Planning For Retirement - Are you on track?
Hayden Padalino
Helping Canadian Real Estate Investors, Cottage/Vacation home owners pass down their assets to the next generation.
Retirement is the most important event that you will plan for. Not only do you need to focus on retirement planning but also investment planning, tax planning, and estate planning all bundled into one holistic wealth plan.
To plan for retirement your money has to work for you and that is correct however you need to be strategic with your money like your:
Our Approach to Investment Planning
Don't invest your money into anything that could result in a permanent loss of capital. It's why the wealthy don't invest in things like penny stocks, and have a healthy distrust for "new/hot" investments like cryptocurrencies.
Their investments need to earn a real rate of return. The real return you receive on your money is the return after inflation. If you earn 3% on an investment, and inflation is 2%, then your real rate of return is 1%.
They seek to minimize their taxes. Canada is a heavily taxed jurisdiction and we need to keep this in mind. If you have a 40% Marginal Tax Rate (MTR), and the 3% you earned in the above investment is taxed at that rate, that means you lost -1.2% to taxes leaving you with a net of 1.8%. Again, if inflation is 2%, then you are actually losing money in real dollar terms.
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Don't lock up their capital. The wealthy want their money when they need it, and do not want to pay penalties for making withdrawals.
But investment planning and retirement planning are two separate things in a holistic approach to a wealth plan. You may think you're investments are doing well but if you do not have a retirement plan in place you really don't have an idea if you are on track or not. In a retirement plan, your goals, values, future spending habits, etc. all play a factor in creating a plan because we find out how much retirement income you want to live off of and we reverse engineer it to create an investment plan.
The only way to know you're on track is to have a plan and look at it on a regular occurrence, at Eagle Wealth Counsel we look at your plan every 3 months to make sure you are on track with your retirement goals.
If you're an investor, business owner, or career professional, you all want to retire or semi-retire in some capacity so having a comprehensive wealth plan designed for you and your unique situation is paramount because you now can track, follow along, and tweak the plan if needed.
If you are looking for a holistic wealth plan for you and your family or want a second opinion on your current plan, please reach out on LinkedIn or email me [email protected]