1. Retirement Planning: Creating a clear plan for the future
2014 Information Session
Retirement Planning:
Creating a clear plan for the future
Copyright © 2014 STYLUS Asset Management Inc.

2. The Million Dollar Question……
How much do I need to save for my retirement?

3. Key Considerations … When are you going to be “ready” to retire?
What are you going to do after you retire?
How do you want to spend your savings?
What is your life expectancy?
Are you prepared for the unexpected?
Do you have plans to leave a legacy?

4. How Do I Start?
Gather Financial Information

5. PERSONAL BALANCE SHEET
Step 1: Information Gathering
PERSONAL BALANCE SHEET
1. What do you own?
Assets:
Cash / bank accounts
Current: vehicles
Long term: house, cottage, investments, insurance policies.

6. PERSONAL BALANCE SHEET
Step 1: Information Gathering
PERSONAL BALANCE SHEET
2. What do you owe?
Current: Credit Cards / Line of Credit
Long term: Mortgage

7. Step 1: Information Gathering PERSONAL BALANCE SHEET
This uncovers your NET WORTH & the assets you have to support your retirement

8. PERSONAL INCOME STATEMENT
Step 1: Information Gathering
PERSONAL INCOME STATEMENT
What do you earn?
INCOME (Pre-Tax): All sources

9. Step 1: Information Gathering PERSONAL INCOME STATEMENT
What do you spend?
Daily: food & drink
Weekly: personal care, dining out
Monthly: Mortgage payments, clothing
Annual: Taxes, travel

10. Step 1: Information Gathering PERSONAL INCOME STATEMENT
This determines …
Your estimated “cost of living”
And what’s left over to either save or spend

11. How Do I Start? Gather Financial Information
Establish Overall Retirement Objective

12. Step 2: Retirement Objectives
Long-Term Objective:
THREE SCENARIOS

13. Step 2: Retirement Objectives
SCENARIO #1:
“I want to live off ONLY what my investments earn for me.”
CAPITAL PRESERVATION

14. Step 2: Retirement Objectives
SCENARIO #2
“I want to maintain a very nice lifestyle in retirement, but I want to make sure I don’t use it all up.”
HYBRID MODEL

15. Step 2: Retirement Objectives
SCENARIO #3
“I want the cheque to bounce at the Funeral Home.”
SPEND-TO-ZERO

16. Step 2: Retirement Objectives Important Considerations
Finances
Have you agreed on your objectives with your spouse?
Do your children know your objectives?
Do your “affiliated professionals” know your objectives?

17. How Do I Start? Gather Financial Information
Establish Overall Retirement Objective
Identify & Prioritize Retirement Goals

18. Step 3: Identify & Prioritize Retirement Goals
Ongoing Needs
Funds to achieve desired lifestyle
Short-Term
Travel
Capital purchases (car, renovations, etc.)
Child’s wedding
Medium-Term
Education savings for child or grandchild
Purchasing real estate (cottage, out of country)
Long-Term
Generational Wealth Transfer
Philanthropic

19. How Do I Start? Gather Financial Information
Establish Overall Retirement Objective
Identify & Prioritize Retirement Goals
Develop an Investment Program

20. An effective investment program helps to achieve…
Step 4: Develop an Investment Program
An effective investment program helps to achieve…
Cash Flow
Diversification
Risk Management
Tax Opportunities
Peace of Mind

21. You need to understand your tolerance for
Step 4: Develop an Investment Program
You need to understand your tolerance for
PERSONALITY
INVESTMENT TIME HORIZON

22. Step 4: Develop an Investment Program
Gauge your Investment “Personality”
Short-term volatility doesn’t bother you
Big swings in the stock market keep you up at night
You can handle a steady ride with a few bumps

23. Step 4: Develop an Investment Program
Investment Time Horizons: “The Bucket Approach”
Longest Time Horizon (5+ Years)
Medium Time Horizon (3-5 Years)
Shortest Time Horizon (1-3 Years)
Immediate Needs (Next 12 months)

24. Step 4: Develop an Investment Program
The STYLUS Funds:
U.S. Blended Equity
Tolerance for Volatility
Time Horizon
Momentum
Growth
Value with Income
Wealth Protection
GIC’s

25. How Do I Start? Gather Financial Information
Establish Overall Retirement Objective
Identify & Prioritize Retirement Goals
Develop an Investment Program
Building “The Plan”

26. Step 5: Building “The Plan”
Once the important information has been collected, STYLUS can start building your personalized financial & investment plan:
(a) INPUTS

27. Step 5: Building “The Plan”
(b) CASH FLOW PROJECTION

28. Step 5: Building “The Plan”
10 YEAR CASH FLOW PROJECTION
Base Case

29. Step 5: Building “The Plan”
OPTIONS & VARIABILITY
Growth-Tilt
Stability-Focused

30. How Do I Start? Gather Financial Information
Establish Overall Retirement Objective
Identify & Prioritize Retirement Goals
Develop an Investment Program
Building “The Plan”
Monitor & Adjust

31. Step 6: Monitoring and Adjusting
A Financial Plan must be monitored. Your needs might change & the markets are always changing.
STYLUS will help monitor your account to ensure that your plan remains on target.

32. Retirement Planning - SUMMARY
GATHER
ESTABLISH
PRIORITIZE
DEVELOP
BUILD
MONITOR

33. Set up a meeting with STYLUS to get started!
NEXT STEP:
Set up a meeting with STYLUS to get started!