Good morning. Canadians are good at building wealth — and optimistic about what it will do for them in retirement. Today's issue is about the gap between those two things.
On The Money Today:
Why the U.S. debt crisis is now a Canadian portfolio problem
The retirement asset most Canadians are overestimating
Why fewer than 1 in 10 Canadians retire with $1M — and what to do about it before you run out of time
Let's get into it.
Ray Dalio warned a year ago that America's debt was clogging its financial arteries — since then U.S. debt has grown by over $3 trillion and Canada has slipped into a technical recession. With 66% of Canadian exports tied to the U.S., this isn't a distant problem. Here's what to do with your portfolio now.
IN PARTNERSHIP WITH Homewise
If you're shopping for a home or have a renewal coming up, you need a strategy built around your long-term budget — not market timing.
A quick five-minute application with Homewise compares offers from over 30 banks and lenders to find a rate you can comfortably afford. A personal Homewise Advisor supports you from approval to close, for free — and you don't even need a credit check to get started.
Most near-retirees have watched their net worth nearly double, but Statistics Canada data shows the bulk of that wealth is locked in their home. If the next generation of buyers can't afford what you're selling, your exit price may not be what you're counting on. Here's what to build instead.
The average Canadian believes they need $1.7 million to retire comfortably, yet 75% of those aged 55 to 64 have $100,000 or less saved. If you're behind, there are still concrete moves you can make — here's where to start.
MONEY IQ
What is the average amount Canadians have saved by the time they retire?
ALSO MAKING THE ROUNDS TODAY
MANAGING MONEY: 5 warning signs it's time to find a new financial adviser and 1 question to ask first
NEWS: The CRA could soon charge you $50 a day for not responding fast enough to an audit
DEBT: Dave Ramsey says ditching car payments is the turning point of building real wealth — here's what Canadians can do instead
BANKING: KOHO raised $130M and could become Canada's first new Schedule 1 bank in decades — here's what it means for your money
RETIREMENT: I'm 49 with $300K saved and $180K left on my mortgage — should I pay it off or invest the money instead?
MONEY IQ - ANSWER
Answer: B). According to Statistics Canada's Survey of Financial Security, the average Canadian retires with roughly $272,000 in savings — far less than the $1.7 million most say they need to retire comfortably.
That's a wrap for today! Before you go, we'd love to know what you thought of today's newsletter. Hit REPLY if you have more to share — we read every reply.
