KEY SMARTS AND TOOLS FOR YOUR FINANCIAL SURVIVAL KIT
 
Abbreviated from: "The Power Years-A User's Guide to the Rest of Your Life"
by Dr. Ken Dychtwald and Daniel J. Kadlec

"The Power-Years" is your step-by-step guide to repowerment and personal reinvention after forty.

-- For detailed information and directions on each of Dr. Dychtwald's recommendations as listed below, read Chapter 7, pages 183-210 of "The Power Years"

1. Don't count too much on the government or your employer (for safety nets)



2. Spend less (save more and cut your expenses)



3. Invest in your future (every single month write a cheque to your future)



4. Pay off your credit cards (shed your debt-financed lifestyle now)



5. Now pay down your mortgage



6. Be clear abut your potential for inheritance (consider this a second and possibly last chance at financial security and guard it wisely)



7. Max out your 401 (k) ---this could translate to our RRSP plan (a tax favored plan is the closest thing to an investment no-brainer)



8. Diversify your stocks and rebalance your portfolio every year (help build savings)



9. Consider mutual funds (a primary means of saving and investing)



10. Bonds and cash for stability (bonds become even more important as we get closer to the years when we'll be withdrawing from our accounts)



11. Use a 529 Plan to pay for education - this might translate into our Educational Fund (university/college savings plans are the best way to sock money away for education-related costs)



12. Get lifetime income (i.e. a locked fixed income annuity-a guaranteed income stream)



13. Insure your health and life (financial freedom means also factoring in the unpredictable costs of health care; as well, know how much life insurance is enough-to pay off debts immediately)



14. Take care of long-term care costs (the final piece of the savings and insurance puzzle.not to be put off much longer-in the USA, 45% of who receive long-term care are under the age of 65) Patty's note: In Canada, long-term care will touch one in three families in the future.



15. Have the right directives and documents in order (a minimum of a will, a power of attorney and a living will)



16. Seek professional help (the financial services industry is attempting to shift its style and purpose away from sales to solutions)



17. The next steps (have a vision, form a plan and commit to do what it takes to make your power-years dreams come true)