July 17th, 2014 → 7:08 pm @ MacDev Financial Group| Stephen Devlin // No Comments
In Canada, the average age of retirees is 61 for women and 62 for men. The Canadian pension plan is pretty stable, providing retirees a consistent source of income, if a small one (averaging out at $500 per month). Statistics published in Canadian Business show that most retirees are able to live comfortably on half of their working income. So if you’ve been doing relatively well financially and avoiding major debt, you’re likely looking at a decently funded retirement (if not a well-funded retirement). Until…
Your kids go to college.
Your car breaks down.
Your parents need part or full-time at-home care.
You suffer an injury and need to hire a gardener/housekeeper/whatever.
Think of all the unexpected expenses that have popped up during the last 20 years, and think of the financial consequences of them popping up during the next 20 years. Do you have enough liquidity to cover them? If you’re like most retirees, you’ll be living on a fixed income – which works well until you need to cover a large cost, or two, or three. This is where having an emergency fund that you can tap into at any time, for any reason, can give you the ultimate peace of mind.
Using dividend-paying whole life insurance to build cash value works well to address all of those possibilities and more. With the Bank on Yourself concept, you can set up a policy that grows your money, tax-sheltered, outside of the stock market – which means your principal and gains do not rise and fall with Wall Street. These policies grow every year by a contractually guaranteed amount, which means you also have the peace of mind of knowing the minimum guaranteed value of your policy at any time. So when your daughter decides that the private liberal arts college is the only one that will do – you know you have the money to support her. And if your parents ever need extended care, you’ll know you can cover that too.
There are so many events in life that are unexpected. Make sure you can fund them with money you can count on.
Tags: CPA, Financial Advice, retirement advice, retirement information, Tax Advice, Tax Information, Tax Tips
