Where does your money go?
The RRSP deadline is fast approaching (reminder: it’s midnight on March 1), and while many Canadians are filing taxes and taking a close look at their finances, some are feeling a bit of regret.
A recent Scotiabank study conducted by Harris/Decima found that, if Canadians could begin their investment planning all over again, two-in-five (39 per cent) would begin investing at a much earlier age and 21 per cent would have spent less and invested more. Forty-one per cent of Canadians feel they began putting money aside for retirement much too late and wish they had started earlier.
“Hindsight is 20/20 and until travelling back in time is an option, there is little we can change about the things we could or should have done – the money we could have saved or shouldn’t have spent,” said Bev Moir, ScotiaMcLeod Senior Wealth Advisor. “What Canadians can do is learn from their past mistakes, take stock of their present financial situation and take steps today to get them on the right track to achieve their ideal future.”
So, where does your money currently go?
- Canadians indicated their regular income is divided between the following:
- Monthly expenses (53 per cent);
- Day-to-day expenses (19 per cent);
- Savings (11 per cent);
- Investments (eight per cent); and
- Other costs (nine per cent).
- Canadian households have savings or investments held within the following registered savings plans:
- RRSP (79 per cent);
- TFSA (52 per cent);
- RESP (21 per cent);
- RDSP (two per cent); and
- Other registered saving or investing (e.g. RRIF) (17 per cent).
- Sixty-one per cent have money saved and/or invested in non-registered accounts.
- Only 13 per cent of Canadians indicated that they do not have any of these registered savings plans.
- As for where they save and invest their money, the top products that Canadians currently hold are:
- A regular savings account (67 per cent);
- Mutual funds (58 per cent);
- A high interest savings account (48 per cent);
- Stocks/equities (47 per cent); and
- GICs (33 per cent).
“According to Canadians, they are saving and investing a fair portion of their income, with half of Canadians doing this automatically,” said Ms. Moir. “It is great to see that many Canadians are taking the right steps to help them reach their retirement goals, but it is always a good idea to speak with a financial advisor to ensure you are on the right track to achieving your ideal future.”
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