Kamloops Connector April 2021 by KamloopsThisWeek

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APRIL 2021 | 7

Can you lower your “reliance rate” during retirement? Two FA Photo Ad

LILI A SEERY Financial Advisor

f you have decades to go until you retire, you don’t need to panic over volatile financial markets – you have plenty of time to regain lost ground and potentially achieve more growth in your investment portfolio. But what if you are nearing retirement or already retired? After all, you will probably need to draw on your investments to pay for some of the costs associated with housing, food and the many other expenses you incur in daily life. So, is a down market cause for alarm? It shouldn’t be. And you can help reduce your stress level by understanding your “reliance rate.” As its name suggests, your reliance rate tells you

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Does yourCall financial advisor Call to action. to action. Call to action. Call to action. to action. know your life Call goals? Call to action. Call to action.

Happy Holidays Lili A Seery

Happy Holidays Financial Advisor

1315 Summit Dr., Unit 4a Kamloops, BC V2C 5R9 250-374-1882 Lili A Seery

Financial Advisor Lili A Seery

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portfolio, and the options you have for reducing this reliance, the better prepared you’ll be to withstand the inevitable market downturns.

other short-term incomeproducing vehicles. Having these assets available can help you avoid liquidating longterm investments when their prices are down. Your investment portfolio will certainly be a key source of your retirement income. And by understanding how reliant you are on your

1315 Summit Dr., Unit 4a Financial Advisor Chianne V Jones Kamloops, BC V2C 5R9 Financial Advisor 1315 Summit Dr., Unit 4a www.edwardjones.ca 250-374-1882 Kamloops, BC V2C 5R9 1315 Summit Dr., Unit 4a 250-374-1882 Kamloops, BC V2C 5R9 250-374-1882 Member Canadian Investor Protection Fund

www.edwardjones.ca www.edwardjones.ca

MKT-5894B-C-A1

Many people will everyone, But, how much you rely start taking their as a general rule, on your portfolio government pension the higher your – rather than other at age 65, however, sources, such as CPP/ reliance rate, the you can start drawing more sensitive your QPP and OAS, your as early as age 60 or as portfolio may be investments or an late as 70 years of age. to fluctuations in employer pension The monthly amount investment prices. – to meet your you receive will be income needs during What can you do, of two financial reduced the earlier then, to either lower retirement. So, for Maximum you start drawing this ratephotos. or, at least, example, if you need advisor and will increase to a moderate the risk $60,000 each year, maximum if you wait level attached to and $40,000 comes If more financial advisors until 70 years of age. it? Here are some from your portfolio, should be included, use the So, if you can afford suggestions: your reliance rate is community name listing or back the date to push • Adjust your 66 percent. EdwardJones.com version. at which you start expenses. During Your reliance taking your benefits, retirement, some of rate can influence your expenses, such as you could lower your your emotions and commuting and other reliance rate – just investment behavior. remember to factor costs associated with A higher reliance in all the relevant work, will go down, rate may tempt you considerations, such but others – like to make emotional as the impact a higher health care – may go decisions during CPP/QPP could have up. You can’t control a market decline, on your marginal tax all these expenses, since your portfolio rate. but the more you is supplying more of • Review your plans your needs. However, can keep them under for Old Age Security control, the less if you respond to a (OAS) - OAS may pressure there will be steep market drop be taken beginning on your investment by making dramatic at age 65 and can be portfolio to provide changes to your deferred for up to 60 you with income. portfolio, you may • Review your plans months in exchange actually increase the for a higher monthly for your Canada likelihood that your amount. Pension Plan or money may not last. • Keep cash Quebec Pension This is especially and Plan (CPP/QPP)true if you move a See page 2 for short-term financial investments in The amount you will large portion of your advisor listing. your portfolio. Try receive depends on portfolio to cash, as cash does not typically many factors – the age to keep about one year’s worth of living you start taking your provide growth potential to help keep benefits, your average expenses in cash or cash equivalents, earnings throughout up with inflation. and about three to your life and how There is no five years’ worth of long and how much “recommended” If you’re advertising expensesinsurance, in GICs and you have contributed. reliance rate for