Where will 2022 take you
A new year is always an exciting time. People tend to be happier and more optimist about what the future may bring. Perhaps this means moving homes, buying a rental property, making a career move, or even starting to picture how retirement might look. With any one of these changes, it is important to review your financial plan to see what sort of impact changes would make and whether or not you are financially ready.
If you require a mortgage for a new home or a rental property, it is important to first get pre-approved. This helps to ensure you are ready to make that purchase without any hiccups. Keep in mind, there are also closing costs when purchasing a new home as well as moving costs. It is also a good idea to know what the property taxes would be for the new property. If you currently have a mortgage and are looking to move to a new home, your mortgage is likely portable and can be applied on the new home with minimal penalties. Banks can also provide what is called bridged financing; they can provide you with a bridge loan that “bridges” the gap between the time your existing home is sold and your new property is purchased.
Wondering if 2022 is the year you can retire? After these past two years of living through a pandemic, many people have decided that they want to retire early or sooner than their original plan. In order to make sure you can afford to retire, it is important to review your retirement plan. Start by looking at what debts you have outstanding, whether that be a mortgage or car loan. Review what your spending habits have been in the past year and what expenses you anticipate having going forward. How much income do you need per month to meet those spending goals? Once you have your expenses figured out, you may want to contact Service Canada and find out what your estimated government benefits will be. Then, gather up all your investment statements, bank statements and pension statements to see where you sit financially. Last, seek professional advice from a Certified Financial Planner as they can help you determine whether you can retire now or discuss other retirement options that may be available to you.
Are you considering a career move in 2022? You are not alone. Throughout this pandemic, many people have decided to change their careers. Some people want to be able to work from home given the added flexibility it can bring. Other people find that their current job is too stressful and want to reduce their stress level. Still others want to relocate to new city or town. Whatever the reason may be, a new career can be a very exciting time in your life. If you do leave your current employer, it is very important to make sure to review your options package closely from your previous employer. If you had an RPP, DPSP or RRSP with your previous employer, they will send you an options package asking you to tell them what you would like to do with your money. Some of the options may include:
- leaving money with your former employer
- transferring the money to another institution
- withdrawing the money from the plan as cash
All of these options have pros and cons and you should speak to a Certified Financial Planner to see which option is the best for you.
2022 is a new year…and with a new year comes new opportunities!
Celeste Yuzdepski, B. Comm, CFP, CIM, CFDS, FCSI
Information in this article is from sources believed to be reliable, however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views are those of the author, Celeste Yuzdepski, and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. Raymond James Ltd. is a Member - Canadian Investor Protection Fund.