RRSP Season Insights - #1
Monday, January 28, 2013 by: Baytoday Business Wire
Feature, BayToday.ca- Kingsdale Capital Markets
- Kevin Hutchison
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RRSP Season Insights: Article 1 of 7
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Eliminate Debt & Increase Savings: The Right Mix
Newspaper headlines across Canada highlight a concerning trend of rising debt levels and falling savings rates among Canadians.
We are spending too much, and saving too little.
This doesn’t come as a surprise to most of us, as we know how challenging it is to live comfortably.
The solution is to reduce debt and increase savings.
The reality is that this is a far more complex thing to do.
What we need to do is find the right mix to fit your situation.
Begin by outlining your short and long term goals and objectives—the needs and wants.
Be realistic. Next, take a hard look at your debt level and your savings rate.
Based on your income and obligations, and expectations for both moving forward, determine the appropriate amount of money to pay down debt and to contribute to savings.
Beyond contributing to a general savings account, a successful savings plan includes investing in a Tax Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP).
You’ll need to prioritize both your debt and savings opportunities, so as to focus where you can make the greatest impact.
The way you allocate your money across debt and savings represents the mix.
The challenge is getting this mix as right as possible given your situation as it forms part of the larger road map, or plan, which will guide you as you move through life.
Monitor your progress and be willing to adjust or tweak your plan, as well as your goals and objectives, as needed.
The plan is fluid, as is the mix. It will change over time.
On Thursday we will discuss an important component of the savings plan: Investing in RRSPs.
Kingsdale Capital Markets
Kevin Hutchison is a Financial Advisor at Kingsdale Capital Markets and lectures part-time at Nipissing University.
He is a member of the Rotary Club of North Bay-Nipissing and a member of the board of directors at the North Bay Regional Health Centre.
He holds a BComm (Hons.) and MBA.
