Your retirement funds are very important. When you’re old enough to retire, they’ll help you live comfortably. With a little luck, you’ll have saved enough during your working years to enjoy a happy retirement. No matter what your age or savings, it’s never too late to get started! Here are a few ways to multiply your retirement funds that could benefit you as a Montreal homeowner.
Put your savings into an RPP or TFSA
If your employer offers you a pension fund in the form of an RPP, find out more about this program so you can take full advantage of it! It’s definitely worth investing as much money as possible! Some employers add 50 cents for every dollar invested, while others go so far as to double the amounts invested in the pension fund. Instead, some make deposits into their employees’ accounts, regardless of their employees’ transactions! What’s more, your pension fund will allow you to avoid taxes on every dollar invested!
If you don’t have a retirement fund, or if you’ve already invested the maximum allowed, a Tax-Free Savings Account, or TFSA, could be for you. You’ll have to pay taxes on the money you invest this year, but you won’t have to pay any fees when you need them most. To save money, a CÉLI is ideal! By investing the maximum allowed each year, you can multiply your retirement funds quickly. If you’re over 50, you’ll certainly have the opportunity to invest even more, since your unused contribution room can be carried forward to future years.
Pay off your debts
Paying down debt is a great way to increase your retirement funds. Many people simply transfer the minimum amount each month, then watch the interest and charges accumulate. Don’t make this mistake. In the long term, you could save thousands of dollars by paying off your debts as quickly as possible, and these savings could be put toward your future retirement. Once you’ve paid off all your debts, make a commitment to transfer the entire balance every month. Not only will this help you save, it will also improve your credit rating!
Take a part-time job
Another way to multiply your retirement funds is to take on a second job. Since your first job already allows you to make all your payments, the income generated by your second job can be sent directly to your savings account. Obviously, you’ll have to cut back on your free time, but you’ll be grateful for all the hard work when you retire! When you’re older, you’ll have plenty of time and money to take vacations and travel. If you manage to save a lot of money, you could even retire younger!
Sell your home
If you own a home in Montreal, the quickest and easiest way to substantially increase your retirement funds is to sell your property! Perhaps you could even convince your buyer to pay the majority of the costs involved in the sale, making the process even more lucrative. You could move to a smaller property for a more pleasant future. You could invest several thousand dollars in your savings accounts and start earning interest today. What’s more, a smaller home means lower electricity and tax costs, and less work to maintain. Perhaps you could find a smaller, energy-efficient home closer to your workplace. You could save time and money on gas!
