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Many baby boomers could face retirement risk 11 · Thursday, February 16, 2012 OAKVILLE BEAVER · www.insideHALTON.com B aby boomers face significant financial challenges that will greatly influence the quality of their retirement years. Their future might not be as rosy as their past. Boomers are a large segment of the Canadian population born during the period 1946-1964, and many of these people are just entering their retirement years. This privileged group has pushed entitlement to new heights influencing everything they have touched, including the increased demand in their earlier years for educational facilities and housing. This "me "generation has been catered to because of the sheer numbers. However, their past might prove to be far brighter than their future. Our federal government has signalled a need to be more financially prudent with retirement benefits. The announcement prior to that was a reduced level of federal health care funding just as baby boomers are entering their years of greater health care consumption. A recent study by the Canadian Imperial Bank of Commerce reported that a significant part of the increasing consumer debt is being created by baby boomers. Add in an element of unemployment or underemployment and many face an uphill climb as they approach retirement. Any financial problem will be magnified by the increase in life expectancy. Boomers will have more time to run out of money and more time to live after the money is gone. This is a time for them to be resourceful and plan for their own retirement success. All boomers should have a well-thought-out financial plan. Dollars & Sense By Peter Watson The starting point is the review of current assets and earning power against all future cash flow requirements. Understanding the significance of existing investments and earning power against the future cash demands is critical. Everything else flows from this information. How much more do you have to save and what is your target return on investment to have enough capital to fund retirement? Retirement will be based on your estimated life expectancy and your desired lifestyle. Without a good under- Plan where you are and what you need to do to be successful. "All decision you make must This type of high help your financial security. level thinking will You no longer have the luxudrive all future deciry of doing what you feel like sions. doing." It will be these future decisions that will determine whether or not your golden standing of your current years will truly be financial position, all future golden. financial decisions are just If you make mistakes wild and uninformed now your future lifestyle guesses. will suffer. You do not plan a road All decisions you make trip without a destination must help your financial and specific journey. security. That should be no difYou no longer have the ferent in planning for and luxury of doing what you working towards a com- feel like doing. fortable lifestyle during the You have to do what you last decades of your life. must do to have financial For the moment, forget success. all short-term investment Lower your debt, and savings decisions. increase savings, be more tax efficient, reduce investment fees and have a written Investment Policy Statement that outlines your investment strategy. Establish benchmarks and targets and measure your progress towards these targets. These are the serious years and serious and sound decisions must be made. Baby boomers have had a history of controlling their destiny. Now is the time to transfer that control towards establishing your financial well-being. Baby boomers need a financial plan and they must follow that plan. -- Submitted by Peter Watson, MBA, CFP, R.F.P., CIM, FCSI You could get $150 just for opening an account. Between February 9 and May 31, 2012, open a new Primary Chequing Account with a Performance Plan and we'll deposit $150 into your new account!1 Hopedale Mall Branch 1461 Rebecca Street Oakville 905-847-2432 FEBRUARY 17 ­ 20 celebrate family day with a three course prix fixe $15 LUNCH $25 DINNER book online or call 289.291.0265 240 Leighland Ave., Oakville Place www.oliverbonacini.com 1 This offer of (the "Account Credit") starts on February 9, 2012 and is only available at the BMO Bank of Montreal ("BMO") Hopedale Mall Branch, located at 1461 Rebecca Street, Oakville, ON, L6L 1Z8 (the "Branch"), and is only available to new or existing BMO customers who do not currently have one or more Everyday Banking accounts opened at any BMO branch. This offer expires at the close of business on May 31, 2012 (the "Expiry Date"). In order to qualify, you must: (i) open a new Canadian Dollar Primary Chequing Account with a Performance Plan (an "Account") by the Expiry Date; and (ii) your new Account must remain open a minimum of one year. As a condition of receiving the Account Credit, you agree that if the Account is closed before the one year period, the Account Credit is repayable to the Bank and that your Account can be debited by the Bank to recover the Account Credit. Limit one Account Credit per BMO customer (only one customer per Account is eligible to receive the Account Credit). If you require tax advice, please consult your personal tax advisor. There could be tax implications to this payment. ® Registered trade-marks of Bank of Montreal.