The Retirement Years

Good advice.
Well given.

When you reach retirement, your financial plan changes from wealth accumulation to income management. The nature of your family obligations likely change as well. Where you once focused on raising your children, they may now be the focus of your estate planning. You may also have the added obligation to look after your parents as they age, and you need to plan for your own care too.

At this point in life, you become acutely aware that income-producing capacity is significantly reduced.

It’s a time of your life when you find out about a new set of financial management strategies and vehicles designed for retirement income and leaving a legacy. You become acutely aware that your income-producing capacity is, in most cases, significantly reduced.

Financial planning advice is extremely important at this stage of life. You need to preserve assets, reduce risk and ensure that your income level will sustain your retirement lifestyle for your lifetime.

Estate Planning

Life Insurance

Permanent life insurance can be used for a variety of estate planning needs at this point in life.

You can create a tax-free inheritance

Heirs can use proceeds to offset the estate’s tax liability.

You can equalize your estate among heirs, leaving property or a business to one child and insurance proceeds to another.

You can name a charity as beneficiary and receive significant tax advantages.

Wellness Protection

Long Term Care Insurance

If illness or failing health prevents you from caring for yourself, you may need to move to a long term care facility or receive comprehensive care at home. But high costs, not covered by government benefits, could be unaffordable or deplete your assets.

Long Term Care insurance can help cover the costs of home care or a long term care residence with tax-free benefits.

Income and Investments

As you move from a time of wealth accumulation, where earning additional income was relatively easy, you need to consider vehicles that will preserve your wealth as much as possible.

Segregated Funds

Segregated funds are similar to mutual funds, but they offer principal protection, the ability to lock in investment gains and potential creditor protection. They also provide estate planning benefits, as the assets bypass the will when they go to heirs: probate and estate fees on those assets are eliminated, extended delays are avoided and the assets are transferred privately.

Tax-Advantaged Investing with Permanent Life Insurance

Whole Life and Universal Life insurance combine permanent life insurance with a tax-advantaged savings component. The savings component in Whole Life insurance is professionally managed by the insurance company. With Universal Life insurance you can choose your own investment funds from all asset classes, including accounts providing guaranteed returns. Your investments grow tax-sheltered and beneficiaries receive insurance and investment amounts tax-free. This vehicle can also be used for retirement income or charitable giving.

Annuities and Insured Annuities

A Life Annuity provides a stream of income payments in return for a lump sum deposit. An annuity is usually selected because payments are greater than GIC income and last for life. An annuity can also be combined with life insurance — called an Insured Annuity. A portion of your annuity income pays the premiums on a life insurance policy, and beneficiaries receive an amount equal to the lump sum that purchased the annuity.

Guaranteed Minimum Withdrawal Benefit Product

These types of products provide retirement income that can be guaranteed, even if markets fall. You invest in segregated funds and can receive income for life, with the potential for your income to increase. If you choose to invest before retirement, you receive a bonus, commonly 5%, in each year you don’t withdraw funds — even in years of a market downturn.