There’s nothing reassuring about today’s tumultuous markets, low interest rates and investment risks. So how can you protect your assets? There are no two ways about it. It all comes down to your savings strategy for future projects, including your retirement savings.
There isn't a one-size-fits-all strategy for everyone. It all depends on where you are in your life and what your investment goals are. A young person wanting to save for retirement can afford to take more risks to achieve long-term growth, while someone who's less than five years from retirement will need to focus on investments that will secure their capital.
A savings and investment strategy
Have you taken stock of your financial situation, made up your budget and determined how much you need to save each week or month for your dream projects? And what exactly are you projects? Buying a house, paying for your children’s education, enjoying a comfortable retirement? Every project needs its own plan.
Let’s look at the retirement savings strategy, for example. As with every strategy, the first step is to define your projects, objectives and financial needs. Here are a few things to consider:
- The age you’re planning to retire at
- Your retirement projects: travelling, buying property abroad, etc.
- The annual income you’ll need when you’re retired: a simple way to calculate this is to take approximately 70% of your pre-retirement income, or you can complete the retirement budget (PDF, 241 KB – save it to your computer, complete it, then print or save it)
The next step is to determine your sources of retirement income and how much additional savings you'll need. It’s important to have a good sense of your risk tolerance for investment fluctuations, so you think about establishing or reviewing your investor profile. This will help you choose from the types of investments you have access to and that meet your savings objectives.
The right investments for your needs
Your advisor will help you choose the investments best suited for you. In the meantime, you can consult Desjardins Financial Security’s full range of savings products or Desjardins’ investment categories.
Last but not least, review your investment strategy every year and adjust it accordingly. Sure, this takes time and effort, but after all, this is the money that’s going to allow you to fulfill your dreams, during your professional life as well as your retirement.
Questions? Comments?