Written by Mikhail Yurin
We all have plans to one day buy our first property or upsize our current home. Although it seems achievable, sometimes reality may jeopardize your goals. Travelling the world, losing a job, going back to school, becoming ill or having sudden death in the family – there are just a few of the unexpected life events that can send you and your financial goals reeling.
Before you start planning, ask yourself these questions:
– What will happen if you get Ill? Will you still be able to achieve your goal?
– What if you lost your job? Will you be able to continue saving to reach your goal?
– What if a sudden death happened? Will your family be financially taken care of?
Answering these three questions and taking care of the three most important facts of life is the first step moving to a healthy future. Life Insurance, Paycheck Protection Plan and Critical Illness insurance are your solutions to get you and your family covered for the unexpected.
The next step is to start saving. Experts say that healthy financial habit is to save first and then spend. This not only moves your forward towards your goal, it also creates healthy financial habits. There are many different ways to save. Your financial advisor will help you decide on the saving plan that is best for your unique situation depending on a number of factors such as your age, income, marginal tax rate and future cash flow needs.
Registered Retirement Savings Plans and Tax Tree Savings Accounts are great saving options. They are both individual saving vehicles registered with the Government of Canada that allow you to save for the future on a tax-advantages basis. The characteristics of registered accounts can help your money grow faster. The unique tax treatment of RRSPs and TFSAs, and the benefit of compounded growth, can mean a significant difference to your investments over time, compared with non-registered accounts. Don’t be limited by the term ‘SAVINGS’ account. Aside from cash, you can also add GICs, mutual funds, segregated funds, stocks and bonds to your RRSP or TFSA.
Once you have achieved your financial savings goal, you can use the money in your RRSP or TFSA in a variety of different ways: Retirement, home down payment, education, emergency fund, vacations and even big tickets items.
The sooner you start contributing to an RRSP or TFSA, the greater the growth potential. For more information and to get a complimentary Personal Financial Security Plan contact me today!
Financial Security Advisor & Investment Representative
Freedom 55 Financial | Quadrus Investment Services
Tel 604-732-1508 Ext. 4590 | Cell 778-892-0877