According to Advisor’s Edge, nearly half are concerned that they will not be able to retire when they want to, while two-thirds are concerned about outliving their retirement savings. What’s important is to start saving, even if you can’t quite cover that 20% savings rule.
There are a few caveats. Depending on your situation, you might want to slow down retirement investing for a few months to build up your emergency fund. After all, $50,000 saved up in a TFSA or RRSP won’t do you much good if your car breaks down. Once you’re ready to invest, it’s time to work towards making a sound investment decision with your retirement from an employer-matched RRSP to a self-funded TFSA. Consider speaking with a financial planner to figure out how to meet your retirement goals.
Depending on your preferences and risk tolerance, millennials could also consider an investment strategy that includes long-term assets, like a rental property. Keep in mind a market crash or poor tenant experience could compromise your return on investment. However, there are alternatives in your investment strategies, including a Real Estate Investment Trust (REIT) that lets you invest without touching or managing a property.
Start with a budget and slowly add in these financial strategies to lay a foundation for success. Want to learn about more retirement and investment strategies? Email us today at: firstname.lastname@example.org