Kelowna, British Columbia – A single mother, Mary, aged 46, is navigating the challenges of planning for her future while raising her 13-year-old son. As a self-employed accountant in British Columbia, Mary is looking to increase her income to secure a stable future for both herself and her child.
With a gross income of approximately $90,000 per year and various sources of financial support, including child benefits and child support, Mary is actively working towards building a strong financial foundation. She has set her sights on sending her son to college, saving for retirement, and ensuring a comfortable lifestyle post-retirement.
Seeking advice on retirement planning, Mary turned to Justine Kelly, a financial planner, for guidance on her financial situation. Kelly highlighted the importance of Mary shifting her focus towards saving for retirement while also maintaining her current financial stability.
Despite Mary’s prudent financial habits, such as being debt-free and keeping expenses low, Kelly emphasized the need for Mary to increase her retirement savings to meet her goal of retiring by age 60. Kelly also stressed the significance of Mary’s disability insurance in safeguarding her retirement plan in case of unforeseen circumstances.
Mary’s current savings of $255,000, diversified across different accounts and investments, are a testament to her commitment to securing her future. However, to reach her retirement income goal, Mary will need to make strategic decisions to bridge the projected gap of $600,000 in capital by retirement.
Kelly proposed various scenarios for Mary to consider, including working until age 65, increasing her income through additional work, and adjusting her investment portfolio to align with her risk tolerance and growth objectives. By exploring these options, Mary can work towards achieving her retirement goals and ensuring a financially stable future.
As Mary continues to navigate the complexities of retirement planning, she remains focused on making informed decisions that will set her on a path towards financial security and a comfortable retirement. With strategic financial planning and prudent decision-making, Mary is determined to overcome the challenges and uncertainties of retirement as a single mother in British Columbia.