Early retirement sounds like dream, but it does leave more years to cover without a paycheque. Here are some helpful tips.
Know your goals.
What do you plan to do when you retire? Whether you want to travel, go back to school or simply maintain your current standard of living, you’ll need to understand how much you should save.
Find ways to save more.
Eliminating your debts before you retire leaves much more room to do what you want. So does spending less in general. How many little ways can you find to cut down on regular expenses? Think about carpooling, setting a strict wardrobe budget and eating in more often.
Consider downsizing your home and vehicle.
If you’re still paying a mortgage for square footage you no longer need, think about lowering your debt by opting for a smaller space and investing the difference into your retirement plan. Without your daily commute, you may also save on gas and insurance with a more affordable, fuel-efficient vehicle.
Work longer and ease into retirement.
Think about staying on board a bit longer or taking on a part-time job. In addition to earning you a little extra money, it’s a great way to transition into a post-career venture. You can also calculate how much your retirement income will be with government pensions and other programs.
Get help from a financial advisor.
Talk to us about maxing out your Tax-Free Savings Account (TFSA) and RRSPs to benefit from their tax advantages. Most experts agree that you should save at least 10% of your income, with a portion of that held aside for emergencies. Also ask us about segregated funds: available only from insurance companies, they allow you to invest as aggressively as your risk tolerance will allow while protecting your capital.
For more expert advice on saving and investing for your retirement, connect with us today.