I’ve heard men say the reason why is because we drive them mad. I beg to differ! Regardless of the reason, facts are facts. At some point, we as women will be solely responsible for our financial lives. This is why it’s important for us to understand how to manage our finances now so that we are well equipped and ready when this time comes.

1. How Much Do You Need

The first step in creating your retirement plan is to determine how much you actually need. Calculating your Financial Independence Number (FIN) will let you know what your target is. Next, you want to know what income sources are available to you. Upon retirement, many governments offer pension plans for their retirees because of their dedicated labour contribution to the economy. Although these are great they should never be solely relied upon for your retirement income. Partly because they usually don’t offer much and also because there is no guarantee what the benefit amount will be by the time you retire. Setting yourself up for a stable retirement includes you taking the wheel to build your own retirement wealth.

2. Pay Attention To Your Investments

The first step in strategic investment planning is, choosing your investments. Selecting the right investment strategies will help you reach your desired goals and build a large nest egg that will guide and support you in your retirement years. The younger you are, the more aggressively you can invest because you will have the time to bounce back from any market crashes. The closer you are to retirement, the less risks should be taken with your money. Completing an investment risk tolerance test is a great indicator highlighting what type(s) of fund(s) would best suit you.

3. Select The Right Accounts

The type of accounts you use also plays a contributing factor in retirement planning. You should only select accounts that have the most advantages for you and your money. Things to consider when selecting accounts are tax implications, protection, and management fees. Registered Retirement Savings Plans (RRSPs) have a significant tax impact when it’s time to use your funds in retirement. Any withdrawal from your RRSP will be deemed as income and will be completely taxable. Investing in segregated funds will give you investment guarantees and provide protection from market crashes, but they have higher management fees, compared to other accounts. These are just a few things to consider. There is never a one-size-fits-all when it comes to retirement strategy planning. Selecting what accounts are best is based on your individual goals and needs. Make sure you take the time to understand all the implications about the types of accounts you are using to build your wealth because you don’t want to end up at 65 and find you haven’t saved enough.

4. Protect Your MVA

Protecting your Most Valuable Asset, yourself, is also recommended as you plan for your retirement. Most people ignore insurance protection as part of their wealth building strategy. You (and your partner, if applicable) should have adequate insurance protection to ensure your family’s financial future is secure. Insurance may include - life, disability, critical illness, long term care, etc. Life insurance will help preserve your current lifestyle, build an instant estate and protect your financial well-being if your partner becomes an angel before you and you’re forced to figure things out on your own. Critical illness insurance will provide financial security if you become ill and reduces the risk of dipping into your retirement savings to take care of your current health needs. The same is true for disability and long-term care. Talk to an insurance professional to determine how you can best protect yourself and your family.

5. Estate Planning

One commonly overlooked step in the planning process is estate planning. And don’t misinterpret the word estate as being mansions and millions. Your estate is made up of any assets that you own, regardless of the amount. This includes your home, savings accounts, investments, properties, etc. We all have an estate. Yet, most families do nothing to protect it. Without the proper planning, all the years of hard work spent building your assets for your family and your legacy could be wiped away because of a sheet of paper or lack thereof. Estate planning includes wills, power of attorneys, insurance plans, beneficiary designations, etc. Make sure you have the right plans in place before it’s too late.