Creating a Holistic Retirement Income Plan: Income Tax and Portfolio Plan

In our last two posts, we discussed the three main considerations when creating a holistic retirement plan – lifestyle plan, after tax income sources and income tax and portfolio plan. This week, we will discuss your income tax and portfolio plan.

Income Tax and Portfolio Plan

At Brooks Financial, our goal is to help you to determine the most effective way to draw the income you need during retirement, while paying the least amount of tax, with the lowest risk possible. We will align your investments with your income needs and conduct an ongoing assessment of the impact of your plan on your net worth. A plan like this will act as a starting point from which Brooks Financial can also help you:

  • Calculate the gap – essentially your savings deficit or surplus.
  • Account for investment income and inflation (CPP and OAS is protected from inflation but work pensions often are not. Given our low interest rate environment, GICs and annuities do not provide enough return to provide protection from inflation).
  • Assess your current investments and rate of return.
  • Determine what additional investments are appropriate to accommodate your plan going forward.
  • Identify whether you need an annuity if your current guaranteed income sources will not cover your expenses, insuring your income for the duration of your life.

It’s never too soon to plan for a happy, comfortable and secure retirement. At Brooks Financial, we calculate a few alternative scenarios for your income tax and portfolio plan in the event that your retirement income and returns are lower, or your expenses are actually higher than expected. Retirement income planning must be strategic in nature, and you have only one real chance to get it right. We conduct a thorough, methodical assessment to leave no stone unturned. Let’s get started! Contact Brooks Financial to create your holistic retirement income plan today.

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