Retirement Income - How much is Enough Part 1/3

The image of retirement is one of luxury vacations, golfing with your friends 3 days a week and spending time with/and spoiling the grand children.

The reality for many is pinching pennies, limited travel and maybe dinner out once a month.

Many baby boomer's are finding the costs of their lifestyle are too much to manage in retirement.

As credit card bills start to mount, downsizing has more to do with eliminating debt and expenses. For many the first 5 years of retirement can be an eye opener!

Retirement for Business Owners

For Many business owners the ability to save and invest for retirement has been directly impacted by current the economy in Kelowna. 

When sales and profits are down, saving and investing for retirement are not always the top financial concern. 

The other day I was asked by a number of my friends at the Okanagan Business Referral Group (OBRG) about my ideas on how to best to deal with retirement as it relates to business owners. 


Here are 3 ways of investing to create an income stream for retirement if you are business owner.

Canada's Pension Benefits Changing

The financial turmoil of current economic events has effected the possibility of early retirement for many baby boomers. 


Investments are down, company pension plans are coming under pressure and now government benefits are changing to adapt to less revenue.

Governments in France are pushing retirement age ahead from 60 to 62 1 to save money, the United Kingdom has scraped the mandatory retirement age of 65 to allowing for longer working years to collect premiums 2 , now Canada has announced a plan to increase contributions, to drop benefits for early retirees and to allow contributions after 65 to support the Canada Pension Plan.

Retirement Study

When was the last time you reviewed your financial game plan to see how your plans for retirement are coming along? 


If you are like most Canadians your main focus is holding on to your job, paying your monthly bills and maybe planning a winter vacation.  Retirement is the last thing on your mind.


In a November the Gandalf Group issued the Cosumerology Report, for Bensimon Bryne, interviewing 1,500 Canadians from the age of 50+ on their key financial and lifestyle issues facing them as they planned for retirement.  


Then they compared their responses with other Canadians that where retired, and the results were enlightening.

Retirement Reality Time to Downsize

The retirement reality is hitting baby boomers much harder than expected. For many the family home (or should I say the equity in your home)  has become the hope of retirees, and downsizing is the buzz word in the financial community.

The idea is a good one. Sell your large 2,000 - 3,000 square foot home to buy a less expensive smaller home, town home or condominium and invest the difference to create income at retirement. 

Add to this many baby boomers are dealing with downsizing their parents, downsizing is an issue that many families will be dealing with for next 10 to 15 years. So the question is downsizing sounds is such an easy solution ... why is so hard to do?

3 Ways to Retire Sooner!

With the economy slowing, real estate prices dropping and retirement savings shrinking many are wondering what to do now? Put off retirement? Work a second job? Or resign your self to a weekly trip to the mall instead of annual trek to Arizona? Under all this pessimism there is hope.

The reality is all these things have happened before (although for many it has been more severe than expected) and if you are properly positioned and prepared here are three things you can do to give your retirement plan a boost.