Anne Kast of Kast Investment Management Ltd. gives an insight into financial planning and addresses vital questions about longevity.

Living longer does have an impact on your pocketbook and having enough money to sustain a comfortable lifestyle is a serious matter.

We all know that people are living longer due to modern technology and medical discoveries. The big question in everyone's mind is, `how long and how much?' Mrs. Kast gave candid, common sense advice when we approached her about ageing and money management for retirement: If you are 50 years old this year how would you start planning for retirement in 15 years at age 65? "It is never too late to plan! The longer you can plan the better off you will become. The key is to figure out how much money you will need to sustain a comfortable lifestyle following retirement. "A good general rule is three-fourths of your current income adjusted for inflation through age 65.

There are five basic sources of income to be considered to provide for comfortable retirement: government pension, company pension, personal savings, rental income and investment portfolio.'' What is the ideal age to begin planning for retirement? Do you have a formula? "As soon as you enter the work force. Join the company pension plan from the get go. Most companies give five percent and allow you to add five, even ten percent. Believe me, at the end of the road 15 percent savings toward retirement makes a whopping difference when your salary ceases to exist.

Additionally, be on the look out for stock purchase plans providing you are working for a successful company. The banks, insurance companies and utilities usually offer stocks to their employees. This is an easy way to start an investment plan.'' To become a disciplined saver, ascertain how much you want to save, save it and spend the rest. People tend to do the opposite and end up saving very little, if any.'' How much, how long? How do you plan to maintain your current lifestyle as you age? "As a responsible person, try to live within your means or below. Live modestly. The worse thing you can do is live beyond your means.

"Even wealthy people need to look for value. Write a letter rather than making an expensive phone call. Dining out in the evening is expensive and poor value. Take a nice, modest vacation rather than something fancy and exorbitant. I drive a 15 year old car rather than a flashy, expensive new one.

"Most importantly, take care of your health so you can work for a long time.

I heard a statistic the other day which said if you are a healthy male and reach age 65 you have the chance of living 18 more years and a female can reach 23 more years.

"Consider stress management to avoid burnout. Plan the major moves of your life strategically. People rush into divorce too quickly.'' What types of investments make the best returns with the least risks? "I have a bias towards mutual funds. Your garden variety allows the risk to be well spread and diversified. Mutual funds allow you to buy the best talent in the business and own some of the best companies. Today there are investment opportunities to workers and savers previously only available to the rich.'' Are pension plans important to retirement? "Certainly. They are key components of senior incomes. Maximise during the earning years if possible.'' Does your firm offer personal management of money and investment strategy for the average person? "Very much so. Our corporate policy is to have no minimum dollar amount. We specialise in working with individuals.'' Do you have investment plans aimed at parents and grandparents for their children and grandchildren? "Yes, there are many investment strategies. We can recommend stocks and mutual funds. Instead of buying the child a toy for his birthday or special occasion invest smartly for the future. Children like watching their investments grow and it also teaches them about taking responsibility and managing for the future. Some parents and relatives start as early as birth, but it is never too late. What you do today can impact tomorrow.'' In general, what advice do you offer about senior planning? "We look at the overall requirements of our clients. Nine out of ten are looking at profits and investments they can depend on for retirement. We know our clients and consider what is best.

Kast cash: Anne Kast, financial expert, cleverly invests your money for continuous growth.

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