Are you worried about your investments and your retirement savings? Or maybe you’re wondering whether you can afford to buy a house? It may be a good time to meet with an advisor. They can offer personalized advice that fits your specific situation.
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Saving money during a crisis: do's and don'ts
Sun Life financial security advisor Julien Ringuette has the following recommendations.
- Make a plan, or review the plan you already have. It’s best to build your plan with your advisor’s help. And once you have a plan, you should stick to it!
- Invest sooner rather than later, in RRSPs, TFSAs, stocks. The more you invest, the more opportunities you have to increase your buying power and combat the effects of inflation.
- Automate your savings with automatic deposits. You’ll be able to set aside a fixed sum of money at a frequency you choose. Automating your savings takes the stress out of saving.
- Be patient. With time, things often sort themselves out.
- Make rash, impulsive decisions.
- Rely entirely and only on random internet pages for answers.
- Make impulse RRSP withdrawals because you’re stressed.
- Give in to panic and lose sight of your long-term vision.
- Try to play the stock market if you don’t have experience buying and selling stocks. That’s like playing with fire!
Read: 20 smart money moves
Should you save for retirement or for a house?
Over the next few years, interest rates may climb even higher. This could impact your ability to buy a house. Are you wondering if you should save for retirement or for a house instead? Julien Ringuette suggests investing in a Registered Retirement Savings Plan (RRSP). An RRSP will help you save for retirement. But it can also help you become a homeowner.
That’s thanks to the Home Buyers’ Plan (HBP). You can withdraw your RRSP savings plus the interest you’ve earned without having to pay taxes or penalties. Under the HBP, you’re allowed to withdraw up to $35,000 from your RRSP toward the purchase of a home.
For couples, if you both qualify for the HBP, this solution could add up to a substantial down payment.
To learn more, check out this HBP infographic.
This article is meant to provide general information only. Sun Life Assurance Company of Canada does not provide legal, accounting, taxation, or other professional advice. Please seek advice from a qualified professional, including a thorough examination of your specific legal, accounting and tax situation.