Step 1: The Strategic Income Projector
When can I afford to retire?
If retired, how much can I spend?
These are our clients’ most commonly asked questions and obviously important; the answers to which depends greatly on the level of retirement income they feel they need.
In this step, we complete a detailed projection of your savings, income flows and spending over your lifetime, taking into account inflation, taxes and other critical data, to ensure your retirement is affordable. For business owners, we help assess how much you need to receive from the sale of your business.
Once completed, we ‘stress-test’ the Projection to account for a possible early death or disability, making sure your plan is secure.
Step 2: The Lifetime Income System
Creating the most effective income allocation
For our retired clients, this step determines the optimal income flow, with the least tax and maximum convenience. We address where your monthly income will come from, be they personal or corporate assets – which assets to draw on first, which to leave to accumulate, when pension should commence, etc.
For our pre-retirees, this step assesses how your current earnings should be allocated to ensure you have enough to live on now, pay down your debts as fast as possible, and do regular new savings sufficient to fund your desired retirement.
Step 3: The Great Investment Portfolio
Effective portfolio construction
It is our goal to have the “greatest” portfolio for you, created from the wide variety of high quality choices we have access to as a fully independent broker.
Once the first two steps are completed, we now have all the necessary analysis to properly design and monitor your investments. For example, from Step 1, we know the rate of return needed to make your retirement dreams come true. This and other data now informs the construction of your great investment portfolio.
We study your current holdings, as well as take into account your new savings, to then offer suggestions on how your portfolio can be designed for optimum performance in a secure environment, tailor made based on your analyzed retirement needs.
A good investment portfolio has an above average rate of return.
A great investment portfolio has:
- above average rate of return
- tax efficiency
- acceptable levels of risk
- ease of administration
Step 4: The Tax Burden Analysis
Reducing the tax burden
Income taxes are the dragon that must be slain in retirement income planning. We pay very high taxes in Canada, and we therefore must always arrange your affairs to maximize your after tax income. This crucial step can determine if your retirement is affordable. We look forward to assisting you slay your 'tax dragon', or at least keep him at bay!
We will visit the 5 D's of tax planning with you:
- Defer
- Deduct
- Divide
- Dividend
- Donate
Step 5: The Estate Planning Diagnostic
Is your house in order?
Are your Estate documents updated and in place?
- Properly revised Will
- An Enduring Power of Attorney
- Living Will
- Review of life insurance policies
- Shareholders Agreements
Will you have taxes or other Estate costs at your death, and how will these be paid?
- Capital Gains tax
- RRSP/RIF taxation
- Probate fees
We will engage in robust analysis to minimize taxes and cost to your Estate. We will listen to your Estate goals and then offer suggestions to ensure all your affairs are in order in conjunction with your lawyer and accountant.
Step 6: The Lifetime Review Process
A commitment to review
Without a commitment to review, the best laid plans go astray. This step represents our commitment to implement this program over your lifetime. Reviews of all the steps are most important on a regular basis, and we will be there to work through the changes that need to be made to ensure your retirement is truly worry-free.
