Find out how much you will need to save for retirement and if you're on track to meet your retirement savings goal.
There are many products… ideas… and strategies about how to build your wealth. Simply put, here are three steps to make it easier for you:
1. Understand your financial situation.
You’ll want to have a clear picture of your finances. This will help you decide what’s right for you.
Take the example of a couple with a substantial mortgage, two leased cars, no investments, and an unclear picture of their finances.
They could start saving for retirement by investing only in RRSPs. That might be right for some. But without understanding their current situation, it may be wrong for them.
Like this couple, you need to know where you’re starting from, before deciding what’s right for you.
Knowing what your goals are will help you reach them.
Take for example, a family saving for education for their two kids. One child wants to study from home… and the other wants to move away to go to medical school. The costs for each child’s education are very different.
Another financial goal is saving for retirement. You’ll need to decide when you’d like to retire. It’s also important to consider how long you may spend in retirement.
Take… for example… a 65-year-old man with a million dollars in retirement savings. Let’s use the conventional rule where he’ll take 4 per cent of his savings per year in retirement. Will he have enough to last as long as he lives? Factoring in inflation… he may run out of money.
Good advice can help this family… the retiree… and you reach your goals.
3. Get personalized advice from an advisor.
You may need some help. An advisor can work with you to create a personalized plan… which includes:
- building your wealth with savings and investments…
- and protecting your legacy with insurance.
You can check in with your advisor to make adjustments and track your progress towards achieving financial security.
For more tips and tools, visit sunlife.ca.