The Citizen, 2015-02-05, Page 7THE CITIZEN, THURSDAY, FEBRUARY 5, 2015. PAGE 7.
GRANT GNAY
CPA, CGA
Accounting &
Tax Services
133 South St.,
Goderich
519-524-5113
MS –Many budding retirees plan
to travel, relax and enjoy the
company of their spouses when they
officially stop working. But such
plans only are possible if men and
women take steps to secure their
financial futures in retirement.
According to a recent survey,
roughly one-third of Baby Boomers
have no retirement plan. The reason
some may have no plan is they have
misconceptions about how much
money they will need in retirement.
Successful retirees understand the
steps to take and how to live on a
budget.
• Have a plan. Many people simply
fail to plan for retirement. Speak
with a financial advisor who can
help you develop a plan that ensures
you don’t outlive your assets.
• Set reasonable goals. Retirement
nest eggs do not need to be
enormous. Many retirees have a net
worth of less than $1 million, and
many people live comfortably on
less than $100,000 annually. When
planning for retirement, don’t be
dissuaded because you won’t be
buying a vineyard or villa in Europe.
Set reasonable goals for your
retirement and make sure you meet
those goals.
• Recognize there is no magic
wealth-building plan. Saving comes
down to formulating a plan specific
to your goals, resources, abilities
and skills. Make saving a priority
and take advantage of employer-
sponsored retirement programs if
they are offered.
• Don’t underestimate spending.
You will need money in retirement,
and it’s best that you don’t
underestimate just how much you’re
going to need. No one wants to be
stuck at home during retirement,
when people typically want to enjoy
themselves and the freedom that
comes with retirement. Speak to a
financial planner to develop a
reasonable estimate of your living
expenses when you plan to retire.
• Pay down or avoid debt while
you can. Retiring with debt is a big
risk. Try to eliminate all of your
debts before you retire and, once you
have, focus your energy on growing
your investments and/or saving
money for retirement.
• Start early on retirement saving.
It’s never too early to begin saving
for retirement. Although few 20-
somethings are thinking about
retirement, the earlier you begin to
invest the more time you have to
grow your money. Enroll in a
retirement plan now so you have a
larger nest egg when you reach
retirement age.
NC –Our spending habits evolve
and mature from the time we start
work, so by 30 years of age, a little
more guidance is a good idea.
Lifestyle changes such as marriage,
home ownership or saving for other
goals, all have an impact on whether
to spend, or save more.
Keep these financial dos and
don’ts in mind, especially past the
age of 29:
DO
• Set realistic financial goals tied
to lifestyle choices. Saving for your
first home or upcoming nuptials are
great motivators.
• Mind your taxes. There are a
wide range of tax benefits available,
know what they are and reap the
benefits.
• Be budget conscious. Know your
financial plan inside and out so you
can create a budget for everything.
• Track your progress. Keep a
journal to make a note of all income
and expenses. If you’re in the red,
you’ll know.
• Ask for help. Finances can be
confusing, but finding the answers to
your questions can help you get right
back on track.
DON’T
• Spend your savings. Try an
automated savings program to help
you save with ease.
• Get bogged down by debt. Pay
more than your principal balance
and be debt-free faster.
• Ignore your money problems.
Make a habit of reviewing bills on a
monthly basis to readjust spending
as required.
• Be passive with your bank
balance. It’s never too early to start
thinking about growing your money
through investments.
• Forget about retirement
planning. Think about how much
you’re setting aside for the future –
consider it an investment in yourself.
The key to a successful financial
plan in your 30s and beyond is
working with an experienced
financial advisor to help set your
lifestyle goals, develop a plan to
meet those goals, and then to ensure
you stay on track over the long
term.
NC –Post-secondary education
is expensive. Every semester starts
with paying tuition and buying
textbooks. You may need a new
laptop and school supplies. These
costs can pile up.
Here are a few tips to help:
• File your taxes. To take
advantage of the tax credits and
benefits available to you, such as the
GST/HST credit, you have to file
your taxes. Do it online – there’s a
wide range of software, including
some that’s free.
• Sign up for direct deposit. When
you combine online filing with
direct deposit into your bank
account, you can get your refund in
as little as eight business days.
• Claim your tax credits, such as...
• Tuition fees: Most tuition paid to
a post-secondary institution in
Canada can be claimed. You may
also be able to transfer or carry-
forward any unused credits.
• Education amount: You can
claim $400 for each month you are
enrolled in eligible full-time studies
and $120 for each month of eligible
part-time studies.
• Textbook amount: If you are
eligible for the education amount,
you can claim this too. You can
claim $65 for each month you are
enrolled in full-time studies, and
$20 for each month you are enrolled
in part time studies.
• Public transit amount: Generally
speaking, you can claim the amount
you spent on a monthly public
transit pass, but not tickets or daily
passes.
• GST/HST credit: You can get
payment of up to $70 every three
months to help you keep on top of
your expenses.
You can find more information at
www.cra.gc.ca/students.
Getting there
While planning for retirement isn’t easy, there are some
guidelines to follow that can ease the transition. (MS photo)
Spending tips past 30
Set goals, eliminate debt to retire comfortably
Benefits for students
Susan Alexander,CFP CLU CHS EPC
Doug Sholdice
472 Turnberry St.
PO Box 69 Brussels,
Ontario N0G 1H0
www.sholdicefinancial.com
Phone:
519-887-2662
PEAK Investment Services Inc.
Community Information Events
Business/Farm Succession
& Business Planning
Info about accessing Growing Forward 2
Government Funding for Farmers
WEDNESDAY, FEBRUARY 18
7:00 p.m.
Brussels Legion
620 Turnberry St., Brussels
Sponsor ~ Sholdice Insurance
SPEAKERS All events
Liz Wagner CFP, CAFA
ORR Insurance & Investment
Len Davies CFP, CLU, CIP, EPC, CAFA, CDFA
Davies Legacy Planning Group
Blyth Only - Beau Riegling, Accountant
Seaforth & Brussels - John McKercher, Lawyer Devereaux Murray
Please RSVP to Liz Wagner
519-356-2020 or cell 519-272-5546
TUESDAY, FEBRUARY 24
7:00 p.m.
Blyth Memorial Hall ~ Lower Level
423 Queen St., Blyth
Sponsors ~ Orr Insurance & Investment, Blyth
& Lyons & Mulhern Insurance, Goderich
WEDNESDAY, FEBRUARY 25
7:00 p.m.
Seaforth Legion
156 Main St. S., Seaforth
Sponsor ~ Seaforth Insurance
JACQUIE GOWING ACCOUNTING SERVICE
Accounting & Income Tax Preparation
Monthly Bookkeeping Tailored To “YOUR” Needs
• Reconciliations • Personal, Farm
• Government Remittances Business & Corporate
• Payroll • Electronic Tax Filing
All services available on site or at our office
RR 2 Bluevale
519-887-9248 Fax 519-887-9454
Chartered Professional Accountant
Certified General Accountant
• Personal & Corporate Tax
• Accounting & Bookkeeping
• Agricultural Services
Seaforth
519-527-1331
Email: wightman@bellnet.ca
Brian E. Wightman