Thomas Berger, a
well-known novelist, once said, “The art and science of asking questions is the source of all knowledge.” If
you are considering retirement, here are 10 areas with a few questions that will shed some knowledge on this
subject for you:
Lifestyle Planning — Do you have a clear picture of what your retirement life will look
like? How will you fill your day? Will you pursue new opportunities such as volunteer work, travel, a new
business?
Living Arrangements — Where will you retire? Will you sell your home and downsize to help finance your
retirement? Will you buy a vacation property or move to a different climate?
Income Security — Will you have enough income when you decide to stop working? Should
you apply for CPP early? Have you considered your pension options? What is your retirement savings “number”
that will allow you to maintain your lifestyle? Do you have a financial plan in place that will allow you to
retire when you want?
Investment Strategy — Are your investment objectives appropriate for the retirement phase of
your life? How does your risk tolerance impact your asset mix and how does this affect your future income
stream? How will you diversify your retirement income from a tax perspective?
Physical Health and Care Planning — Have you considered the impact of a life-altering medical event? Do you
have adequate insurance coverage to protect you from the financial impact of being diagnosed with a serious
illness or the future need for long-term care?
Incapacity Planning — Do you have an enduring power of attorney to ensure that your assets are administered
according to your wishes, even if you are no longer able to make the decisions?
Wealth Preservation and Transfer — Do you have a properly planned and prepared will to
ensure that your assets will pass efficiently to your intended beneficiaries with a minimum of tax? Have you
considered what assets in your estate will be subject to income tax at death? How much income tax will be
payable at your death, and is there enough liquidity to pay that tax?
Important Causes and Charitable Giving — Is your planning consistent with your values and goals?
Have you considered donating assets such as publicly listed securities, life insurance or registered plans to
improve tax efficiency for your estate?
Asset Protection — Is there potential for family disputes or disagreement in settling your
estate? Are your assets exposed to potential claims of creditors and others? Have you reviewed the ownership
of your assets and your corporate structure in light of potential business risks?
Succession Planning — If you are a business owner, have you developed a plan for the sale of
your business, or for the transfer to family members? Is your succession plan tax-efficient?
This is only a partial listing of the questions needing answers to plan for a successful retirement. If you
would like to receive the complete checklist, please email me at pmurray@assante.com and I will send you the
version that I use with my clients. •
Peter Murray is a senior financial advisor with Assante Capital Management Ltd. (Member CIPF) in Calgary.
Email your questions or comments to Peter at pmurray@assante.com or check his website at assante.com/advisors/pmurray.
