For some, retirement is years away, for others it is just around the corner.  The problem for everyone is the same.  You need to plan for retirement.

Income will be reduced, so before you think you will need to retire you need to start reducing your debt and expenses.

I met with a gentleman who recently retired.  His contract stated he had to retire at the age of 65, but retirement still came as a surprise to him.  2 years before he retired he financed a lot of stuff.  His income is reduced and he came to see me to see what he could do.  When looking at his budget, all his payments on stuff he financed came to over $2000.  His pension is $2200, so it doesn’t leave any money for rent, food, or other living expenses.  I asked him what stuff he is willing to get rid of and he doesn’t want to get rid of anything.   In addition he has over $75,000 in credit card debt.  The options that are available to him such as a consumer proposal, bankruptcy, or a debt management plan won’t help him until he can learn to live on his income.

I understand the attachment to things you have financed such as a car or boat, but when it comes to money, you need to make some hard choices.  Having groceries and a place to live is more important than a shiny new car.

What should have happened?  In the years leading up to retirement, he should have reviewed his needs versus wants, financed stuff to either pay it off before he retired, paid cash or financed stuff he could afford on a reduced income.

If you are facing a reduction in income and you need a plan to help with your debt, call me at 310-PLAN or 519-250-8060 or email me.