5 Steps to a successful retirement

MD Financial Management LogoA properly structured retirement income plan will help to ensure your assets will last throughout retirement, while minimizing tax wherever possible. It’s best to work with a financial advisor who can walk you through the retirement planning process. There are five basic steps to cover.

Identify and prioritize retirement goals

Identifying and prioritizing your retirement goals will help you understand your current lifestyle, and determine the people, things and activities that are important to you now, and into retirement. Work with your financial advisor to plan how you’ll generate sufficient income during retirement to meet those goals.

Determine retirement income and sources

Understanding where your money goes each month will help you and your advisor determine how much income you’ll need to meet your lifestyle and financial goals in retirement. Corporate, non-registered and registered savings plans, along with the Canada Pension Plan and other government benefits, may all contribute to your retirement income.

Create your road map

When creating a road map, you and your advisor will review the information gathered in steps one and two in an effort to match retirement goals with the income required to meet those goals. This is a good opportunity to discuss specific retirement income strategies and talk about any remaining income issues.

Leave a legacy, protect assets and close your practice

Work with your advisor to determine how best to create an estate plan, ensure adequate insurance in retirement and wind up your practice in a tax-efficient manner.

Review the retirement plan

Meet with your advisor a year after you’ve retired to update the plan as needed, and adjust it according to any change in goals or lifestyle. This is also a good time to review your investment plan to ensure risk tolerance and asset mix are still in line with your overall retirement plan. A well-structured retirement plan should remain flexible and adaptable, evolving with you and your needs as you enjoy retirement.