Saving for retirement is a vital yet daunting task that can be difficult to navigate without assistance. From defining your goals to saving your money and investing, there are many elements to consider when creating a successful retirement plan. As a leading mortgage investment corporation, PHL Financial Group knows how important investing is for every retirement plan. That is why we have put together a list of 3 tips to successfully plan for retirement to help you get started.
Completing the following steps can help you create an effective retirement plan:
The amount of money you will need for retirement will vary greatly based on your long-term financial goals, your existing debt, and the type of lifestyle you want to live when you retire. That is why it is crucial to define your retirement goals before determining how much money you should be saving per month/year. Once you have set specific and realistic retirement goals, you can start taking the next steps toward achieving them.
The key to saving enough for retirement is to start saving as soon as you can. In most cases, starting sooner allows you to hit your retirement goals faster due to the power of compounding. Compound growth is the interest you earn on the principal you invest or save – and on the interest or gains each year thereafter. To put it another way, you are earning interest on your interest. Regardless of your goals, the most important thing is to start putting money aside every month, even if it is just a small amount. Setting up a pre-authorized deposit/transfer to a registered savings plan like an RRSP or a tax-free savings account (TFSA) is a great option for most.
Now that you have started saving, you are ready to start investing. To get the maximum benefits from compounded growth, you will need to invest your money in areas with higher growth potential than a traditional savings account. The best way to achieve this is to build a diversified investment portfolio that is composed of low, moderate, and high-risk investments. A mortgage investment corporation (MIC)—like PHL Financial Group—is a great addition to any investment portfolio. To determine which investment options align with your goals and preferences, it is best to speak with a professional instead of navigating every option on your own.
To more about our investing solutions and how they can help you save for retirement, get in touch with the team at PHL Financial Group. We can be reached by phone at 604-579-0844 and will be happy to answer any questions you may have regarding our services or your financial goals.