We had to cash in our RRSP and are starting from scratch again, @ 48 in saving for retirement. What to do?

Any suggestions for good return on savings. Though we do not have an extravagant lifestyle, we would like to be at least able to travel once a year when we retire. I have read some people's entries from people who think 1 million in savings, is not enough for them to retire on, if that's the case, we are cooked. This can't be possible--it can't cost that much--can it?

Public Comments

1. It sounds like you have had a rough ride. If you structure your investments well, you will be able to retire in 12 to 17 years . There are 2 models when it comes to retirement planning: 1. Reverse mortgage model: (This is not about taking out a reverse mortgage on your house.) This is the model most financial planners use. You build up a nest egg and you suck it dry by the time you die. The model is calculated like a mortgage just in reverse. The problem is one does not know how long one is going to live. 2. Cashflow model: The cashflow that is generated from your assets is greater than your expenses. With this model you can live indefinately and pass money onto your heirs. Some points for you to think about: 1. You will need to learn to borrow to invest 2. You will need to educate yourself about investing. Think outside the stock market which is volatile. Become financially educated. Commit to 30 minutes a day working on your finances. 3. Learn about cashflow producing assets. Typical returns should be 10% to 12% guaranteed either through insurance, put or bond. 4. Learn about high return capital gain assets that will help you build your pool of cash quicker. Typicallly 15% to 30%. The higher end is risky. Make sure you "make your money when you buy the asset, not when you sell it" for example positive cashflow rental property - you know exactly how much money you will make from the get go. 5. Make sure that all investments carry themselves from the word get go. That means no monthly payments, not even $1 a month is affordable. 6. Use your regular retirement savings plan to pay down the debt faster. 7. Keep the money outside your RRSP to open up more investment options. 8. Create a plan to achieve financial freedom. 9. Cut your expenses. No coffees, no dinners, no holidays, no brand name clothes. Simple. Focus on inexpensive ways to replace these excursions e.g. make your coffee at home. Go for a picnic. Visit your friend a short trip away for a few days. Be creative. Go to Sally Ann for the items you need to purchase. 10. Consider using split investments on 100% borrowed money. 50% is cashflow which carries the investment, and the 50% is a capital gains product which will pay out in a few years. For the entire period the investment breaks even, until the capital gains product pays out; and thats when you see the profit. 11. Work on yourself. Learn about your habits, thought processes and patterns in your life. You will need to change any of these patterns that affect your finances in a negative way. For example, if you consistently are making bad investments, it is most likely a bad mindset and your mind seeking them out. Change your mindset, change your life. This is most probably the most important aspect. On average it takes about 3 to 5 years to become educated, build up contacts and credit worthiness. It will most probably take you another 7 to 10 years to become financially free. This is truly contrarian investing; you take this advice at your own risk. Good luck