OCT OEEO

PS_March_2017

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Professionally Speaking | March 2014 5 TIPS TO BOOST YOUR Retirement Savings 1. Think small Creating a nest egg can seem intimidating. Yet even modest amounts can grow large. Have a set amount of your pay go auto- matically into investments. And review your budget to fi gure how to save on everyday expenses. Little chunks add up. Just an extra $5 a day (a couple cups of co• ee), invested for 30 years at 4 per cent a year, will become almost $106,000. 2. Evolve your asset mix It's easier to take investing risks when you have more working years ahead of you than behind you. To keep a consistent level of risk, think of your life stage and allocate your money in stocks and bonds accordingly. One rule of thumb – invest 100 per cent minus your age in stocks. For example, you'd put 55 per cent of your investments in stocks when you're 45, 45 per cent at age 55, and 35 per cent at 65. 3. Buy time Instead of focusing on a magic savings number or arbitrary retirement age, relieve some pressure. Working a little longer, either full- or part-time, is a triple win. It gives you more time to save, more time for current savings to grow and less time needed to withdraw money for retirement. 4. Remember the tax hit After deciding on the best investing strategy for you, look at how to delay or avoid taxes. If you have investments inside an RRSP, all growth from interest, dividends or capital gains is sheltered from tax (though eventual withdrawals will be taxed). On the fl ip side, contributions inside a TFSA don't get you a tax refund, but your withdrawals won't be taxed. That's more in your pocket down the road. 5. Use a fi nancial advisor They can help you match your goals, needs and age to investment/savings strategies. People with advisors tend to have better savings habits and achieve higher wealth than people who act solo. To learn about anything —including retirement savings—it always helps to have a great teacher. Saving for retirement is a journey. It's never too early to start or too late to course correct. by Jim Grieve, Executive Director, RTO/ERO Since 1968 Depuis 1968 RTO/ERO is a bilingual, trusted voice on healthy, active living in the retirement journey for the broader education community. We o• er a wide range of retirement programs, discounts and social networks. Having enough gold to enjoy your golden years is important. Yet Canadians typically don't save or strategize enough for retirement. One study shows that more than half of pre-retirees aged 50-plus don't have a retirement savings plan. Whatever your stage in life, it's never too late (or too early) to plan for retirement. Consider these ways to maximize your retirement savings. @JimAwesomeYears $1 $2 $2 12 6 3 9 Get more retirement tips, advice and resources • Visit www.rto-ero.org • Attend one of RTO/ERO's retirement planning workshops— www.rto-ero.org/ rpw-schedule-list • Call RTO/ERO, 1-800-361-9888, 416-962-9463. rto_ero facebook.com/rto.ero linkedin.com/in/jimgrieve

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