Canadian business owners face similar retirement concerns to their counterparts in the U.S.
With demographic trends predicting a tsunami of retirement shortfalls, there’s reason to worry on both sides of the border.
Consider this four-step action plan to grow your nest egg.
Revisit your retirement strategy each year. Whether it’s a flourishing business climate, a modest level of growth or a stagnate economy, ensure you contribute to your savings and investment accounts every month. Stash those savings in tax-deferred retirement accounts.
Don’t stop paying down debt until it’s gone. For young professionals, paying down both student loans as well as money borrowed to launch a practice can be a steep uphill climb. Make the task a bit easier. Reward yourself with small splurges along the way. A three-day holiday in Montreal is doable for most young professionals. A three-week vacation to Singapore could set back your savings plan.
Be an aggressive saver. Even while you’re reducing your debt, you should still be salting money away. Aim to save at least 15 percent of your income each month. Use intrinsic motivational techniques. These include cultivating a sense of meaningful purpose, taking pleasure in mastering a specific skill set or expressing pride in your professional accomplishments. Here’s the good news: They’re all freebies!
Meet with a financial planner. If you don’t have an aggressive approach to reducing your tax burden, your planner can help you develop a sustainable plan to grow your assets. The focus for professionals in their middle years should be heavily focused on saving money. There are no shortcuts. It can test your mettle, but diligence in saving money should be the foundation of your financial plan.