Achieving a goal takes patience and a willingness to forgo the enjoyment of your savings today to instead do so somewhere down the line – and in the case of retirement, often many years down the line. For a myriad of reasons some Canadians have little or no savings to support their retirement, or are not saving enough to live the lifestyle they imagine or desire.* And, it doesn’t help when markets are volatile and fear and worry can rule the day, creating further uncertainty about starting a savings and investing journey.
But there is no time like the present to start investing, regardless of where you may be in your life, and with markets bruised and battered after a tough year, it may be an even more ideal time to try to get back on track to your future.
“Is it too late for me?”
In short, no – it’s never too late. It’s been said that the best time to start saving was yesterday, but that the second best time is today. Even if you are late to doing so, saving for a goal is achievable if:
- The goal is a realistic one: If you only have a few years to save and invest towards your goal, a multi-million dollar retirement fund may not be realistic, but a more modest amount that complements your other retirement income sources such as a private pension or government plans (e.g., Canada Pension Plan, Old Age Supplement) may be. Setting a realistic goal is also likely to be easier to stick with, encouraging one’s efforts to achieve it.
- You are willing to change your saving and investment approaches: Saving and investment plans like regular investing (i.e., investing systematically through regular contributions taken directly from your bank account) can help you build your wealth. Investing your savings can help enhance your efforts by leveraging the growth of risk assets such as bonds and equities.
- You put in place a well-structured, thoughtful investment plan that properly reflects your risk profile: An effective and sustainable investment plan must reflect your goals, time horizon, risk profile and tax circumstances, among other things. A properly constructed plan will not only be critically important in reaching your goals, it will also help to keep you on track when market volatile and other life challenges tempt you to go off course.
- You are willing and able to save larger amounts than had you started earlier: Realistically, if you start saving later in life, you have more ground to cover to achieve your goal. This likely means that to reach your goals, you will need to dedicate more of your cash-flow and resources towards your goal. To do so may mean eliminating debt, building and adhering to a budget, downsizing, or establishing a “side hustle” to generate additional income.
- You are able to be flexible as to what reaching your goal means: There are never any guarantees that we will achieve our goals, regardless of when we start them or how well we plan. As with anything, things change and circumstances can harm or help us achieve our aims. Remaining flexible as to what success means is as important as the dollars and cents we build in our investment account. But no matter the outcome, no effort goes in vain, and only not acting will ensure that you do not reach your goal.
We can help you establish your goals, build the right plan to help you achieve them, get you invested into an appropriate investment portfolio, and work with you to take advantage of savings “boosters” like tax-sheltered accounts (i.e., RRSPs and TFSAs).
It’s never too late to start the conversation – talk to us to today.
*Canadian Retirement Survey (third edition). Healthcare of Ontario Pension Plan (April 2021).
This information is not intended as nor does it constitute tax or legal advice. Readers should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy. This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ® / TM Trademark(s) of Royal Bank of Canada. Used under license.