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Retirement

Do You Have A Financial Plan For Your Retirement?

Fancy living on a tight budget during your twilight years? Want to survive freezing winters without a heated home? Like the idea of eating cheap, discounted food? No, then you need to start planning for your retirement. It might seem like a long way away – 15, 20 or maybe even 30 years, but the truth is, it will sneak up on you.

Your retirement might seem a long way off, but whether you are in your 20’s or 50’s, you need to have a plan in place. The reality is that if you want to enjoy your retirement, you need to start putting something away each month. Otherwise, the sad truth is that you’ll struggle to get by.

If you don’t already have a financial plan in place for your golden years, don’t panic, it’s not too late.

November 20, 2015

Retirement

Reasons Why A TFSA May Be Better Than An RRSP

Traditionally, most Canadians thought that taking advantage of the immediate tax savings of a Registered Retirement Savings Plan (RRSP) for their retirement savings was the smartest choice when it came to saving for their retirement. But now that the Tax Free Savings Account (TFSA) has been around for a while, some people, including tax specialists and personal finance planners beg to differ. Why? Here are some reasons:

1) The TFSA has perks that the RRSP just doesn’t have. For one, the funds you contribute to a TFSA have already been taxed, and because any earnings you get from your investments are not taxable ever, this is a great vehicle for retirees who want to access funds from their investments with absolutely no tax consequences. Although the RRSP allows you to reduce your income tax payable right now, you have to also consider the future – when you are older and ready to retire – do you want to be paying a lot of tax at that time? Just because you may be retired, it doesn’t necessarily mean that your income will be really low, and it’s likely that the tax rates will continue to increase in the future, so you may end up paying just as much or more tax later. So, when deciding how to save for your retirement, you want to consider not only the present, but also the future consequences.

2) The TFSA won’t likely be around forever. As many other government initiatives have come and gone over the years, it is very likely that the TFSA won’t be here forever, so it’s a good idea to take advantage of this account while it’s still around. If you are in the position to max out your contributions, then by all means, consider it. You also have to understand that you should be treating this account as an investment and not a simple savings account – meaning in order to maximize your potential earnings, and therefore benefit from the tax savings, you should be investing in something that can earn you more than the 1 or 2% interest rate on the regular savings accounts.

September 10, 2015

Retirement

How To Plan For A Comfortable Retirement

The earlier in your life that you start planning your retirement, the more comfortable it will be. Nobody wants to slave away for forty-odd years and not get to enjoy doing your own thing, after all. But to cast away the worry and doubt, you need to be financially secure. So let’s take a look at some of your best options on how to secure your future.

The more you save, the better life will be

The thing to understand about saving for retirement is that you aren’t putting money away for a rainy day. You are putting it away for a couple of decades or so. So, it’s best to consider your retirement seriously from the off because it will take time to build up a decent amount to live off.

May 28, 2015

Retirement

Getting Your Finances In Order: Things To Consider Before Retirement

Retirement comes to us all eventually. And many people are scared at the prospect of retirement. They don’t like the thought of not being able to continue working. A lot of people these days seem to be afraid of growing old. But it’s something we all need to get used to. And the best way to enjoy your retirement is to make sure you’ve planned for it. One of the most important aspects of retirement is your financial situation. You need to get your finances in order before your retirement.

This is vital because you need to be able to relax when you retire. You don’t want to be worrying about financial aspects. Make sure you take care of everything so you can have a laid back and relaxing retirement. You’ve spent the last forty or so years working. When you retire, you’ve earned the rest and relaxation.

So, by following these steps you can prepare yourself for the onset of retirement. You can get your finances in order, and make sure you have nothing to be concerned about.

May 17, 2015

Retirement

Is Retirement All It Is Cracked Up To Be?

Most of us go through life dreaming of the day when we will finally retire and have the entire day to ourselves – every day – to do what we want with. But does it always pan out like this or can there be problems to deal with?

When you work full time and you feel as if you are constantly chasing your tail to get everything done that needs doing, the thought of retirement can seem like a haven – a dream to focus on for the future. No one wants to wish their life away but when you are busy you might look forward to your retirement as a time when things will settle down.

Unfortunately some people struggle to adjust to the big change that is retirement. Yes – while it gives you lots to look forward to it can still be a big shock to the system, especially if you haven’t taken the time to plan or think ahead. In truth retirement can be exactly what you want it to be – and it will unerringly follow the path you lay out for it. So will you plan for an active and engaging retirement you will really enjoy, or will you have a stressful time and struggle to adjust?

June 4, 2014

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