Pre-Retirees & Retirees.

How much you’ll need to save for retirement depends on your current income and the lifestyle you want to enjoy when you retire. As a general rule, retirement income should be about 70% of your final pre-retirement annual income to live comfortably. This can be adjusted up or down depending on other sources of income, such as CPP, OAS, pensions, part-time employment and factors like your health and desired lifestyle.

It’s important to have a plan so that your portfolio is meeting your expectations and continues on that path as you approach retirement. At Seven Elements, our team of experts helps you build financial security, independence and freedom so you can get on with living that richer life now.

Planning for retirement and paying yourself from savings can be intimidating. Switching your mindset from saving to spending can cause emotional stress and anxiety as concerns surface whether the money will last.

At Seven Elements, we help you through all the process and provide guidance on your retirement finances and life decisions. From pension plans to when to start taking government income to how to structure different investments, we’re here to help determine the best options to give you the retirement you desire. You gain the sense of comfort that comes from feeling more secure in your finances so you can enjoy your retirement years.

We work with your Portfolio Manager to make sure that your investments are structured in a way that will protect you in a downward market and allow for you to uncover opportunities as they arise. Having the peace of mind that your investment strategy helps you accomplish specific goals is a huge comfort when investment markets are in turmoil.

If you don’t plan your estate with tax efficiencies in mind, the impact of income taxes can be considerable upon your death. Taxes can diminish your legacy and leave your loved ones with far less than you expected. These taxes generally arise from the ‘deemed disposition’ of property as well as provincial probate taxes. Understanding which assets are taxable and non-taxable and where taxes can be deferred is key. At Seven Elements, we can help you implement strategies that may help reduce the potential impact of the income tax your estate may face when you die.

The answer to this is not cut and dry and usually comes back to ‘it depends’. At Seven Elements, we consider your personal circumstances and the many factors that influence the decision to start receiving CPP retirement pension, including your health, financial situation and plans for retirement.

For example, if you’re healthy, expect to live a long life, or have access to other sources of income, you may opt to start receiving your CPP retirement pension later. This will result in a larger monthly pension which could help protect you from outliving your savings.

However, if you’d prefer to work less or you want the money now to pay off debts or to fund your retirement plans, you may choose to start receiving your pension before age 65. This will result in a smaller monthly payment which can help meet immediate needs, especially if you have little or no other income.

The deadline to convert your RRSP to a RRIF is the end of the year you turn 71 and withdrawals start in the year you turn 72. At that point, you withdraw the minimum amount required to ensure a steady stream of “retirement income” for the rest of your days. However, there are circumstances where you could end up saving too much inside an RRSP where it may be appropriate to make strategic withdrawals in the years before converting to a RRIF at age 71. When do early withdrawals from your RRSP make sense?

The reality is that most folks retire before age 71. It’s common to see your average tax rate drop noticeably in the few years where you don’t have much in the way of taxable income compared to when you were working. This is an opportunity to use lower tax brackets to your advantage. Making early, strategic withdrawals from your RRSP makes sense in this situation to.

Many people plan to finance a good portion of their retirement by selling their current home, buying a smaller place, and investing the difference for income. In reality, this doesn’t always pan out as planned leaving them with far less profit than they might have hoped.

Done right, downsizing can be a good idea. You might walk away not only with more money but also a simpler life and less home maintenance and utility expenses for years to come. To reach that happy outcome, we help to steer around the unexpected pitfalls that make downsizing so unpredictable.