Decumulate & Downsize

Most of your investing life you and your adviser (if you have one) are focused on wealth accumulation. But, we tend to forget, eventually the whole idea of this long process of delayed gratification is to actually spend this money! That’s decumulation as opposed to wealth accumulation. This stage may also involve downsizing from larger homes to smaller ones or condos, moving to the country or otherwise simplifying your life and jettisoning possessions that may tie you down.

The Robo Generation: Robo-Advisers now Magazine Cover Stories

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teanicola
Tea Nicola, WealthBar

By Jonathan Chevreau

Interesting cover story on robo-advisers  in the current issue of Financial Post Magazine, delivered with Tuesday’s National Post.

As an ex magazine guy myself, I find it fascinating that robo-advisers have made it to magazine cover status so quickly. A year ago they were barely known in Canada, although they’ve been a rising force in the U.S. for a few years now (chiefly via WealthFront).

In the FP feature story, deputy editor Andy Holloway describes veteran financial planner John Nicola, founder of Vancouver-based Nicola Wealth Management, which targets the 1% of investors with at least $1 million in investible assets.

Then the article moves on to the next generation: WealthBar Financial Services Inc., a (so-called) robo-adviser service headed by John Nicola’s eldest son, Christopher, and daughter-in-law Tea (pictured). Continue Reading…

10 Planning Steps to Take Within 10 Years of Retirement

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Roger Wohlner, The Chicago Financial Planner

By Roger Wohlner, The Chicago Financial Planner 

The ten years prior to retirement are when a lot of people start to take a hard look at their retirement readiness. This makes sense, as you are likely in a position to make some decisions about what your retirement lifestyle will look like.

This is also a good opportunity to deal with any retirement shortfalls while there is still some time to make adjustments. Here are ten planning steps to take within 10 years of retirement.

Maximize your retirement savings

The ten years prior to retirement will be among the highest-income years of their careers for many retirement savers. This is a time to maximize your contributions to your 401(k) plan, to IRAs or to a self-employed retirement plan. While these contributions will not have as many years to compound as those made in your 20s and 30s, these late-career retirement contributions are still important.

Review Social Security Continue Reading…

Will “Unretirement” launch your Encore Act?

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BN-ER243_bkrvun_GV_20140923135029By Jonathan Chevreau

Unretirement is a concept not unlike Findependence or Financial Independence; it’s also the title of a recently published book by Chris Farrell, Bloomberg Businessweek columnist and senior economics contributor for American Public Media’s syndicated radio show, Marketplace.

I’ve also seen the term Unretirement used by Sun Life Financial in Canada but that seems to be more a marketing term the company uses to promote its surveys on traditional retirement. That survey has been going for six years now, which certainly predates the publication of Farrell’s Unretirement Continue Reading…

Two ways to downsize

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downsizing home to a smaller oneOnce you hit the Decumulation years, a common option new retirees consider is Downsizing from a large urban home. Friends of ours on our street are about to put their home up for sale in order to move to a small town an hour away. The difference in the home values will constitute a major nest egg to supplement meagre government pensions and part-time work.

Wednesday’s Financial Post has two articles on this theme. In the RRSP Special Report (I also contributed an article on a different topic), Garry Marr describes the strategy of finding lower-priced homes in small towns:

The small-town appeal is a huge factor for retirees because it can allow them to sell their house in a large city and extract the equity, which they can then live off for their remaining years.

Top reasons to rent during retirement

Continue Reading…

Reflections From The Early Days of Spending In Retirement, Part 1

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patgass
Patricia Gass

By Patricia Gass, CPA, CFA

Special to the Financial Independence Hub

I need to get this right. I’ve only got one chance.

Running out of money in retirement is NOT an option, especially for the “conservative accountant” in me. I refuse to be a burden to my children (or anyone else for that matter)!

It’s been 10 months since my husband and I received our last “official” corporate paycheque. Early retirement has been a true blessing: complete control over our life, time and money. We know there will be bumps in the road but so far so good. We are both happier than we’ve ever been. Life is great! Continue Reading…