Are You in Control of Your Financial Future?
Are you in control of your financial future? Many people don’t think much about their financial future until it’s too late in life. The time to start dealing with this is early, so whatever it is you’re accruing has the ability to multiply over your lifetime – commonly referred to as compounding. The notion that everything will work out or that CCP & Old Age security will look after you is not a viable plan.
Some people put their chips down on winning the lottery, but the reality is that the 14 million to one odds are a poor bet. The best time to start is when compounding can really make a difference. The next best time is now – no matter what your age is. Some people will say, yeah but you have to live for today. I don’t disagree with that but there needs to be a balance, and if you don’t save now for your future, your future won’t be all that rosy.
The reality is that if most people put away $100 or $200 a month, they would be able to enjoy the financial benefits of compounding interest and would likely not they wouldn’t even notice the money from their account. To put this savings into perspective, what you are investing is almost the same that you and your partner would spent in one month at Starbucks if you both treated yourself to a coffee and treat once a week. By skipping that coffee and breakfast sandwich, you can take control of your financial future in one simple step.
When I was younger, I used to buy houses and work on them fixing them up and adding value. After a few years, I would sell them to reap the rewards of my efforts or “sweat equity”. That was something that many of us did back then and it is to a very large degree why some older people today are able to retire without the worry of where the money will come. Not only are they collecting old age security and CPP, but also rental income or the financial gains made when selling their investment properties.
The one error I made was that I should have kept these properties without selling them, but hindsight is always 20/20. My advice to our clients is to hold on to them if possible unless they are problem properties that attract poor tenants. The reality is that life is going to become more and more expensive and if you have more disposable income and no debt once you get close to retirement, life can be everything you had hoped for and the retirement that you deserve. If you would like to take advantage of today’s low interest rates to start building your own retirement fund, give us a call and we can show you a way to start planning for that retirement in the sun!