Even if you are considered high net worth, you will face uncertainty over how much you can afford to spend in retirement. The retired business owner or professional(s)often do not have a source of guaranteed pension income which may present you with the challenge of determining a sustainable draw on your investments. Additional factors, such as market volatility, inflation, and taxes create financial planning challenges.

1. Create a personal checklist – How much per year,  and frequency of withdrawal, Income you will need after-tax, the withdrawal rate from your investments held within RRSP, RRIF, IPP, TFSA,  and other income-producing investments depends on several factors:
2. What is your Investment Risk Tolerance? If you are considered a  conservative investor, you would expect a lower return with less volatility, whereas, a more aggressive investor could expect higher returns with more pronounced market adjustments.
3. Your longevity? Retirement could span thirty-five plus years and, generally, a more extended time-frame requires a more specific withdrawal strategy.
4. Your income requirements – will you need to draw on investment income every month or can your defer or decrease income to offset periodic declines in portfolio value?
5. Know your income sources –  Your retirement income will come from sources such as the Canada Pension Plan (CPP), Old Age Security (OAS) and company pension plans. Add them all up.
6. Know your expenses  Add up your expected costs – both fixed and discretionary.
7. What is the gap? For example, If you need Sixty Thousand dollars, 60,000.00, before tax, calculate the difference between total CPP / OAS, and your other income streams. A couple receiving maximum CPP & OAS totals receives about 30,000.00 before-tax per year. The difference will leave a shortfall of Thirty-Thousand to fill the gap. Your income from all other combined sources will be needed to fund your fixed and discretionary expenses.
8. What is your drawdown rate? What is your number? Determine the amount or percentage you need to withdraw from your retirement savings and investments.

Stress Test your adjustment Strategy?   Many use a 4% drawdown rate; however you must account for taxes, inflation, and capital gains. When drawing down on a registered source of investments, Non-Reg, or sheltered investment vehicles, your advisor should adjust to keep pace with your needs.