Life Insurance Vancouver | 4 Retirement Myths
Thomas Chan is a great financial advisor who helps you secure your life insurance Vancouver. He deals with wealth, retirement and life insurance Vancouver and Canada. When speaking with new clients about their life insurance Vancouver he hears a lot of misconceptions about what people think they need to retire. Because he is a trusted advisor he is great at giving you the facts and letting you know how to be ready for that phase of your life.
One of the top misconceptions people have is that they think they do not need to save for retirement right now. Most people put it off because they have many excuses as to why it is not the right time. They think that later on it will be more convenient but in reality they have lost out on a lot of leverage when you look at the compounding effect that money can have. If you start saving $300 at 25 years old every month it could take up to $1000 when you are 40 years old.
Both of these get the same results but because of compound interest it is less of a hit to your pocketbook starting a lot sooner.
The next misconception that people often say is that their government will pay for their needs when they retire. They are relying on Canada pension plan and old age security to be enough for what they need. The problem with this is that those funds are not as great as they were promised. When they get to that age they will only receive maybe ⅓ of the earnings compared to when they were working. You will need to supplement this income with tax-free savings accounts and registered RRSP accounts.
Another common myth is people think they will have an inheritance to look forward to when they retire. The problem with this thinking is that many parents these days use up a lot of that inheritance before they can even give it to the next generation. The parents may not even have much of an estate left by that time. It is a good idea to have an open and honest conversation with your parents to find out about the money and then you still cannot be confident that it will be there when you need it.
If you think you can rely on the equity in your home to retire on you might be surprised how risky that is. The housing market does not always go up at the same rate but it always has. There are cycles of ups and downs and when you actually need to take the money out it may not be at the right timing or when it is in an upward swing.
If you are looking for advice on how to get your biggest expense, taxes to be reduced, Thomas Chan can help you with all the information you need. He is your trusted advisor and will help you get a better mindset and a better life.
Life Insurance Vancouver | Retirement Myths
If you are looking for life insurance Vancouver look no further than your trusted financial advisor Thomas Chan. Thomas Chan has been in the finance business and knows his way around wealth, retirement and insurance in Canada. For all your life insurance Vancouver needs he is your go to financial advisor. Many people ask him when they first meet if it is necessary for them to have life insurance Vancouver. His answer is quite comprehensive and he would love to sit down with you to go over your needs.
Every person has different needs but most of them have common myths they believe when it comes to creating wealth especially for their retirement. The biggest thing he hears is that people do not want to save for retirement right now. They find that they have too many other expenses to pay down and they want to work on those first. They might want to pay down their house or pay off the car or maybe a student loan but he advises to start as soon as you can to save up enough for retirement.
Every person has good excuses for putting off the saving but a little bit put aside now with the compounding effect can make it very worth it. This always works out better in the long run.
A lot of people think that their government will pay for their lifestyle once they retire. Unfortunately Canada pension plan and old age security is not going to be enough when the time comes to collect it. You could expect to see ⅓ of your earnings come to you in that form. You will need to supplement this by having a tax-free savings account or an RRSP.
If you think you can rely on an inheritance to help you retire then think twice. Many parents do not have as much of a nest egg left by the time they get to leaving it for their kids. A lot of parents are living a lot longer than expected and that number just keeps getting higher and higher. Not only that but they also have financial burdens they need to take care of. You will want to have an open honest conversation with your parents to find out more about the situation and what you can expect. Bottom line is you should not get confident that there will be enough money there for you.
You cannot count on the equity in your home to help you retire. The housing market has cycles that it goes through where the hoses go up and then they go down about every 3 to 4 years. The problem with relying on your house is that when you need to pull the money out, it might be in a down cycle and you will not get as much is expected. Your timing can be all wrong when you need it the most. This is not a good way to retire.