The importance of planning your retirement

Everyone longs for the day they can sit back and relax on a beach somewhere with a drink and enjoy the fruits of their labor. Retiring is the ultimate achievement after a life of hard work and providing for yourself and/or your family. However, retirement is not something you should only think about when time is getting near. Retirement planning truly begins much earlier and involves meticulous and careful planning to ensure your future is secure!

Consulting a financial advisor should probably be your first step. Find an advisor who understands the issues that matter to you. The sooner you do this in your life the better you’ll fare in the long run. Many people tend to live beyond their means throughout their adult life. A licensed advisor can help crunch the numbers and ensure your finances will be able to cover the multiple expenses you have today, and how to spend with retirement in mind. Considering rent, car payments, mortgages and of course insurance payments it is important to make the most of your income.

Your advisor can also help make sure you have adequate insurance coverage to protect you through your life, as any unexpected events that you may not be covered for can certainly put a dent in your retirement plans.

Another important consideration to keep in mind is whether you have any children that depend on you. The answer to this question will fundamentally change the direction your advisor will take with your retirement plan. The inclusion of children means you need to ensure that the children will be taken care of beyond your retirement and there are obviously other costs associated with taking care of your children like for example education cost, daycare, extracurricular clubs and health care. All of these must be taken into account by your advisor when planning for your retirement.

When that long-awaited moment finally arrives, you may find yourself overwhelmed with how much free time you have. It is quite common for newly retired individuals to miss their old routine; working every day for most of your life becomes a habit that you might miss. To prevent feeling surprised once your retirement arrives, plan ahead. Start thinking about what you will be able to do with all that free time you will soon have. Create a new routine, get into a habit that you will be able to fall right into when your retirement arrives. Volunteer in your free time. As well, stay active! Go out for walks daily and keep a healthy routine for your body to ensure your retirement is a healthy and enjoyable time in your life.

Most people think retirement is a far-away goal, but the reality is that it is something to think about today. Do not hesitate to call one of our expert advisors at IFCG today at (416) 849-1653 or visit us at www.wecoveryou.ca and start planning for your future today!

Written by Gary Mandel

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