During my day job, I meet many clients to look at their personal finances. More precisely, my mandate is to create financial plans and help clients with more than $250,000 invested with the bank. So, most of them are in their 50s. Unfortunately, I come across a lot of people who don’t have a financial plan and have never discussed retirement planning. At one point, it’s like they feel that it’s too late or they are too ashamed to talk about retirement planning. Like most things we don’t like to do, we all hope that time combined with magic and prayer will take care of our retirement planning .
So if you don’t have a plan at 55, is it too late for retirement planning?
The quick answer is no (especially since you might not even retire at 65 but perhaps closer to 70 or 75 ). However, some things may need to change if you want to have a comfortable retirement:
Look at reality
The very first thing is to look at your net worth, your budget and how much you are saving in your retirement account right now. Like an alcoholic, you need to acknowledge that you have a problem before starting to solve it .
Once you have your statements in order, make an appointment with a financial advisor that is able to create a retirement plan. He will key your information into his software and be able to tell you about how much you have to spend annually during your retirement years. Warning; this will be a reality check! Read More…