5 steps to a Victorious Retirement

Step 1, 2, 3, 4 and 5 numbers on blocks or cubes to illustrate instructions, guidance or priorities to follow

Who doesn’t want a Victorious Retirement?

Just in time for the long weekend and Canada’s 150th birthday, MoneySense.ca has just published a 5-part series on retirement, going from deciding what you want to working longer, the Ages & Stages by decade, being a snowbird, and finally what to do once you finally reached the hallowed land of Retirement/Findependence/Victory Lap.

Here’s a summary of each piece, and links to the full articles:

1.) The first step: What do you really want?

Take a custom approach to retirement planning. There’s no point fretting too much about retirement and how much to save if you haven’t first determined what you want to DO once you’re retired. For starters, how are you going to fill those 2,000 hours a year you use to spend in the office and commuting? Click here for full article.

 

2.) We live longer. Why not work longer?

Ask questions about a retirement plan that’s right for you. Life expectancies are on the rise: more and more Baby Boomers can expect to become centenarians and that probably goes double for their children, the Millennials. Makes sense to consider working a little longer, if only part-time. Or if you really dislike your chosen profession, go back to school or retrain and find something you’d really enjoy doing in your golden years: preferably something that pays! Click here for full article.

3.) Snowbird? Learn the “substantial presence” test

Learn the tax pitfalls of retiring to the sun in the U.S. It all depends on how long you plan to stay down south each year: the formula isn’t simple. If you don’t relish the thought of paying tax to two countries, you may want to make sure you’re not considered to have a “substantial presence” in the U.S.  Click here for full article.

4.) Your retirement plan has a life cycle

Retirement planning strategies for every age. Every decade from your 20s to your 70s and beyond should take you a little further along the journey to financial independence/Retirement. Just like we all share the same fate in our human life cycle, so it is with the financial life cycle. Click here for full article.

 

5.) Retirement planning —after you retire

The plan doesn’t stop when you stop working.

My co-authored book Victory Lap Retirement features on its cover what appears to be a sprinter breaking through the finish line of a long marathon. But that doesn’t mean we’re saying Retirement is a literal finish line and with it the end of striving and purpose. In fact, we’re saying a “Victory Lap” really only begins when you reach the “finish line” of financial independence, or Findependence.

There will still be a big adjustment as you move from Wealth Accumulation to the De-accumulation or “Decumulation” phase: less earned income and more passive sources of income. And you’ll need to master the tax aspects because Tax may be one of the biggest expenses in Retirement. Click here for full article.

Retirement STILL Rocks!

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By Heather Compton and Dennis Blas

Special to FindependenceDay.com

Since retiring in 2004, we’ve learned a thing or two.  Foremost, a rockin’ retirement requires more than a bucket list: it’s not a given, it’s a statement of intention. A satisfying retirement requires finding new ways to satisfy our needs and utilize the skills and talents that give us the greatest satisfaction. Like a working career, a retirement career unfolds, develops, progresses and changes as life circumstances unfold. This doesn’t mean some front-end planning won’t be useful. Our cornerstones for a rockin’ retirement include Lifestyle, Relationship and Finances.

Go-Go to Slow-Go to (sigh) … No-Go

Many of us will have a third act lasting 30 plus years and few will plan for the full-stop retirement of a previous generation.  All play and no work also makes Jack a very dull boy! We may think of retirement as one long time frame, but those who study aging divide it into three distinct phases: the go-go, slow-go and no-go years. Certain Victory Lap careers, travel destinations and budding interests must be pursued in the go-go years; others might wait until the slow-go. Either way, you’ll want to mind-bank lots of great life experiences to relive in the no-go years! Read more

The “Glidepath” to Semi-Retirement

Depositphotos_11509531_s-2015My latest MoneySense Retired Money column looks at a concept called “The Glidepath” approach to semi-retirement. Click on the highlighted text for the full version, which is headlined How to Transition Into Retirement.

The “Glide Path” is a term used by veteran and now semi-retired financial advisor Warren Baldwin. At 66, Baldwin still works part-time as a senior vice president T.E. Wealth, working out of Oakville, Ont.

When used in the context of airplanes and flight, glide path is a familiar image that Baldwin’s clients easily understand. His own “glide path” to semi-retirement began three and a half years ago. “Maybe it takes five years because it takes two years to plan and get your mind around it. For me, it was coming up three years ago, when I was 63. The timing was right.”

The “Work Optional” stage of life

Another way to describe this is the “Work Optional” stage of life, a term popularized by Emeritus Retirement Solutions’ Doug Dahmer, who is a frequent contributor to the Hub’s “Decumulation” pages. See for example, this post.

See also a recent two-part review of Victory Lap Retirement by NestWealth.com’s Kate Smalley that also focuses on this “Work Optional” theme: Work while you play, play while you work: the case for Semi-Retirement. Or my Hub blog talking about the same review: The Work Optional Stage: Work because you WANT to, not because you HAVE TO. Read more

R.I.P. Traditional Retirement

 

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By Brandon Hill

Special to FindependenceDay.com

Does the notion of grinding it out day in and day out for the next 40 years to experience the freedom of retirement scare you? Wouldn’t you rather strive to enjoy the journey along the way?

The good news is that the traditional concept of retirement is slowly dying.

With the elimination of most employer pension plans and the fact that humans are living longer than ever, we are forced to come up with a different take on how our parents/grandparents view retirement.

Today I’ll show you two different concepts that rethink our traditional retirement model and are gaining popularity amongst the next generation of workers.

Findependence

What’s Findependence? It’s a term coined by Jon Chevreau: author, former editor-in-chief of MoneySense Magazine and founder of the Findependence Hub, an online platform and community for curated content focusing on achieving Financial Independence. “Findependence” is simply a contraction of the phrase “Financial Independence.”

Financial Independence is the point at which you work because you want to, not because you have to. It’s the tipping point where you have the right level of savings and investments working for you to provide the income you need to live your ideal life.

Think about that. It sounds very similar to our definition of retirement and at the same time totally reframes the perception of what retirement should entail. Rather than focusing on when you can stop work forever, you now shift your mindset to creating enough passive income through investing so that you can pursue anything you want.

Charitable intentions, golfing every day, or continuing to work knowing you’re doing it because you love it. In my mind, this is true financial freedom, as it allows you to make decisions based on your interests, not your financial obligations. This is living A Life of Wealth.

Financial Independence is unique to everyone’s situation. Does $35,000 of annual passive income allow you to follow your dreams of travelling the world and starting that passion product you’ve always had on your to-do list?

If so, maybe you don’t have to work until you’re 65.

So how much do you need to reach Findependence? A great rule of thumb is The Rule of 25.

The Rule of 25 is simple. Based on historical stock market data, your money will never run out if you have 25x your required annual income invested.

Need $35,000 for your idea of Findependence? You will need $875,000 saved up.

Want $60,000 a year for the rest of your life? You will then need $1,500,000.

Note: This simplified model does not include social security, pensions, inflation or taxes. Also, by working part time doing something you love in your Findependence years, you reduce the strain on your portfolio and need much less saved. Read more

The 6 steps to Financial Independence

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L to R: Ed Rempel, Jon Chevreau, Mike Drak

By Ed Rempel, CPA, CFP

What is financial independence? How do you get there?

Financial independence means work is optional. You have enough money to live the way you want without having to earn money.

When you get there, life changes. You have freedom. You can do only what you enjoy or find meaningful.

If you don’t like your job or your boss, just quit. Your life is full of options. You can make the most of your own life.

When you get there, you can have a quiet confidence. You are financially secure.

Your plan should start with understanding your inner motivation and defining specifically the lifestyle you want to have once you are financially independent. It is your opportunity to determine your future.

Becoming financially independent requires planning and effort, but it is worthwhile to live a more fulfilling life. “It’s not about the money. It’s about your life.”

“Real freedom is financial freedom.” When is your Findependence Day?

Achieving financial independence is a very broad topic. Writing nearly 1,000 comprehensive, professional financial plans specifically for real Canadians has given me a deep insight into what really works.

Seminar Wednesday in Toronto

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