Professional Tips to Help with Your Retirement Planning

While it might sound silly, retirement really can just "creep up on you." It's something that just seems to "happen" and it's essential to be fully prepared for it when it does, otherwise your quality of life could be seriously affected. In years gone by the company you worked for (many people worked for just one or two companies during their entire working life -- that's often not possible in this economic landscape though) would most probably have offered you an attractive pension plan plus a percentage of the salary you earned for the rest of your life. State pensions used to be enough to at least cover the costs of living too, which is no longer the case, meaning it's now more important than ever before to take retirement planning seriously and lay the necessary foundations yourself. As a company that offers professional retirement planning advice to individuals in Thornhill, Richmond Hill, Oakville and Mississauga, we're used to dealing with the many misconceptions relating to retirement that seem to circulate around society and during this article we're going to provide you with a selection of our top tips.

What You Need to Know About Retirement Planning

We know that it can be daunting to look so far into the future and we're not saying that you should "wish your life away" but it is important to be prepared for what comes next. If you're feeling overwhelmed and you're not even sure where to start with regards to your retirement planning, here are a few tips to help you on your way.
  • Come Up With a Plan - It might sound ludicrously obvious that retirement planning requires a formal plan, but you would be surprised at just how many people take a haphazard approach to such an important task. To help you formulate this plan and work out exactly how you can create a retirement fund that allows you to see out the rest of your days in comfort, start off by working out your net worth. This is done by adding together the value of all of your assets and then subtracting any debts that you have. Ideally the resultant figure will be positive, but don't be too horrified if it's not (especially if you are young).
  • How Much? - The next part of your retirement planning requires you to work out exactly how much you will have to pay into your retirement fund to ensure that it is able to pay out a minimum of 70 percent of the salary your are earning now (i.e. pre-retirement), as that figure will allow you to live comfortably (you often don't need as much as you do earlier in life as your expenses typically decrease). Now work out how and when you are going to make these payments into your fund.
  • What About Expenses? - You need to budget for any expenses that you have to pay out each month and identify where your money should be going first (i.e. some debts are considered higher priority and must be paid off first). Solid financial planning and being aware of how your money is currently being used is key to enjoying a comfortable life after you've retired.
We do have to warn you though, many people make a retirement plan, but not quite so many stick to it. You must approach retirement planning with the right mindset. Saving isn't an attractive thought for many individuals, especially when you're young, but it is an essential part of life. If you live in Thornhill, Richmond Hill, Oakville or Mississauga and would like further assistance with your retirement planning from a qualified professional, contact us today on 905-829-0959.

Contact us today for your retirement planning in Oakville


 


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