Tag: Dr. Roxanne Arnal CFP

A New View of Retirement Planning

Planning

|

0
(0)
Roxanne Arnal Retirement planning image of an asian couple with an advisor

Retirement is no longer viewed as a “tired” chapter, but rather as a reimagined lifestyle choice—one that offers enhanced time and financial flexibility. Today’s retirees are shifting the lens: some are staying in the workforce longer, trading rigid schedules for greater autonomy, while others are stepping away from past careers to pursue new purpose-driven paths. It’s not just about stepping back—it’s about seeing forward, with clarity and intention.

What are you retiring to?

As with all life transitions, it’s key to have something fun and exciting to look forward to as you change up your day to day life. Take some time to really define what it is you are retiring to.

How are you going to make this happen?

A well-rounded retirement strategy should do more than cover the basics—it should reflect the life you’ve built and the one you still want to live. By integrating your many different investment accounts, personal and corporate, your plan should support everyday comfort while bringing your future into sharper focus, whether that’s exploring new destinations or simply enjoying more freedom at home.

The New Paycheque

Day to day expenses like groceries, utilities and personal care are typically funded by a regular source of recurring income. These may include CPP, OAS, a pension, or your RRSPs for example.

The Fun Stuff

Travel, home upgrades and even a second property are some of the well-earned rewards after years of building your career. If your savings includes a mix of TFSA, non-registered accounts and corporate investing, now is the time to review your withdrawal strategy so you can actually enjoy this nest egg.

The Unexpected

Everything is great until the unexpected happens. Health is a primary reason many retirement plans get off track. Have you built in contingencies to cover unexpected expenses? Can you comfortably pivot your financial enjoyment to meet your new needs?

The “Not-So-Fun” Stuff

And then we have taxes! One of only two certainties of life in Canada. You’ve worked hard to limit taxation during your working years, so it’s key your withdrawal plan considers how you will manage your taxes moving forward. Don’t let taxes eat up 50% of your savings!

The Other Certainty

Whether you want to address it or not, death is a certainty of life. Though we may not know the day nor the hour, it will come for all of us. Part of a holistic retirement plan is reviewing your estate planning. Does your will still reflect your wishes? Does the beneficiary status of your investments and life insurance policies line up or should they be changed in light of final taxation, charitable wishes, and perhaps skipping a generation to optimize your planning.

The Financial Needs

Avoid the worry created by news and market fluctuations by ensuring your investments are set up to create a smooth withdrawal for your ongoing needs and wants. Understanding how asset allocation plays an increasingly critical role during your withdrawal phase is key to avoiding sequence of return risk.

Conclusion

Now is the time to create a future that balances stability with possibility. Shifting from a saving focus to a spending focus can be difficult, but with a clear plan, you can set a withdrawal strategy that helps to manage market risk, provides flexibility, controls taxation and leaves you with a legacy to be proud of.

Interested in personalized retirement guidance to balance all your financial needs and wants? Reach out to Roxanne via email at roxanne@c3wealthadvisors.ca or call 780-261-3098 to book a conversation.

Roxanne Arnal is a Certified Financial Planner®, Chartered Life Underwriter®, former Optometrist, Professional Corporation President, and practice owner. She is dedicated to empowering individuals and their wealth by helping them make smart financial decisions that bring more joy to their lives.

This article is for information purposes only and is not a replacement for personalized financial planning. Errors and Omissions exempt.

 

ROXANNE ARNAL,

Optometrist and Certified Financial Planner

Roxanne Arnal graduated from UW School of Optometry in 1995 and is a past-president of the Alberta Association of Optometrists (AAO) and the Canadian Association of Optometry Students (CAOS). She subsequently built a thriving optometric practice in rural Alberta.

Roxanne took the decision in 2012 to leave optometry and become a financial planning professional. She now focuses on providing services to Optometrists with a plan to parlay her unique expertise to help optometric practices and their families across the country meet their goals through astute financial planning and decision making.

Share:
Rate:

0 / 5. 0

Insurance Meets Investing: A Smart Strategy for Financial Growth

Building Wealth, Finance|Wealth

|

0
(0)
Roxanne article May-June Optik and ECBC Insurance Meets Investing

As an optometrist, your focus is likely on growing your practice, advancing your career and ensuring your financial security. Have you considered how life insurance can do more than just protect your loved ones in the event of your passing? When used strategically, permanent life insurance can also become a powerful tool for building wealth and supporting your long-term financial goals.

Beyond Protection: How Life Insurance Can Build Cash Value

At its core, life insurance is designed to provide financial security for your loved ones after you’re gone. Permanent life insurance (such as Whole Life or Universal Life policies) also offer a cash value component that can grow over time. This cash value can further accumulate through additional deposits made beyond the basic premiums used to cover the cost of insurance. As an added perk, this growth is tax-deferred.

Tax Advantages: Maximize Your Earnings

One of the most powerful features of permanent life insurance is its tax benefits.

The death benefit proceeds are tax-free to your beneficiaries, ensuring that your family receives the full value of the policy.

For optometrists who own their practice, the majority of the proceeds from a corporate-owned life insurance policy flows into the notional Capital Dividend Account, allowing for tax-free capital dividends to be declared to the shareholders.

Additionally, the cash value grows tax-deferred and permits you access to these funds during your lifetime, often without immediate tax consequences, which can be a valuable option if you’re in a higher tax bracket.

Accessing the Cash Value of your Permanent Life Insurance Policy

  • Policy Loans: A key advantage of permanent life insurance is the ability to borrow against the cash value of your policy. These policy loans don’t require credit approval, making them an attractive option for optometrists seeking funding for personal or business needs, including a partner retirement buy back.
  • Collateral Loans: Up to 90% of the cash value of the policy can be used as collateral with special lenders. These loans often offer more flexible terms than traditional loans, making this a great option to support cash needs.
  • Withdrawals: If you prefer not to borrow, you can also withdraw cash from your policy. Unlike loans, withdrawals can trigger a taxable gain that hits your bottom line with a 100% inclusion rate. Withdrawals also reduce the total death benefit and growth potential of your policy.

Investing Within Your Insurance Policy: A Smart Way to Grow Wealth

Many optometrists are already familiar with investment options like stocks, bonds, and mutual funds. Did you know you can also invest within your life insurance policy?

With a Universal Life policy, you can allocate your policy’s cash value into investment options such as money market funds or mutual funds, which can offer higher returns than the dividend rates offered with traditional Participating Whole Life policies.

The flexibility to tailor your investments to suit your risk tolerance and financial goals within a Universal Life policy will appeal to those who like to take a more active role with their investments.

These growth opportunities are a great option to further diversify your overall wealth creation strategy with the stability of life insurance as part of your portfolio.

Supplementing Retirement: Build a Safety Net for Your Future

As an optometrist, retirement might feel like a distant goal while you’re focused on growing your practice and family life. However, the cash value accumulated in your permanent life insurance policy can be accessed in the future to supplement your retirement income, giving you an extra layer of financial security.

This can be particularly beneficial if you’ve maxed out other retirement accounts or want additional flexibility in how you draw income. Remember, flexibility is key when managing your taxable income in retirement.

Estate Planning: Preserve Your Legacy

As you build your optometry practice and personal assets, a well-structured life insurance policy can help ensure that your loved ones aren’t burdened with excessive estate taxes or an urgent need to liquidate assets.

For those with business partners, life insurance is a much more cash effective means to buy out the deceased’s portion of the practice compared to securing bank funding or paying the estate out of profits.

Conclusion: Secure Your Future with Smart Insurance Planning

Permanent life insurance is more than just an estate tool—it’s an investment strategy that can help you grow wealth, reduce taxes, and plan for the future. By leveraging the cash value, taking advantage of tax benefits, and using policy loans or withdrawals, you can create a robust financial plan that supports both your personal and professional goals.

Remember, life insurance is a long-term commitment. Be sure to work with a financial advisor who understands your needs as an optometrist and can help you design a coverage strategy that fits into your broader financial strategy.

Unsure how permanent life insurance can work for you or your practice? Reach out to Roxanne via email at roxanne@c3wealthadvisors.ca or call 780-261-3098 to arrange a conversation.

Roxanne Arnal is a Certified Financial Planner®, former Optometrist, Professional Corporation President, and practice owner. She is dedicated to Empowering You & Your Wealth through smart financial decisions that bring more joy and laughter to your life.

These articles are for information purposes only and are not a replacement for personal financial and tax planning. Individual circumstances and needs vary. Errors and Omissions exempt.

 

ROXANNE ARNAL,

Optometrist and Certified Financial Planner

Roxanne Arnal graduated from UW School of Optometry in 1995 and is a past-president of the Alberta Association of Optometrists (AAO) and the Canadian Association of Optometry Students (CAOS). She subsequently built a thriving optometric practice in rural Alberta.

Roxanne took the decision in 2012 to leave optometry and become a financial planning professional. She now focuses on providing services to Optometrists with a plan to parlay her unique expertise to help optometric practices and their families across the country meet their goals through astute financial planning and decision making.

Share:
Rate:

0 / 5. 0