How to invest in a retirement fund and get tax savings?

As you prepare for your retirement, you need to consider that the federal and provincial governments will have to take their share of your retirement funds. You can still work around this with various retirement fund tax benefits. 

8 Simple steps to help you magnify your retirement nest egg

There are ways that you can minimize the tax liability on your nest egg and ensure that you receive the maximum benefits. The plans and steps you need to take fall into three categories: financial planning, investing, and managing your own behaviour as an investor. Taking these three categories into account, here are eight steps you can take to grow your nest egg to the fullest extent:

  • Live more frugally: By lowering your standard of living, you reduce your living costs and free up more funds for investment. You also get into the habit of living more simply, which will reduce your needs both before and after retiring.
  • Choose the right instruments: Do your research and seek out the best retirement tools for your needs. There are many options out there, so you will need to be careful and selective. Seek advice from a fiduciary wealth manager if you need to. 
  • Delay retirement: It is becoming more common for people to put off retirement as long as they can. Assuming that you are healthy and able to continue working, it will pay to extend your working life and retire later, giving you more time to build a nest egg that will provide for you when you finally decide to enjoy your retirement.
  • Increase your savings: As you lower your standard of living and free up funds, be disciplined about putting the extra money aside into your savings and investments accounts. Increase your contributions to investment and retirement plans wherever possible.
  • Seek professional advice: If you are managing your own investments, chances are you are not getting the full benefit of your investments. Speak to experienced wealth managers about where to put your money to grow optimally and is as safe as possible. You should preferably seek the help of a fiduciary wealth manager, if possible – one who is professional and legally bound to have your best interests at heart.
  • Exercise patience: Investing for retirement is a long game, so don’t expect short-term results. The small steps you take today will reward you handsomely several years from now.
  • Be disciplined: In addition to patience, achieving a financially secure retirement requires discipline in the actions you take today. It would help if you were diligent in setting aside money, reducing your spending and making the necessary contributions to your retirement plans. 

The best way to keep your tax bills as low as possible during your retirement is to start planning now with the help of a professional retirement advisor. Contact Nour Private Wealth today to find out how our wealth managers can help you make the most of retirement fund tax benefits.

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