Life doesn’t always work out the way we think it will, and sometimes we find ourselves scrambling to regain control of our financial situation. Illness, job loss, emergency expenses, less-than-ideal money choices – these can all trigger us to dip into our savings prematurely.
It’s almost time to get your 2017 income tax statements ready, and while we’re well into 2018, there is one more thing you can do to increase your 2017 tax return: contribute to your RRSP.
One of the biggest advantages of investing in a Registered Retirement Savings Plan (RRSP) is that any contributions you make will reduce your taxable income in the year the contribution is applied to. While the prior tax year is over, the government allows you to also apply contributions to the prior tax year if they are made in the first 60 days of the following year. The deadline for 2017 RRSP contributions is March 1, 2018.
Image: Nathan Walker
If you own your home, there’s likely a lot of equity tied up in it, especially with the spike in house values we’ve seen the past couple years. If you’re planning on downsizing in retirement, you might be considering funding your post-work years with the money earned from selling your home. In fact, according to a recent study by the Ontario Securities Commission, nearly 4-in-10 homeowners in Ontario aged 45 and over are relying on the appreciation of their home to get them through retirement.
How well do you think you’re investing the savings from your employer-provided group RRSP savings program?
It’s the most important question when it comes to your investments and your lifestyle. After all, you work hard your whole life so that one day you can reach that proverbial light at the end of the tunnel and spend the rest of your days enjoying the freedom of spending your time however you’d like. It’s a nice goal, and it’s not out of reach, but you have to know what it’s going to take to get there and contribute accordingly along the way.
It’s that time of the year when we all set goals for ourselves. Whether it’s to lose 10 pounds, exercise more or something else, most goals are often short term in nature. Sometimes they are achieved, but whether we like to admit it or not, many go down the way-side.
Goal setting is important. Without one would you even know which way you are headed? However, goals should also include longer term plans that need to be built up incrementally, year after year. Retirement is one of such goals. It might sound absurd to think of something that might be 30 years away. But people who have gotten there will vouch - the earlier you start working towards it, the better the chances are of accomplishing the goal.
Here are 7 tips as you work through building up your retirement goal.
This blog by Invisor CEO Pramod Udiaver was originally published on Huffington Post Canada.
Retirement planning can seem challenging. How do you plan for an event that may be so far in the future? How do you know how much money you will need? And how do you avoid many people's biggest fear -- outliving your money?
When it comes to investing, many people ask questions such as what company’s stock should I buy, when should I buy, and how much return can I expect. The questions they should be asking are: