“Freetirement”, not “Retirement”

Up until recently, retirement was simply thought of as the official end to the working life after which one would collect pension cheques and stay at home. However, with people living longer and wanting to fulfill their dreams and accomplish goals, we are seeing a shift in how people think about retirement. People are starting to think of it has ‘freetirement’ where they can spend their new free time to volunteer for their favourite cause, start a small business or even work part time for something they have a real passion for.

A recent survey by a large financial institution found that more than 1/3 of Canadians aged between 18 and 64 want to work part time upon retirement; 20% of these people want to volunteer, and 1 in 10 want to start their own small business. An increasing number of retirees want to continue to stay active and involved in their community and therefore will require the financial means to do so. Many of those surveyed are looking to finance these dreams with RSP’s, general savings, pension funds, and other investments.

Saving for the traditional ‘retirement’ is one thing, saving for goals beyond retirement can seem like an overwhelming task. However, it doesn’t have to be scary; talking to a professional can certainly make the journey much easier. An expert financial advisor can help you figure out the best plan which suits your needs and can help you accomplish the dreams that you have for your freetirement. Here are some common tips applicable to anyone:

Make Regular Contributions to an RSP

One of the easiest ways to save for the future is to make small, regular fixed payments into your RSP on a weekly or monthly basis. Your budget will not take a huge hit from these small contributions and in the long run, you will surprised at how quickly your savings will accumulate and grow. RSP’s can also provide protection from certain tax obligations.

Contribute to a Tax Free Savings Account

Another great savings vehicle is a Tax Free Savings Account. With a TFSA, you can easily save and grow your money while protecting any gains from taxation. The current annual contribution limit is $5,500; however any unused contribution room can be carried over into consecutive years.

Remember, it’s never too early to start planning and saving for your future! At GTA Wealth Management, we can help. We have extensive experience helping clients plan financially for the future.

Contact or call GTA Wealth Management toll free at 1 855 GTA WLTH (855 482 9584) to accelerate your ride to financial independence. A professional wealth management financial advisor is ready to serve your wealth management, tax return and planning needs. GTA Wealth Management Inc. has three convenient locations in Mississauga, Toronto and Markham to serve you.

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