Many individuals wonder what they will need prior to going through a detailed financial analysis with our firm. It can vary based on a multitude of factors, however, there are some key figures that must be known prior to such an analysis.
One of the main factors in a financial analysis and subsequent forecasts is expense levels. Successful sustainability of net worth to age 100 is achievable when expenses are covered by cashflows over the entire period - if you are not in tune with your monthly expenses, even having a discrepancy of $500/month could be detrimental to one’s financial success when it is projected over for 40+ years.
After saving for countless years to build up a sizeable retirement fund, you are left with more questions than when you started. Do you start withdrawing from your RRIF in hopes of reducing your minimum withdrawals? What about your non-registered investments that are generating a possible tax liability each year? There are many different options for withdrawing your retirement income which can be correct depending on several variables.
It is a well-known fact that we are currently experiencing a high inflationary environment, which puts a higher stress on cash flow needs. How accurate would you be if someone asked what your monthly expenses are?
Are contemplating when to take your CPP?