Simplifying investing into two things that every investor can do is a tall task. However, in this article, I will touch on two key areas I think every Canadian should focus on to accomplish some level of wealth creation for one’s golden years.
The first thing I would encourage Canadians to consider is to find a way to own their principal residence. We all need a place to live. Paying off someone’s mortgage via rent rather than paying off one’s own mortgage is a real way to lose out on the equity growth of real estate over time.
At the end of three decades, anyone who diligently paid their mortgage every month will have access to a large pool of equity which can be accessed as a retirement savings account, of sorts, via downsizing or home equity loans. Paying rent for three decades gives investors precisely nothing, at the end of the day.
The second thing I’d encourage investors to do is consider putting whatever is left over after mortgage expenses and living expenses into a registered retirement savings plan (RRSP). Growing one’s RRSP over time also provides a nice pool of capital to access in retirement. It also allows for taxable benefit as one goes along.
This dual benefit is one of the easiest ways Canadians can grow their wealth over time. Reading or learning as much as one can from websites like this is a step in the right direction.
Invest wisely, my friends.
