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in si de ha lt on .c om O ak vi lle B ea ve r | Th ur sd ay , A pr il 5, 2 01 8 |16 OPINIONGlepburnie School Sxcettertce ia Sducati& a OPEN HOUSE W e d n e sd ays 9 am 2035 Upper Middle Rd. East at Ford Dr., Oakville www.GlenburnieSchool.com (905) 338-6236 Plan for retirement spending Many people fear outliving their money: Watson How much money will you need to finance your retirement? That seems to be the question on most people's minds. One that concerns different ages and stages of life. The number one fear many people have is outliv­ ing their money. While we can all agree the future is uncertain, most individuals who think about funding their retirement will have to make some assumptions. A significant assumption is anticipating spending habits. Everyone is different. However, it is useful to con­sider how many retirees spend their money in dif­ ferent stages of retirement. During the first phase many younger retirees want to try something new and start checking off items on their bucket list. Now that they have more free time and the energy for an active lifestyle, they focus on personal growth and adventure. That can include expensive trips. Having the time and en- PETER WATSON Column ergy to be able to spend money means that early retirement can be expen­ sive. In the second stage, re­ tirees have transitioned in­ to their post-work life and a comfortable routine emerges. Spending de­ clines as the energy of those well into retirement is not as strong as it was in earlier years. As the num­ ber of activities decline so does the cost of living. In the final phase of re­ tirement expenses can start to increase. Most of these costs will be health related and retirees also find they need help com­ pleting household tasks. Growing old can start to be expensive. The most sig­ nificant cost for many is moving to a retirement home. This is magnified if the remaining spouse still lives in the family resi­ dence. The importance of an­ ticipating spending habits in retirement is to estimate the total cost of retirement. From a financial planning perspective, future spend­ ing is a target. The strategy now is to develop a financial plan that determines how you accumulate enough funds to support your desired lifestyle in retirement. You will have to decide how much money you need to save every year, and what return on investment you need to grow your wealth. Understanding the return on investment will influence the type of in­ vestments purchased. - Peter Watson, of Peter Watson Investments MBA, CFP®, R.F.P., CIM, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contact­ ed through www.peterwat- soninvestments.com. make a D IFFER EN CE Benjamin M oore Paint like no other.*5 DAYS ONLY! Valid from April 5-9, 2018 Don't miss out on this limited time offer! HIGH BUILD LOW LUSTRE BRONTE VILLAGE PAINT & PAPER 2294 LAKESHORE ROAD WEST OAKVILLE 905-827-3300 PAINTSCAPES WEST 511 MAPLEGROVE DRIVE OAKVILLE 905-339-2002 SPEERS PAINT DECORATING CENTRE 275 SPEERS ROAD OAKVILLE 905-337-7272 PAINTERS PLACE 478 DUNDAS STREET WEST OAKVILLE 905-257-2061 REGAL SEUK7T •*l4» R E G A L SELECT ■ m http://www.GlenburnieSchool.com http://www.peterwat-soninvestments.com http://www.peterwat-soninvestments.com