Dos and don’ts of financially planning for retirement

Financially planning for retirement requires a great deal of attention and patience, but when done correctly, it can make life easier for you and your loved ones, especially if you are considering moving into a retirement residence or assisted living community. When considering retirement living, you need to factor in your expenses, consider your savings and plan for future changes; however, it doesn’t have to be as tedious as it sounds. Take into account these financial planning tips to make sure you have the right amount of funds to retire comfortably in your senior living residence.

Do use a retirement calculator
While a financial advisor and significant research are some of the best approaches to calculating exactly how to fund your retirement, there are some useful tools that can help do some of the grunt work for you, such as Chartwell’s Budget Assistant tool, which takes into account your expenses and calculates your income after the sale of your home or condominium. Canadian Living also suggests using other online tools like the Retirement Planner and Mortgage Calculator to help you plan. Using these resources could help guide you toward better financial decisions, but shouldn’t replace an expert’s opinion.

Don’t get blinded by a fancy presentation
It’s great if your financial advisor gives you a large binder full of information and reports regarding your retirement plan; however, Forbes warns that it’s not always a sign of an effective course of action. Rather than a heaping stack of information, the best plans are typically kept online and contain a brief summary of your financial assets and concerns, followed by eight to 12 pages of reports and a quick plan for moving forward.

Do share financial information with your loved ones
Many seniors consider finances to be a touchy subject that should be kept private, but it’s also important to share some information with a person you trust – specifically, the person you assign as your power of attorney. Forbes notes that financial responsibilities should be shared with your spouse or adult child so he or she knows how to manage money without extensive guidance. Even something as simple as sharing your financial advisor’s contact information or teaching a loved one how to pay your bills are good places to start.