Master Your Retirement Game

Mute

Ready!
Set... Or am I?

A Lifetime of Abundance

The 10 Critical Dos and Don'ts

Living the Life You’d Love to Brag About

Your Home is Your Castle

The Tax Man is Your Very Best Friend

Taming the Risk of Your Portfolio

How to Prepare for When Illness Strikes

How to Prepare for Being Alone

Mastering the Final Outcome

Master Your Retirement Game

Ready, Set…Or Are We?

Q1:	How do you know if you are ready to retire?

Things You Need To Know:

Your "retirement vision" is the most important part of the planning process.
You must find a balance between your health, your relationships and your wealth.

Questions You Need To Ask:

What are the Top 100 things you would like to do before you die?
When do you see yourself doing these things?
How does this vision compare with your spouse’s vision?

How do you know if you are ready to retire? Choose the Best Answer:
	1.	When your spouse tells you it is time to retire.
	2.	When your employer tells you it is time to retire.
	3.	When you have taken the time to formulate a well balanced 3 to 5 year plan (or longer) that includes both your Top 100 list and your Lifeline.

Master Your Retirement Game

A Lifetime of Abundance, Choice,
Low Risk and a Guaranteed Income

Q2:	How much risk do you want to endure to have a successful retirement?

Things You Need To Know:

"When" you retire will often contribute more to your long term retirement success than any other factor.
There are 7 Critical Risks that you must plan for at all times.

Questions You Need To Ask:

What are your "basic income needs"?
What are your "lifestyle income wants"?
How can both be paired with your sources of income to reduce risk?

How much risk do you want to take? Choose the Best Answer:
	1.	I want to efficiently pair, in a tax efficient manner, my income needs and lifestyle wants with both guaranteed and variable sources of income, so that I will endure as little risk as possible while living out a lifetime of abundance and choice.
	2.	When I retire I want to take on more risk to maximize what I give my children 25 years down the road.
	3.	When I Retire I want to spend more time worrying about risk and my portfolio.

Master Your Retirement Game

The 10 Critical Dos and Don’ts of Retirement

Q3:	How do you know if you have “the most ideal” retirement plan?

Things You Need To Know:

You must set "benchmarks" for both income and risk so that all planning options can be compared to this standard.
The first two years of retirement will often be the most difficult.

Questions You Need To Ask:

Can I have an income that is 100% guaranteed for life?
Can I guarantee the exact value of a future inheritance?
If so, then how much risk are you taking today that is completely unnecessary?

How do you know if your plan is ideal? Choose the Best Answer:
	1.	Because your advisor told you so.
	2.	Because you have compared it to the “100% Guaranteed Solution” as described in the Master Your Retirement book.
	3.	Because you just know.

Master Your Retirement Game

Living the Life You’d Love to Brag About

Q4:	What do you do if retirement lifestyle becomes monotonous?

Things You Need To Know:

To keep things "fresh" you must consider the benefits of the "Jar of Possibilities".
Your "purpose" needs to be bigger than you are.
Your relationships need to grow and evolve.

Questions You Need To Ask:

If you could challenge yourself, or your spouse, to do one thing over the next 4 weeks, what would you do?
What have you always wanted to do, but never had time for?
What do you want to be known for? What is your lasting legacy?

What do you do if retirement becomes monotonous? Choose the Best Answer:
	1.	Go back to work and work harder than ever before.
	2.	Create a life of passion, intrigue and constant improvement.
	3.	Find new friends.

Master Your Retirement Game

Your Home is Your Castle, and Don’t Forget It!

Q5:	When is the Right Time to Downsize the Home?

Things You Need To Know:

Many people "downsize" their home yet end up with more debt in the process.
Your home equity is a great source of tax free income and financial security.
You can choose to declare any Canadian property as your “tax free” principle residence over any period of time.

Questions You Need To Ask:

What will I use my property for today and in the foreseeable future?
How often will I use this property and is it worth the expense and time?
Is it urgent that I make this decision today?

When is the right time to downsize the home? Choose the Best Answer:
	1.	You should never downsize. Your children will never forgive you for selling the "family" home to strangers.
	2.	When your spouse is away.
	3.	After two or more years of retirement have passed, you are well established in new routines and by doing so you end up with extra money in the bank rather than an extra mortgage payment.

Master Your Retirement Game

Believe it or not,
the Taxman is Your Very Best Friend!

Q6:	How can I pay the least amount of tax in retirement?

Things You Need To Know:

There are three critical after-tax income ranges to consider when planning for retirement.
There are hundreds of thousands of dollars of government income benefits and tax credits potentially available to all retirees.

Questions You Need To Ask:

What is my most ideal and efficient tax zone?
How do I restructure my investment portfolio so as to fully optimize my tax return?

How can you pay the least amount of tax? Choose the Best Answer:
	1.	By using the well defined components of the tax return to guide your retirement income strategy, your portfolio design strategy as well as the investment product selection strategy.
	2.	Invest carelessly so that you maximize your realized capital losses.
	3.	Draw little to no income.

Master Your Retirement Game

Taming the Risk and Return of Your Investment Portfolio

Q7:	How can I achieve a decent, low risk investment return?

Things You Need To Know:

The "Red Zone" will be the area that will cause you the most grief with your investment portfolio.
Most people consistently under estimate the degree of risk in their portfolio as well as the degree of risk in the global equity markets.

Questions You Need To Ask:

What is a reasonable long term rate of return?
What type of volatility can I expect to see and how can it be measured?
Are my expectations realistic?

How can I achieve a decent, low risk return? Choose the Best Answer:
	1.	Invest in high return, ill-liquid, high fee, opaque securities.
	2.	Follow the steps outlined in each of the previous chapters so that you draw the smallest and most tax efficient income from your portfolio.
	3.	Ignore the short term highs and lows and focus only on the long term returns.

Master Your Retirement Game

When Illness Strikes

Q8:	What do I do if my spouse turns ill?

Things You Need To Know:

The greatest expense for a retired couple is the cost of "supporting" two households; the original home for the healthy spouse and a care home for the ill spouse.
Two types of medical and financial needs may occur: i) Money to finance the cost of a specific treatment and / or ii) money to finance long term care.

Questions You Need To Ask:

If your spouse turned ill, where would you access the necessary money to pay for the treatment, medication or long term care?
What other assistance would you need around the home to watch over your investments and finances?

What do you do if your spouse turns ill? Choose the Best Answer:
	1.	Plan for this event in advance by preparing and regularly updating a “health care audit” of your overall financial situation. Then talk about this plan with your children and your spouse so that everyone is on side.
	2.	Cash in all of your RRSP / RRIF investments.
	3.	Move in with your kids.

Master Your Retirement Game

Being On Your Own

Q9:	What do you do when your spouse passes away?

Things You Need To Know:

There can be hundreds of decisions to make at this time.
Planning in advance is a necessity.
There are three important steps to make it through this period of time.

Questions You Need To Ask:

What things does my spouse do today that I know nothing about?
Who will I work with and what shall I do if I am the surviving spouse?
How will my income, tax and investment picture change at this time?

What do you do when your spouse passes away? Choose the Best Answer:
	1.	Delegate all decisions to your children.
	2.	Postpone making any decisions as long as possible.
	3.	Prepare this type of analysis in advance and discuss the implications with your spouse, your family and your advisors.

Master Your Retirement Game

Choose Your Beneficiaries Wisely…
…Don’t Leave it to the Taxman.

Q10:	How can I be sure my final estate value will be distributed in the most efficient manner?

Things You Need To Know:

There are many ways to leave "tax free" assets to your beneficiaries.
Unless you take the time to plan accordingly, one of your single largest estate beneficiaries will be the tax department in the estate of the last surviving spouse.

Questions You Need To Ask:

How can I have a lifetime of secure income while also maximizing the after-tax value of my estate?
How can I multiply my “charitable gifts” so that I leave the world a better place?

How can I ensure that my estate is distributed efficiently? Choose the Best Answer:
	1.	The kids will get whatever is left over at that time. That is all that matters.
	2.	I know that my estate plan will represent my final actions in this world. I want to make some final statements as to those things that are most important to me in my life such as improving the life of others and minimizing taxes and other unnecessary waste. By planning pro-actively I know that I can enhance my Lasting Legacy.
	3.	What do I care, I will be dead.

Master Your Retirement Game

You Too Can Do What the "Masters" Do!

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Douglas V. Nelson B.COMM.(hons.), CFP, CLU, MFA, CIM

BASED ON THE BOOK

MASTER YOUR RETIREMENT

By Doug Nelson, MFA, CFP, CLU

Learn how to structure a simple, tax efficient retirement income stream.
Learn how to select the best high income products to your advantage.
Learn how to draw the right amount of income at the right time.
Learn how to sleep at night by effectively managing portfolio risk.

Available in your favourite bookstore or online at www.knowledgebureau.com