Posts Tagged ‘Retirement’
Preparing For Retirement: Understanding New Spending Patterns
Last week we talked about boosting retirement savings during your final working years. In an ideal world you’ll have the double-effect of being in your peak earning years while your largest financial obligations are in the rear-view mirror. In the real world, however, many Canadians are faced with an uncertain retirement because they lack adequate…
Read MoreBoosting Retirement Savings During Your Final Working Years
Whether you’re a late starter or seasoned saver, the five years or so leading up to retirement might be the most crucial time to get your finances in order. Here’s how to take advantage of your final working years. Most retirement readiness checklists suggest your final working years is a time to double-down on retirement…
Read MoreRRSPs Are Not A Scam: A Guide For The Anti-RRSP Crowd
“I don’t invest in my RRSP anymore because I’ll have to pay tax on the withdrawals.” This type of thinking around RRSPs has become increasingly common since the TFSA was introduced in 2009. The anti-RRSP crowd must come from one of two schools of thought: They believe their tax rate will be higher in the…
Read MoreA Realistic Retirement Income Target
In The Essential Retirement Guide, author Fred Vettese argues that the widely accepted retirement income target of 70 percent of final pay is too high. A more realistic retirement income target, according to Mr. Vettese, may be closer to 50 percent and in some cases could be as low as 35-40 percent (i.e. for couples…
Read MoreHow Much Will My Defined Benefit Pension Pay In Retirement?
I contribute to a defined benefit pension plan at work. How much will I get from the pension plan in retirement? That depends on when I retire or leave the plan. Hang on, we’re about to get math-y. Normal retirement age is 65 and I joined the pension plan in 2009 at age 30. Retiring in…
Read MoreRetirement Planning For Late Starters
We’re always hearing dire warnings about how woefully unprepared boomers are for retirement. An Ipsos-Reid survey done for CGA-Canada reports that 25% of their respondents have never made a savings contribution and 29% said they had no money left over to save after paying expenses. So, what if you’re now in your 50’s, still have…
Read MoreHow Much Do You Need To Save For Retirement?
In your 20’s and 30’s, retirement is so far away that you can barely see it on the horizon. The best way to get there is to save what you can afford – say 10 percent of your income – and then readjust your financial compass as you get closer and have more information. You…
Read MoreUsing Monte Carlo Simulations In Your Retirement Planning
Wouldn’t it be nice for our retirement planning purposes if stocks consistently gave us eight to 10 percent returns each year? After all, that’s what stock markets have delivered on average over the very long term. Indeed, between 1935 and 2016 U.S. stocks returned 11.4 percent annually, Canadian stocks returned 9.6 percent annually, and international…
Read More5 Things Missing From Your Retirement Budget
When preparing your retirement budget, it’s sometimes hard to anticipate every expense. One of the biggest mistakes newly retired people make is underestimating how much they will spend to afford a comfortable lifestyle. They end up overspending because they miss some necessary expenses. Underestimating expenses, or having several “one time” expenses can derail your budget and…
Read MoreFinancial Elder Abuse Is On The Rise
I was distressed to read the CBC news report about a 92 year old man who had basically been ripped off by his own children who had been draining his bank account. Even more disturbing is that financial abuse of seniors is on the rise, and the likeliest perpetrators tend to be family members, usually an…
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