To retire well, maximize your income strategies

Life expectancy has increased on average by up to 10 or more years of life longer, than during the last century. Consider the serious question: will I outlive my wealth?

We invest in what people buy. By investing in an equity investment fund or stock you indirectly invest in many important consumer needs. Here are a few:

  1. Businesses relating to what consumers buy such as the energy;
  2. The fertilizer farmers buy to grow the food that we eat;
  3. The vehicles that we drive, the transportation of goods via truck, rail, or air; and
  4. The homes that we furnish or renovate. As you retire, you may invest in what you consume as a retiree when you invest in equity funds.


Baby boomers still affect our economy An alternate economic forecasting method informs us that we are affected by demographics. Baby boomers hold the highest average net worth of all living generations. Now retired or near-retirement, they still buy new cars, take expensive trips or buy retirement homes in the southern USA, buy their grandkids toys, use gasoline and consume groceries. They use health care products and eventually retirement homes.

Now, baby boomers are shifting to make financial security their first financial priority We have witnessed an extended period of a rising, bullish markets pre-2007 and post-2008 that compare historically to another boomer generation—a time that we will refer to as the post-war spending era when the spending of the majority of the populace also benefited the economy.

Like the boomers of the Frank Sinatra generation who entered their spending wave post-World War II, the current Beatles generation—many with four or more children, have moved through an incredible spending cycle and now are entering pre-retirement positioning.

Note: The Beatles generation refers to the current baby boom generation that is now approximately 50 to late-60s The Frank Sinatra generation refers to the baby boomers’ parents – those that were nearing retirement age in the last spending period between 1945 and 1965 and are now close to the end of their lifetime.

Consumerism versus asset accumulation Today’s boomers have finalized the education of the children, become empty nesters, seen grandchildren born, are now building and consolidating large net worths, while considering or entering the period of retirement.


At this time, the largest populace is between age 50 and 60-something. With many new advances in technology, many boomers like Bill Gates or Steve Jobs brought innovation and entrepreneurial skills to business and were among the highest paid in the workforce. They comprised three-quarters of the income-generating labor force. They’ve held power—to spend! Now they hold power to invest and need to have their assets managed well to create a secure income for a lifetime.

An aging Baby Boomer populace must invest for security As seniors look to and enjoy retirement, many have made their final mortgage payment, and some have inherited parental wealth. Now, the baby boomers’ discretionary investing power is immense as is their large population—to the extent they have and still enhance our economy as they spent a lot of money.

Make sure you have a wealth management professional working for you Creating a secure income will be the primary focus. A generation predictably works, saves, and finally spends as they age. The average individual looks for increased quality and spends more money as they approach age 50 and onwards. Baby boomers right now are willing and able to purchase goods and services with momentum which will decrease over the next 5-10 years as they shift from spending to protecting their wealth.

Investing their retirement assets strategically using financial advisors to manage and to protect their money will increasingly take precedence as they become “contented” utilitarian consumers increasingly expect the investment management industry to boom.

The author, Montaigne wrote about his father, who inherited a large estate, yet was very careful to manage his money.

“He was very fortunate in being able to keep his desires down to his means and to be pleased with what he had.”

Call us to set an appointment to learn how to maximize your income for a lifetime of retirement.

The scope of a good financial strategy

A good financial strategy is multi-faceted. It must anticipate change and reflect your specific financial goals and objectives while considering your level of investment risk tolerance.

A personalized financial strategy can be tweaked to reflect your changing life needs. Whether you’re starting a new family, preparing for retirement, or running a business, we will work with you or your business to build a plan to meet your needs. A customized plan can help you manage risk and bring your goals within possible reach throughout your life. Major purchases such as a home; retirement; and other life events, such as a disability or need for long-term care necessitate flexibility.

Creating your dream financial strategy

First, we will listen to you. We’ll help you create a plan just right for you. You can enjoy peace of mind knowing you have a financial strategy that provides you with the confidence that all your financial resources are working together toward your specific long-term financial goals.

Next, we’ll help you to devise a plan. The program will aim to address investment and retirement planning, minimizing income and estate taxes, assessing your life and disability insurance, will and estate planning needs.

Your plan should be flexible enough to anticipate life’s many fluctuations. Financial circumstances and responsibilities change over time, such as a career or income changes; marriage; the birth and education of your children or grandchildren; major purchases such as a home; retirement; and other life events, such as a disability or need for long-term care.

Strategies for individuals and families


An organized strategic financial future should be designed with these areas in mind:

  • Financial independence at retirement to provide you with a sustainable income.
  • Disability and Critical Illness Insurance to protect your income by providing replacement income if you are sick or disabled.
  • Liquidity of your assets in the event that an emergency or opportunity presents itself.
  • Survivor’s financial and estate protection at death provides immediate cash to meet short-, medium- and long-term living needs.

A balanced plan must also address the needs of elder care as our population ages.

You should address the potential for a long-term illness

Long-Term Care Insurance is designed to provide financial relief and assist with the daily expenses at older ages for personal care required as a result of loss of basic abilities to dress, bathe, transit to or from the bathroom, maneuvering in or out of bed or chairs, or feeding yourself.

Registered Retirement Planning

As we discuss retirement planning, we will look at Canada’s registered plans. For example:

  • The Registered Retirement Savings Plan (RRSP) while building your nest egg, and a Registered Retirement Income Fund (RRIF) during retirement, offer you the chance to defer tax on your investments and achieve some tax relief.
  • Tax-Free Savings Plan (TFSA) allows you to save money while deferring investment income on the after-tax monies invested.

We’ll help you create a plan just right for you.

You can enjoy peace of mind knowing you have a financial strategy that provides you with confidence that all of your financial resources are working together toward your long-term financial goals.

Your goals and dreams are as individual as you are. 

Whether you’re starting a new family, preparing for retirement, or running a business, we will work with you or your business to build a plan to meet your needs. A customized plan can help you manage risk and bring your goals within achievable foresight.

We can help you devise a plan that addresses objectives such as investment and retirement planning; minimizing income and estate taxes; assessing your life and disability insurance, will, and estate planning needs. A good financial strategy that reflects your changing life needs is unique—that is why we’ll support you with a financial analysis that will help you make wise financial decisions designed to meet your long-term and short-term goals.

What is the value of good financial advice?


A good financial advisor will not only assess your current fiscal resources. He or she will also outline a plan whereby you can achieve your goal for a sound financial future.

As time passes, so does your opportunity to build a strong financial future. Will your financial stability be based on our government’s pension plan? Did you know that its maximum benefit covers only 25% of the average Canadian’s wage? If you are to build an investment portfolio and a significant net worth, will you personally try to determine how to purchase stocks among the international markets, analyze investment funds, and sidestep economic pitfalls as you invest all by yourself?

Why involve an advisor in your financial affairs?

The majority of Canadians seek specialized professional help. An advisor’s work is to help you systematically achieve your goals and make your life dreams come true. His or her work is to guide you towards achieving financial independence.

• It is important that an advisor analyze your current fiscal resources, in order to define appropriate financial strategies that are best suited to your current and future personal priorities, retirement goals
and risk tolerance.

• Calculating your current net worth and net cash flow after taxes is also important. With a net worth statement, a financial specialist can identify any opportunities or problems relating to capital gains; life insurance, disability and/or critical illness insurance needs versus your present coverage, investment growth, income taxation, retirement income needs, employee benefits, and potential capital gains tax liabilities for your estate. It is also imperative that parents assess educational funding needs, and plans for any dependent adult child and/or special health care such as Long Term Care (LTC) for parents.


• Establishing a written plan sets forth specific solution-oriented recommendations, and will enable you to see how ordering your finances can benefit your overall lifestyle.

• To achieve your goals and objectives, it will be important to act on the plan’s recommendations. Building a strong portfolio of investments tailored to meet your goals and risk tolerance is essential for
your future financial independence.

• Appropriate life and/or disability insurance coverage will ensure your plan meets family income needs, business debt or buy-out payments, and any tax liabilities for your estate.

• Finally, an advisor will establish a periodic review to monitor and refine your plan to accommodate events such as a birth, marriage, illness, or retirement.


How can I avoid making financial mistakes?

Every good decision requires a thorough understanding of time-tested financial guidelines. Today we are witnessing an age of entitlement, in which many people are incurring debt as they put their wants ahead of their needs.


Here are a few principles that you’ll need to consider when making every financial decision:

Avoid speculation.
Aim to increase your net financial worth by increasing your income and/or education to advance your position, rather than engaging in speculative schemes. An enticing program or a “guaranteed” money-making scheme may be unethical, illegal or simply unrealistic, not to mention risky.

Every monetary strategy must be assessed in the light of your individual goals while asking these questions: “Is this venture necessary?” “Could this venture fail or cost me money, negating the so-called benefits?”

Keep your finances current.
Manage your finances day to day, according to your monthly budget and financial goals. It’s best not to borrow money beyond your abilities to repay. When investing or consuming, consider every financial obligation in light of known current income or available savings, not as-yet-unknown future change of income or opportunity, or potential income.

Maintain a frugal reputation.
Consider all decisions, especially financial decisions, on the basis of their effect on your reputation, staying true to financial commitments and maintaining an impeccable credit score.

Give. Do not loan.
Avoid lending to those in need if giving is possible. If someone approaches you requesting financial help in order to acquire “wants” or “desires,” seriously question the potential for impulsive spending. However, if that person is in need and your family’s financial well-being will not be jeopardized, consider your ethical responsibility to supply that need on an interim basis. For example you may provide $100 to a family in need for groceries for a month or two until they get back on their feet.

Never co-sign, even for your best friend.
To co-sign is to pledge your family’s personal assets against the debt of another. This means that your energies in life’s ventures (for which you have been paid over time) are being pledged against another’s liabilities and could mean the potential exhaustion of these life energies by a person whose actions you have no control over. You may also place yourself and/or your family in a situation where you legally assume the debts, as well as the legal issues associated with documents co-signed. This could in turn involve liability of collateralized assets like your car(s), or house and your income, or even culpability when there is harm to a third party. Though you may know an individual, often you do not know anyone in the related financial institution, which will hold you responsible for the debt once you sign an agreement. What if they demand payment or sue you for obligations?

Moreover, there is also a tremendous potential to harm your relationship with the individual for whom you co-sign. By signing, you may enable a person to engage in a risky venture, instead of holding off or reconsidering all alternate options.

Avoid indulgence.
Discern the difference between “needs” versus “wants” in every financial transaction — including purchases of material goods and investments. Distinguish between luxuries and necessities and ask: “Do I need to find fulfillment through this expenditure now?”

Prepare for decreases.
Prepare yourself for unexpected decreases in funds as a vital part of keeping financially current. Ask: “What would happen if there were even a small decrease of income or available funds?” “If there was a sudden drop in my income, would I need to drastically reduce my current living standards?” Avoid operating at the upper limit of income or cash on hand.

Let peace rule.
If a financial decision process makes you feel uncomfortable, the inner turmoil (known as lack of peace) may be your conscience guiding you according to your innate higher values. Consider the pros and cons in the light of all your opportunities, including saving money for a particular goal. If you do not have peace, wait, sleep on it and then see how you feel, or do not get involved in the objective or expense. Moreover, if a quick decision is required (such from sales pressure), do not get involved. Take the time to think about each decision, carefully weighing the potential consequences of either gain or loss.