As the famous saying goes: “No one plans to Fail, but they Fail to plan.” How true this saying is – but aren’t we doing the same thing day in and out…. Thinking that it is not important and we put off the planning for the next day – and that day will never come, because tomorrow is always tomorrow!!!
As I meet with some of my countrymen and talk about planning kids’ education etc., I see a lot of apathy, as if this issue is not at all important for them. Sometime ago, I was in a conversation with such a family and they told me: “Oh you know Antoney, if they want to study, they will take some OSAP Loan and will study.”
“At this moment in time, we do not know whether they will study or not so therefore we are not planning for it or thinking about it, because it is not our problem, it is the kids’ problem, even though the kids are our own.”
But, what I do not understand is that even their own retirement seemed to be someone else’s problem for these people. They must be thinking that their kids will take care of them when they retire, forgetting that their situation will be no different than what we are facing today.
Whatever you sow today will you reap tomorrow.
What I tell my friends & Clients that do not expect anything from your children, but, if you do get their support financially, emotionally or otherwise, then consider as a BONUS. When they don’t expect it and then you get it, you will feel good about it, but if you expect to receive something and then, if you don’t get it, then it will definitely upset you.
Here I would like to quote from the Holy Bible: “What so ever you sow, so shall you reap”. Also, it applies to the thing you do for your parents and to your kids…. It also holds good in your investment and where you put your money will determine what your end result is going to be! Is the money working for you or for the Banks, Insurance Companies or are you paying too much to Revenue Canada?
Here I want to talk about retirement planning. It doesn’t matter how old or young you are!! The earlier the better, but it’s never too late for planning, so think, think, think and think again!!!
Look at what your Short Term Plan, Mid Term Plan, and Long Term Plans are. Note down that you want to have and what you want to achieve, when and how. Make a game plan, discuss with your financial expert about it and take their opinion and make an informed decision. You may ask why I should do this. As our ancestors say “If you have no plan, you are like a chicken left out in the woods in the moonlight, you will not know what to do and where to go”. It will be a directionless and goalless journey.
I would like to talk with you about an aspect of Canadian life – especially after your retirement, the time of life when you don’t work and earn money but life goes on. You have to live with the money accumulated or saved during your working days and the amount that you have put aside of your retirement.
As Canadians you might have heard that the Baby Boom Generation drives the market and may not have understood it, nor about its impact and how it will effect your life in the coming days or you must have thought it is just meant for the White Man. But let me tell you, it is meant for every Canadian and if you do not understand it you better do it quickly or else your twilight days on earth will be generally difficult ones.
The Baby Boomers are those born between 1948-1964 (18 year period) and are the driving force of the North American Economy….they will be retiring in large numbers from 2013 onwards and soon you will see a situation where more than 1/3 of the population of Canada is retired and economists and financial expert predict that the Canada Pension Plan (CPP) will burst by 2025. What that means is that you cannot depend on the Government Pension Plan.
Therefore, be prepared and have your own plan in place well in time and be self-reliant.
So my question to you today is “Do you have a plan – Short, Mid & Long Term Plan?” If not make one, whatever it may be. Then fine tune the plans as you go along. On the subject of retirement, look at your investment. Is the Amount sufficient for you to retire? Will your monthly or annual contribution get you where you want to be when you retire? If not what can you do to improve your situation? Have you taken inflation into account and have you decided on the place where you are going to retire and is the money enough to have a reasonable standard of living? This is the time to think and make plan/decision and stick to your game plan. The investment companies have started to act on this subject very seriously and one of Canada’s biggest companies which started a new plan targeted at Baby Boomers, has achieved tremendous success in US and did $15 billion worth of business in 2005.
The company launched the program in Canada in October and is attracting Canadians who are heading towards their retirement years. The plan addresses most concerns of retirees. As most people who have saved money for their retirement and when they are in their 50’s and 60’s the biggest worry is not to lose their money, because their retirement life is dependent on it. This plan protects the client’s principal amount and also allows for growth in the investment market. Moreover, it guarantee certain % and will guarantee a steady income with the potential of getting more money if the market perform well and also it gives money to your loved ones once you leave this world.