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Do not under live in retirement

If money weren’t an issue, how would you picture your ideal retirement? Travelling with family and friends? Volunteering for a cause you’re passionate about? Starting your own business?

Many Canadians worry that they won’t have enough money to live their retirement dream. If you plan ahead of time, you can enjoy a meaningful life and build great memories. Here’s how.

Define what you value in retirement

Once you are clear about this, you can determine how to achieve what’s meaningful to you with the money you have. For example, if you love experiencing different cultures, ask yourself: is cruising around the world something you can afford in retirement? If not, what else might satisfy your need to sample other cultures? Or can you stagger your travel over several years?

Plan to spend within your means

Instead of worrying about staying on budget, build a sustainable spending plan. Figure out how to do the things you value without taking on additional expenses you may not be able to sustain, such as buying a cottage.  Sure, you can enjoy that cottage during the summer and even rent it off-season, but you will have the maintenance and property taxes that come with having a second property. Perhaps you might consider renting instead of buying a cottage.

Grow your retirement funds

Consider investing in a mix of assets that can:

  • Offer guaranteed income (i.e., bonds, annuities, and Guaranteed Investment Certificates);
  • Grow your income (i.e., stocks or equity mutual funds);
  • Help fund your dreams for your children and grandchildren (i.e., insurance); and
  • Help support you when the unexpected occurs (i.e., high-interest savings accounts and insurance).

Living a sustainable, rewarding lifestyle is entirely possible in retirement. As with so many other things in life, planning ahead is key.

February 14, 2017

This column, published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), and Investors Group Securities Inc. (in Québec, a firm in Financial Planning) presents general information only and is not a solicitation to buy or sell investments. Contact your own advisor for specific advice about your circumstances. For more information on this topic please contact an Investors Group Consultant.