Thinking of Early Retirement? What You Need to Know First + MORE Sep 4th

We’ve created a 6-step plan to help get you there faster.

If you are thinking of early retirement, you may need to put aside more money for your “Golden Years.” Keep in mind that you will have a longer period where you will have to cover your basic fixed costs. You may also have higher lifestyle expenses from a few extra “leisure” years of good health when you can enjoy active living. How do you see yourself spending your days in early retirement? The answer to this question will give you valuable information about where your money will be going at this stage.
Five Steps to Retirement

First you need to set a target date.
Decide how much you will need to need to cover the basics in retirement.
What other expenses will you have above the basics for things like hobbies and travel once you stop working?
How long do you estimate you will need to cover these expenses?
Finally what sources of income will you have coming in from all sources? How will your cash flow change if your spouse dies?

Next, make an appointment with your financial advisor…

The average Canadian had $27,131 of consumer debt in the second quarter, up $910 from the same time last year, TransUnion said Wednesday. The number is as high as $37,879 in B.C. Here’s the really troubling part, the five-figure number doesn’t include mortgage debt. Residents in Quebec have the lowest average consumer debt load at $18,580.
A new report by BMO suggests the majority of Canadian Boomers are unprepared financially for retirement. Baby boomers survey by the bank said they’ll likely need $658,000 for retirement but they’ve only saved $228,000 so far, leaving them $430,000 short of their goal. As a result, most Boomers don’t expect to retire until the age of 63 and 71% plan to take on a part-time job. Some 44% will have to sell off personal items to bridge the gap.

Canada Pension Plan Investment Board to acquire 50-per-cent stake

A while back I heard a story about an older married couple who were asked to leave their residence because neighbours were disturbed by the behaviour of one of the spouses—a senior citizen in the later stages of dementia. The neighbourhood was a retirement-age life-lease community. We need to recognize that in an aging society such as ours, these types of situations are likely to occur with increasing frequency.  Nearly 15% of Canadians age 65 and older live with a cognitive impairment. The risk of being diagnosed with dementia increase substantially with age, doubling every five years for those over age 65, according to the Alzheimer’s Society of Canada. For those who may be selecting a new home there needs to be some consideration given to the community’s flexibility in dealing with these issues.
Choose the right home for your changing needs
Older adults considering a move should clarify community rules with their lawyer. Do not expect a lawyer handling the property purchase to have knowledge in this area…