You’ve been checking the calendar each week and now that magical day is here. No more alarm clocks going off in the dark. No more bagged lunches to eat at 12:00 pm sharp. No more car pooling or riding the bus. Yes – you are now retired!

Now what?

Most of us can’t wait for that day to arrive, but we have to ask ourselves, ‘Will I be ready?’.

It will of course be great to sleep in, if we want to, or go for that early morning walk or round of golf. Those are the fun things to being retired but, ‘Are you prepared?‘.

There is a lot to consider when preparing for the time when you actually retire.

• Are you financially prepared to live the life style that you had intended?
  Or are there some things holding up that plan?
• Will you be caring for an ageing parent
  or still helping your children through university or college?

Caring for elders can be a burden, both financially and emotionally. Care homes can be very costly depending on the type of care needed. In this case first you have to deal with the parent (s) finances. Are their investments in order? Do they need to sell their home and invest the cash to provide a monthly income to live in the retirement facility, or will you be footing the bill? Having elderly parents living with you can cause quite a strain on families. In Europe this may be a common theme, but in Canada most families would find this rather strenuous.

Do you still have dependent children? Many people are having children later in life, so it is not uncommon for the children to be still in school when you decide to retire. Hopefully you will have planned ahead by investing in RESPs or some other form of saving for their education.

Consider these before you retire.

• You might want to set up a trust for a disabled or mentally challenged child or to help pay for your grandchildrens’ education.
• If you run a small business, you may need a succession plan detailing how the family will carry on your business. You could continue to receive revenue or you might just sell altogether.
• Once you are retired, collecting a pension or RRIF payments, receiving CPP and if you are old enough OAS, there is something else you must put in order – your estate.It is very important for everyone to have a will. If you want to pass on your “estate” to the right people, it must be stipulated in a will. If you do not have a will when you die, you will have died “intestate”, making settling your affairs a more lengthy and costly procedure. There are ways to lessen the tax blow on your passing. There are ways to leave your spouse investments that will not incur taxes payable immediately.

There is nothing more empowering as being set financially. I am always available to chat and have coffee. There is no pressure coming into my office, I genuinely care about my clients, there is nothing more satisfying as having happy clients.

In my practice, I work with my clients and their lawyer or accountant to set up the necessary plans.

Comments or questions – Colleen Pfannenschmidt (250) 979-2722
or email colleen.pfannenschmidt@raymondjames.ca