A28 - North Shore News - Sunday, January 20, 2013
WORK
Learn to manage your money in retirement ALTHOUGH many investors carefully save for retirement, most are not prepared for the reality of managing their money to support the lifestyle they want. As my team has specialized in retirement planning for many years, and we’ve come across all sorts of scenarios, I feel I can provide some insight into this lifestyle
Making Cents
Lori Pinkowski
start withdrawing an income. A financial plan is vital at this stage so you can budget to cover all major expenses you are likely to encounter. You want to ensure that you don’t overspend but you don’t want to outlive your money either. Many people end up having much larger portfolios upon death than they had planned for, so create a plan and feel good about spending your hard-earned money in retirement!
milestone and offer some advice that can help make the transition easier. From earning a pay cheque to paying myself It can be difficult to wrap your head around this concept because for years you have been investing money in your portfolios and seeing them grow (or at least you should be!). Now that you’ve made the decision to retire you must
2013 ELANTRA
GET UP TO
2,000
$
IN PRICE ADJUSTMENTS‡
FRIENDS & & FAMILY FAMILY FRIENDS SELLING PRICE PRICE SELLING
WITH
HWY: 5.2L/100 KM CITY: 7.1L/100 KM
0%
†
FINANCING FOR 24 MONTHS
15,444
$
"
2012 CANADIAN & NORTH AMERICAN CAR OF THE YEAR
Limited model shown
ELANTRA L 6-SPEED MANUAL. DELIVERY & DESTINATION INCLUDED.
2013 SONATA HWY: 5.6L/100 KM CITY: 8.7L/100 KM
Is downsizing my home a good idea? Once you’ve retired and the children have long since left home, you may discover that your house is just too big for you. Depending on your age and health, tackling the stairs may become difficult or a large garden may be a nuisance to maintain if you are regularly away travelling. If these are your motivations for downsizing, then it’s a good idea. But some people think that if they sell they could add another lump sum to their portfolio; in my experience it is almost always a sideways move. By the time you’ve paid real estate commissions, legal fees, land transfer taxes and moving fees, not to mention renovation costs, you can be left with a lot less than you originally hoped for. Do I have to change my asset allocation now that I am in retirement? Most investors believe they need to be more conservative and hold more bonds and GICs. In most situations, I don’t really agree because many investors that are close to retirement are already in dividend-paying stocks and some fixed income. With the bond bubble we’ve seen over the past five years, I believe that investors need to have more exposure to stocks
GET UP TO
3,500
$
IN PRICE ADJUSTMENTS‡
FRIENDS & & FAMILY FAMILY FRIENDS SELLING PRICE PRICE SELLING Limited model shown
WITH
0
22,064
$
"
THE MOST FUEL-EFFICIENT FULL-SIZED CAR – NATURAL RESOURCE CANADA’S 2012 ECOENERGY VEHICLE AWARD#
SONATA GL AUTO. DELIVERY & DESTINATION INCLUDED.
2013 SANTA FE
HWY: 6.7L/100 KM CITY: 10.1L/100 KM
GET UP TO
1,150
$
IN PRICE ADJUSTMENTS‡
FRIENDS & & FAMILY FAMILY FRIENDS SELLING PRICE PRICE SELLING
WITH
0%
†
FINANCING FOR 24 MONTHS
2013 AJAC BEST NEW SUV
27,109
$
(OVER $35K)
"
SANTA FE 2.4L FWD AUTO. DELIVERY & DESTINATION INCLUDED.
Limited model shown
5-year/100,000 km Comprehensive Limited Warranty 5-year/100,000 km Powertrain Warranty 5-year/100,000 km Emission Warranty
HyundaiCanada.com
Northshore Auto Mall • 855 Automall Drive • North Vancouver, BC • 1-866-664-8713 • www.jphyundainorthshore.com D#6700 TM The Hyundai names, logos, product names, feature names, images and slogans are trademarks owned by Hyundai Auto Canada Corp. †Finance offers available O.A.C. from Hyundai Financial Services based on a new 2013 Elantra L 6-Speed Manual/Sonata GL Auto/Santa Fe 2.4L FWD Auto with an annual finance rate of 0%/0%/0% for 24/48/24 months. Bi-weekly payment is $297/$213/$522. No down payment required. Cost of Borrowing is $0/$0/$0. Finance offers include Delivery and Destination of $1,495/$1,565/$1,760. Registration, insurance, PPSA, fees, levies, charges, license fees and all applicable taxes are excluded. Delivery and destination charge includes freight, P.D.E., dealer admin fees and a full tank of gas. Financing example: 2013 Sonata GL Auto for $22,064 (includes $3,500 price adjustment) at 0% per annum equals $213 bi-weekly for 48 months for a total obligation of $22,064. Cash price is $22,064. Cost of Borrowing is $0. Example price includes Delivery and Destination of $1,565. Registration, insurance, PPSA, fees, levies, charges, license fees and all applicable taxes are excluded. Delivery and destination charge includes freight, P.D.E., dealer admin fees and a full tank of gas. !Fuel consumption for 2013 Elantra Sedan L 6-Speed Manual (HWY 5.2L/100KM; City 7.1L/100KM)/2013 Sonata GL Auto (HWY 5.6L/100KM; City 8.7L/100KM)/2013 Santa Fe 2.4L FWD Auto (HWY 6.7L/100KM, City 10.1L/100KM) are based on Manufacturer Testing. Actual fuel efficiency may vary based on driving conditions and the addition of certain vehicle accessories. Fuel economy figures are used for comparison purposes only. †"Friends & Family prices for models shown (includes $2,000/$3,225/$1,250 in price adjustments): 2013 Elantra Limited/Sonata Limited/Santa Fe 2.0T Limited AWD is $22,694/$27,339/$39,009. Prices include Delivery and Destination charges of $1,495/$1,565/$1,760. Registration, insurance, PPSA, fees, levies, charges, license fees and all applicable taxes are excluded. Delivery and destination charge includes freight, P.D.E., dealer admin fees and a full tank of gas. "Friends & Family Selling Prices are calculated against the starting price less all factory to dealer price adjustments (including Friends & Family price adjustments). Friends & Family Selling Prices include Delivery and Destination. Registration, insurance, PPSA, fees, levies, charges, license fees and all applicable taxes are excluded. Delivery and destination charge includes freight, P.D.E., dealer admin fees and a full tank of gas. ‡Factory to dealer price adjustments (including Friends & Family price adjustments) are calculated against the vehicle’s starting price. Factory to Dealer Price adjustments of $2,000/$3,500/$1,150 available on 2013 Elantra L 6-Speed Manual/Sonata GL Auto/Santa Fe 2.4L FWD Auto. Factory to dealer price adjustments are applied before taxes. Offer cannot be combined or used in conjunction with any other available offers. Offer is non-transferable and cannot be assigned. No vehicle trade-in required. †"‡Offers available for a limited time, and subject to change or cancellation without notice. See dealer for complete details. Dealer may sell for less. Inventory is limited, dealer order may be required. ◊Based on Natural Resource Canada’s 2012 ecoEnergy award for most fuel efficient full-size car. ††Hyundai’s Comprehensive Limited Warranty coverage covers most vehicle components against defects in workmanship under normal use and maintenance conditions.
What will I do with all my time? Some people have so many plans for retirement such as travelling, golfing, volunteering or even taking care of grandchildren. On the other hand there are many people who have been so career-focused during their working years that they fear they will feel a bit lost when they stop working. Take the time to think about what you wanted to do all your life but just didn’t have the time for … then relax and enjoy! Lori Pinkowski is a portfolio manager and senior vice president, Private Client Group, at Raymond James Ltd., a member of the Canadian Investor Protection Fund. This is for informational purposes only and does not necessarily reflect the opinions of Raymond James. She can answer any questions at 604915-LORI or lori. pinkowski@ raymondjames. ca. You can also listen to her every Friday on CKNW at 5: 35 p.m. accompany the senior door to door and to and from the waiting room of appointments. Volunteers are not allowed to attend appointments with patients.
%†
FINANCING FOR 48 MONTHS
than bonds. Should markets change trend and move lower, your advisor should have a plan in place. They should be using stop losses and be prepared to move to cash because you definitely don’t have the time to recover from a big loss if you are in retirement.
THE FOLLOWING is a selection of volunteer opportunities from various community organizations, made available through Volunteer North Shore, a service of North Shore Community Resources Society. One-to-One Visitor: Volunteers are needed to visit residents of Capilano Care Centre on a one-to-one basis. This position is flexible as visiting times are determined by the resident and volunteer. A commitment of one visit per week on a three month minimum basis is required. Driver: Volunteer drivers needed to assist seniors who are unable to use public transit or the Go Bus and when HandyDart, family or friends are not available. Drivers will
Mentor: Positive, caring, reliable adults willing to share a couple of hours a week with a kid who could really benefit from company are needed. Volunteers are assigned a young person of the same gender, who they see on a weekly basis. They work at developing a supportive relationship by engaging them in community activities. Good Stuff Connection Volunteer: North Shore Crisis Services Society is looking for a volunteer to sort and bag items that are being passed on to other non-profit agencies. Volunteer position does not include working in actual thrift store, but preparing items for the store. General Resource Centre Volunteer: North Shore Women’s Centre seeks a volunteer to help out in the library, organize resource materials and help with faxing, filing and photocopying. Volunteer might also assist with special events. If you are interested in these or other possible volunteer opportunities, call 604-9857138. The society is a partner agency of the United Way.