Personal Investments
Most of us understand the benefits of sensible retirement planning, however, when it comes to actually creating your personal retirement strategy and putting it into effect, it doesn’t feel quite as straightforward. The reality is that, while there are lots of variables to consider, it isn’t as difficult to create an effective plan for retirement as you may think.
When making decisions about personal investment, there are a lot of things to consider. Let’s first consider the merits of a retirement plan. Firstly, the plan will aid you in the setting of clear goals for your retirement such as the age that you want to finish work and what you want your retirement to look like in terms of lifestyle. Secondly, it will help you to establish how much you need to save now to have a retirement that meets your objectives. Thirdly, a plan will allow you to choose your investment options wisely.
How Much Do You Need to Save?
How do you know how much you need to save is a common question. This depends on three factors:
Your age
- It makes sense that starting to save for retirement when you are younger means that you need to save less money than if you start later in life
Benefits available to you
- There is a range of federal government benefits that you might be eligible for. These include the Canada Pension Plan or Old Age Security
Your lifestyle
- Your personal plans for your retirement will inevitably affect how much you need to save to fund it
Tips for Personal Investment
If you haven’t started saving for your retirement yet, or have less in your retirement savings plan than you would like, take a look at our top tips to accelerate your savings with personal investments:
- Make the most of RRSPs and TFSAs to minimize your tax bill and make your money grow faster
- Take advantage of any pensions or savings plans that your workplace offers. The contributions that your employer makes can add extra value to your fund
- Think about putting spare money into your retirement fund
- Look at your spending habits to identify opportunities to cut back and save more
Taking steps to create an effective retirement plan is a decision that will pay off as you approach your golden years, giving you the opportunity to have the savings for the retirement that you deserve.
Talk to us, we can help.
At Rockmoor Wealth Management, we work with our clients in identifying financial services options which are based on each individual’s specific needs. When it comes to investment and portfolio management solutions, we have established referral arrangements with the investment firms below, whereby we introduce our clients to the benefits of having a full discretionary managed account.
KAI Asset Management Inc.: For more information about KAI Asset Management Inc., please contact us or visit their website at kaiasset.com 1
BCV Asset Management Inc.: For more information about BCV Asset Management Inc., please contact us or visit their website at bcvassetmanagement.com2
DeLuca Veale Investment Counsel Inc.: For more information about DeLuca Veale Investment Counsel Inc., please contact us or visit their website at delucaveale.com3
1KAI Asset Management Inc. is a Portfolio Manager and Exempt Market Dealer registered in the provinces of Manitoba, Saskatchewan, British Columbia, Alberta and Ontario. The firm is also registered as an Investment Fund Manager (IFM) in the provinces of Manitoba and Ontario. This communication is directed only to persons resident in those jurisdictions.
2BCV Asset Management Inc. is registered as a Portfolio Manager in the provinces of Alberta, British Columbia, Manitoba, Newfoundland & Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, and Saskatchewan; as an Investment Fund Manager in Manitoba, Newfoundland & Labrador, Ontario, and Quebec; and as an Exempt Market Dealer in Manitoba, Newfoundland & Labrador, and Ontario. This communication is directed only to persons resident in those jurisdictions.
3DeLuca Veale Investment Counsel Inc. is registered as a Portfolio Manager and Exempt Market Dealer in the provinces of British Columbia, Alberta and Ontario. This communication is directed only to persons resident in those jurisdictions.
Tax Free Savings Account
A Tax-Free Savings Account (TFSA) can be an effective way to save for the future, even for those who are only able to save a little every year. Your savings will grow more quickly in a TFSA due to the fact that you do not pay any tax on the earnings. You also do not pay any tax on your withdrawals.
Registered Retirement Savings Plan
A Registered Retirement Savings Plan (RRSP) is a savings account and personal investment that offers you a simple way to put money away for your retirement. Key features of an RRSP include tax-free accumulation of investment savings within the RRSP and all eligible contributions made to an RRSP are tax-deductible.
Registered Education Savings Plan
A Registered Education Savings Plan (RESP) provides an excellent investment vehicle to save for your children’s post-secondary education. Like an RRSP or TFSA, money deposited into an RESP grows tax-free, giving you the opportunity to grow your savings quicker while taking advantage of both Provincial (if available) and Federal Savings Grants.
5 Retirement Mistakes You Need to Know Today
Download this free guide to learn how to avoid these simple and potentially devastating mistakes Canadians make every day.
Take the Next Step
Our team in Nanaimo has acquired decades of experience specializing in providing quality financial advice in areas of financial planning, investments and insurance. Book a meeting with us to learn how we can help you with your finances.