While markets have rallied off their March 2009 lows, investors face uncertainty when investing solely in equity markets especially when it comes to their retirement portfolios. This article addresses the issue of stress testing your retirement income plan.  I’ve written about this numerous times but it bears repeating especially in this environment.  It’s time to take a serious look at the big picture.

Fewer and fewer Canadians have defined-benefit pension plans at work. Companies have opted to go to defined-contribution pension plans to remove their liability for pensioners in the future. Now it’s your responsibility to look after the money and make the best decision for yourself. Do you have a plan?  If yes, does it answer the following questions?

• Do I have enough money to retire?
• How long will my money last?
• When can I retire?
• How much do I need to save for my retirement?
• Do I need a life annuity?
• What is my optimum asset mix? Continue reading »