Retirement planning: Why ask for advice?
Getting guidance from an expert is always a good idea when you're planning something important and retirement is no exception. Whether this life phase is just around the corner or still in the distance, it's wise to prepare in advance.
There are lots of things to consider, such as the fact that life expectancy is rising. Your retirement years could be a lot longer than you think! Here are 3 good reasons to call on an advisor and get help planning for this stage of your life.
1. You'll be more efficient and get personalized advice
Few people get excited at the prospect of managing their personal finances and planning for retirement. So why not ask for help? Advisors have the tools and knowledge to help you optimize savings, manage debt and choose the right insurance for your needs.
By giving you a clearer picture of your financial situation before and during retirement, your advisor can help you create and fine-tune your retirement plan. That way you can feel confident about reaching your goals.
Here's what an advisor can do for you:
Calculate how much you need to save each year so that you can retire when you want and do the things you hope to do.
Identify your various sources of income and estimate how much you'll have available to you in retirement.
Maximize your tax savings with registered plans like RRSPs and TFSAs, along with other tax strategies.
Determine the best ways to grow your retirement nest egg and suggest the right investments for your needs.
Prepare your retirement plan, update it following major life events and periodically review the assumptions supporting it, based on your investor profile, life expectancy and the inflation rate.
Determine your retirement budget, taking into account your estimated income and the cost of maintaining your standard of living.
Plan tax-efficient withdrawals from your retirement savings and make sure you'll have enough income.
Evaluate your insurance needs and reassess them to prevent any of life's unexpected events from derailing your retirement plans.
2. You'll get professional support, even when times are tough
For a lot of people, money can be a major source of stress. If this is the case for you, consider calling on an advisor to help you gain perspective and make the best decisions for your situation. With their input, you'll also be able to manage risks more effectively.
More specifically, they can help you determine the best time to retire and what goals you can realistically achieve once you've retired.
3. You'll increase your chances of getting the kind of retirement you want
Even if you've already drawn up a retirement plan, it can be hard to stay focused on saving up for this important life stage. If your living situation changes or something unexpected happens, it's all too easy to become lax with your finances.
An advisor will check in with you regularly and make sure you stay on track to achieving your goals. If adjustments are needed, they'll be sure to let you know.
Did you know?
It's been shown that investors get higher annual returns and save more over the long term when they work with an advisor.1
Make your retirement dreams come true—with help from an advisor!
The perfect retirement doesn't just happen, you have to plan for it. To start planning your retirement, contact an advisor today.
1. Studies show that households associated with a financial advisor for more than 15 years have, on average, 173% more financial assets (or 2.73 times the asset value) of "equivalent" households who don't use an advisor. Source: The Gamma Factor and the Value of Financial Advice (cirano.qc.ca)