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If you have been retired for some time...
It is natural for retirees to look at the legacy that they would like to create with their wealth. This is particularly true for retirees who have enjoyed many years in retirement and are concerned about such issues as estate planning or providing for their own care in the future.
Many active retirees continue to enjoy their lives into their eighties and nineties. For that reason, retirement dreams are never really over. As you look at the next phase of your life, you can still approach planning in much the same way as you did when you first retired.
From a financial planning standpoint, there are some things that you want to ensure that you have put in place. While these are strategies and "to do's" that could apply to younger retirees as well, they become particularly important at this stage of life. Some of the items on your checklist should be:
- Your estate plan, including your will and instructions. Ask yourself when was the last time you reviewed your will and does it include all of the assets that you wish to pass on, including non-financial assets such as pictures, collectibles etc.
- Your conversation with your executor to ensure that he or she understands the important issues that you wish to resolve. This will also give you a chance to think about what potential issues your executor may have to deal with when you are gone. And this conversation provides you with an opportunity to confirm that the executor you have chosen is still willing and able to manage these responsibilities.
- Your conversation with your family to give them an understanding of your wishes and your plans for the future. Many retirees find this conversation tough, but if you can involve a family member in your planning, there is the potential to avoid a number of headaches that might arise later.
- A plan that would look after your interests if you were to become physically or mentally incapacitated, including a decision as to who will manage your affairs, both physical and financial, if you cannot. This decision should be supported by the appropriate legal documents such as a power of attorney or mandate (in Quebec).
- If you are married, a "what if" conversation with your spouse to help ensure your spouse would be in a position to manage his/her finances without causing him or her unnecessary worry. A further "what if" to consider is the impact on the estate plan if one of you dies and the surviving spouse remarries.
- Your income plan, reflecting the changes in your lifestyle and circumstances. Consider whether your current income is sufficient to meet today's needs or if it needs to be adjusted. Also, are you taking in more income than you need and perhaps paying additional income taxes that you could possibly defer?
If you have been in retirement for a long time, you appreciate the need to keep your life as stress-free and simple as possible. Your RBC advisor can help you look at the above items as well as the following questions:
- Do you have investments that are causing you to lose sleep? If so, it might be time for a change, if only to give you peace-of-mind.
- Do you have assets spread among a number of financial institutions and advisors, making it difficult sometimes to keep track of rates, renewals and other information? Consolidating your holdings at one institution might make good sense for you.
Achieve your Retirement Goals
Retirement planning doesn't stop just because you are 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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