Life Insurance Vancouver | The Myths Around Retirement
There is a lot to know when it comes to life insurance Vancouver. The good news is that Thomas Chan can answer every question around this topic of life insurance Vancouver.. You will want to be sure to tune into his YouTube channel to learn everything you need to know about life insurance Vancouver. Thomas Chan is a financial advisor that helps you with your wealth, retirement and insurance needs in Canada. He is very knowledgeable on how to build wealth and plan for your retirement. There are some things that many people believe about retirement that simply aren’t true
The first thing people think is that they do not need to save for their retirement right now. There will always be reasons why it is not a convenient time to put money aside every month. The problem with thinking you can put it off is that you lose the momentum that time gives you. Even if the amount is small every month because of the compound interest, your money grows a lot bigger by starting earlier.
Another myth that people believe is that your government will pay for your retirement. They think they can rely on CPP and OAS to be enough to continue the lifestyle they are used to. Unfortunately that fund if it is there at all will only cover about one third of what you used to earn. You will need to top up your income with the TFSA and/or an RRSP. This is the best way to supplement the other two thirds.
Third thing that people have a misconception about when it comes to retiring is that they believe they will have an inheritance to rely on. The problem with thinking this is that you cannot rely on something that has not manifested yet. Your parents may not have as much of a nest egg left by the time they get to leaving it for you. They may have had to use it because they also did not plan for their retirement.
The best thing to do is to have an open and honest conversation with your parents even if it is uncomfortable. Discuss the finances and what the future might hold. You cannot be confident that you will receive any money because it may not be there for you in the end.
A lot of people believe that they can rely on the equity of their home to help them in their retirement years. The problem with this thinking is that they believe the housing market is going to stay the same and keep going up at the same rate but it always has. However you cannot rely on the housing market because it has been known to change every 3 to 4 years. Things go up and things go down and when it comes to retirement you do not know where you will be in the cycle. Your timing could be all wrong when you need to take the money out.
Life Insurance Vancouver | Open Communication
When it comes to retiring you can trust Thomas Chan to advise you with all your life insurance Vancouver needs. He is a well-known advisor who works with you and for you in the areas of wealth, retirement and insurance in Canada. If you want to know all you need to know about life insurance Vancouver then please visit his YouTube channel where he has many amazing videos that not only teach you but help you build wealth. You cannot go wrong with your life insurance Vancouver needs with Thomas Chan.
One of the areas that Thomas shares a lot about is how to prepare for retirement. He has noticed with many of his clients that they are ill prepared for this time in their life. He wants to help as many people as possible to be independently ready for this stage of their life.
A lot of people say they do not need to save for retirement now. There will always be excuses for putting off saving instead of starting it when you are a lot younger. If you wait you have less time to compound the growth of what you put away every month. Even if you start small, that gives you more time to build a wealth for such a time as retirement. This always works out better over the long run.
People think the government will pay for their retirement. They are relying on CPP and OAS to be enough for them to continue the lifestyle they are used to. This is an issue because there will not be enough in that fund to give you more than ⅓ of what you are earning right now if there is any left at all. You will have to supplement this income with a TFSA or an RRSP. Again the compound effect works miracles when started early. What takes $300 a month at 25 requires $1000 a month at 40. When you start younger you have a lot more leverage to work with.
Many people think they will be able to rely on the inheritance that they have coming to them from their parents. However their parents may not have the financial means to keep enough of the nest egg for it to make an impact by the time their kids need it. They may not even have anything left at all. The best thing to do is to have an open and honest communication with your parents so that you can find out if anything will be left for you. Even if there is a plan for inheritance you should still not rely on that and be confident that there will be anything there for you.
If you think you can rely on the equity of your home when you retire you will be shocked to know that this plan could go sideways. When you need the money it might not be there. The housing market does not go up at the same rate that it always has. When the time comes for you to pull money out to retire it may be at a low spot in the cycle.