At this time of the year a lot of people are planning to make contributions to their retirement savings plan. You may be contributing for 2014 or getting a jump start for 2015. In any event you are trying to build a nest egg.
For some retirement may seem a long way off. For others not so far away. But for most it is all about how much money you save. You may be reading different articles on how much you need at retirement. When you can, you are trying desperately to maximize your contribution room. You may believe you need to have a nest egg of one million dollars or more.
Well I am here to ask you one question and I want you to think before you answer. My question simply is this: what do you want to do during your retirement? Remember you may be planning a 30 or 40 year retirement. Have you really thought about what your retirement will look like? The money helps don't get me wrong. But are you sacrificing your life today for something tomorrow? Maybe you already have enough to fund your retirement.
Most people have never really thought about what retirement looks like for them, they just save money. Over the years I have had a lot of clients ask me how much money they need to retire. I always give the same answer, I don't know? What does your retirement consist of? What do you plan on doing during retirement? Where are you going to live? Are you planning to work during retirement? Will you be travelling or staying home and doing volunteer work? All of these questions and more, need to be addressed so you plan how much money you really need. Saving is always good but you need to save in the most effective way for you.
You can read more about retirement planning in my soon to be released book, Financial Freedom, it's as easy as learning Your ABCs. For now you need to know that the RRSP deadline is March 2, 2015 for 2014 contribution. 2014 limit is $24,270 and $24,930 for 2015.