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Expert Advice: Investing

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Retirement Planning with Yogi Grant Karst CFP, CLU, CHFC The Wealth Planning Group 207-4401 Albert Street Regina, Sk. Phone: 306.757.5038 Email: The Baby Boomers have arrived at the retirement stage and like every stage of life they have gone through, it is going to be different for them. In fact, one financial institution has already given them a new name,�Generation I� with the “I� standing for “Income.� As the Boomers approach retirement they are confronted by many circumstances different from their parents’ generation: 


t 5IFZ XBOU UP SFUJSF FBSMJFS BOE expect to live longer

t .BSLFUT IBWF OPU CFFO LJOE UP them in the last decade


Perhaps Yogi Berra has some nuggets of wisdom for Generation I. He is one of the most quoted personalities of our time, so let’s see how his “Yogi-isms� apply to retirement planning. t “It ain’t over ‘til it’s over� Longevity is becoming increasingly important as retirees try to stretch out retirement assets over two or three decades. .PTU QFPQMF EPOU IBWF EFmOFE benefit pension plans so there is a real possibility of outliving their income. But how much time do you want to spend managing your money when you are 80 years old? t i* VTVBMMZ UBLF B UXP IPVS OBQ GSPN POFUPGPVSw Having enough income to live comfortably is where most people

focus their attention but preparing for a different lifestyle where every day is like a weekend presents challenges as well. How many games of golf do you really want to play in a week and what to you do in the other seven months in Saskatchewan? t i*UT E¸K² WV BMM PWFS BHBJOw .BZCF not. If Boomers are looking at their parents’ retirement as a reference point they may be disappointed. Their parents retired with little or no debt, were older, less active, and accustomed to living within their means. Interest rates were much higher and annuities were a popular choice for guaranteeing lifetime income. ti8IFOZPVDPNFUPBGPSLJOUIFSPBE  5BLF JUw What to do? Leave your money in equities for better potential returns to fight inflation or move to fixed income assets to counter volatility and uncertainty. Should annuities be considered? What about these new (VBSBOUFFE .JOJNVN 8JUIESBXBM Benefit plans? Saving may have been difficult but spending may be harder! t0OXIZ/FX:PSLMPTUUIFTFSJFT UP 1JUUTCVSHI i8F NBEF UPP NBOZ XSPOHNJTUBLFTw If you make a mistake when you are still earning an income, ZPV DBO BEKVTU BOE SFDPWFS .JTUBLFT made during retirement often have permanent consequences. Not having the right asset mix, spending too much too soon, or not factoring inflation into your plans can leave you wanting later on.

Look around and see how others have prepared for retirement. Did they discuss how spending 24/7 together will impact their marriage? Are they counting on their kids looking after them when they need long-term care? Do they have a retirement budget? Did they start with a retirement spending plan? ti5IFGVUVSFBJOUXIBUJUVTFEUPCFw For some who retired in the last two to three years, their future is not what they thought it would be. For others retiring without a retirement spending plan as a guide, their future is a moving target changing with markets, interest rates and unforeseen challenges. ti*GUIFXPSMEXFSFQFSGFDU JUXPVMEOU be� You can’t plan for everything but you can start with getting expert advice from someone who specializes in retirement spending. It is a different skill set than providing advice on accumulating assets because new factors like sequence of returns, survivor income and estate planning must be incorporated. When is the right time to start your retirement spending plan? When Yogi was asked what time it was he asked, “You mean now?� He also said, “It gets late awfully early around here.� Thanks, Yogi.


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