Life Insurance Vancouver | How to Save For Retirement

Finding a trusted and reliable financial advisor to help you with life insurance Vancouver can be a tough task. The good news is Thomas Chan is ready to help you with all of your life insurance Vancouver needs. He is a trusted advisor that wants you to have a better mindset and a better life. He can help you build wealth, determine retirement funds and create life insurance Vancouver plans. He can help you save on your taxes which is the single biggest expense for any family since the 1960s.

Life Insurance Vancouver

Many people think they can put off saving for retirement until later in life. What they don’t realize is this cuts into the time that compound interest can be leveraged. There will always be excuses for needing the money now and therefore you need to wait till later in life. The problem with that is that once you have paid off the car or the house there will be other expenses that pop up anyway. If you are to ask Thomas Chan what is the best time to start saving for retirement he would say right now.

When you are 25 years old you can start by saving up $300 a month and have a good retirement fund but if you start at 40 years old it would take you $1000 a month to save up that same fund. It is the compound interest that they are able to leverage over the long term. It is worth it to start early.

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A lot of people think the government will be able to pay them their wages when they retire. If you meet someone who uses old age security or Canada pension plan you will know that it is not enough to survive on. These funds may not even be there once you go to retire. If they are, they will only be 33% of your earnings. You will have to have a tax-free savings account or an RRSP.

You might think that there is an inheritance waiting for you and you will be able to retire on that. This is not something you should be confident will be there for you at all. Thomas Chan advises against expecting anything from an inheritance as many of our parents have financial strain themselves and typically have to pull more money out of these funds than expected due to unforeseen circumstances. Things like medical expenses can add up pretty quickly. You should have an open and honest conversation with your parents to find out where everything stands.

Many people plan on pulling the equity out of their home and using that to retire on. This is problematic because the housing market goes up and down in cycles. And it does not go up in value the same as it does right now. When you need to pull the funds you may be in a downward trend and that could really cut into what you could pull out of your home.

Life Insurance Vancouver | Let Your Money Outlive You

Thomas Chan is your trusted financial advisor to help you with your life insurance Vancouver needs. Even if you are not sure you are ready to invest, he can still help you understand how life insurance Vancouver can help you with your wealth building in retirement goals. When you sit down with Thomas he will show you what you need to do to have a vibrant and abundant retirement. He does not want you to fall into the same misguided thinking about what it takes to build retirement. It will also help you come up with a plan if needed to build your life insurance Vancouver portfolio.

Many people think they do not need to save for retirement immediately. This kind of thinking can stop you from starting young when you have the power of leveraging compound interest to build a great nest egg for retirement. If you set a little bit aside right now you can make it worth your time because in the long run the compound effect makes all the difference. For example when you are 25 it takes you $300 a month to save up what it takes a 40-year-old to save $1000 a month.

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If you think your government will pay you to retire you will be mistaken. If it is even available by the time you retire it will only be about 33% of what you need to survive. If you are used to certain lifestyle you will definitely need to supplement this income with the tax-free savings account or RRSP. CPP and OAS are not something you can count on. If you have ever spoken to someone who has collected these funds you know they are never given enough to live on. It is just a small portion to cover your needs. Maintaining your lifestyle will take more funds.

You might think you have an inheritance coming that you can retire on. The problem with this thinking is that if you do not have it yet you cannot count on it. Your parents may not have what you expect or need because they might have financial strain of their own where they need to pull those funds out leaving less for you to inherit in the end. It is best if you do not get too confident in collecting that inheritance at all as you may never see it. Sit down with your parents and have an open and honest conversation about this topic even if it is hard to talk about.

A lot of people think they can pull out the equity in their home and use that to retire. The housing market is not always going to go up at the same rate that it is right now. In fact there are a lot of ups and downs in cycles in the housing market so it is best to not rely on something you cannot count on. When you go to pull out the money it may not be worth what you were hoping at that time.