Retirement Income Planning

Q: What is a good way to invest my old-age pension? I am still working and would like to find a place to invest it.

A: Before anyone can effectively answer this question, they need to have a complete understanding of your overall financial picture. Here are some points to consider before you're ready to ask these questions:

  • Do you have any outstanding debts at this time? Paying off your debt will provide a better rate of return than most investments.
  • Are you considering downsizing your home or selling other assets to help fund your retirement?
  • Do you have sufficient benefits in place to manage your health-care costs in retirement? Many people are caught off guard by unexpected or ongoing health-related expenses.
  • Will your anticipated retirement income provide you with enough money to manage your monthly and seasonal expenses? If you are not sure, I encourage you to track and carefully review all of your expenses. You may need to make some changes now for a better retirement later.
  • When do you anticipate using the funds? This is important as it will help you determine the right investments for you and whether the investment funds are better off in a Registered Retirement Savings Plan or Tax-Free Savings Account, or both.

I also encourage you to seek out the services of a certified financial planner, who can help you determine the strategy and investments that are right for you. If you are not working with a CFP or aren't happy with your current adviser, the information on the website,, can help you identify someone who will meet your needs.

Investing some time and effort up front will help you answer your question and eliminate any financial worries in retirement.