The last event I attended prior to COVID was the Daytona 500 in February 2020. You may be wondering how a NASCAR race relates to the topic of retirement income planning?
You can imagine when racing at speeds close to 200 MPH a crash can have a terrible result. On the last lap in the 2020 race, there was a horrific crash that happened just in front of our seats. Fortunately, the drivers were all ok.
So, why were they ok?
They prepared ahead of time!
NASCAR race teams know that crashes occur regularly, so they prepare ahead of time how to best protect the drivers and fans. They have designed the car and track knowing crashes will occur. They have a strategy in place.
The same concepts apply to retirement income planning. A market correction or crash occurs regularly, but you don’t know exactly when. COVID is a perfect example of this.
You Could Have 6 Bear Markets Over Your Retirement
Since 1956 the Canadian Stock market has had 12 Bear Markets, which is about one major market decline every 5 years.
In a retirement span lasting 30 years or more, on average you may have 6 market crashes, corrections, or downturns. It might happen, you just don’t know when. You need to be prepared ahead of time and have a strategy in place.
As an example, if you retired 30 years ago in 1991, you would have gone through the bear markets in 1998, 2000-2002, 2007-2009, and the drop last year.
When preparing your retirement income plan for the Next Big One, the following are some resources and concepts that you may want to consider in developing your strategy.
Key Concepts to Consider
- Understand the difference between saving for retirement and creating a cash flow for retirement.
- Develop a diversified portfolio.
- Review the retirement income planning options.
- Understand the risks to retirement income planning.
- Review how much income you need in retirement.
- Pay less tax.
- Hire a Certified Financial Planner CFP®.
Be Prepared!
The Big One will happen several times over your retirement lifespan, so be prepared to adjust and adapt!
For more information you can refer to Preserving Wealth: The Next Generation – The definitive guide to protecting, investing, and transferring wealth by Jack Lumsden, MBA, CFP®
For your FREE Copy CLICK HERE
To buy a copy of the book CLICK HERE
Have Questions?
If anything above isn’t clear—or if you’d like to talk through any of it—let’s set up a quick call or virtual meeting.
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Looking forward to helping you stay on track. Best Regards, Jack Lumden, MBA, CFP® Financial Advisor, CI Assante Financial Management Ltd.
Jack Lumsden is a Financial Advisor with CI Assante Wealth Management Ltd. The opinions expressed are those of the author and not necessarily those of CI Assante Wealth Management Ltd. Please contact him at 905.332.5503 or visit www.jacklumsden.com to discuss your circumstances before acting on the information above.
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CI Assante Wealth Management Ltd. operates as CI Assante Wealth Management, a dual-registered firm offering investment, mutual fund, and exempt-market products and services.
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