing needs may form part of your discussion.
Also, your RBC advisor can show you how to take advantage of a RRIF before age 71 to give you an additional monthly pay cheque in retirement. And your RBC advisor can assist you in selecting a maturity option for your RRSP by the end of the year in which you turn 71 when you must convert your RRSP.
We can also assist you with setting up a Tax-Free Savings Account (coming in January 2009). If you are no longer eligible to make contributions to an RRSP, a Tax-Free Savings Account (TFSA) is an excellent way to continue investing for tax-free income.
There are other areas of planning that may also work in your situation and your RBC advisor will be able to guide you on how they might benefit your retirement life. For example, many retirees have utilized insurance strategies such as segregated funds or long term care insurance to protect both their assets and their lifestyle.
And, since travel forms such an important part of the retirement plans of many Canadians, you want to be sure that you can access your accounts from wherever you are. Online Banking is a great way to stay on top of your finances while you travel. It enables you to check your account activity, send and receive money, and pay your bills.
The role of your RBC advisor is to help you plan for the unexpected and to remind you of some things that might get in the way of a stress-free retirement lifestyle. For example, if you want to travel extensively in retirement, your RBC advisor can help you identify important tax and legal issues to work through with your professional advisors, which may affect you because of your length of stay in a foreign country.
And, as you move through your retirement life, you will no doubt think more about the legacy that you would like to create both while you are still around to enjoy it, and also when you are gone. An effective estate plan that helps you pass on your assets to your loved ones or the causes you support can add to your satisfaction in retirement.
Achieve Your Retirement Goals
Retirement planning shouldn't doesn't stop just because you are have already retired. Your RBC advisor can show you how to make your money work for you as you begin the next phase of your life, starting today!
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