A RETIREMENT PLAN OUT OF TUNE WITH CHANGING CIRCUMSTANCES

Globe and Mail – Financial Facelift  by Dianne Maley

“When Marguerite quit her public service job in 2009 to get an MBA, her goal was clear. At 47, she was embarking on a new career in a field she felt would be more satisfying than her previous work. Her salary, together with her public service pension, would form the groundwork of her longer term financial plan, enabling her, she hoped, to retire at age 60 with after-tax income of $50,000 a year. That was then. Now, at 51, Marguerite finds herself working on a part-time contract earning a little more than $30,000 a year, living with and caring for her mother, who is 87 and ailing. Her mother’s savings are enough to pay for her daytime caregivers for a few more years… Her question: ‘Can I reach my retirement goal if I continue to work part-time to age 60 at a similar salary, which would allow me the flexibility I need to care for my mother?’ Marguerite asks in an e-mail. If not, how much would she have to earn? We asked Ngoc Day, a fee-only financial planner at Macdonald, Shymko & Co. Ltd. in Vancouver, to look at Marguerite’s situation.” Click here to read the rest of the article

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