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Do not underlive in retirement

If money were not an issue, how would you picture your ideal retirement? Perhaps cruising around the world with family and friends? Volunteering for a cause you’re passionate about? Or playing golf every week?

If you are like many Canadians, you might be worried that you won’t have enough money to live your retirement dream. You don’t need to! If you plan ahead of time, you can enjoy a meaningful life and build great memories with your loved ones when you retire. Here’s how:

  • Imagine what your dream retirement would look like
    This isn’t about coming up with a list of things to do or to have. It’s more about defining what you value in retirement. Once you are clear about that, figure out how to achieve what’s meaningful to you with the money you have. For example, you love experiencing different cultures. Ask yourself: is cruising around the world financially viable for you in retirement? If not, what alternatives are there to satisfy your need to taste other cultures? Would dining at local ethnic restaurants be something you would enjoy? Or how about staggering your travel over several years?

    Spending time with family, travelling and enjoying recreational activities are among many things Canadians value in retirement. You can choose to do what’s important to you without straining your finances.
  • Plan to spend within your means
    Yes, instead of worrying about staying on budget, focus on how to spend! Build a spending plan. Figure out how to live your dream and do all those things you value without taking on additional expenses you may not be able to sustain, such as buying a cottage as a second home. Sure, you can enjoy that cottage during the summer and even rent it off-season. But have you thought about the maintenance and property taxes that come with having a second property? These are additional fixed costs. Perhaps you might consider renting instead of buying a cottage.
  • Grow your retirement funds
    How do you make this happen in retirement? 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 your ideal lifestyle should not be impossible in retirement. Sit down with a financial advisor to discuss your vision and start building a map to get you there.

February 10, 2016

This column, written and 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 any investments. Contact your own advisor for specific advice about your circumstances. For more information on this topic please contact your Investors Group Consultant. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently and past performance may not be repeated. Insurance products and services distributed through I.G. Insurance Services Inc. (in Québec, a Financial Services Firm). Insurance license sponsored by The Great-West Life Assurance Company (outside of Québec). GICs issued by Investors Group Trust Co Ltd., and/or other non-affiliated GIC issuers.