How much of your income should you be saving for retirement - 10%?
Article by Preet Banerjee @preetbanerjee
The answer to any question involving money and time will depend on a wide number of variables, many of which are unknowable in advance.
Here is an article by Preet Banerjee (@preetbanerjee) on retirement savings which raises some interesting points and makes some pertinent comments.
His main point at the start is the need to save automatically. As the author says, our income tax is deducted automatically each month as, quite probably, the governments don't trust us to save enough.
Whether you save through an RRSP, TFSA or construct a non registered plan, you need to start. That's it; just start and put in a minimum of 15% into the plan each time you make a withdrawal. In other words, if you're taking out $100 to spend, transfer $15 to a savings account. You can invest it all later in a lump sum.
Simple plans like this are just that; simple to use.
My latest column: How much of your income should you be saving for retirement - 10%? via @globeandmail— Preet Banerjee (@preetbanerjee) March 28, 2014