And loving it
No “kicking back” for you! Congratulations. You’ve achieved your life goals, you have a nest-egg, and now you’re enjoying your success. Travelling perhaps. Volunteering.
Maybe you’ve even started a “second career,” doing what you’ve always really wanted to do. But you’re also keenly aware that women are living longer than ever – many well into their 90s. In fact, chances are good that you’ll spend just as long in “retirement” as you did in raising a family, working, and building a career. And that raises some very important financial questions.
MEETING THE FINANCIAL CHALLENGES OF AGING
Will I outlive my money?That’s the question most retired women ask us. As you age, healthcare costs rise, and the question of long-term care can become a problem. Will you be able to afford to stay in your home? Will the income from your savings and pensions cover your expenses?
Will my standard of living decline? Because of longer life expectancies, many women will spend 15 years or more in widowhood after the death of their husband. And many worry that this will result in a much lower standard of living.
Will I be able to afford healthcare? Healthcare costs and medical expenses naturally rise as you age. Government or other retirement plan benefits may cover basic levels of care and some medication. Will you be able to afford those inevitable extras as they arise, without dipping into your retirement savings?
What about long-term healthcare? This is one of the biggest challenges facing women as they age. If you suffer a serious loss of functionality through chronic disability, will you be able to afford a high level of quality long-term care in a nursing facility or from in-home caregivers? With private long-term nursing care facilities costing $70,000 or more a year, would your savings last?
Will inflation erode my savings? The short answer is “yes.” Since 1993, inflation in Canada has averaged about 2% per year. That means that every year, a dollar buys 2% less than it did the previous year. In other words, your nest-egg will have to grow a minimum 2% every year – year in, year out – after tax, just to maintain your purchasing power – it’ll have to return more if you want your money to keep growing to provide for you as you age.
At Castlemark Wealth Management for Her, we can help you meet these financial challenges as you age. We’ll conduct a full review of your current financial situation, your resources, assets, income streams. We’ll ask you about your goals and plans. And we’ll recommend a detailed investment approach to most effectively meet your retirement needs now, and as you age.