Globe and Mail Article: Why DIY investors are turning to financial professionals as retirement approaches

The Globe & Mail recently interviewed me and other experts to ask why DIY investors are turning to financial professionals as retirement approaches.

As someone who has seen the full finances of thousands of people, I see it all the time. People who have managed their finances successfully on their own up until their 50s and 60s, but want help on the intricacies of retirement.

Many people make the mistake of investing too conservatively over the years, which means they have to cut back on their lifestyle in order to retire. 

The “shocking” number in many financial plans is that more than 70% of income during a 30-year retirement typically comes from investment growth after retirement.

Highlights from the article:

• 6 decisions to make to setup your retirement income.
• The 2 overall tax outlooks to minimize your lifetime tax.
• How your retirement plan gives you confidence knowing the lifestyle you can afford.

CLICK THE LINK BELOW TO READ THE ARTICLE BY ANNA SHARRATT:

Why DIY investors are turning to financial professionals as retirement approaches

Ed’s recommendations & thoughts:

A conservative stance is usually the first thing that needs to go because of factors such as inflation and the high cost of living. 

The “shocking” number in many financial plans is that more than 70 percent of income during a 30-year retirement may need to come from investment growth after retirement.

Many people make the mistake of investing too conservatively, which means they have to cut back on their lifestyle, and they usually end up saving far too little.

Figuring out what to withdraw and at what time is also challenging, because many are confused about when they should start taking their pensions, including CPP, Old Age Security and company pensions.

Others weigh whether they should take more out of a registered account in retirement so it’s not too large and heavily taxed when they die.

You have to decide whether it’s better to defer taxes as long as possible or to withdraw the amounts you can at low tax brackets every year. Each person’s situation is unique.

Retirement planning comes down to how much you  can withdraw or have to save for the lifestyles they want, while minimizing the tax burden. And sometimes getting professional help is warranted.

Figuring all this out in a financial plan gives you the confidence to know what lifestyle you can afford for the rest of your life.