You can begin the planning process by envisioning what you want your retirement to look like. Do you plan to travel? How much time do you want to spend with family?
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“They’ve realized that if you’re planning for the future, you’ve got to do it now. You can’t do it a year before retirement.” Huynh says preparation is the key to developing a successful financial plan for retirement. One piece of advice he often shares with clients is the importance of adhering to the five Ps of financial planning. “The five Ps are proper preparation prevents poor performance. If you prepare now, you don’t have to worry about what’s going to happen later because you’re prepared for it,” he explains. The first part of that planning process, Huynh says, is setting a budget to determine how much money you will need in retirement. As part of that process, he advises people to begin by
envisioning what they want retirement to look like. Do they plan to travel? How much time do they want to spend with family? The average Canadian couple will require as much as $50,000 a year to retire comfortably, he adds. Huynh stresses it’s important for couples to develop a retirement plan together. They might have slightly different goals and one or both may want to continue working part-time in retirement. Another important piece of the retirement planning process is having a will drawn up or providing a family member with power of attorney in case you or your partner are unable to make decisions for yourself, he says. Likewise, you also need to consider any future financial obligations you might have down the road, such as caring for
Chan Huynh, senior wealth advisor with SCU
10 MATURE
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