Case Study #3
Suzanne’s Journey to Confident Retirement in Ontario
The Challenge
After building a successful career as a Researcher at a prominent university in Ontario, Suzanne started planning for retirement.
Over the years, she accumulated significant wealth across a variety of accounts, including a Defined Contribution Pension Plan from her employer, a TFSA, a RRSP, and multiple non-registered investment accounts.
Suzanne has three adult children (one of whom is still in school) and two grandchildren. She lives modestly, owns her home in a quiet neighborhood, and dreams of spending more quality time with her family once she retires.
But as she approached retirement, Suzanne began to wonder if her financial situation could fully support her goals, including leaving a legacy for her children and grandchildren.
She had more questions than answers:
- How do I consolidate my retirement accounts?
- Are my investments properly allocated?
- What are the tax implications of leaving my pension plan where it is versus transferring it into my own investment accounts?
- Will I have enough money to cover healthcare expenses, especially if I retire before the Ontario Drug Benefit Plan kicks in?
- How do I shift from saving for retirement to living off my investments?
Suzanne knew she needed professional guidance to create a plan that would provide clarity and confidence as she transitioned into retirement.
The Approach
Suzanne’s first step was to sit down with the team at Cornerstone Financial Management. She wanted a financial advisor who would truly listen to her questions and concerns rather than push generic solutions.
Transitioning into retirement can be a mix of excitement and uncertainty, and the team understood the importance of making Suzanne feel heard and valued.
Once Suzanne’s goals and priorities were clearly identified, the team developed a personalized retirement plan that reflected her values and addressed her specific concerns.
The Results
The Results With Cornerstone’s guidance and collaboration with her accountant, Suzanne was able to:
- Create a retirement timeline that incorporated future milestones, such as when CPP (Canada Pension Plan) and OAS (Old Age Security) benefits would begin.
- Consolidate and organize her assets across her RRSP, TFSA, and non-registered accounts, ensuring her investments were aligned with her financial goals.
- Reduce taxes by determining how much and from which accounts to draw retirement income she will pay significantly less taxes than she otherwise would have.
- Maximize her savings during her final working years, ensuring she made the most of her income before retiring.
- Establish a reliable income stream to support her lifestyle during the early years of retirement, before accessing CPP and OAS.
With her plan in place, Suzanne feels confident and secure as she approaches her retirement. She now has clarity around her finances, knowing that her investments are working hard to fund what matters most to her.
As she transitions out of her career, Suzanne is ready to embrace her role as a grandparent, spending time with her grandchildren and passing down values and memories that will last a lifetime. She also looks forward to pursuing hobbies and traveling with family, confident that her financial plan will allow her to live the retirement she always envisioned.
The Cornerstone Difference
Suzanne’s story showcases the importance of having a personalized, independent financial plan. At Cornerstone Financial Management, we specialize in helping professionals like Suzanne gain the confidence they need to embrace retirement on their terms.
Whether you’re planning your retirement, reducing your tax burden, or leaving a legacy, we’re here to help you navigate the complexities of your financial journey.
Contact us today to schedule a consultation and start building your personalized financial plan.
Disclaimer: The above case study is hypothetical and does not involve an actual Cornerstone Financial Management client. It is intended for illustrative purposes only. No portion of the content should be interpreted by clients or prospective clients as a guarantee that they will experience the same or similar results or satisfaction if Cornerstone Financial Management is engaged to provide financial planning or investment advisory services.