The Godfroy Wealth Preservation and Retirement Solution
Almost everyone likes to think about retirement, but how many of us actually plan for it? When you’re busy balancing work and family, retirement planning and wealth preservation are usually not at the top of your to-do list. That’s why our trusted team at Godfroy Financial is here to help you with all of your retirement planning needs.
Retirement planning is important to take care of at any stage in your life. With a well-thought-out plan, you’ll have the funds you need through wealth preservation to enjoy your retirement lifestyle in the future. That’s why the best time to find a retirement financial planner near you is right now. Let's do a quick 15 minute call and get started on developing your plan.
What Will You Need for Retirement Income?
You need a trusted retirement management advisor near you and that’s why we’re here. When we help you with your retirement planning, one of the first things we do is determine the income you’ll have when you retire. These sources may include:
- Government benefits such as Old Age Security or Canada Pension Plan
- Company pension plans
- Real estate income
- Business income
- Investment income from RRSPs, savings and other assets
Our retirement planning advisors near you will confirm that normally, the income source that varies most is your investments and savings. However, how do you know if you’re saving enough money to live comfortably during retirement?
To determine this, we use financial projection software that considers various amounts you could set aside in savings — along with inflation, rates of return, tax rates, life expectancy, sources of income and other factors. This tells you the amount of income you can expect with different contributions to your savings. With this information, you’ll know how much money you need to set aside to enjoy retirement.
What Risks Might You Face?
There are generally four major risks that can impact your retirement income:
- Stock market fluctuations: Many retirees have suffered from reduced income in the recent stock market crashes. We can help you set up a diversified portfolio to weather these financial storms.
- Inflation: A solid retirement plan must consider inflation. For example, at the historical average inflation rate of 4% per year, you’ll need $109,556 to buy $50,000 worth of goods 20 years from now.
- Living a nice, long life: While we all want to lie a long, fruitful life, you’ll need money to do it comfortably. With our help, your retirement plan will ensure you have money for as long as you need it.
- Health care costs: As you grow older, the chances that you’ll need to spend money on long-term care also increases. There are ways to cover this risk if you plan ahead.
How Can You Save for Retirement?
For retirement plans, you should seek the advice of a professional that specializes in retirement planning near you. Retirement planning and financial planning go hand-in-hand and it’s why you need to tie in other plans, such as life insurance in Windsor, into your overall financial picture. Your financial plan will lay out the groundwork to:
- Reduce and consolidate debt so you save without burdening your daily budget
- Determine the best investment methods to grow your savings safely
- Protect you and your family from unexpected loss of income
There are several ways you can set money aside to let it grow for your retirement. This list below includes some of the more common methods:
Registered Retirement Savings Plans (RRSPs)
This is probably the most commonly known method of saving for retirement. You can put money or investments into an RRSP, where it grows tax-free. You also get a tax deduction for any contribution you make to an RRSP during the year.
When you retire, you draw income from your RRSP. This is when you pay taxes on the income. However, the presumption is you’ll pay less in taxes because you’ll be in a lower tax bracket.
Non-Registered Investments
These investments are not registered as RRSPs. Therefore, they only grow tax-free if they are in a vehicle designed for that purpose, such as a Tax-Free Savings Account. Non-registered investments are wide-ranging and may include:
- Stocks
- Mutual funds
- Segregated funds
- Bonds
- Term deposits for GICs
- Real estate
- Your business
- Employer-Sponsored pension plans
Two types of these plans exist and it is important to understand which one you fall under.
Defined Contribution Plan
This is very similar to an RRSP, except that both you and your employer contribute to it. Typically, you are allowed to make some decisions on various investment options. This means you stand to make greater gains when markets are on an upward trend, but also greater losses when they are in a downturn.
Defined Benefit Plan
In this pension, you receive a monthly income benefit when you retire. The benefit amount is based on your years of service, salary level and contributions. Both you and your employer contribute to the plan and your employer invests the contributions on your behalf. However, in this type of plan, your employer bears the risk of market downturns.
Individual Pension Plans (IPPs)
Individual Pension Plans, or IPPs, are a strong option for business owners, incorporated professionals, or executives of profitable corporations who are over the age of 50. There are several benefits including:
- The corporation can make a significant tax-deductible contribution in the year the plan is established
- Contribution limits are much higher than those for RRSPs
- All contributions are tax-deductible to the corporation
- You can use a wide range of investment options
- Investments within the plan grow tax-free
- Your IPP is protected from creditors
We’ll Make Your Retirement Planning Easier and More Profitable
The world of finance can be tricky and confusing. Knowing how hard you’ve worked adds a great deal of pressure to your financial decisions later on in life.
You want to know that you have the same level of security you’ve enjoyed throughout your adult life as a working individual. You also want to know that the government isn’t taking any more of your hard-earned investments than they must.
At Godfroy Financial Group, we completely understand this as financial planning is our expertise. We take great joy in helping clients attain reduced tax payments and better financial prosperity through sound planning. We are some of the most trusted retirement planning services near you.
There is a lot to consider when planning your retirement. As a personal retirement tax planner near you, we’ll walk you through the planning process and guide you through the ups and downs of stock markets.
Ready to build your wealth? Contact a certified financial planner. We’ll provide a free consultation and can travel to your home or office at a convenient time for you.
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