“What if I don\u2019t have enough?” If you are concerned that you won\u2019t have enough for your future, then it may be time to make some tough choices and get creative. The good news is, there are a range of options to explore in order to ensure that you live comfortably in your golden years.<\/p>\n
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This may seem obvious, but it is amazing how many people don\u2019t know how much their expenses add up to. Luckily for you, you have already categorized your expenses into three buckets. Is there anything in bucket 2 (discretionary fixed expenses) that you don\u2019t need or use that often? What about bucket 3 (Leisure expenses)? Can you cut back on dining out or take one vacation a year instead of two?<\/p>\n
Yes, there are ways to spend better. A few of our top suggestions include:<\/p>\n
Buy as much as possible on a credit card that earns points. Just make sure you are disciplined enough to pay the credit card off every month.<\/span><\/p>\n<\/li>\n Negotiate your fixed expenses. Call your cable company and your cell phone provider to see if they can give you a better deal. It really works, and we recommend making this an annual task.<\/span><\/p>\n<\/li>\n Pay down expensive debt or move debt around so you are paying more favourable interest rates.<\/span><\/p>\n<\/li>\n<\/ul>\n Changing your expense isn\u2019t the only creative solution for financial planning. Understanding your taxes also plays a huge role. Single women, for example, are already at a disadvantage because they are unable to benefit from income splitting. To mitigate that reality, you should ensure the following:<\/p>\n Dividends and capital gains producing investments should be held in your non-registered account.<\/p>\n<\/li>\n Any investments generating interest income should be in your registered accounts.<\/p>\n<\/li>\n Tax-Free Savings Accounts should be maximized where possible.<\/p>\n<\/li>\n To avoid future OAS clawback and minimize taxes in the future, it may be necessary to draw down on your RRSP\/RRIF.<\/p>\n<\/li>\n<\/ul>\n This is a big one, especially if you\u2019re a resident in a large metropolitan city. There is a good chance you are sitting on a property that has seen a significant amount of capital appreciation over the years. Have you ever considered selling that property and moving a couple of hours east, west, or north where a similar home can be found for a fraction of the price? Perhaps downsizing is another option?<\/p>\n Do something you enjoy that also pays a little to cover the bills. Just a small amount of additional income will go a long way to help ensure your money lasts.<\/p>\n This is one you should think about very carefully and only use as a last resort if all other options have been exhausted. With interest rates still at historical lows, does your portfolio have too much allocated to fixed income? Do you need to consider adding more stocks? Remember, you still have to sleep at night, so only do this if you fully understand the risks involved.<\/p>\n <\/p>\n By working through the questions above, you should have a good idea of where you stand, and if you have enough money to comfortably retire.<\/p>\n As we have all experienced over the past few months, planning for the unknown is difficult, but also incredibly necessary. The COVID-19 pandemic has reminded us that not everything will go according to plan; we can\u2019t anticipate every bump in the road. But we can better prepare ourselves for the unexpected so that we can thrive financially.<\/p>\n By planning, learning, and adjusting goals, there are always options and ways to financially overcome. Contact Family Wealth Advisor, Christopher Jardine at chris.jardine@bellvest.ca to learn how.<\/p>\n <\/p>\nTIP #3 – Effective Tax Planning<\/span><\/h3>\n
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TIP #4 – Relocating\/Downsizing<\/span><\/h3>\n
TIP #5 – Get A Part-Time Job<\/span><\/h3>\n
TIP #6 – Increase Investment Risk<\/span><\/h3>\n
It is time to build a better financial future.<\/span><\/h3>\n
Ready to take control of your financial future?<\/span><\/h3>\n