-
Is
it ever too early or too late to start planning for retirement? Why should
you plan for retirement?
It is never too early or too late to start planning for retirement. If you want to achieve a goal, like financial freedom, then you should begin planning on how to accomplish that goal as early as possible. Implementing and following an action plan will increase the likelihood of attaining a goal such as retiring successfully. Whether you recently entered the workforce, or have just a few years left to work, a retirement plan should be drafted and implemented. Your plan will help bring perspective and clarity to the financial decisions that you are making today and will also offer structure and a process that will help maintain control over your path to retirement. In my opinion the term “Retirement” is often misconceived. Some are eager to retire, and others dread the very thought of retirement. When would you like to be financially independent? Retirement can be viewed as the stage in one’s life where they are truly financially free because they are able to live off their own resources. It is a milestone in an individual’s life where they are no longer dependent on a pay cheque, the point where they are truly financially independent. They have accumulated enough wealth to maintain the same quality of life that they are used to. The real question becomes; how quickly do you want to get to that point? That is where I come in! - What
are a few of the main ways people of varying ages can start retirement
planning and saving?
No matter the age, it is essential to meet with a financial planner to establish a plan on how to attain financial freedom. Planning for retirement and financial independence is one of my areas of expertise. Based on your specific situation, I can help analyze and determine your desired cost of living at retirement, various pension plans you may qualify for, how much money you will need to accumulate, how that money should be invested, and most importantly at what age you can consider yourself to be ready for retirement. Getting closer to retirement is not really a question of how much income is made but rather how much income is spent versus saved. The following tips can help anyone get ready for retirement; Reducing personal debt along with non-asset backed or income producing debt is always recommended. When saving for a long-term goal like retirement, invest your money. Identify your risk tolerance and get comfortable with the idea of holding equities in your investments. Saving tax on income generated by your investments through the use of a Tax Free Savings Account can allow you to keep more of your hard earned money in your pocket. Contributing to RRSP’s will help defer tax on contributions until retirement while accumulating liquid assets. If you are self-employed, consider the benefits of opening a holding company in order to protect assets and save tax. Participating in your company pension plan or any employee stock ownership program can have a great long-term benefit as employers tend to contribute additional amounts of money in your plan. Drafting an actual retirement plan with the help of a financial planner is of great value. Not only will a plan help your financial planner offer you appropriate advice which is based on your financial situation but will also offer you clarity as to where it is you are going and what actions should be taken to get there. - If
you could implore readers to take action on only ONE thing as it relates
to retirement planning after reading this article, what would that first
step be?
Ask yourself if financial freedom and independence is important to you. If the answer is yes, get in touch with me and I will draft a plan that will help you get there.
Contact me today to get started
Alex Lallitto, F. Pl.
Financial Planner and Investment Specialist
438-920-0692
alex.lallitto@scotiabank.com
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