McKenzie Wealth - Our Library of Resources

Critical 10

Issues to consider 5 years before retirement and 5 years after.

5 Years Before Retirement

Retirement isn't just a momentary shift, but a continuation of the life you've been building. Barry LaValley, a retirement lifestyle specialist, emphasizes that understanding and preparing for retirement involves considering the continuity of your current life into this new phase. The concept of the "Critical 10" supports this view, urging attention to critical issues in the five years before retirement, with ongoing adjustments in the subsequent five years to ensure financial security during this transition.

4 Years Before Retirement

Retirement planning extends beyond investment management. The "Critical 10" framework emphasizes a comprehensive approach, incorporating estate planning, insurance coverage, income structuring, and philanthropic considerations into a robust retirement plan.

3 Years Before Retirement

The role of life insurance evolves significantly as retirement approaches and during post-retirement years. Safeguarding the future value of potential income, especially during early career stages and while supporting a young family, becomes a paramount concern. In the “Critical 10” framework, there are several things to cover and review to ensure financial security for you and your family at three years before retirement.

2 Years Before Retirement

Approaching retirement's threshold prompts introspection into the meaning and direction of this forthcoming phase. Retirement isn't a mere extended vacation; it's an opportunity for years of meaningful engagement. Life expectancy calculators estimate prolonged lifespans for many retirees, urging thoughtful planning for these extended years.

1 Year Before Retirement

As you get closer to that retirement date your focus begins to change from simply amassing a substantial nest egg to strategically transitioning towards generating income. In Canada, alongside self-generated income avenues, there are several government pensions that combine to form a fundamental base of retirement income. Now is the time to review your options for retirement income and determine some timelines.

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Financial Foundations

Planning and investing early in life.

Your Credit Score

Managing your finances becomes simpler when you're not reliant on borrowing money. The usual routine involves earning income, covering expenses, setting aside savings, and having discretionary funds. Being mindful of factors that enhance your credit score is crucial, as this metric can influence lenders' decisions regarding loan approvals.

Risk Reward

Setting yourself up for long-term financial success often begins with initiating a consistent savings regimen early in your career. Understanding the risk/reward trade-off is crucial—a measure of the desired return from an investment that isn't guaranteed.

Travel Reward Credit Cards

Travel reward credit cards make up a substantial part of Canadian banks' credit card earnings, fostering customer loyalty through points that function as a form of virtual currency. However, the perceived value of these rewards merits’ deeper consideration, given the associated costs and potential financial implications.

Starting Early

The Financial Foundations series is tailored for young adults just entering their careers, aiming to shed light on vital financial matters crucial at this life stage. This inaugural article underscores a straightforward yet crucial piece of advice: start your savings and investment journey early.

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The Silver Generation

Issues to consider for senior investors.

Maximizing Financial Stability: Sustainable Withdrawal Strategies in Retirement

Retirement planning is a dynamic process that necessitates regular evaluation and adaptation. Periodic reviews of withdrawal strategies, investment allocations, and legacy plans are essential to accommodate changing market conditions, lifestyle needs, and family dynamics. By proactively managing these aspects, retirees can enhance financial resilience and optimize their retirement journey for long-term prosperity and peace of mind.

Navigating Decision Making in Aging Populations

As individuals progress through life, the intricacies of financial decision making evolve, influenced by cognitive changes associated with aging. From declining fluid skills to the maturation of crystallized intelligence, understanding these shifts is essential for sound financial planning and risk management.

Navigating Peak Youth: Adapting to Global Aging

As the global population ages, economies face unprecedented challenges in sustaining workforce dynamics and ensuring continued economic growth. The demographic shift towards an aging population has profound implications for labor markets worldwide. This strain poses significant hurdles for businesses and governments alike, necessitating innovative strategies for managing the workforce and retaining talent in an aging society.

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Critical 10

Financial Foundations

The Silver Generation

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