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Financial Planning Tips: Retirement

In Business, Writing (all kinds) on June 5, 2016 at 3:00 AM

Retirement really is right around the corner. Starting to save early for retirement is the key to make sure that in your older years you will have a comfortable one. Here are some tips to get you started:

· Start saving as young as you can. As much as you can put away from each paycheque is ideal. There is a book called The Wealthy Barber where the writer recommends that everyone should pay himself or herself first. Before you go out and buy a car, think of how much you could save by living close to work and taking public transit, plus putting that money into a savings plan

· Registered Retirement Savings Plans (RRSPs) are a great way to go to not only lower your taxes when it is time to file them, but also to save for your retirement

· Remember that when it comes to RRSPs it is never too late to start. The important thing is be saving. Think about it this way…if you were to start saving about $10,000 CDN a year from your annual salary every year until you turn 65, and you started at the age of 40, you would have $250,000 CDN saved for your retirement, not including the interest you would have accrued from your investments

· When it comes to thinking of your retirement, think of what you want to do for your retirement – this includes how you want to live your life. Ask yourself questions such as; do I want to live in a warmer climate? Do I want to continue working on a casual basis? What would happen if my spouse died…do I have enough money to take of myself? Asking yourself these questions can really help you to kick start your retirement into a comfortable one

· Also, if you have any health problems and may need to retire earlier than expected because of them, there are investments called a Registered Disability Savings Plan that can help you finance your life more comfortably when you cannot work – make sure you ask the financial planner at your bank for more information and determine if you qualify

These are just a few handy financial planning tips to get you started saving for your retirement. Time does have a way of flying by and the more prepared you are, the more you can make sure you will be comfortable in your golden years. Would you not love to have the money to travel, golf, visit family all over the world, study or do anything you choose to do before you leave this earth? Ensuring that you have a strong financial plan is the key to making your retirement goals a reality.

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