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Last updated: Jan. 30, 2019
Don’t Be Scared of Retiring
Planning for retirement can be a daunting task if you’re going it alone.
While some companies may provide pensions, Canadians who have small businesses, farm, or are in certain trades may not have this umbrella.
Maximizing your tax savings and planning for your retirement alongside your tax preparation can help grow tax-protected investments to see you well into your Golden Years.
Choosing a client-focused tax preparation service like FBC can help. When one of our professional, certified tax preparation specialists comes to you for tax filing, we can discuss your options for tax savings, no matter where you are along your career journey.
It’s important to keep in mind when considering all these scenarios, how much income your retirement savings will provide you.
Don’t forget to account for inflation, and supplementary health care needs, as many seniors develop health conditions and need treatment.
When is it Time to Start Planning For Retirement?
If you’re young and just beginning your career, saving for retirement probably isn’t on your horizon. However, if you begin small, you’ll soon get in the habit of socking away a little bit each month.
Over the course of decades, your nest egg can grow.
Using this retirement calculator from FBC, you can see just how much early investments can grow by the time you’re 65 or 70.
Starting at 25 and saving $500 per month until retirement at 65 can net around $2500 per month of retirement income. Starting young gives you the flexibility to take a little more risks with your retirement investments.
Let your professional tax planner from FBC show you a few different ways your retirement savings can grow.
You’re Planning to Retire Within 15 Years – What Changes Should You Make Today?
When you’re in your mid-40s to mid-50s, retirement isn’t just a dream in the distance – it can be a very real option and something that you should be fairly prepared for. However, if you haven’t been as diligent about saving as you wanted, you still have time.
When planning taxes with your FBC tax specialist, make sure to ask about aggressively deferring income to a retirement account.
You can prepare ahead of time with our retirement calculator, taking into account what you’ve already set aside, and looking at different options for tax-deferred allotments and aggressive investments.
Most importantly, take inventory of your current overhead – bills, mortgage payments, insurance, etc – and use that number to determine a liveable retirement budget.
The retirement calculator will help you realize how much of your retirement savings will cover your monthly needs, and help you plan accordingly.
You Have Debt – What Can You Do to Prepare For Retirement?
Many financial planners will tell you to pay off your debt before saving for retirement, but depending on what you owe, you might be better served to invest money toward retirement as you pay down debt.
While each person’s financial situation is different, the financial planning professionals from FBC have seen many scenarios and can help walk you through how much you can safely invest for retirement without having a cloud of debt hanging over you by the time 65 or 70 rolls around.
Use this retirement calculator to determine how much your retirement savings will net each month, and take into account how much of your current monthly overhead is going toward debt payment.
When you book your appointment with the FBC tax specialist, make sure that you address your retirement savings and create a debt payoff plan.
Planning for retirement can be intimidating, but it doesn’t have to be. When you partner with FBC, you know that you’re in good hands.
Make sure to use the Retirement Calculator to see where you need to save and what your rate of return is before and during retirement.
