Imagine you’re planning a road trip for the first time. Your bags are packed and you’re ready to leave. As you get into the car, you realized that you’re missing the most important thing for the trip, a road map. How will you reach your destination without it? How can you navigate through detours?
Planning a road trip without a road map is like planning to retire without a plan. Retirement is something that requires a detailed plan in order for you to reach your goals. How much money do I need to retire? How long must it last for? Will my money lose its purchasing power? These and many other questions need answers for you to have a successful retirement. Take this example:
You retired at age 65 and saved up $800,000 in your RRSPs. You determined that you need $50,000/year to live comfortably. Most would say that this person will have a great retirement. Let’s take a closer look.
Problem: The withholding taxes for withdrawing amounts over $15,000 from your RRSPs is 31% (in Quebec). Life expectancy in Quebec is 80.6 years (male & female) therefore the retirement savings must last for 15 years. What this means is that you have to withdraw $72,463/year to obtain $50,000 after taxes for 15 years to reach your goal. At this rate, the money will only last for 11 years!!
This is one of the many cases where planning ahead is essential. Every situation is unique. If you do not have a retirement plan or if it’s not clear, I can help. I can show you how to be on the right track. It’s never too early or too late to start planning.
Call now for your FREE, NO OBLIGATION consultation and get your CLEAR retirement plan. This is your retirement we’re talking about; you owe it to yourself and your family to retire successfully.
514-578-7673 or j.r.advice101@gmail.com
- Location: Montreal
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