Life Insurance Vancouver | Myths Around Retirement
Thomas Chan is a financial advisor who can help you get started with your life insurance Vancouver plan. He is an expert when it comes to everything about life insurance Vancouver. He has helped many build wealth, plan for retirement and set up their life insurance Vancouver plans. He wants you to have a better mindset and a better life. He is so passionate about helping others protect their money and grow wealth that he is willing to share the 15 secrets the taxman does not want you to know.
He knows the taxes are the biggest expense that families have had since the 1960s. He helps you use insurance to protect yourself and your money from those taxes so that future generations will be able to take more of an inheritance.
When it comes to retirement there are many top myths that most people believe and Thomas Chan wants you to understand what is true and what is false. This is so that you know all there is you need to know before making the decision in saving for. One of the top things that people believe is that they do not need to start saving now. They think that they have to pay off other expenses first in order to be in a perfect position to start saving for their future.
The problem with this thinking is that you miss out on the compounding effect that starting early has. You can leverage your money to make the same size nested with a lot less per month when you start in your 20s as opposed to your 40s. There will always be an excuse of why you put it off but even putting a little bit aside right now to make it worth it in the long run is a great plan.
If you think your government is going to be able to help you in your retirement so that all your needs are met you will be sorely disappointed. Old age security in Canada pension plan do not give enough to survive on. If you have ever met anyone who takes these funds out you will know this to be true it is only about 33% of what you need to survive. You will need to supplement your income with other methods such as a tax-free savings account or an RRSP.
Planning for your retirement by using an inheritance is a faulty plan. Your parents may not have as much left over as you hope because they might have their own financial strain where they need to dip into their savings. Medical bills can come up and consume any inheritance that might be yours. You should not be confident that there will be enough there for you to retire on. It is a good idea to sit down with your parents and have a conversation about this even if it is a sensitive topic.
Pulling the equity out of your home to use for retirement is a risky plan for retirement as well. The housing market goes up and down in cycles. About every four years there is a bit of a recession and this could affect the timing of when you need your retirement in a negative way. Another thing is that houses do not always go up at the same rate that they always have. When you go to pull the money out for retirement you may be at a low spot in the market and not have enough.
Life Insurance Vancouver | Building Wealth The Smart Way
Thomas Chan is a financial advisor that can help you with building wealth and protecting your assets with Life Insurance Vancouver products. He has helped many families and individuals build wealth, plan for retirement and understand how to use the life insurance Vancouver products. He is passionate about what he does that he helps you save on taxes over your lifetime. You can find out more how to use life insurance vancouver plans by sitting down with Thomas Chan.
There are many common misbeliefs when it comes to how to retire. One of these is to wait to start saving. You may want to pay off debt first and then start a retirement fund. Starting in your 20s you can save a good amount using a $300 month approach, however, if you were to start in your 40s it would take you $1000 a month to reach that same retirement fund goal.
There are always reasons to not start right away like having other payments or that you want to clear up any debt first. The problem with this thinking is that those debts might go away but other ones always pop up in their place. That is just life and you need to plan around that.
You might think that there will be enough to retire on from the government’s social funds. Things like old age security or Canada pension plans do not provide enough earnings for you to retire successfully. These will just be supplemental and you will need to add other funds to make a full income so that you are not reduced to a poor lifestyle. Things like a tax-free savings account or an RRSP can supplement these funds so you do not feel the pinch in retirement.
If you are one of those people who believes you can use an inheritance to retire you are risking your future. It is impossible to plan for exactly how much you will get. Your parents have financial strain of their own and it only makes sense that they use their money to live off. They might actually live longer and need to continue using their wealth for living.
Planning to use the equity in your home is also risky as a retirement option. The housing market goes up and down in cycles. In fact every 3 to 4 years there is a slight recession and this affects the housing market directly. The housing market is not always going to go up the same way that it always has. When you need to retire you may hit a low spot in the market and you won’t be able to pull out as much as you had hoped. This is not a foolproof plan and you should not rely on your house to retire.