copyright © 2014 stylus asset management inc.. how much do i need to save for my retirement?
TRANSCRIPT
Retirement Planning:
Creating a clear plan for the
futureCopyright © 2014 STYLUS Asset Management Inc.
How much do I need to save for my retirement?
The Million Dollar Question……
When are you going to be “ready” to retire?
What are you going to do after you retire?
How do you want to spend your savings?
What is your life expectancy?
Are you prepared for the unexpected?
Do you have plans to leave a legacy?
Key Considerations …
1. Gather Financial Information
How Do I Start?
PERSONAL BALANCE SHEET
Step 1: Information Gathering
1. What do you own?
Assets:
• Cash / bank accounts
• Current: vehicles
• Long term: house, cottage,
investments, insurance policies.
Step 1: Information Gathering
PERSONAL BALANCE SHEET
2. What do you owe?
Current: Credit Cards / Line of Credit
Long term: Mortgage
This uncovers your NET
WORTH & the assets you
have to support your retirement
Step 1: Information Gathering
PERSONAL BALANCE SHEET
PERSONAL INCOME STATEMENT
What do you earn?
INCOME (Pre-Tax): All sources
Step 1: Information Gathering
PERSONAL INCOME STATEMENTWhat do you
spend?
Step 1: Information Gathering
• Daily: food & drink
• Weekly: personal care, dining out
• Monthly: Mortgage payments, clothing
• Annual: Taxes, travel
This determines …
• Your estimated “cost of living”
• And what’s left over to either save or spend
Step 1: Information Gathering
PERSONAL INCOME STATEMENT
1. Gather Financial Information2. Establish Overall Retirement
Objective
How Do I Start?
Long-Term Objective:
THREE SCENARIOS
Step 2: Retirement Objectives
“I want to live off ONLY what my investments earn for
me.”
CAPITAL PRESERVATION
SCENARIO #1:
Step 2: Retirement Objectives
“I want to maintain a very nice lifestyle in retirement, but I want to make sure I
don’t use it all up.”
HYBRID MODEL
SCENARIO #2
Step 2: Retirement Objectives
“I want the cheque to bounce at the Funeral Home.”
SPEND-TO-ZERO
SCENARIO #3
Step 2: Retirement Objectives
Have you agreed on your objectives with your spouse?
Do your children know your objectives?
Do your “affiliated professionals” know your objectives?
Step 2: Retirement Objectives
Important Considerations
1. Gather Financial Information2. Establish Overall Retirement
Objective3. Identify & Prioritize Retirement
Goals
How Do I Start?
Ongoing Needs
• Funds to achieve desired lifestyle
Short-Term• Travel• Capital purchases (car, renovations, etc.)• Child’s wedding
Medium-Term• Education savings for child or grandchild• Purchasing real estate (cottage, out of
country)Long-Term
• Generational Wealth Transfer• Philanthropic
Step 3: Identify & Prioritize Retirement Goals
1. Gather Financial Information2. Establish Overall Retirement
Objective3. Identify & Prioritize Retirement
Goals4. Develop an Investment Program
How Do I Start?
An effective investment program helps to
achieve…1) Cash Flow
2) Diversification
3) Risk Management
4) Tax Opportunities
5) Peace of Mind
Step 4: Develop an Investment Program
You need to understand your tolerance for
Step 4: Develop an Investment Program
PERSONALITY
INVESTMENT TIME
HORIZON
Gauge your Investment “Personality”
Step 4: Develop an Investment Program
Short-term volatility
doesn’t bother youBig swings in
the stock market keep
you up at night
You can handle a steady ride
with a few bumps
Investment Time Horizons:
“The Bucket Approach”
Immediate Needs (Next 12 months)
Medium Time Horizon
(3-5 Years)
Longest Time
Horizon (5+ Years)
Shortest Time Horizon
(1-3 Years)
Step 4: Develop an Investment Program
The STYLUS Funds:To
lera
nce f
or
Vola
tility
Time Horizon
U.S. Blended Equity
Wealth Protection
Momentum
Value with Income
Growth
GIC’s
Step 4: Develop an Investment Program
1. Gather Financial Information2. Establish Overall Retirement
Objective3. Identify & Prioritize Retirement
Goals4. Develop an Investment Program5. Building “The Plan”
How Do I Start?
Once the important information has been collected, STYLUS can start building your personalized financial & investment plan:(a) INPUTS
Step 5: Building “The Plan”
(b) CASH FLOW PROJECTION
Step 5: Building “The Plan”
10 YEAR CASH FLOW PROJECTION
Step 5: Building “The Plan”
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024$0
$500,000
$1,000,000
$1,500,000
Base Case
OPTIONS & VARIABILITY
Step 5: Building “The Plan”
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024$0
$500,000
$1,000,000
$1,500,000 Growth-Tilt
Stability-Focused
1. Gather Financial Information2. Establish Overall Retirement
Objective3. Identify & Prioritize Retirement
Goals4. Develop an Investment Program5. Building “The Plan”6. Monitor & Adjust
How Do I Start?
A Financial Plan must be monitored.
Your needs might change & the markets are always
changing.
STYLUS will help monitor your account to ensure that
your plan remains on target.
Step 6: Monitoring and Adjusting
Retirement Planning - SUMMARY GATH
ERESTABLISH
PRIORITIZE
DEVELOP
BUILD
MONITOR
NEXT STEP:
Set up a meeting with STYLUS to get started!