Life Insurance Vancouver | Do This Before Retiring
If you are looking for a good financial advisor to do your life insurance Vancouver plan you have found the best with Thomas Chan. Thomas Chan knows how to get you to save on one of the biggest expenses families have since the 60s which is taxes. He is your trusted advisor for everything to do with life insurance Vancouver. He can help you with building your wealth, retirement and life insurance Vancouver.
When Thomas Chan sits down with his clients they are often of the same mindset when it comes to retirement. He runs across the same common misunderstandings. The first of which is that people do not think they need to plan for retirement right now. They feel that the biggest things they should focus on are reducing their debt and paying off any loans they might already have. These could be car loans, mortgages or even student loans.
The problem with this thinking is that oftentimes those loans do not go away they just evolve into a new one and sometimes even bigger ones. Timing will never be perfect to start saving for retirement so you should start saving right now. There will always be something else that you could focus on but if you start saving in your 20s you will not need as much per month to have the same nest egg at retirement. If you start 15 years later you are going to need more than double to get the same amount in retirement.
For example a 25 year-old can put away $300 a month to have a good amount at retirement whereas a 40-year-old will have to put away $1000 a month to save the same amount. Another common misconception that people have around retirement is that they believe the government will be able to provide for them through social funds. Many people think that Canada’s pension plan or old age security will be enough to live on.
Those funds will only be ⅓ of what you need for retirement. That is ⅓ of what you are earning right now is all you will get at that time. That is not enough to live on and you will have to top that up by two hundred percent with other savings like a tax-free savings account or an RRSP. When people are thinking about retirement they believe that they will be able to count on their parents and the money they leave to them.
The problem with this thinking is that many parents are dipping into the extra funds they have just to survive on their own. By the time they are gone and have left an inheritance there might not be much left for their children. You cannot count on this inheritance being there for you when it comes time for you to retire. What you will want to do is sit down with their parents and have an honest and open conversation about this topic even if it is awkward or a sensitive issue.
Life Insurance Vancouver | Start Saving Now
There are many secrets that the taxman does not want you to know but Thomas Chan would like to uncover that and be your life insurance Vancouver specialist. When it comes to investing in your future Thomas Chan can help you with wealth building, retirement planning and life insurance Vancouver. You do not want just anybody to help you with your life insurance Vancouver you want an expert financial advisor who knows the Canadian markets and can give you solid advice.
That is what Thomas Chan offers as he helps you to build a better mindset and a better life. As a financial advisor Thomas Chan runs across many of the same misconceptions about building wealth for your retirement.
One of the first areas that people are confused about is when is the right time to start saving for retirement. There they are not sure if they should start in their 20s or if they will still have enough time in their 40s. They are not even sure if it is too late by the time they are in their 40s so they do not start at all. Essentially starting is better than never starting and no matter how old you are you can put something away every month.
Now is always better than later when it comes to saving for your retirement. However if you are in your 20s you have a lot more leverage because of compound interest and you do when you are in your 40s. For example a 25-year-old can put aside $300 a month and have the same amount at retirement as the 40-year-old who puts $1000 aside a month. This is the power of compound leverage. The next area that people are often misguided about is having the government social funds to rely on at retirement.
They believe that Canada pension plan and old age security will be enough to live on when they were finally decide to retire. I think if you asked anybody who has those funds coming in you would know right away that this is not something you want to retire on this will only be a small supplement to your retirement plan. It is only going to give you about one third of what your earnings are now. You will need to supplement your earnings with a tax-free savings account or an RRSP to be able to survive at that stage in your life.
Another thing that many people believe is that they will have an inheritance from their parents that will allow them to retire. This is false hope because a lot of the money that you think you are going to inherit might not even be there by the time you get to retirement age. Many of our parents have had to dip into their savings or wealth to supplement their income once they got to retirement and there might not be enough left for you to live off of. This is not something you should place all your confidence in and you will need to plan for your own retirement fund.