Retirement Planning Vancouver | Discounting 3 Retirement Myths
There are a lot of misconceptions surrounding retirement planning Vancouver says Thomas Chan. This is because many people make assumptions. When it comes to how much money they are going to need when they retire.
A common misconception is thinking that people do not need to save as much money for retirement. Because they plan on working through as much of their retirement as possible. They get a lot of satisfaction from their career.
And they cannot conceive of a future. Where they are happy, not working. However, a great retirement planning Vancouver document should not count on. People being able to work indefinitely into the future.
It is far better for people to save as much money. As they are going to need to live, as if they will not have a job. Because they may not be able to work. For many different circumstances.
For example, the job that they have may be downsized. Or the company they work for be sold, and the position no longer available. However, Thomas Chan says people should consider. That they may not be well enough to work anymore.
Therefore, it is not going to be ineffective retirement plan. To expect to be working. And then, a short money. Therefore, a better retirement planning document will have people. Saving enough money as though they do not need to work.
And then, rather than working because they are forced to. Because they will not have enough money. If people are able to keep working. They can do so because it makes them happy, and it fulfils their life. And not because they will go hungry if they do not.
Another misconception that people have when they start their retirement planning. Is assuming that their spouse will take care of them as they age. While this is a lovely thought says Thomas Chan.
There are many circumstances that would make this scenario impossible. For example, if the spouse loses their job. Even though they are the breadwinner, it may be the other way around. With a person supporting their spouse.
And while it is not something that Thomas Chan likes to bring up. 40% of Canadian marriages end in divorce. Therefore, effective retirement planning Vancouver will not count on. Espouse who may not exist in the future. Being part of the plan.
As well, people may not want to think about it. But there loved one may be hit with a health crisis. Or pass away early. And therefore, leave a person either with additional health bills. Or, with a loved one who has passed away, and leaving them alone.
Rather than counting on a spouse. Thomas Chan recommends for effective retirement planning Vancouver. People should put money, and keep it in their own name. Therefore, no matter what may or may not happen with espouse in the future.
They will have enough money to live, if their spouses around and taking care of them. They can use the additional money, to fund whatever lavish lifestyle they decide.
Retirement Planning Vancouver | Discounting These Common Retirement Myths Today
One of the reasons why people do not have effective retirement planning Vancouver. Is because they do not believe they need that much money for retirement. Thomas Chan says a good estimate of how much money people will need.
Is approximately a million dollars, for a sixty-year-old when they retire. While this might sound like a lot of money. If people realize that it is going to have to last, sometimes thirty or forty years. It no longer seems like that much money at all.
And while people expect that they are going to have fewer expenses as they age. Thomas Chan says why should a person aim for meagre retirement? As well, if they encounter unexpected expenses.
Like house maintenance, or healthcare expenses. In case they develop a disease. Or a condition that requires ongoing treatment. They are going to end up needing more money. Then they expect in the future.
While they are likely not going to have expenses. Like mortgage, saving for their children’s post secondary education. And they have likely paid off their credit card bills, or at least they hopefully have.
If they do not save enough money. And unexpected expenses pop up. They will prematurely spend their savings. And then, will be left scrambling. Years later, when they need more money to live. And they do not have it.
Another misconception is thinking that people are going to be able to use the equity in their home. During their retirement. In fact, that is a good reason why many people purchase a home in the first place.
However, effective retirement planning is not going to count on. Using the equity in a home. In order to fund one’s retirement. First of all, if they need to access that equity. They will have to sell their house and move.
Leaving them with the problem, of where are they going to live. After they move? As well, many people do not reach retirement age. And then want to leave the home that they have spent their life creating.
And finally, Thomas Chan says the reason why it is poor for retirement planning Vancouver. Is because if people retire during a down market. Which happens every 4 to 6 years.
They are not going to have as much equity in the home as they expect. And they could take a loss, instead of having enough money for retirement. Rather than counting on selling their home. In order to fund their retirement.
Thomas Chan recommends having effective retirement planning Vancouver. By sitting down, and figuring out the minimum amount of money. That they need to start saving today. In order to have enough money to retire in the future.
If people would like to know if their retirement planning Vancouver is effective. Or if they should go back to the drawing board, and figure out a new amount of money to save.
Or if they do not yet have a retirement plan. People can contact Thomas Chan at any time. To sit down with him, and his team. In order to create an actionable plan, that they can work on immediately.