Great article by Claire Bradley, Investopedia.com. Here is an investment
strategy everyone can use to set themselves up for retirement. Contact me
and I can show you how to build a Real Estate Portfolio to supplement your
retirement income and help you generate cash flow for life. Asif
provided by forbes If you're just entering the workforce, retirement probably seems like a
lifetime away. A million dollars by retirement? That's someone else's dream,
right? It doesn't have to be. Here is the millionaire's retirement plan. For
these calculations, assume an average annual return of 8%, adjusted for
inflation at 3% - a reasonable estimate of average market returns. Age 25: A Good Beginning
You're 25 and landed that first job on your career ladder - congratulations!
Before you start living to your new paycheque's standards, budget your
retirement savings. If your employer offers an RRSP plan that matches your
contributions, use it! These matching dollars are like a guaranteed return
on investment. If you don't have a matching plan, look for a mutual fund
through an investment firm with low fees; many now offer target funds, which
allocate your investment risk with your targeted retirement year in mind -
great for a beginning investor. If you have extra money beyond your maximum RRSP contributions to put away,
contribute to a tax-free savings account (TFSA) if you can; you don't get to
deduct your contributions from your taxes, but you'll enjoy tax-free
withdrawals at 65 - or any time. Overall, plan to start by saving at least $200 a month to reach your
millionaire goal; increasing this monthly contribution as you get a raise or
promotion will only speed up your saving. Age 35: Rolling Along
By now you have saved about $45,000 and you've grown in your career with a
bigger paycheque, but often, family commitments like children and a mortgage
will seem more pressing than saving for your golden years. Don't make the
mistake of slowing down your retirement savings. By now, you should ramp up
your contributions to at least $400 a month - remember that a matching RRSP
plan will help you in attaining this amount. If you have kids and worry about saving for their college, look at it this
way: the best way to help them in the future is by ensuring you're
financially sound in retirement. Make saving for retirement a priority. Age 45: Holding Steady
You're mid-career, and things are looking good in your retirement portfolio.
At this rate, your savings have grown to about $160,000 - not bad, but it
still isn't quite time to slow down. Increase your retirement contributions
to at least $450 a month, and you'll be rolling your way to millionaire
status by 65. Age 55: Close to the Finish Line
By age 55, your retirement portfolio should be at $400,000 or so. You can
start to see the finish line, but begin to wonder about risk. If you've been
investing in a target fund, your portfolio has been adjusting its allocation
for you; otherwise, look at adjusting some of your investments to reflect a
lower risk tolerance. And remember: your income at, say, age 70 won't be
withdrawn for another 15 years - plenty of time to ride out market
fluctuations. At age 55, expect to really ramp up your retirement contributions, to
roughly $600 a month, and more if you can manage it. The more you save, the
sooner you can leave the nine-to-five behind. Age 65: Prudent Asset Management
You're at the finish line: a millionaire at 65! Since you have no way to add
to your savings now that you're out of the workplace, prudent asset
management is vital. Keep a close eye on your portfolio so you can make your
nest egg last. Protect yourself against inflation as well as market risk,
and you'll be enjoying your golden years without financial worries. The Bottom Line
With steady savings and smart financial habits, you can retire a millionaire
- maybe even before you're 65. Asif Khan, Realtor Re/Max All-Stars Realty Inc. Google me: Asif Khan Re/Max Follow me on Twitter Become a Fan on Facebook
provided by forbes If you're just entering the workforce, retirement probably seems like a
lifetime away. A million dollars by retirement? That's someone else's dream,
right? It doesn't have to be. Here is the millionaire's retirement plan. For
these calculations, assume an average annual return of 8%, adjusted for
inflation at 3% - a reasonable estimate of average market returns. Age 25: A Good Beginning
You're 25 and landed that first job on your career ladder - congratulations!
Before you start living to your new paycheque's standards, budget your
retirement savings. If your employer offers an RRSP plan that matches your
contributions, use it! These matching dollars are like a guaranteed return
on investment. If you don't have a matching plan, look for a mutual fund
through an investment firm with low fees; many now offer target funds, which
allocate your investment risk with your targeted retirement year in mind -
great for a beginning investor. If you have extra money beyond your maximum RRSP contributions to put away,
contribute to a tax-free savings account (TFSA) if you can; you don't get to
deduct your contributions from your taxes, but you'll enjoy tax-free
withdrawals at 65 - or any time. Overall, plan to start by saving at least $200 a month to reach your
millionaire goal; increasing this monthly contribution as you get a raise or
promotion will only speed up your saving. Age 35: Rolling Along
By now you have saved about $45,000 and you've grown in your career with a
bigger paycheque, but often, family commitments like children and a mortgage
will seem more pressing than saving for your golden years. Don't make the
mistake of slowing down your retirement savings. By now, you should ramp up
your contributions to at least $400 a month - remember that a matching RRSP
plan will help you in attaining this amount. If you have kids and worry about saving for their college, look at it this
way: the best way to help them in the future is by ensuring you're
financially sound in retirement. Make saving for retirement a priority. Age 45: Holding Steady
You're mid-career, and things are looking good in your retirement portfolio.
At this rate, your savings have grown to about $160,000 - not bad, but it
still isn't quite time to slow down. Increase your retirement contributions
to at least $450 a month, and you'll be rolling your way to millionaire
status by 65. Age 55: Close to the Finish Line
By age 55, your retirement portfolio should be at $400,000 or so. You can
start to see the finish line, but begin to wonder about risk. If you've been
investing in a target fund, your portfolio has been adjusting its allocation
for you; otherwise, look at adjusting some of your investments to reflect a
lower risk tolerance. And remember: your income at, say, age 70 won't be
withdrawn for another 15 years - plenty of time to ride out market
fluctuations. At age 55, expect to really ramp up your retirement contributions, to
roughly $600 a month, and more if you can manage it. The more you save, the
sooner you can leave the nine-to-five behind. Age 65: Prudent Asset Management
You're at the finish line: a millionaire at 65! Since you have no way to add
to your savings now that you're out of the workplace, prudent asset
management is vital. Keep a close eye on your portfolio so you can make your
nest egg last. Protect yourself against inflation as well as market risk,
and you'll be enjoying your golden years without financial worries. The Bottom Line
With steady savings and smart financial habits, you can retire a millionaire
- maybe even before you're 65. Asif Khan, Realtor Re/Max All-Stars Realty Inc. Google me: Asif Khan Re/Max Follow me on Twitter Become a Fan on Facebook
strategy everyone can use to set themselves up for retirement. Contact me
and I can show you how to build a Real Estate Portfolio to supplement your
retirement income and help you generate cash flow for life. Asif
provided by forbes If you're just entering the workforce, retirement probably seems like a
lifetime away. A million dollars by retirement? That's someone else's dream,
right? It doesn't have to be. Here is the millionaire's retirement plan. For
these calculations, assume an average annual return of 8%, adjusted for
inflation at 3% - a reasonable estimate of average market returns. Age 25: A Good Beginning
You're 25 and landed that first job on your career ladder - congratulations!
Before you start living to your new paycheque's standards, budget your
retirement savings. If your employer offers an RRSP plan that matches your
contributions, use it! These matching dollars are like a guaranteed return
on investment. If you don't have a matching plan, look for a mutual fund
through an investment firm with low fees; many now offer target funds, which
allocate your investment risk with your targeted retirement year in mind -
great for a beginning investor. If you have extra money beyond your maximum RRSP contributions to put away,
contribute to a tax-free savings account (TFSA) if you can; you don't get to
deduct your contributions from your taxes, but you'll enjoy tax-free
withdrawals at 65 - or any time. Overall, plan to start by saving at least $200 a month to reach your
millionaire goal; increasing this monthly contribution as you get a raise or
promotion will only speed up your saving. Age 35: Rolling Along
By now you have saved about $45,000 and you've grown in your career with a
bigger paycheque, but often, family commitments like children and a mortgage
will seem more pressing than saving for your golden years. Don't make the
mistake of slowing down your retirement savings. By now, you should ramp up
your contributions to at least $400 a month - remember that a matching RRSP
plan will help you in attaining this amount. If you have kids and worry about saving for their college, look at it this
way: the best way to help them in the future is by ensuring you're
financially sound in retirement. Make saving for retirement a priority. Age 45: Holding Steady
You're mid-career, and things are looking good in your retirement portfolio.
At this rate, your savings have grown to about $160,000 - not bad, but it
still isn't quite time to slow down. Increase your retirement contributions
to at least $450 a month, and you'll be rolling your way to millionaire
status by 65. Age 55: Close to the Finish Line
By age 55, your retirement portfolio should be at $400,000 or so. You can
start to see the finish line, but begin to wonder about risk. If you've been
investing in a target fund, your portfolio has been adjusting its allocation
for you; otherwise, look at adjusting some of your investments to reflect a
lower risk tolerance. And remember: your income at, say, age 70 won't be
withdrawn for another 15 years - plenty of time to ride out market
fluctuations. At age 55, expect to really ramp up your retirement contributions, to
roughly $600 a month, and more if you can manage it. The more you save, the
sooner you can leave the nine-to-five behind. Age 65: Prudent Asset Management
You're at the finish line: a millionaire at 65! Since you have no way to add
to your savings now that you're out of the workplace, prudent asset
management is vital. Keep a close eye on your portfolio so you can make your
nest egg last. Protect yourself against inflation as well as market risk,
and you'll be enjoying your golden years without financial worries. The Bottom Line
With steady savings and smart financial habits, you can retire a millionaire
- maybe even before you're 65. Asif Khan, Realtor Re/Max All-Stars Realty Inc. Google me: Asif Khan Re/Max Follow me on Twitter Become a Fan on Facebook
Great article by Claire Bradley, Investopedia.com. Here is an investment
strategy everyone can use to set themselves up for retirement. Contact me
and I can show you how to build a Real Estate Portfolio to supplement your
retirement income and help you generate cash flow for life.
provided by forbes If you're just entering the workforce, retirement probably seems like a
lifetime away. A million dollars by retirement? That's someone else's dream,
right? It doesn't have to be. Here is the millionaire's retirement plan. For
these calculations, assume an average annual return of 8%, adjusted for
inflation at 3% - a reasonable estimate of average market returns. Age 25: A Good Beginning
You're 25 and landed that first job on your career ladder - congratulations!
Before you start living to your new paycheque's standards, budget your
retirement savings. If your employer offers an RRSP plan that matches your
contributions, use it! These matching dollars are like a guaranteed return
on investment. If you don't have a matching plan, look for a mutual fund
through an investment firm with low fees; many now offer target funds, which
allocate your investment risk with your targeted retirement year in mind -
great for a beginning investor. If you have extra money beyond your maximum RRSP contributions to put away,
contribute to a tax-free savings account (TFSA) if you can; you don't get to
deduct your contributions from your taxes, but you'll enjoy tax-free
withdrawals at 65 - or any time. Overall, plan to start by saving at least $200 a month to reach your
millionaire goal; increasing this monthly contribution as you get a raise or
promotion will only speed up your saving. Age 35: Rolling Along
By now you have saved about $45,000 and you've grown in your career with a
bigger paycheque, but often, family commitments like children and a mortgage
will seem more pressing than saving for your golden years. Don't make the
mistake of slowing down your retirement savings. By now, you should ramp up
your contributions to at least $400 a month - remember that a matching RRSP
plan will help you in attaining this amount. If you have kids and worry about saving for their college, look at it this
way: the best way to help them in the future is by ensuring you're
financially sound in retirement. Make saving for retirement a priority. Age 45: Holding Steady
You're mid-career, and things are looking good in your retirement portfolio.
At this rate, your savings have grown to about $160,000 - not bad, but it
still isn't quite time to slow down. Increase your retirement contributions
to at least $450 a month, and you'll be rolling your way to millionaire
status by 65. Age 55: Close to the Finish Line
By age 55, your retirement portfolio should be at $400,000 or so. You can
start to see the finish line, but begin to wonder about risk. If you've been
investing in a target fund, your portfolio has been adjusting its allocation
for you; otherwise, look at adjusting some of your investments to reflect a
lower risk tolerance. And remember: your income at, say, age 70 won't be
withdrawn for another 15 years - plenty of time to ride out market
fluctuations. At age 55, expect to really ramp up your retirement contributions, to
roughly $600 a month, and more if you can manage it. The more you save, the
sooner you can leave the nine-to-five behind. Age 65: Prudent Asset Management
You're at the finish line: a millionaire at 65! Since you have no way to add
to your savings now that you're out of the workplace, prudent asset
management is vital. Keep a close eye on your portfolio so you can make your
nest egg last. Protect yourself against inflation as well as market risk,
and you'll be enjoying your golden years without financial worries. The Bottom Line
With steady savings and smart financial habits, you can retire a millionaire
- maybe even before you're 65. Asif Khan, Realtor Re/Max All-Stars Realty Inc. Google me: Asif Khan Re/Max Follow me on Twitter Become a Fan on Facebook
Posted via email from Markham Real Estate Today with Asif Khan
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