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The-Mortgage-Gal

Financial implications of living longer

It's a fact that Canadians are living longer today than ever before and while this is great because we'll have more time to spend with loved ones—it's a bit alarming from a finance and savings perspective.

Data suggests that retirement years have stretched from 13 to 20 years—or a 54% increase. This means that a proportionate increase in savings is required to ensure your savings can fund the retirement lifestyle you had in mind.
How can we fund this longer retirement? “The easy answer is either through an increase in contributions, or higher returns on your investments,” says Bob Gorman, Chief Portfolio Strategist for TD Waterhouse.

“However, in reality that can be difficult: people have a natural tendency as they age to make lower-risk investments, which can reduce the chances of higher returns.”

Getting an early start on retirement savings and making regular contributions is probably the best way to ensure you have savings in place when it's time to stop working. Bob Gorman offers tips to get started—or to help maximize your
current retirement investments:

Make sure you have a plan.

Know what your goals are and determine what financial steps are needed to get there. An experienced financial advisor can help you build a custom plan suited for your personal situation, as well as help you manage it.

Contribute regularly.

Monthly contributions can help you reach your total annual contribution goal. Investigate taking advantage of payroll deductions for an RSP if offered by your employer. If short of funds, consider a loan for your RSP contributions.
The tax deferred compound growth on your investments could potentially outweigh the interest costs.

Evaluate your investment portfolio regularly.

Analyze your asset allocation and assess if it’s appropriate for your required return, time horizon and risk tolerance, as well as if you’re on track to meet your goals.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.



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About the Author

Tracy Head helps busy families get a head start on home ownership.

With today’s increasingly complicated mortgage rules, Tracy spends time getting to know her clients and helps them to better understand the mortgage process. She supports her clients before, during, and after their mortgage is in place.

Tracy works closely with her clients, offering advice and options. With access to more than 40 different lenders. She is able to assist with residential, commercial, and reverse mortgages in order to match the needs of her clients with the right mortgage package.

Tracy works hard to find the right fit for her clients and provide support for years down the road.

Call Tracy at 250-826-5857 or reach out by email [email protected]

Visit her website at www.headstartmortgages.com

Download her app: Headstart Mortgage Architects

 

 



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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