Top 5 Financial Moves for Your 50’s

August 10, 2017

THE CONTENT IN THE BELOW ARTICLE IS MEANT FOR CANADIAN INVESTORS ONLY

As you approach retirement, it’s important to get your personal finances on track.

Your 50’s can be a time of transition – your kids may be starting a post secondary education or moving out, your earning power has increased, your mortgage may or may not be paid off and you are beginning to think about retirement more than ever.

As retirement approaches, consider these tips to keep your financial house in order:

  1. Search for tax efficiency. Try to maximize your Registered Retirement Savings Plan, Tax Free Savings Account, and (if available) voluntary contributions to a workplace pension plan. Also remember that earning dividends and capital gains in non-registered plans will keep more money in your pocket than interest income.
  2. Adjust your portfolio. As you near retirement, consider allocating more of your assets towards investments that provide safety and capital preservation, while maintaining some growth-oriented investments to help meet your long-term financial goals. Your advisor will help you find the right mix for you.
  3. Assess your insurance needs. From disability and critical insurance to business and life insurance, think about protecting what’s valuable to you and your family. What coverage do you need? How much? Also start thinking about future long-term care and how you’ll fund it.
  4. Get a taste of retirement now. Most people face an income reduction in retirement. Practice living on less to experience what your lifestyle could be look like and consider downsizing your home. You’ll get a sense of the income level needed in retirement, and that is where your advisor can help you plan to for that income.
  5. Work with a financial advisor.  At every stage of life and advisor can help, this stage is especially true given the need for a personalized financial plan that helps ensure your income needs are met in retirement, and help you address any potential financial shortfalls.

Bonus tip: If you own a business, think about succession planning. Will you sell the business? Pass it down to family members? Devise a plan with an advisor well before you retire.

Checklist: Things to Do

  •  Maximize the tax efficiency of your portfolio
  •  Adjust your portfolio
  •  Assess your insurance needs
  •  Practice living now on your retirement income
  •  Talk with your advisor about asset allocation

 

The contents of this Web site are provided for informational and educational purposes, and are not intended to provide specific individual advice including, without limitation, investment, financial, legal, accounting or tax. Please consult with your own professional advisor on your particular circumstances.

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