Strength is more about your core and less about how big your muscles are. Your core strength improves your flexibility and balance, at the same time as it keeps your bones strong. In financial health it is the same; savings that make you financially secure at every stage of your life not just at retirement is what you will need to be financially strong.
What you will need to take the Financial Strength test:
Net pay amount, savings account statements, retirement account statements, other investment statements and a calculator.
Select your pay period: Monthly Bi-Weekly Weekly
Enter your net pay: $
Your monthly take home pay = $0.00
Add any other monthly income: $
Your total monthly net income = $0.00
List the total of your monthly retirement savings contributions: $
(RSP savings and RSP mutual funds)
List the total of your monthly non-retirement savings contributions: $
(All non-RSP savings accounts and mutual funds)
Enter the total amount of your non-registered and registered savings statements: $
(All term deposits, savings accounts, mutual funds)
Enter the pre-tax amount of your highest annual income: $
Enter the number of years you expect to be retired:
Enter the number of years you have until retirement:
Enter the amount of your expected annual pension: $
Part 1: Monthly Savings:
Your monthly savings goal = $0.00
Your current savings = $0.00
Your place on the Strength Scale =
Part 2: Retirement Savings:
Your annual targeted retirement savings = $0.00
Your place on the Strength Scale =
Now that you know where the gaps in your savings are, it’s time to come up with your new savings strategy. Paying yourself first is the simplest way to make an immediate difference. All that means is that each month before you pay anyone else – you immediately move a specific amount into a savings vehicle. Whether it is to a variable RSP, savings account, or a mutual fund – it happens first. To close the gap in the annual targeted retirement savings plan maximize your RRSP contributions or make lump sum deposits from income tax refunds.
But first you need to know where you are in terms of your expenses. If you have not already done so, now is the time to take our Financial Cardio Test and Financial Flexibility Test, as you need to know if your savings goals can be met. Once you have your budget worked out, determine if there are some extra expenditures you can cut back to get savings ramped up over the coming months. It will not be too long before your strength improves along with your cardio and flexibility.