Whatever your age and career path, there are two governing tips for retirement saving and estate planning in Canada: the earlier you start, the better it is, and it’s never too late to start. Before we dive into these tips, let’s look at what planning for retirement and estate planning mean.
Planning for Retirement
In Canada, anyone who has ever contributed to the Canadian Pension Plan is eligible to receive a pension from the program. However, it may not be enough to live on in the manner you would like. Therefore, you may wish to save for your retirement. Deciding when and how to do so becomes the issue.
Find the Answers with a Chartered Professional Accountant
Many books, websites, and articles tackle this, but the multitude of suggestions can be overwhelming, whether you're starting your career or nearing its end. A chartered professional accountant can help. They are financial professionals trained to help you understand and control your financial health now and in years to come.
A chartered professional accountant will help you identify your current and future financial needs based on your lifestyle, family situation, income and debts. They provide knowledgeable guidance on retirement planning, including:
Participating in workplace retirement savings plans
borrowing from retirement savings
contributing to Registered Retirement Savings Plans (RRSP)
using a Tax-Free Savings Account (TFSA)
Chartered professional accountants also advise on tax implications for retirement savings, RRSP to RRIF conversion, and pension collection.
Legacy Planning
Legacy planning is directly related to planning for your retirement. This includes more than legally bequeathing your financial assets. It can also mean:
creating a living will for healthcare
naming an executor to your will
assigning digital assets
securing guardianship of children
securing care for others in your charge, including pets
Once again, there are many financial, legal, and tax-related things to consider, so calling on a chartered professional accountant can be helpful. Their knowledge, insight, and advice can help you create financial security for yourself and your loved ones and find peace of mind now and in the future.
Early or Late?
Let us now return to the two governing tips stated above. Starting to save for retirement early allows your savings to grow through compounding interest. However, later, higher monthly contributions to a retirement savings plan can still offer you the retirement you want. Similarly, whether you plan your estate and create a will now or later, both are better than never doing it at all.
Find a Chartered Professional Accountant in Surrey
Whatever stage of life you are in, a chartered professional accountant can help you ensure your financial future and the future of those you love. The chartered professional accountants at Schmidt, Berg & Co., are here to help. We have provided valuable insights and advice to Surrey residents for nearly 50 years.
Call us today for a free initial consultation about effective retirement and estate planning. We can also help you navigate estate and inheritance taxes (also called probate fees), trust accounts, and pension buyout tips. Visit us in Surrey soon.
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