providing higher lifetime income. ere are many factors to consider, including your retirement date and cash ow needs. Assess your personal situation with an advisor to determine if this approach is right for you.
classes, which often respond di erently to economic conditions. For instance, bonds or real estate may perform well when stocks decline. e right mix of investments is personal and should align with your goals, risk tolerance, and time horizon. Collaborate with a professional investment manager to develop a portfolio strategy tailored to your needs. 3 | Be Strategic With Withdrawals How you withdraw from your savings is just as important as how much you withdraw. Following a sustainable withdrawal rate— typically 3-4% annually—can prevent depleting your nest egg too quickly. To optimize tax eciency, prioritize drawing from taxable accounts rst before tax-advantaged accounts like RRSPs or RRIFs. Remember the tax implications of withdrawals: taking all your income from an RRSP or RRIF may require withdrawing 20-30% more to cover taxes. is approach can shrink your savings faster, increase taxable income, and potentially reduce Old Age Security (OAS) payments. Instead, consider creating multiple “buckets” for retirement income, such as a TFSA for tax-free withdrawals and an RRIF for income later in retirement. Balancing these sources strategically can minimize taxes and preserve bene ts like OAS.
Nest Egg Top ve strategies for seniors concerned about nancial longevity. BY BRIANNE GARDNER As lifespans continue to increase and the cost of living rises, financial longevity becomes a pressing concern for seniors and retirees. Worrying about outliving your savings is common, but proactive steps can help ensure your money lasts as long as you do. You can stretch your retirement savings and maintain financial security with thoughtful planning and disciplined strategies. Here are five strategies to help you ensure you are properly prepared. Stretching The
5 | Include Healthcare Costs In Your Plan
Healthcare expenses are a signi cant concern for retirees, and medical costs can quickly erode savings. To protect yourself, ensure you have comprehensive health insurance, including coverage for prescription drugs, hospital stays, and long-term care if necessary. Additionally, maintain your health through regular exercise and a balanced diet to help lower long-term medical costs. Proactively factoring healthcare into your retirement budget can provide peace of mind and nancial security. Planning ahead will give you peace of mind. Retirement is your time to focus on what matters most—your loved ones, passions, and personal goals. By adopting a sustainable withdrawal rate, diversifying your portfolio, being strategic with withdrawals, delaying bene ts, and planning for healthcare, you can enjoy your golden years without nancial stress. Collaborate with a nancial advisor to create a customized retirement strategy that evolves with your needs and circumstances. With proactive planning and mindful adjustments, you can target the income you want, safeguard your nest egg, and make the most of your retirement. BRIANNE GARDNER is a Senior Wealth Advisor with Velocity Investment Partners at Raymond James Ltd., a Canadian Investor Protection Fund member. This article is for informational purposes only and does not necessarily reflect the opinions of Raymond James or Seasons Retirement Communities.
1 | Ensuring You Have A Sustainable Withdrawal Rate e rate at which you withdraw from your retirement savings is critical. A standard guideline is the “4% rule,” which suggests withdrawing 4% of your portfolio annually, adjusted for in ation. is approach can help your savings last for 30 years or more. However, it’s essential to customize this rule to your circumstances with the help of a nancial advisor. While cash has historically been a low-performing asset class, its stability can make it valuable for short-term needs. Consider holding 6-12 months of expenses in a high-interest savings account to cover immediate costs without tapping into volatile investments. 2 | The Importance of a Diversified Investment Portfolio A signi cant concern for retirees is the risk of a market downturn eroding their savings. Diversi cation can help protect against such risks by spreading investments across asset
4 | Understand When To Take Your Pensions
ere are advantages to taking CPP early, but if there is longevity in your family, deferring bene ts like CPP and OAS can signi cantly boost your retirement income later in life. For every year you delay CPP beyond age 65 (up to age 70), your payments increase by 8.4%. Similarly, deferring OAS payments enhances your guaranteed income for life. is strategy can reduce the pressure on your savings while
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