Retirement Planning
Estate planning goes hand in hand with retirement planning. For many, their RRSP may be their largest asset. Apart from the estate planning considerations associated with this asset such as who bears the tax on the deemed disposition and the merits of designating a named beneficiary rather then one's estate, it is important to consider the more encouraging prospect that you actually get to enjoy all your money before you die.
In a recent article in the Globe and Mail, the following were considered as the key objectives to consider when planning one's retirement:
Money -- Will you be able to afford life and live your dreams after employment? State Farm estimates that the average person will need 70-80 per cent of his or her income to maintain their present lifestyle.
Health -- Will you be physically able to enjoy your time in retirement? While the answer to this question is often entirely out of our control, the author notes that "developing and maintaining a healthy diet and eating habits, making regular visits to your physician or healthcare professional, and adopting an active regimen" increase your prospects for good health in retirement.
Housing -- If and when you do sell and downsize to, say, a condo, there will be an "emotional transition to a smaller space after living in a large home."
Your Time -- The author notes that there is a big transition to having free time after a life of labour. Her observation? "Experts say one of the best moves is to stay involved somehow - volunteer, do some consulting, take up a hobby, join a club, take classes at a community school or college, even get a part-time job."
David M. Smith - Click here for more information on David Smith.
