5 Tips to Enhance Your Retirement Savings Plan
Do you have enough saved to retire on time? As a rule of thumb, every person should multiply their expected annual retirement expenses by 25 and then subtract the government benefits they will receive. For instance, if you think you’ll need $50,000 a year in retirement and will get $15,000 in CPP and OAC each year, you should have $875,000 in savings. If you’ve done the math and realize that your saving goals are not on track, we have some helpful tips to enhance your retirement savings plan in this article below.
Set Up A Practical Investment Portfolio
Even if you max out your RRSPs, it’s most likely that you’ll still be short on your retirement goal as calculated above. That’s why you also need an investment portfolio. But to hit your goal you don’t just need some random stocks or bonds, you need a portfolio that is carefully constructed to balance opportunities and risks with multi-layer diversification. This will help ensure that you always make money, even when the market dips or if a recession hits.
Register For Your Employee Retirement Plan
Many companies offer employee retirement plans that many people aren’t always aware of. And if you’re not using yours, then you’re missing out since many employers match their employees’ contributions dollar-to-dollar. It’s literally free money that can double your savings. So talk to your company and see if their employee retirement plan can benefit your portfolio.
Have all your kids moved out and now you’re living in a massive home that doesn’t serve you anymore? Why not downsize to a condo or smaller property and then put some of the profit into your retirement savings? You can literally put hundreds of thousands into your retirement this way.
Apply For A Reverse Mortgage
If you plan to stay in your home as long as you can, you may be able to use some of the equity you’ve built up in your home. A reverse mortgage will pay you each month by accessing some of the equity in your home. This can be used to cover your basic monthly living expenses when you retire while giving you the ability to live the life you desire.
Purchase Life Insurance
Did you know that a Life Insurance plan can be used to fuel your retirement? By withdrawing some of it in cash as a tax-free loan, you can enhance your retirement savings plan. There’s just one catch though - the money that will be issued to your beneficiaries upon your passing will be reduced. So be sure you talk to an insurance advisor first about the impact this will have on your estate plan.
It’s a scary fact that most Canadians will not have enough money saved by the time they retire. However, you can avoid becoming one of those statistics by talking to one of our experts at Rowat Insurance. In addition to insurance, we but provide expert retirement and investment portfolio advice. Let us show you how you can enhance your retirement savings plan so you can retire with ease. Call us today to learn more!