May 19th, 2015 → 8:51 pm @ MacDev Financial Group| Stephen Devlin // No Comments
Are you down with CPP? (Yeah you know me.)
Okay, so retrofitting the lyrics of a Naughty by Nature song might not exactly work when talking about Canada Pension Plans, but go with us for a minute.
The Canadian government offers CPP as a retirement planning tool for working Canadians. According to its website, “Almost all individuals who work in Canada contribute to the Canada Pension Plan (CPP). The CPP provides pensions and benefits when contributors retire, become disabled, or die.”
But in a recent article on retirehappy.com, author Jim Yih warns individuals who have contributed to their CPP account to not rely on CPP for their entire retirement planning since it’s unlikely to receive the maximum amount.
Why?
Because your CPP account payments when you retire are based on whatever you put in originally. The saying, “Garbage in, garbage out” might apply only if we swap out the words, “Less money in, less money out.”
Unfortunately, Canadians are relying too heavily on government plans like CPP to cover their entire retirement costs and not diversifying their portfolios enough to account for the gap.
But we have a solution.
Our Bank on Yourself method avoids this problem altogether by creating your own banking system using whole life insurance as a means to build your nest egg AND keep it in your own hands. Fulfill your entrepreneurial dreams by starting up the business you have always dreamed of. Cover the costs of an expensive car or home repair without having to take out a second mortgage. Pay for your grandchild’s college tuition in full.
It’s as simple as contacting a BOY professional and finding out your next steps to breaking free of the government reliance trap and making your money yours, and making it work best for you.
Just think of the freedom—and the future— you could have.
Tags: CPA, Financial Advice, retirement advice, retirement information, Tax Advice, Tax Information, Tax Tips
