There are two types of retirement planning these days, old school societal plan and the new side hustle retirement plan. Old school societal retiremenat plan, tells you to look at the age you are currently and put your money away in investments (Tax Free Accounts if applicable) that way your money can grow in compounds. This will allow you to atleast reach atleast 700,000 to 1.2 million dollars by the time you are 60, given you have low expenses and save well.
The new side hustle retirement plan, tells you to have atleast 5 passive income sources where you are making about $10,000 dollars a month in total. This way you will make the retirement money quicker and also be financial freedom at present time. If you have time right now, don’t waste it. Learn a new skill! The more skillful you are at todays market, the better your position will be.
When thinking about retirment, you have to visualize your current lifestyle and spending and ask yourself if you will be able to maintain this without a job and with what is in your bank at the age of 60 / 65?
Now let’s say, you were going that tranditional route, then use this calculator:
This will help you see how much you need to save on a monthly basis.
I would suggest, maxing out your RRSP and TSFA (Savings/Investment brokerage) as much as you can.
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