September 26th, 2014 → 1:52 pm @ MacDev Financial Group| Stephen Devlin // No Comments
News site in the United States like Forbes and CBS News’ MoneyWatch are brimming with stories on how ill-prepared U.S. 50-somethings and 60-somethings are for retirement. They’re not saving enough, they’re not taking advantage of their 401(k)s and IRAs, and with everyone living longer, they’re at risk of outliving what little money they have saved. In Canada, some people are saying the same, suggesting we’re nearing our own retirement crisis. Are we?
It’s true that middle-class Canadians are, by and large, in debt. And, debt is the number –one enemy of saving money and making money. However, the retirement system in this country isn’t half bad (at least when compared with the U.S.). We have government income support programs like Old Age Security and Guaranteed Income Supplement, the CPP, RPPs, RRSPs and tax-free savings accounts. No, retirees aren’t likely to end up living on the street in Canada, but that doesn’t mean they’re doing as well as they could either.
When you’re living on fixed income, life events don’t simply stop happening. You may find yourself in need of a new car, a new roof, or a new water-heater. Or, you may want to indulge in some retirement R&R in the Caribbean without drowning in debt to achieve it. This is where a dividend-paying whole life insurance account can bridge the gap between sustenance-living and thriving in financial independence.
Compare these advantages next to your other investments: Tax-advantaged growth, safe principal, flexibility, security, no-questions-asked loans, and a life insurance policy with a guaranteed death benefit plus the cash value of your policy. And, there’s the potential to receive dividends from the insurance company, helping your cash value to grow even faster.
While Canadians might not be in a “retirement crisis,” there’s definitely room for improvement. Ask us know we can improve your retirement.
Tags: CPA, Financial Advice, retirement advice, retirement information, Tax Advice, Tax Information, Tax Tips
