HERE ARE 7 POINTS TO TICK OFF YOUR LIST:​

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1. Create an emergency fund

Before you even start saving for retirement, make sure that you have an emergency fund of between three and six months of your total living expenses put safely away in a safe, easily-accessed place, like a high interest savings investment account. “There are going to be constant surprises in life that you're not expecting when you’ll need access to funds, whether your basement floods, you need a new roof, or you have a health emergency”, says Volpe Financial retirement planning specialist Mike Volpe. An emergency fund will prevent you from having to rely on credit cards or loans that will come with high interest rates that will quickly erode any of your savings.

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2. Pay Yourself First

No dollar is to go anywhere — be it rent, entertainment, or food—until you’ve first put that 20% towards your retirement. It will probably prove easier than it sounds. Most employers will allow you to make direct deposits into retirement accounts, be they Registered Pension Plans or Registered Retirement Savings Plans. Remember, always max out your pension first if your employer offers matching funds.

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3. Create a will

There are two guarantees in life: “death and taxes”. Do your heirs a favor and make sure that your intentions are clearly spelled out. “Death is already a stressful enough situation that the transition of your wealth should be as smooth as possible”. An important part of retirement planning Oakville is making a will.

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4. Buy some life insurance

Many people do not view life insurance as an essential and vital part of a retirement income plan. They see life insurance primarily as a way to protect families from the early loss of a breadwinner during the working years. However, life insurance has the potential to be so much more if properly utilized in a comprehensive retirement income plan. Life insurance plays an important role in any financial plan. It helps loved ones recover from financial risks and unexpected costs, increasing their chances of reaching long-term goals and achieving dreams.

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5. Estimate your retirement expenses

There’s no way to figure out how much you’ll need to save for retirement until you figure out how much you’ll be spending. Our retirement planning tool will help you come up with an actual number by taking into consideration your current expenses and income; don’t forget taxes, and never forget inflation.

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6. Set a retirement date

It will be awfully difficult to calculate how much you need to save if you don’t have at least a rough idea of when you’ll be retiring. In ten years? Twenty? Freedom 55? Even an approximation will be incredibly helpful in computing what you’ll need to be putting aside now.

 

7. Know when to start taking CPP and OAS

You can start taking Canada Pension Plan benefits between the age of 60 and 70. It’s worth spending some time figuring out which age is right for you. There are a number of tax and income factors that could guide you to choose the standard age of 65, or to start early or delay as long as possible.

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Also, how you approach that decision could be influenced by how you approach another: When to start tapping the Old Age Security benefit. For the OAS, you can begin to receive your benefit at between 65 and 70 years of age. Be sure to consider both the cases for early and later pension benefits when researching what’s best for you. Our retirement planning Oakville team provides excellent advice so you feel confident knowing when to start taking CPP and OAS.

 

Takeaway:

You’ll put yourself in the best situation if you start planning for retirement early on. Accumulating the funds you need for a comfortable retirement may take decades, depending on your income, and you’ll want as large of a nest egg as possible when you are no longer bringing in a salary. By starting to invest in your retirement early on in your career, your funds will accumulate and grow over time, leaving you with a substantial enough fund to fulfill your retirement dreams.

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The best news is it is never too early to plan for your life after you’ve finished your career. Now that you realize the importance of retirement planning, you can start developing your retirement plan today.

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Here at Volpe Financial Solutions, we are always available and happy to speak with you to discuss your retirement situation. You can reach us at (416) 702-1017, through our contact form, or you can visit us at 446 Reynolds Street just north of Downtown Oakville at the intersection of Trafalgar Road and Cornwall Road. So don’t wait to start your retirement planning Oakville, let's start planning today!