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Money Advisor Wealth Management Worldsource

Money Advisor Wealth Management Worldsource

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Mapping out Your Retirement Goals

Have you found yourself thinking about retirement lately?
 
Your retirement is an incredibly exciting stage of your life. While it is easy to get caught up in the excitement, it is hard to conceptualize that retirement will be 52 weeks a year. When beginning to consider your retirement goals, creating a retirement map can be an invaluable tool to help guide you to a financially stress-free retirement.
 
To begin your retirement map, you must ask several questions: (1) what do you want to accomplish in retirement, (2) how much will your retirement cost, and (3) how will you pay for your retirement?
 
Everyone has a different idea of the ‘dream retirement’. Will you use your retirement to travel the world? Will you write a book or take up a new sport? Will you become a fixture on the golf course, the beach or the ski hill? Will you start a new business venture? Or perhaps you are not entirely sure. A common theme that surfaces when I ask clients what they want out of their retirement, is travel. Travel can include visiting your children 3 times a year, touring Europe or living on a beach in Maui for a month. Giving thought to your retirement beyond these short-term travel plans is important. These discussion points can allow you and your partner to discuss both your personal and joint goals. Reflecting upon what is important to you and your family can help outline the true costs associated with retirement.
 
Your map is not set in stone but rather guides the decisions you make today to meet your financial needs in retirement. At Money Advisor Wealth Management, we consider your day-to-day expenses as well as funds you require to meet your retirement goals. This inquiry can pose numerous questions such as: Will you still have children living with you and needing your financial assistance? Will you have university education to pay for your children or grandchildren? Will you be investing in a new business venture? Working through multiple options will assist in developing a realistic plan for your retirement.
 
The next step towards mapping out your retirement goals is to identify your sources of income. Paying for your retirement can take many forms. Some may retire on a full pension, some may continue to work part-time. Others may have invested in their retirement savings plan since their teenage years, others may have entered the retirement savings game later in life. Having a realistic idea of your expenses and sources of revenue can assist in creating a retirement wealth plan. We work with you to create dependable revenue streams that will lead you through the retirement of your dreams. This map integrates into your overall financial plan.
 
Retirement is an exciting journey. Ensuring you have a financial plan in place will help guide your way to a successful and fulfilling retirement.
 
We always enjoy getting your feedback!
 
Kevin 

Transitioning into Retirement

Preparing for retirement can be one of the most exciting times of your life. Dreams of coffee on the porch, long days on the links and vacations in paradise. During this time of transition, you may also wonder how you can ease your transition into the retirement lifestyle.
 
One of the first steps you can take is to consider phasing into retirement. There is no hard-fast rule that you must quit working entirely. Consider phasing into retirement by cutting back on your daily/weekly work hours or through part-time work. Not only may this approach benefit you, it may also benefit your employer through succession planning and easing the burden your departure may have on the company. You may choose to consult in your industry of expertise or consider getting a new job. Is there something you have always wanted to do? Do you have some unique skills or abilities that may be useful in another profession? You may not need the additional income, but enjoy keeping your mind and body active.
 
Begin planning for your retirement in advance. A year or two before your scheduled retirement date start making a list of the things you have always wanted to do but just never had time for. Have you always wanted to travel? Learn a new hobby? Take up a fitness class? Your retirement is a great time to delve into the things you haven’t had a chance to do.
 
One of the big benefits of working is the social aspect. Retirement may seem like you are entering social isolation, but it doesn’t have to! Work on replacing your social network through classes, social groups, volunteer opportunities and other gatherings.
 
Practice living on your retirement income prior to retiring to see if it is reasonable. A good plan has built your lifestyle wants and needs into your post retirement spending. If this has been done well, you won’t be adjusting your lifestyle much at all.
 
Your Financial Plan leading up to retirement is an integral part in your overall retirement strategy. Working with your financial advisor to develop your plan generally happens years, even decades, prior to your retirement date. However, retirement is more than just financial planning and isn’t just some “off” switch you push one day. Retirement is a process. Taking the time to consider how you plan to enter into retirement and what you can look forward to will ensure your transition is successful and that you can focus on what matters most: enjoying your time.
 
Do you have questions on this article or about wealth management in general?
Contact Money Advisor Wealth Management today and we’ll help answer any inquiries you may have.

Stay Invested through Market Ups and Downs

The noise is deafening.
 
The amount of chatter around normal people about abnormal topics is incredible these days.
 
Specifically, the topics of Marijuana, Bitcoin, NAFTA, Trump and the overall stock market rally specifically in the U.S.
 
What makes this unusual is that a few short years ago, none of these topics would have even been on the minds of most of us and now its all that we seem to talk or worry or be excited about.
 
Let’s talk about the overall investment strategy around the stock markets, Trump and NAFTA.
 
First, no one knows how the stock market will perform on any given day/month/year. All market moves can be justified AFTER they happen. As an example, with every new high we see on the stock market the media can easily say to us that the moves are justified by the news of the day, the performance of the company, the changes in the tax code etc. And then the very next day if it was to drop 10% the same media will find someone who can justify that the stock was overpriced, the market got ahead of itself, the government is in chaos etc. So, it’s important not to listen to ANYONE who tells you they KNOW what’s going to happen. I certainly do not.
 
So how do you keep your money safe today?
 
Well, it’s not SAFE if it’s overly exposed to any ONE thing. If you own nothing but bonds, you will have very little return (even negative if the interest rates continue to rise) and you will be disappointed that everyone else is making money as stock prices rally. If you have nothing but cash, you will be sad that you are missing out on the rally but think you’re ok because you cannot lose money. In fact, your losing 2% or whatever inflation is every year on cash. And that’s before tax.
 
If you only have exposure to U.S. and tech equities you are probably making lots of money right now but may feel the full impact if/when the stock market pulls back. And it feels just as bad or worse losing money as it feels good when you’re making it. If you have exposure to Canadian equities you have likely not made much money over the past year or two. And again, if you have exposure to International equities only, you have probably made lots of money this year, but overall perhaps you have not made real money for 20 YEARS!
 
So, the answer is, spread your money around these different types of asset classes, have them professionally managed to take advantage of what happens, not just what might happen. In other words, when asset prices go down too much, we BUY them, when they go up too much we SELL them.
 
Every once in awhile some might make the right call and go to cash at the right time or go fully into the market at the right time, but no one can make that a consistent strategy. No one. Not even a computer or a robot. (not yet anyway!!)
 
There will always be reasons to be invested and reasons to be in cash. If you are still accumulating and more than 5 years from using the money, then being properly invested (see above) is the right thing to do. If you do not need more than 3% (pre-tax) rate of return on your money, then perhaps buying a GIC is the right thing to do. And if you cannot handle ANY loss at all, you should not be invested in anything unsecured.
 
What about marijuana? Probably a good long-term play if the rules remain the same. Lots of investment dollars are finding their way to this commodity. I just got an email from a large fund company that they have invested in 2 cannabis companies. So, I think you will see some others in the near future. Again, if the way you’re invested has some exposure to this commodity, you will probably be fine, or then again it may go up in smoke… (pun intended)!
 
Bitcoin – the last thing I will claim is to be an expert on bitcoin. This is pure speculation right now. Like the US dollar, there is nothing behind a cryptocurrency to give it real value at this point, so the prices will rise and fall like crazy until some measure of value can be placed on it, and that could be low or high! There are new cryptocurrencies coming on the market all the time, so we will see if it’s a “real” thing or not. The likelihood is that money will take the form of bits and bytes at some point in the future, but at what valuation and how is it regulated? Keep your seatbelt tightened. 
 
If you have any questions regarding your personal portfolio and how it is invested, please give us a call.

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Money Advisor Wealth Management

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Calgary, AB T2C 1G4

Phone: 403.214.7215
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Worldsource Financial Management

Worldsource Financial Management Inc., Sponsoring Mutual Fund Dealer. Mutual Funds and Segregated Funds provided by the Fund Companies are offered through Worldsource Financial Management Inc.

Other Products and Services are offered through Money Advisor Wealth Management.