Are you saving enough for your retirement?
There is no individual who is not scared of retirement and most of us start saving as early as possible.
There was a belief that 70% of the income is needed for retirement does not seem to be holding true anymore.
In reality this could change as there is much sudden expenditure and emergencies in life which you will take you’re planning for a toll.
In fact these sudden expenditures are the real financial issues to deal with. There are many contingent factors which will affect your planning. Some of them are- if your children are well settled, if your mortgage debt is clear by the time you retire and if you have any prolonged ailment or not.
Lenore Davis, a financial planner at Dixon, Davis & Co. says, “my questions for every client are what are you going to do with your money if you do not spend it at all, how much time do you want to invest in managing your money, and how long do you plan to live?”
He says that “anticipation” is the biggest issue when you plan your retirement. At the age of 60 you know how things will be at 65 but at the age of 25 you would not about the picture at 60.
Here, your wisdom and farsightedness plays a major role.
You may go for options like
Add up income flows
Investments in registered retirement savings plans can be included.
Investments can be made in non-registered pension plans and even the ones run by the government itself.
You may think of taking out average tax somewhere from 25% to 35% in working years, whereas in retiring years this van is 10% to 15%.
You may switch employers to earn more and secure your future.
Diversify your investments rather than putting a huge amount in one basket. This will save you from a major risk and a fluctuating market.
Along with this, the Head of Don Forbes & Associates suggest to save a minimum of 10% to 20% of your income even during your retirement years. This will help you strike a balance between you earnings and expenditure and also help you to accumulate money for any kind of emergencies.
Always keep in mind that the cash flow will not be there in your old age but the fixed asset, pension and savings will surely be your companion in those difficult days.