BMO Nesbitt Burns
132 Trafalgar Road
A guide to financial planning for every stage of life - specifically designed for women.
LifeStages identifies key investment issues and challenges for each of life's five financial stages. Going forward I will highlight each stage with a brief case history designed to help you to better understand sound financial planning principles. Please check back often to review each stage.
LifeStage 3 (Ages 45-54): The Prime Years
Case Study: Sharon
Just a year away from her 50th birthday, Sharon is thoroughly enjoying her business life. The home renovation company she founded 15 years ago is thriving. Her personal life, however, is another story – things haven’t worked out exactly as she’d hoped. Recently divorced with two teenage children, Sharon is now faced with the prospect of reworking her investment and retirement plans in light of her change in marital status.
Until now – as her husband and she had agreed – Sharon had been reinvesting most of her money back into her business on the premise that her husband’s savings and investments would be used for their golden years. Never one to retreat from a challenge, Sharon is currently revising her financial plan to reflect her own needs.
Investment Planning Goals
RRSP Investments: Begin shifting your investments to reflect a balance between capital growth and stability of principal.
Non-RRSP investments: The primary focus should be capital growth, with a secondary focus on stability of principal. Even a two-per-cent difference in return over a long period can have a significant impact on the end results.
Things to Consider
After years of growth for your portfolio, LifeStage 3 is the time to begin reassessing your investment approach – and overall finances – with a view to preparing for upcoming retirement. Here are some things to consider.
* Fictional characters. Any similarities