After tax season, one of the things we recommend to our clients is to set aside time to review their tax return and start thinking about opportunities to improve their tax situation in the months and years ahead. In other words, to start making plans to ensure they are using all legal strategies available to minimize or defer taxes. If you make the connection, you will realize that a dollar saved in taxes can have a positive impact on your financial and retirement planning.
When it comes to retirement planning, majority of Canadians don’t even know where they stand and some don’t even realize that saving for retirement is not an option, it is a must-do! The reason is simple, you need to know if you will have enough money to eat and to take care of your most basic needs like housing.
No matter your age or your current financial situation, it is critical to do an assessment now and determine where you are today and where you need to be when you retire. This assessment will determine the gap you need to address. In a recent article published in the Toronto Star, Gail Vaz-Oxlade writes if you don’t know where to start, or if you’ve been putting it off because you’re not sure of all you need to consider, it’s time to start figuring it out. She concludes that if you use “I don’t know” as an excuse, you’re a fool!
Don’t be a fool. If you don’t know where to start, consider consulting a professional to help you get started. From our research and discussions with some of our clients, here are some of the common reasons why most people don’t plan or don’t take retirement planning seriously:
- They don’t know where to start
- They lack knowledge of financial/retirement planning
- They think financial/retirement planning is only for the rich and wealthy
- They think they are too young or too old to start
- They don’t trust financial planners
- They think government benefits will be sufficient to take care of their retirement
- For those who contribute to a work pension plan, they think the pension will be enough for their retirement even when they have no idea what the monthly pension income will be when they retire
- For those who have a financial/retirement plan, there is no accountability or periodic monitoring to ensure they are on track to a successful retirement
We can help you get started and dispel some of these misconceptions about financial/retirement planning. Given our unique position as accountants and tax advisors, we get the opportunity to work with a variety of clients at different stages in their financial/retirement journey. In addition, we have partnered with a financial planner and a wealth advisor to ensure that all aspects of your financial/retirement planning is taken care of.
In the coming months, we will share some more insights on this topic and how you can benefit from what we are developing in our practice to ensure that you have enough not only to meet your most basic needs when you retire, but to meet your desired retirement objectives, whatever that may be. To learn more, please contact Ken Green via phone at 416-706-3491 or via email at [email protected].
