Have a Strategy when Planning your Retirement

There is nothing special about planning your retirement. However, to do it sucessfully you need to have a vision and a plan. Statistics show that nearly half of Canadian boomers spend more time planning their exercise regime, diets, home renovations and vacations than they do planning this next important phase of their lives.

And then is the individual that if you ask, "Have you done anything towards planning your retirement?" Some reply that their strategy is to win the lottery.

Quite frankly, there is no magic formula but what you need to do is to put in the time and get organized.

When planning your retirement you are going to need to know where you stand today and where you want to go. This vision will give you an idea of what you'll need to do get there.

The vision you have for yourself and the income you believe you'll need will depend on your needs. Some people can be comfortable living on a more modest income than they might have initially believed, as long they get rid of their major expenses such as mortgage and children.

Effectively paying off your mortgage if you can and getting your children off your "payroll" so to speak by the time you are ready to retire will go a long way.

If you have an employer pension plan you need to find out as much as you can about it. How much monthly pension will you end up with?

Your retirement income may be made up assets such as your home and savings. If you own a big house you may may want to consider downsizing once your kids move out.

Look at your liabilities and work to being out of debt when you retire, so your retirement income will stretch farther.

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