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retirement

Retirement

How To Outsmart Your Peers On Retirement

Everyone needs to save money for retirement, but some people are much better at it than others. Some people struggle financially and can’t save much at all. But other people just aren’t doing the right thing. They could have money to save and invest, but they’re not making the most of it. Or perhaps they are trying to save for retirement, but they’re not going about it in the right way. In fact, many people are approaching their retirement planning poorly. If you want to be smarter than those who are getting it wrong, there are several things you should be doing.

Start Early

One of the biggest mistakes that many people make is to start saving for retirement too late. The earlier you start, the more you can save and the more you can grow your money. If you’re able to start saving for retirement when you’re in your 20s, you’re already doing better than many other people. You don’t have to have a lot of money to put aside. Even a small amount is a useful contribution toward your retirement funds. Although your 20s and 30s are a time when you want to enjoy yourself, it pays to be sensible and think of the future too.

June 21, 2016

Travel & Entertainment

Tips For A Perfect And Affordable Retirement Holiday

It’s never too late to pack your bags and take a solo adventure to a new culture. Retirement may be a frugal time for many but there are plenty of ways to travel on a limited budget. Whether you’re planning a European whistle stop tour or seeking a far flung paradise, with a little prior planning you can enjoy the holiday of a lifetime. Follow these steps and the rest of your retirement will be an adventure long after your leaving party at the office.

Reduce your outgoings

A few incremental lifestyle changes will make you a huge saving in the long term. Cut back on your expenses and you’ll be surprised at how much you can save. Start by comparing all your monthly outgoings, including utilities, internet, home insurance and gym membership. Either cancel what’s no longer needed or switch to a more affordable provider. You should also minimize eating out, use public transport less and quit any costly habits such as smoking. As your savings grow, you can begin planning your dream vacation.

December 15, 2015

Retirement

Baby Boomers: The Emerging Majority

It seems but a short while ago that the baby boomers were called by other monikers, according in great part to our philosophical, social, and fashion sensibilities – hippies, mods, rockers, rednecks, heads, straights, among others. We were, as a group, restless, questioning, and in many cases, driven by a wanderlust our post-WWII, post-Great Depression parents could never comprehend. In spite of, or perhaps due to being such a diverse generation, we all seemed to share one trait. We were always in the minority.

Fast forward to 2015, and we, the eternally young, are getting old. We don’t think we look old, despite our rapidly colour-changing or vanishing hair, our daily deepening wrinkles, and our parents’ paunch, all of which we seem to have inherited within the last few months. We certainly don’t feel like we’re old, aside from our skeletal barometers that are more accurate in predicting changes in weather than any television meteorologist. It is just that things today are heavier or further away than they used to be. We’re still cool, even if it takes a few extra vitamins and blue pills to keep us that way, and our bean bag chairs have been replaced by recliners. Our music, of course, remains the pinnacle of the ages, surely more relevant than the racket being made by the X-ers, Y-ers, millennials, or whatever the kids of today call themselves.

November 26, 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

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