JoAnne Muegge
October 2009 Issue
The Cost of Retirement

If you have yet to save for retirement, don't panic. Begin to build the foundation today. Start by determining your net worth. When you minus the total value of your debts from the total value of your assets you should be left with a positive number. However, most will find that their net worth is negative. A negative number just means that before saving for retirement you need to set a budget and pay off any outstanding debts. Once a budget and plan is in place it's important to stick to it. If you do nothing, you will have nothing.

In effort to stick to your budget and possibly find more savings, evaluate where and how you spend your money. Is it used up by:
 
Coffee Chains
Restaurants
Cable/Satellite
Internet
Cell phone
Gym membership
  
By saving on smaller things like making your coffee from home in lieu of a daily Starbucks run, downgrading a cell phone plan or bundling your Internet and cable, your budget will be easy to stick to. Even though you may have made a late start, it's never too late to make a difference. Make the most of the time you do have.

Those who have managed to save a little for retirement also need to be careful with budgeting. It's unrealistic to rely on a government pension cheque to make up for dipping into your personal retirement fund as it will barely cover bills. For this reason don't be tempted into using your retirement savings early, even for emergencies.  Retirement can last thirty years or more. To ensure that you don't outlive your savings: 

  1. Review investments - meet with your financial advisor frequently to make sure you're getting a fair return.
  2. Limit withdrawals - be aware of the timing and tax implications of withdrawing from a retirement account.
  3. Refinance - only if you still have a substantial mortgage.
  4. Downsize - if you're not utilizing the space. Downsizing will also allow you to save on energy costs and property taxes.
  5. Work part-time - while it's not always ideal it will add to your savings and earn you health benefits.

It's clear that whether you currently have a retirement savings account or are just beginning one, a realistic budget and clever planning will ensure that your retirement years are everything you wanted them to be. 

http://www.prudential.com/view/page/11718 

Did You Know?

Canadians save roughly $482/month for their retirement.
http://www.canadianretirementresources.ca/
canadian-and-retiring-here-are-some-interesting-facts/ 
Carol Budnyk
Carol Budnyk
REALTOR®
Cell:   250-588-3378
Toll Free:   800-461-5353
Office:   250-477-5353
Independently Owned And Operated
ROYAL LePAGE Coast Capital Realty
Message From Carol
Welcome! Planning for retirement thirty years in advance isn't always possible; luckily some clever budgeting will help. Read further for ways to begin building the foundation for your retirement. Be sure to watch for future issues as they will be full of information that will benefit you when making some of these essential retirement decisions.
 
All the best,
Carol Budnyk
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Retire in the Southern Gulf Islands
Retirement is synonymous with relocating to a warmer climate, and it just happens to be that Canadians don't have to go very far to enjoy one. A move to British Columbia's friendly Southern Gulf Islands will let you enjoy a milder version of all four seasons. With an eight month frost-free season the Southern Gulf Islands are host to the warmest weather in Canada. The only decision lies in which island you choose to call home. Each island is unique but you will find the common thread to be the many resident artists who are inspired by the beauty and energy of this special part of the world.
 
Salt Spring Island - Often visited by travelers this island's mellow pace draws people from all pursuits. Located on Salt Spring, Ganges, the largest town on the islands offers an array of shops to please all tastes.

Saturna Island - The southern-most and least populated island, Saturna offers seclusion and privacy. If it's a rural lifestyle that you seek consider this island.

Pender Islands - A popular holiday destination, the Penders offer many beaches and coves to explore, along with a thriving community and all the comforts and attractions you need to make your visit enjoyable.

Galiano Island - Galiano Island, closest to the mainland of British Columbia, boasts the reputation of being very welcoming to visitors. This is also where you will find the Montague Harbour Provincial Marine Park. 

Gabriola Island - A common destination for travelers being easily accessed from Nanaimo, Gabriola Island offers quiet beaches, the Malaspina Galleries, provincial parks, and much more. 
http://www.britishcolumbia.com/regions/ti.asp?regionID=4
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- Carol Budnyk