Retirement is a chief financial goal for most Canadians. It requires substantial financial commitment. Almost 1/2 of all Canadians hope to retire by the time they turn 60.* Even if you have already started a Retirement Savings Plan or are in the beginning stages of one, it is never too late to commence saving.
Retirement Planning is a prime financial goal for most in Canada. Even if you already have a savings program in place, or are considering in one now, use an RRSP Calculator. Based on your contributions, this tool will determine how much will be available to you at your retirement.
Retirement planning requires one to set aside enough money during their working years in order to provide income during their retirement years. It is a simple idea, but a complicated activity once one considers the many investment choices, government requirements and tax implications are taken into account.
Contact our London Ontario office for a DETAILED ANALYSIS of your retirement planning needs and potential areas of improvement.
Save now, Start now and Stay invested. Start Now by setting up a separate account and depositing what you can into it every month. As time goes on, try to increase this amount when you feel comfortable doing so. Some people find it helpful to use a pre-authorized deposit which allows you to make weekly, biweekly, semi-monthly, monthly, quarterly or annual contributions to your RSP. Remember, even small sums can accumulate substantially over time. No matter when you start investing, the key is to Stay invested and ride-out temporary turbulent times in a well-diversified portfolio. The more time and money you put into your investments, the greater the benefit may be.
Diversification is same as not putting all your financial eggs in one basket. You spread out and minimize your overall risk by participating in more than a few different investments, This then reduces the impact of one poor performer in the whole portfolio.
Experts agree that the mix of assets of your investments - safety, income and growth, may account for more than 80% of your portfolio's return.
We all begin to prepare for our retirement years at different stages and ages in our lives. But is important to know that the most effective strategy for retirement planning is to begin in your 20s or 30s with the purchase of your first Registered Retirement Savings Plan (RRSP).
It doesn't take a lot of money to build a nest egg if you start early enough and let time do the heavy lifting for you. Make your first deposit as soon as possible in your working career to reap the benefits of compound interest.
A good strategy will carry you right through your retirement years – you will gain confidence in the knowledge that your personal finances will last you the rest of your life. Irrespective of your age, the key to a fiscally secure retirement is to start now!
While it's unlikely that you will be able to estimate exactly how much you'll need for retirement 30 or 40 years from now, we recommend that you do start saving for it today. By contributing to an RRSP in your younger years, you put time on your side. You can watch your savings grow tax-advantaged over the long term.
Taking the “slow but steady” retirement planning approach to building your RRSP, setting aside small amounts regularly is the best way to ensure your success.
Trying to free up large sums of money at year-end is often difficult. This is the most common reason people fail to maximize their earning potential, or sometimes even make their annual RRSP contribution at all.
Visit the RBC Funds monthly plan calculator for a quick view of how to meet your investment objectives.
Make it a point to contribute the maximum RRSP amount whenever possible. This will lower your current tax bill, potentially reducing your marginal tax rate and building your nest-egg even faster.
While it can be very tempting to tap into your RRSP in times of financial crisis, don't do it unless you absolutely have to (unless it is part your planned strategy). Funds you withdraw today will not be there when you need them at retirement.
Contact our office in London Ontario if you have any questions about Retirement Planning.
* Statistics Canada, Summer 2014 Perspectives and Labour Force Survey.