Life Insurance Vancouver | What to Think About Before Retiring
Thomas Chan is your trusted advisor for life insurance Vancouver. If you are looking to build wealth, plan for retirement or decide your life insurance Vancouver needs Thomas Chan can help you with all of that. Taxes have been the single biggest expense for families since the 60s so why not figure out how to reduce them and have a better mindset and a better life.
This is where having a trusted financial advisor who knows the market and all the ways to help you plan for your future. Some of the things that Thomas Chan hears when he speaks to new and existing clients is that they have common misconceptions about how to retire and when to start.
For one thing most people think that they do not need to start saving for retirement now. They always will have an excuse of why they should put off saving and it usually has to do with paying down some other debt that they have. They might want to pay off the car first or their house and then start saving for retirement.
The problem with this thinking is that it takes a lot less monthly cost if you start saving young because of the compounding effect your money can have over the long run. For example someone in their 20s would put away $300 a month as opposed to people in their 40s needing $1000 a month to have the same mistake. If you are not sure if you should say because in your 40s is still better than not having done any saving.
Many people believe that our government will pay them upon retirement. They believe that Canada pension plans and old age security are going to be enough for them to retire on. If you have ever spoken to someone who receives these benefits you will instantly know that it is not enough to live on and that it will only be 33% of the earnings needed to retire. You will need to supplement these funds with a tax-free savings account or an RRSP.
You might think you will all have an inheritance to collect and will be fine at retirement. The problem with this thinking is that unless you can know for certain that that money is already there you should not be confident that it will be there at all. Your parents may not have as much of an estate left by the time you need to retire. There might be things that they needed to dip into their savings for such as their own retirement or even medical bills.
You cannot count on this money and it is a good idea to have an open and honest conversation with your parents as awkward as it might be. Another area that people think they can count on is the equity in their home. The fault in this thinking is that the housing market does not keep going up the same way it always has. There are cycles of ups and downs and when you take out the money it may not be at a time that is advantageous.
Life Insurance Vancouver | Government Funds Will Not Pay
Thomas Chan is your financial advisor who can help you with your life insurance Vancouver needs. He is a trusted advisor for building wealth, retirement and insurance in Canada. Taxes are the single biggest expense that families have had to face since the 60s. In Canada it is close to 40% of your income that is paid out in this area. There are many secrets that the taxman does not want you to know. Thomas Chan helps uncover the myths around taxes, retirement and life insurance Vancouver.
If you need help choosing your life insurance Vancouver plan it is time to sit down with Thomas Chan for a consultation.
When this trusted life insurance Vancouver advisor sits down with new and existing clients he hears the same common misbeliefs when it comes to everything about retirement. The top myth is that you do not need to save for retirement now. People will always be putting off their savings for retirement because of the excuse of all the other things they have to pay for. They might want to pay off the car first or their home and they think that once those are paid off they will be in a good position to start saving for retirement.
This is problematic thinking because those payments do not ever seem to go away. There are always new ones that pop up and in the meantime you have lost out on the compounding effect that your money can make in the long run. If he said a little bit aside now you can make it work for you rather than having to triple that amount 15 years down the road.
Another misbelief is that many people think that their government will provide what they need to retire on. Believing in social programs such as Canada pension plan planner old age security are going to leave you in a rough position when you retire. There will not be enough Earnings to retire on. You will need to supplement this with the tax-free savings account or an RRSP.
If you think you will be able to count on an inheritance to retire on, you need to think again. Your parents may not have as much of a nest egg by that time because of the fact that they may have had their own financial struggles causing them to dip into that wealth. You should not be overconfident that there will be something there for you to retire on and it might be time to have an honest and open conversation With your parents, so you know exactly what is going on.
You cannot count on the equity in your home for retirement. The housing market goes up and down in cycles and when it is time to retire you do not know where you are going to be in that cycle. It may be at a low time and that will not set you up well for retirement.