Where Does Most of Your Money Go? 3 Pocket Thieves...

Retirement Income Planning, Calgary

The 3 Pocket Thieves

Interest Costs:

The average Alberta family will lose about $500,000 in interest costs during their 40-year working life. How did we come up with that number?

If you purchase a home for the average $478,000 that will be about $276,300 in interest. A new car every 5 years. ($48,000) Student loans for a couple. ($46,000) Average Credit Card Balance ($60,000). Late payment fees on utility bills, overdraft, late tax filing penalties. It's easy $500,000 and that is based on low-interest rates. Many people do not qualify for low-interest rates, so the number is much bigger.

That works out to be $1041 per month over your lifetime in interest. What if you were able to invest that same $1041 each month and earn an average of 5% annual rate of return. In 40 years you would have $1.5 Million saved up. More than enough to fund your worry-free ideal retirement lifestyle.

Taxes?

The average person will pay 30% of what they make, most of us pay 40%. So if your family income is $100,000 that's another $30,000 or $40,000 per year multiplied by 40 years. That's another $1.2 - $1.6 Million dollars.

Investment Fees?

You really have no idea what you are paying in fees but you will in January (to find out why read How Advisors are Paid). If you have an account at a full-service investment firm you are paying in the range of 2-2.5% or more of the account balance. So, if you have an account size of $500,000 that's $12,500 per year ($125,000 in 10 years). That's fine if you are earning a good return on that investment and you are receiving great advice, retirement planning, and other services from your Advisor, but if you are not - it's a lot of money for nothing. I had a conversation recently with a client where he had not seen any return for 10 years on his investments but had paid out a small fortune in fees. 

There's no need to wonder why so many Canadians lack the finances to fund their worry-free ideal retirement lifestyle. It's not for lack of trying. 

But, who's to blame for all of this? 

You are. Ignorance is no excuse. The fine print has all the scary details if you would only take the time to read it all and do the math. Your pockets are full of holes and you need to do something about it. As you plan out the 2nd half of your life it's crucial to fix the money leaks and the 3 big ones are interest, taxes, and fees. Put more money in your pocket by becoming more engaged in what's happening.

You need a plan. We help our clients create sustianable, predictable cash flow from their portfolio in the most tax-efficient manner to ensure they never have to worry about running out of money.

Want to retire in the next few years? Click here to Book  an Introductory Meeting

 

Or, check out our upcoming workshops on Retirement Planning.

Retirement Income & Investment Advisors,

Willis & Nancy Langford

Helping you get your financial house in order and ensure you keep it that way for life

 

Share This Post:

Related Posts

Latest Testimonial

My wife and I realized a long time ago the value of a financial planner over just a bank representative. We just felt like a number to the banks as every year it seemed we saw a different adviser with a different view. But finding a trusted, knowledgeable and personable financial planner took a lot of time and effort. It just seemed, so many large corporate Financial Planners were more concerned about what they could make off of us rather than what they could make for us.
What we wanted, was not just reasonable returns now, but good personal advice in our preparation for retirement and what happens when retirement actually arrives. We wanted someone who would be walking with us, guiding us on our way to retirement.
From the first time, we found the web site for Langford Financial Inc, we could see the knowledge of Willis and Nancy and a real effort to educate and pass on their knowledge through seminars, workshops and their personal service. Once I reached out through their web site for more information, Willis was quick to respond, offering and giving whatever information I was looking for and never was there pressure to commit to anything.
The feeling of comfort and ease when talking with Willis was inviting enough for us to want to meet with Willis and Nancy, just to see firsthand if there was a connection and what working with them would look like.
And when we did meet for the first time, that feeling of comfort and ease was very evident. It was a unique experience for us to be able to sit down and get to know a financial planner (or a team of both Willis and Nancy) and not have any sales pressure on us. Just getting to know Willis and Nancy was important for us. We needed to be comfortable with them and see their competence in the business, and it was obvious that Willis and Nancy wanted to know us better so they could know how best to help us.
Once we decided to move our accounts over to Langford Financial, we found their process was comforting and refreshing as Willis and Nancy first worked at evaluating our complete situation. They dug down to get a complete picture of where we were at, where we wanted to be and how to get there. This took some reflection on our part but once we saw how they put it all together in our “Financial House In Order” binder, we were confident we made the right decision to go with Langford Financial.
Since the time we started working with Willis and Nancy I have attended many of their seminars and can say the information they have been teaching has been amazing. Always relevant, and consistent with their desire to help those coming up to retirement, and covering so many different situations as everyone has a different life situation. I know more than one of the tax-saving strategies they taught at their seminars will work for my wife and I, so we are very happy about that.
We would definitely recommend Langford Financial, not just for all your retirement planning needs, but they have great ideas on savings for your grandchildren too!
Paul and Elaine Radder

Paul & Elaine Radder
Long-term Clients

Contact Us

Questions? Comments? Call us today at 587-755-0159 or fill out the form below:

Have Questions? Call Us Today At

Call Us

Join Our Newsletter



Subscribe