How Much is Enough to Retire?
Stay Focused on Your Retirement Goals
Based on what the market’s been through during the past few years, we understand that you may have been hesitant or even anxious to regularly invest or contribute your hard-earned dollars. It may still be tempting to keep your money in short-term investments because you feel they’re “safer,” but this probably won’t help you meet your long-term goals, such as retirement.
You can use several strategies to help stay focused on reaching your retirement goals, including the following:
Invest Regularly
One way to ease into longer-term investments is by making automatic monthly contributions.1 Buying more investments when prices are lower and fewer when prices are higher can help smooth out the peaks and valleys of market fluctuations over the long term.
Investing regularly can also help you better manage your budget and potentially maximize your Registered Retirement Savings Plan (RRSP) contribution each year. If you already invest regularly, consider raising your monthly contribution, particularly if your monthly cash flow has risen.
Take Advantage of Tax-deferred Growth
Contributing to an RRSP reduces your taxable income by the contribution amount, which can help to cut your tax bill.
However, a better long-term benefit is that the income earned by investments in your RRSP is tax-deferred until you need it for retirement. You don’t pay taxes on income earned until you withdraw the funds.
Develop a Strategy That Makes Sense for You
An RRSP can be an integral part of your retirement strategy, particularly if you’re concerned about how well government-funded programs – and possibly a company pension plan or other company retirement plans – will support your lifestyle during retirement. By reviewing your strategy on a regular basis, you can help ensure you’re on track to reach your retirement goals.
Consider a TFSA
You may want to consider a Tax-Free Savings Account (TFSA) rather than non-registered investments if you have maximized your 2009 RRSP contributions. Your investments grow tax free, plus you can invest on a regular basis and withdraw money at any time on a tax-free basis.
Consolidate Your Investments
If you hold multiple accounts with various firms, it can be difficult to keep track of your investments and to determine whether you’re properly diversified.2 Bringing your accounts to Edward Jones could help solve all that. In addition to gaining a clearer view of your financial picture, you’ll possibly save on fees.
Schedule an appointment today with your local Edward Jones advisor so we can review your retirement strategy and close any retirement gaps you may have. Doing this can help ensure that you’re still on track to reach your retirement goals.
1 Systematic investing does not ensure a profit or protect against loss.
2 Diversification does not guarantee a profit or protect against loss.
