What If I Want to Retire?

VIDEO: Having some retirement goals in mind can help you on the road to saving more effectively for your later life

Ruth Saldanha 11 May, 2021 | 9:32AM
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Ruth Saldanha: We all want to retire, but we want to enjoy our retirement even more. We can't go golfing or paint or travel without the money to do so. So, what if I want to retire?

To many, the actual retirement date is the goal, and after is when we finally have the time to live as we please. But how can we make sure that the money that we have now can support us once we have passed the finish line? Well, the very first thing to do is to start saving and plan to grow your savings for retirement.

David Blanchett: Retirement as a concept is relatively abstract, especially given all the pressing financial demands right now. To help you stay focused, figure out a financial goal that excites you and consider prioritising that instead.

Saldanha: Think about it, what financial goal makes you willing to put off going on that vacation or buying that new thing or going to that fancy restaurant? Once you start saving, plenty of investment vehicles can help you grow your money. Consider your risk tolerance, your time horizon, and imagine your retirement lifestyle.

Understand that your investment strategy should grow and change just as you do. Younger investors can start by investing more aggressively and become more conservative as they age. Next, consider the cost of your living expenses and your preferred standard of life. Set a goal to save enough to support yourself and start investing a portion of your income towards it.

Blanchett: Becoming a good saver isn't easy. And if you are having trouble, it would probably be wise to focus on something that you really care about. It doesn't have to be the right thing or the smart thing. It just has to be the thing that empowers you to become a better saver.

Saldanha: And then, think about golf, painting, or travel.

This video was scripted by Susan Zhou

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Ruth Saldanha

Ruth Saldanha  is Senior Editor, Morningstar.ca