RRSP Guide

C M Y K Page 2 RRSPGuide B 6 FRIDAY, FEBRUARY 3, 2017 ● WINNIPEGFREEPRESS.COM SPECIAL SECTION Shouldn't Be Forever 9 to 5 Investing with Cambrian can make that a reality Make your RRSP contribution online today, or ask to speak with an advisor about your retirement. Deadline is March 1 st , 2017 www.cambrian.mb.ca (204) 925-2600 11 branches serving Winnipeg and Selkirk CAM 21348 WFP RRSP Ad-FIN.indd 1 2017-01-12 1:11 PM HELPING MILLENNIALS BY TODD LEWYS It's no secret: living life is an expensive proposition. Consequently, as many Canadians live from paycheque to paycheque, a growing number aren't paying themselves first in the form of a monthly Registered Retirement Savings Plan (RRSP) contribution. "Statistics are showing that a lesser number of people are feeling unable to contribute to an RRSP," said Cambrian Credit Union's Vice- President, Marketing and Communications, Kim Wentz. "And figures show that a high percentage of those people are Millennials." Wentz said it's a bit unclear as to why Millennials — the generation born between 1982 and 2004 — seem to be so reluctant to make regular RRSP contributions. "I'm not sure if they don't entirely understand what the product is, or if they just prefer tax-free savings accounts (TFSAs) because they view them as being more flexible," she said. "Ideally, you should do a bit of both. The fact is that RRSPs are a very viable option for Millennials." One of the character traits of Millennials, said Wentz, is that they value the opinions of others, such as parents, friends and family. While that openness isn't necessarily a bad trait, it can lead to receiving — and then following — some rather erroneous advice. That's why it's so important to visit a credit union to get some first-hand advice from experts. "The good thing about being open to advice is that Millennials are willing to listen," she said. "With that in mind, we'd like to invite them to come in for a chat with one of our Wealth Retirement Advisors. We have one at every branch, and they can provide valuable education on the merits of RRSPs." That process starts with determining the future goals of individuals or couples, which entails looking at where they're at now, and where they want to be in the future. If debt from student loans is an issue, financial service advisers can be brought in to show how that debt can be managed so it's possible to begin making some sort of contribution to start building for the future right away. "We're aware that Millennials tend to want to live life in the here and now," said Wentz. "Our Wealth Retirement Advisors will ask people about their plans and goals so that they get thinking about the future." What will one of the main questions be? "Basically, what do you want to be doing at age 30, 40, 50, 60 and beyond? The important thing here is that there will be no pressure and no need to commit. The idea is to show Millennials how important it is to plan for their future." She added that the plan doesn't have to be an elaborate one. "The key is to simply get started," Wentz said. "That could mean putting away $20, $50 or $100 per paycheque, whatever you can afford. You just want to get the ball rolling. It's very easy to do." At the same time, a contribution plan isn't etched in stone. "All plans are fluid and can be changed or tweaked as things go along. Life can get in the way and things can pop up, so we can always work with customers to reduce contribution levels as a situation requires. Then, once things get better, the contribution can always be increased." They key to planning well for the future is a simple one, concluded Wentz. "Come in to see us so you can get educated on what the different options are. We have a lot of resources to draw from, and can help you plan intelligently for the future at a level you can afford." E V E R Y T H I N G Y O U P U T I N C O M E S B A C K G R E AT E R I N R E T U R N . At Steinbach Credit Union, we believe you get out of life what you put in – and more. That's why when you save with SCU you'll earn high interest on every dollar. Here, taking care of you is in our best interest. So come in and talk to us today. scu.mb.ca/save 1575 Lagimodiere Blvd | 204.661.1575 2100 McGillivray Blvd | 204.222.2100 333 Main Street, Steinbach | 204.326.3495 *Rates subject to change. † Term deposits require a minimum $500 deposit. Rate specials also apply to registered products and TFSA's. Some restrictions apply. Term Deposit Special *† 54 MO 2.40% Consumer Regular Savings * FROM 1.60% Earn high rates on your savings. BY TODD LEWYS To some, the concept of 'retirement planning' is an onerous one. Consequently, many people put off saving for their retirement because it just seems too far off. However, use another term, and the concept of putting money away for the future begins to make more sense, says Kristine Morga, Manager of Wealth Management at Steinbach Credit Union. "At SCU, we call saving for the future 'investment planning,'" she said. "That's because regardless of your stage of life, you need to do some form of financial planning, whether it be money management, education funding, wealth protection or retirement/estate planning. It's never too early to start working on your financial fitness." How does the concept of being physically fit apply to being financially fit? "Being financially fit can have a significant impact on your financial well-being," explained Morga. "When you look at getting physically fit, you assess your health, and your goals. You need to apply the same philosophy to your finances to be financially fit. That's why we stress that it's never too early to start planning." As Morga suggested earlier, that commitment to planning should be applied through every phase of life, from putting money away toward a car, education, house, kids' education, your career, and then ultimately, what you want to do after you call it a career. "Basically, you should be working toward a financial goal at every stage of life," she emphasized. That being the case, it's imperative to work with a qualified investment planner. "It's critically important that you work with someone so they can assist you to find the best investment options for you. The key is to come in and sit down with one of our specialists to have them get to know your life goals and have them educate you on the ins and outs of investment planning. That's the only way to come up with a good plan." Why is it so important to have a plan? "When you have a plan, you make smarter decisions," said Morga. "Financial fitness requires, time, effort and knowledge. The better informed you are and the earlier you start, the better off you'll be. A good plan enables you to shift your focus from your liabilities to your future." She added that getting educated on investment planning can yield another important dividend. "Many people find the idea of talking with someone about their personal finances intimidating — it can be a subject that's hard to talk about. When you talk with one of our investment planning specialists, there's no stigma because everyone's circumstances are different." With that in mind, SCU has put together a team of specialists to help people interpret, and then successfully navigate the investment planning process. "At SCU, we have specialists on the front line to assist you, not generalists (as is often the case at banks)," she added. "That way, you can be confident that the person sitting across from you is a specialist. A well-thought-out financial plan will be put in place, and then they will work with you to make sure you stay on track." In short, there's no need to be intimidated by investment planning, said Morga. "As I said earlier, the key to successful investment planning is to start doing it as early as possible, even if it means putting aside $25 per month when you get your first job. If you establish good habits early and get sound guidance, you'll see results, and reap rewards from diligent planning through all the different stages of life that you experience." Added James Gosselin, SCU's Executive Vice- President of Financial Services: "At SCU we have a variety of investment and deposit products available to serve members' varied needs. We offer high-rate deposit accounts, and secure term deposits through to investment options for more complex portfolios. We have Member Service Advisors ready and able to support our members in their deposit and savings decisions, and are also able to provide level of investment planning advice to our members through our Wealth Management division." GET FIT FINANCIALLY

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