11.1.3 Case study: Approaching retirement  

Elaine and Patrick felt satisfied with their lives and were looking forward to retirement. It hadn't always been easy, but they had managed to save enough so that with their pensions they would have money to travel, relax and enjoy watching their grandchildren grow up.

But they knew that they were facing complex questions with no clear answers. They would have to organize their finances—their public pensions, two different private pensions, a variety of RRSPs and other investments. Their pensions required them to make decisions about how they would receive their payments, and they didn't know what choices to make. They weren't sure how to manage their investments for long-term income.

"We should talk to a financial professional," Elaine suggested.

From friends, she got the names and credentials of several planners. Together, she and Patrick interviewed the planners and checked their registration and references before choosing one who seemed to understand best what they were interested in.

The planner helped Elaine and Patrick sort out what their pensions and other assets were worth. He helped them work out the income they would need over the years to come. They were able to organize their finances to make sure they had a regular income as long as they would need it. When they said they wanted to provide for their grandchildren, the planner suggested making their grandchildren the beneficiaries of their joint life insurance and developed an estate plan to help their grandchildren get established when they were old enough.

"You were right," Patrick told Elaine. "It's much easier to get help from an expert. In fact, knowing how to make the right choices makes me feel more secure, and saves us money, too."

Lessons Elaine and Patrick learned:

• A good plan will help you make the best use of the resources you have.
• Developing a good financial plan is based on a clear understanding of your present finances and future needs.
• Professional advice can help you make the right decisions and can often save you money.