We’ve all seen or heard of that football classic "comeback game": the team down by a seemingly insurmountable score with only one or two quarters left in the game. Yet, despite the odds stacked against them, little by little, one field goal and touchdown at a time, leveraging an intelligent strategy, strong play execution, adherence to fundamentals, unwavering discipline and calm-headed coaching, they gradually chip away at the deficit to bring home the victory in the dying seconds of the game.
Many Canadians facing a looming retirement date find themselves in need of their own comeback to achieve their retirement goals. A survey of pre-retiree Canadians over 50 showed that 22% have nothing saved for retirement, while 40% worry they will not have enough to maintain their lifestyle in retirement.* Even wealthier Canadians worry they may not have enough to achieve their desired retirement lifestyle.**
For those who are in "the second half of the game" and haven’t started saving – or are not saving enough – towards their retirement goal, even attempting to achieve that goal might seem like an insurmountable and futile effort.
Start your comeback today
But it is never too late to start investing, even if you only have 15 – or even 10 – years until your targeted retirement date or age.
Here are five key steps to take to get across your retirement "goal line":
1. Have a financial plan
A goal without a plan is a dream, so it’s critical to map out where you are today and where you need to get to. Once you’ve done that, you know realistically where you stand and what income you really need in retirement (versus what you might think you want). Then you can start building on the savings you need to achieve your goals.
2. Execute your plan
Many people have well-structured financial and investment plans, but fail to act on them. Follow through on your plans – whether that requires reducing spending, finding ways to enhance income, eliminating debt, or investing more regularly.
3. Stick to the fundamentals
Great comebacks are based on making the most of proven strengths, such as a well-diversified portfolio with quality assets that are purchased steadily and consistently over time.
4. Stay disciplined
When the clock is running down and desperation sets in, it’s tempting to send a "Hail Mary" pass into the end zone. But with the right plan you don’t need to "go for broke" with some high-risk strategy. Being disciplined – and patient – is critical to success.
5. Listen to your financial "coach"
Like a good coach, your advisor is focused on helping you achieve your financial goals. They can help establish your financial and investment plans, revising and refreshing them as required, and keep you focused on coming back to win your retirement game.
Please contact us to learn more.
*Ontario Securities Commission, Retirement Readiness: Canadians 50+ (September 2016).
**New Wealth Rising survey conducted by The Economist Intelligence Unit, commissioned by RBC Wealth Management (September 2019).