Are you spooked yet?

Oct 31, 2020 | Blog, Financial Planning | 0 comments

​Today scary decorations are all around our neighbourhood.   Halloween, the day of dressing up and trick-or-treating, is full of fun and excitement for the young.    But there are often 365 days of fears for retirees.

What scares retirees the most?

  1. The Market

When you are young you and the market has a major set back you are told not to worry … the market always rebounds.     And while that has proven true, for seniors, they often don’t have the time to wait for a rebound, as they depend on their savings for income.   Its pretty scary when your account is off by 20% and you still have to sell assets to provide for an income.

  1. Interest Rates

Traditional financial planning guidelines will advocate to having a serious proportion of one’s money in guaranteed investments in retirement.     The reason often being point number two above.   But having a significant amount of your nest egg invested in fixed income earning 1% can be pretty scary.

  1. Taxation Rates

Speak to any retiree who has started to collect money from a pension or RSP/RRIF and they will always complain about the taxes they pay.   They feel they were sold a bill of goods with the promise that they’d be in a lower tax bracket in retirement.    With inflation, the general increase in cost of goods, and there fore higher income needs, tax bracket creep has gotten pretty creepy.   I for one do not believe the government will need to tax us less in the future … not with all the debt they are issuing these days.

  1. Health

The cost of drugs and healthcare needs in the future can wipe out a lifetime of savings in no time at all.

 

Are you spooked yet?

There is a solution.   And it’s a better built plan.    Contact me today to discuss how your financial plan can build safeguards for the costs of the scariest risks in retirement.

Book a free consultation