Our Two Cents

August 31, 2023 | Vito Finucci


Unlocking financial freedom... clients' top three questions answered

Embarking on a summer road trip with the family filled the air with a sense of excitement and eager anticipation. The car was packed with all the essentials, from sunscreen and swimsuits to our carefully curated playlist, a blend of cherished classics and the latest hits. As we wound our way through picturesque roads and endless highways, this experience triggered contemplation.

Among the myriad conversations we engage in with our clients, there are just three questions that clients care about most:


  1. When can I retire?
  2. How much can I spend? and
  3. What rate of return do I need to make?

Navigating one's financial journey is like taking a captivating road trip, with three key destinations that shape the route. Imagine "When Can I Retire?" as the ultimate destination, a distant city on the horizon that beckons with the promise of relaxation and fulfillment. Just as travelers plan their arrival time meticulously, individuals assess their financial milestones and contributions, adjusting their route to ensure a smooth arrival at retirement's doorstep.

1. When Can I Retire?

The burning question on everyone's mind! The ideal retirement age depends on a multitude of factors, including your financial situation, health, and personal goals. While the traditional age is around 65, many factors could push this up or down. Take into account your savings, investments, pension plans, sale of business and government benefits. Finucci Janitis Allen Wealth Group can help you create a tailored plan to determine when you can comfortably retire.

As the journey unfolds, "How Much Can I Spend?" emerges as the rest stops along the way. These pit stops offer a chance to refuel and refresh, allowing travelers to strike a balance between enjoying the present scenery and ensuring they have enough resources to continue their voyage. Much like travelers consult maps and calculate distances, individuals evaluate their spending habits and budgeting strategies, ensuring that their financial reservoir remains sufficient for the road ahead.


2. How Much Can I Spend?

Ah, the art of balancing enjoying your golden years     and making sure the gold doesn't run out. Each family’s situation is different, spending habits, travel plans, healthcare costs, and unexpected costs can all vary dramatically. Most people seek to maintain their current standard of living. The 4% rule is a popular guideline: withdrawing 4% of your savings in the first year and adjusting for inflation in subsequent years. However, remember that your spending may fluctuate throughout retirement, so regular assessments are key.

In this metaphorical journey, "What Rate of Return Do I Need to Make?" assumes the role of the vehicle's engine, propelling the expedition forward. Just as a driver adjusts their speed to reach the next destination on time, individuals assess their investments and financial vehicles to ascertain the necessary rate of return. The acceleration and deceleration of the vehicle mirror the calculated risks individuals take to achieve their financial goals, with the understanding that prudent decision-making keeps the journey steady and the engine running optimally.

3. What Rate of Return Do I Need to Make?

The rate of return you need depends on your retirement savings, spending plans, inflation rate and investment types. Generally, we aim for a conservative estimate of 4%-5% as an average annual rate of return in retirement. This takes into account a reasonable level of risk while still potentially allowing your savings to grow enough to sustain your retirement needs over time. Finucci Janitis Allen Wealth Group can help you tailor a rate of return target that aligns with your unique financial goals, risk tolerance, and overall retirement plan.

Remember, retirement planning is not a one-time task. Regularly reassess your financial situation, adjust your plans, and remain adaptable to changes. The more informed and prepared you are, the better equipped you'll be to enjoy a fulfilling and financially secure retirement.

Ultimately, the financial odyssey we undertake mirrors the road trip's intricate balance – from the anticipation of reaching retirement (the final destination) to the mindful spending (rest stops) and the calculated investment strategies (engine performance). By embracing this analogy, individuals can embark on their financial journey with a clearer understanding of the road ahead, making informed decisions to ensure a smooth and fulfilling ride towards their desired financial horizon.

Whenever you’re ready, here’s 1 way we can help.

We help high-net worth investors and entrepreneurs to grow and protect their wealth.

Vito, Eric & Rachelle




RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ® / TM Trademark(s) of Royal Bank of Canada. Used under licence. © 2023 RBC Dominion Securities Inc. All rights reserved.