A 5-Minute Guide to Retirement Financial Planning

Feb 28, 2020

Planning your retirement should start in your 20s. The earlier you begin financial planning, the longer time your money has for growth. Preparing for retirement means identifying how much money to save and where to put it.

Transitioning from work life to retirement requires careful decision-making.Here are a few steps that will guide you to a fun, comfortable, and safe retirement.


Turn your savings into income.

Do your research and find out your income options. Come up with a clear plan, so you have a steady stream of income starting from your first day of retirement. These options include unsheltered savings, RRIFs, and annuities.

As you go through the process of planning, consider speaking with a financial advisor. They can review your investment goals and help you make necessary adjustments. A skilled professional can also set a plan to meet your income needs once you retire.

Be a wise investor.

The right mix of investment involves how comfortable you are with risk and how long you have until you need your money. As a general rule, you want to invest in stocks aggressively while you’re young. Then, you dial back to a conservative combination of investments as you get closer to retirement age.

Apply for government benefits for retirees.

Don’t be late when applying for government benefits. Waiting until the last minute may result in payment delays. For instance, you need to apply for CPP 9 months ahead of your retirement date. Do your research on the government benefits and when to send in applications.

Pay off your debts.

You have to find out if you’ll be carrying any household debt into retirement. Then, identify how you can reduce or eliminate it as soon as possible. Make a budget to avoid getting more debts, so you can focus on boosting your income once retirement begins.

Examine your insurance and estate planning needs.

Your insurance needs will likely evolve as you get older. For instance, if you have fewer dependents and debts, you might not need as much life insurance. But if you have health problems, long-term care insurance, or critical illness insurance is worth considering.

You also need to think about estate planning. Have you determined what happens to your assets after you’re gone? Have you considered how you will get assistance if you cannot make important decisions later in life? These are some of the questions you should ask during the planning process.


We Can Help

There’s no such thing as a universal retirement plan. But, it’s possible to create a combination of retirement strategies that will work for you. In general, a strong retirement plan plan balances your risk and returns, offers tax advantages for your specific situation, and includes an estate plan.

Proper financial planning is crucial if you want to have an enjoyable and stable retirement. If it seems overwhelming, you don’t have to plan for the future all on your own. A Prosperity Advisor can create a strategy for navigating your finances and make it work for your advantage.

Start planning your dream retirement today. Please fill out the form below. We look forward to hearing from you!


We’ll spend 30 minutes getting to know you—your situation, needs, and vision—then offer a strategic plan to reach your goals.
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