It’s February which means thinking about the future and how much you contribute to your RRSP next month needs to be top of mind.
Here are some thought starters that are key to reaching long-term financial goals.
- Plan what your future looks like from all angles
We are often planning what our financial future looks like, hoping to have a certain amount saved up by the time we retire. But, to help your financial plan it is important to picture what your life will look like in retirement from all aspects. Are you going to be in the same home? Will you want to spend more time with family? Will you spend time travelling? Your retirement lifestyle will be the best indicator of your financial needs.
- Create a retirement income plan
People are busy ensuring they have saved enough for retirement but fail to create a plan to ensure their savings are providing a steady stream of income. Investing smartly before retirement should ensure that even though you are drawing from your investments there is still a stream of income that provides increased longevity to those investments.
- Don’t forget about taxes
People often fail to realize that one of the biggest expenses for a retiree is taxes. These tax bills often appear as a result of transitioning your RRSP into an income fund. While, they are unfortunately unavoidable, they should always be taken into consideration in planning, to ensure you know exactly what your eventual financial situation looks like.
- Seek help
This is the biggest financial transition in your life and you do not have to make it alone. Seeking active advice from a professional ensures you are maximizing your investments for your future. It is never too early to have a retirement conversation. If you dream about it, start strategizing on how to save for it.