Goal
The purpose of the following questions is to help you
verify how your situation is reasonably under control and to offer
avenues for improvement. There is no evaluation at the end. A positive
response means that you have a good idea of your needs and solutions.
Otherwise it suggests that you should take action to correct or improve
your situation.
Do not complicate your life. A point set is a step in the right
direction.
Your goals
Do you have goals?
How long have you thought about or planned for your
last vacation? In comparison, how long have you thought about short¨
vacation called retirement?
Have you ever imagined your retirement in financial
terms?
In addition to help you figure out your needs in
quantitative terms, this reflection will give you a reason. It's hard to
respect a plan of action when you do not know why. It's easier to make
an effort when you know you will:
spend a month in the south each year
visit the west coast,
visiting your children in Vancouver
etc.
What income would I like to have at retirement?
Be realistic and a little dreamy. Think carefully.
The level of life that you imagine might be different from today. See
how much would I need?
What income will you need?
What you describe as a minimum. Imagine if you did
not even plan for the minimum.
Are you able to tell what is the need for capital
income you considering?
Do you know if your expectations mean $ 500,000, $ 1
million, $ 2 million or more in need of capital? See
How much do I need?
If you have a company pension plan, is it enough?
Can you answer accurately? Do you know how much more
you need?
Have you planned a reserve?
If your answer is yes, you are the exception among
exceptions. Very few people include a margin of error in their
forecasts, because it increases the problem.
Your PLAN
Do you have one?
Do you follow it, even if only partially?
Have you planned a contingency?
What happens to your plan if you have to suspend it
temporarily?
You lose your job,
the funding for your children at school are
greater than expected,
you will suffer the effects of a separation or
divorce.
We can not predict or anticipate everything and
protecting yourself against all of them is too expensive. However, we
can predict that there will be a minimum of surprises, say 5 to 10%.
If the problem already scares you, think what it will
do to you later. See
tame the problem
for some suggestions.
Taking care
Are you running your plan?
If not, find out why. Is this a good plan for you.
Maybe it does not fit YOUR reality, your aspirations, the way you act.
Revise also your retirement objectives, dreams: do you like them? If
they do not motivate you it does not help!
Do you manage only the parts that you feel
comfortable with?
You're not alone. It is unlikely that you will invest
20% of your RRSP portfolio in Asian companies if you have trouble
identifying you in this part of the planet.
Do not grieve for this "ignorance". It is widespread.
Check. Start where it's easy around you, banker, financial advisor if
you have one.
That goes for all aspects of your plan.
Opportunities
Do you get the most out of what is available?
When you receive bonuses, do you drop it in RRSPs
without deduction at source?
Do you use your employer's plan?
Do you use the opportunity of Group RRSPs?
Are you investing in your spouse's RRSP?
Do you use automatic savings plans?
Do you invest the maximum if you have the money?
Are you investing your tax refund?
Do you borrow to maximize your contributions?