Financial and Business Succession Planning, J. Paul Wilson, CFP, Halifax, Nova Scotia, Canada

It is understandable if you are concerned about growing your current savings so you can retire when you want:

• You are going to be retired for 20, 30, 40 years, and you need to ensure you don’t outlive your money

• Cost to maintain your same lifestyle goes up every year - the longer you live, the more income you’ll need

• While the market can provide the growth you need over time, growth isn’t guaranteed and you no longer have as much time to make up for market losses as we have seen.

Retirement risk zone:

• The closer you get to retirement the harder it is to recover any market losses
• Market downturns in early retirement may mean an increased probability of running out of money.

Options available:

"Avoid" Risk	Mitigate the Risk	Transfer the Risk
An investment in fixed income means you know what your return will be. You're protected from a market downturn, but you don't benefit if the markets do well. You don't face the risk of losing your current investment, but you still run a very real risk of out living your money.	You're likely doing this now Further diversify your portfolio Spreading your investments across different industries, countries and asset types will help to limit the chance that a single market event will affect your whole portfolio. This approach reduces the risks, but doesn't remove them. While this approach may give you the potential for market growth, it also opens you up to potential market losses, which is your worry.	Transfer the risks of the market to insurance company. Similar idea to buying property insurance: You pay a small premium to cover the risks to your home and the cost is transferred to the insurance company. This approach removes the risk of a market decline and guarantees you won’t outlive your money.

Summary

A combination of products can help to ensure your retirement income will last

1. Annuities ensure a stable base of income

2. Investment funds to provide potential growth

3. Product specifically designed to guarantee an income amount for the rest of your life.

• Lifetime income benefit option is a product that transfers the risk of the markets to the insurance company

• If the markets go down, you have a guaranteed level of income for life

• If the markets stay stable, your income has the potential to grow by a guaranteed amount (generally better than returns on GICs and other fixed income investments)

• If the markets go up, you have the potential to increase your retirement savings

• You pay a small premium off the top to protect your retirement income from the potential risks.

By developing a comprehensive plan together, we can help avoid you running out of money and give you the opportunity to experience additional growth if the markets do well.


J. Paul Wilson, CFP, CLU, CH.F.C., TEP
380 Bedford Highway, Halifax, Nova Scotia, B2N 2L4
Office (902) 405-8665 Direct (902) 982-2377 Mobile (902)488-4982
Toll-free Fax (866)-436-1207 Email paul@jpw.ca

Desjardins Financial Security Investments Inc.
Branch Office
110-230 Brownlow Avenue
Dartmouth, Nova Scotia. B3B 0G5
Branch (902) 468-0814
Direct (902) 982)-2377
Fax: (902-468-7292

NOTE:

The information contained in this article is intended to provide general guidelines only. The application and impact of the law can vary widely from case to case based on the specific or unique facts involved. Accordingly, the information in this article is not intended to serve as legal, accounting or tax advice. Users are encouraged to consult with their professional advisers for advice concerning specific matters before making a decision.

Make your investment decisions wisely. Important information is found in the funds' simplified prospectus. Please read this carefully before investing. Commissions, trailing commissions management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently. Past performance of the funds may not be repeated.

A description of the key features of the segregated fund policy issued by the insurance company is contained in the information folder. Any amount that is allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.

Desjardins Financial Security Investments Inc. (DFSI) is not providing the financial planning service and will not be supervising this activity. You should not rely on DFSI for review of the plan. DFSI is neither charging nor being paid any fees for this service and will not be liable for any errors or omissions. This Financial Planning Service is done solely through jpw.ca Insurance Retirement Investments.