Sometimes during social events or other gatherings a person will approach someone in the financial services business with an opening question: “I hear you do investments. What kind of returns can I expect?” .
Over the last one hundred years, every new generation of Canadians has enjoyed the benefit of a longer life expectancy. With dramatic improvements in health care, the human life span has never been longer. Additionally, some have set their sights on early retirement. The combination of living longer and retiring earlier creates a serious cash crunch because that greatly expands your time in retirement. A financial advisor can help you develop a plan to solve this critical problem.
Estate planning can be an overwhelming process. Whether it is your own estate or you are the executor for someone else, the checklist can seem never-ending. A financial advisor can help make sure your checklist is complete before you start checking the boxes.
One of those items on the checklist is probate, the legal process that confirms the executor's role. A will authorizes the executor to act on behalf of an estate, but an executor may seek confirmation of their authority from a court through a letter of probate.
Most people list tax elimination or minimization as a top priority in their estate plans. For most, Registered Savings Plans (RSPs), which includes RRSPs and RRIFs, are one of their most significant assets. Most RSP accounts hold investment funds or securities that are very liquid, often accessible within a few days.
There are some things that the rich do and the way they think that makes them different from you and me. These habits contribute to their ability to build and maintain long-lasting wealth and financial independence across several generations.
When it comes to making financial decisions most people focus on either\or scenarios; that is making a tactical decision that may or may not reflect a larger financial planning or wealth accumulation context.
We often see these types of isolated, one-off decision choices in media articles that pose dilemmas such as: Is it better to invest in an RRSP or pay down your mortgage? Should you take your tax refund and invest in an RRSP or go on Vacation? Are TFSA’s better than RRSPs? Should you pay off your credit card balance or invest in an RRSP? You get the picture.
You have worked all your life and saved for retirement. What other planning work could possibly be left?
Estate planning is not just for the ultra-wealthy. The fact is that real money will be left behind after your passing. You worked hard for that money. Shouldn’t it go to those you love or to a charity that shares your values? Make sure your money goes where you want it to be.
After years of living the “rat race”, you are looking forward to the day when you can start living on your own schedule. Being a good employee is important, but eventually you will arrive at the day when you are the boss. But do you have enough assets to enjoy your preferred lifestyle? When considering a proper retirement plan it is critical to think about the three phased of retirement planning.
You get home from work, your wife is tired, and the baby just spilled spaghetti all over the carpet. Your older child got suspended from school for cutting his friend’s hair. After dinner, you can barely think straight. Who has the time and energy to make critical decisions about their financial life?
Raising the next generation and working to support them is already a tall order. How can you make sure you are on the right track financially when you already have your hands full?
During the last market downturn a few years ago, retirees who had all or most of their assets in equities saw their nest egg shrink considerably over a one year period. This is an absolute nightmare scenario for a retiree, and unfortunately, it was a reality for too many hard-working people.
