Retirement broken down into five phases

Posted Friday, March 2nd, 2012. Filed Under Financial Empowerment

This is an article that I read in the Financial Post section of the National Post, Saturday, Feb. 18, 2012, written by Jonathan Chevreau. He interviewed financial planner, Douglas Nelson who presents five phases of retirement in his book, Master Your Retirement<.em>, 2012 edition.

Here are the five phases:

Phase 1 – the seven – ten years preceding retirement.

Phase 2 – the critical first two years of actual retirement when a couple’s net worth is likely to be at its life-time peak.

Phase 3 – the active years. These are the years you get to enjoy retirement. He states they can last two years or twenty years but eventually you hit phase 4.

Phase 4 – Illness strikes (I do not necessarily agree that we will all get ill. Yes, aging does happen and things like memory loss and minor health issues arise — here is the greater need to take care of yourselves: mentally, physically, emotionally, and spiritually). For some, yes, illness will strike.

Phase 5 – the death of one partner

Mr. Nelson says that the death of one partner, leaving the other partner alone, is when you need to start thinking about estate planning (or even before I say!) and readying the estate so that the children and other beneficiaries can make a smooth transition of assets after the death of the second parent.

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