By James Dolan
Pay off the mortgage
This one’s a no-brainer. Think of your mortgage as a giant
hole in the bottom of the “bucket” that is your retirement
savings. With a good portion of your savings spilling out
of the bottom of the bucket every month, the chance that
your bucket will eventually go dry is greatly increased.
Plug the hole, and the water will last a lot longer.
If you haven’t yet put your mortgage behind you, doing
so should become your new top financial priority. Delay
those expensive “dreams” for a bit (see the following page).
Consider part-time or consulting work to generate income
which you can put toward additional lump-sum pay-
downs. Tell the kids that they’ll have to wait for a couple
of years before you can help them with their financial
goals. Whatever action you decide to take, it will likely be
the single most important thing which you do to ensure
that you don’t run out of money in your golden years.
Don’t run on empty
How to ensure that you don’t run out of money during retirement
Professionals call it “longevity risk”: the chance that you’ll live too long – or, at least, longer than
your retirement portfolio. The combination of increasing life expectancies (and therefore, longer
retirements) and more ups and downs in the financial markets have made running out of retirement
money a distinct possibility for many Canadians.
It’s a scary prospect. So it makes sense to think about what you can do to make sure that it never
happens to you. Here are some practical tips.
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