Saving for retirement is a long-term job that needs to be started as early as possible and requires some risk-taking, says financial planner Jean-Sebastien Jutras at Jutras Gestion de Patrimoine.
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“It doesn’t matter how old you are, if you’re 30, 35, 45 or 55, if you’ve never started, now is the best time,” he said in an interview on the “About Your Business” show.
Mr. According to Jutras, when it comes to saving for retirement, time is money.
“All the time ahead of us is going to be worth a lot of money for a long time,” explains the financial planner.
As Jean-Sebastien Jutras summarizes, “The earlier we start, the more energy we have for retirement.
Savings and risk
As an example, how much would you need to save each month to have $1 million at age 65 at a 5% return?
“It’s not that it takes a million, but the important thing is that the younger you start, the more time allows you to make money,” Mr Jutras said.
For comparison, see how much money you need to set aside monthly with a 1% return.
In addition to starting to save early, a financial planner maintains that you should aim for a 5% return to avoid saving too much of your income.
“In the end we realized that taking no risk can be more dangerous than taking a little risk,” declares Jean-Sebastien Jutras.
To watch the full interview, watch the video above.