The best ETFs for retirement income + MORE Aug 24th

As the cost of living increases for Canadians, having a savings strategy has never been more important to ensure you can live comfortably in the future. But many are unsure where to start. Not having a thought-through plan or having one that is too rigid and demanding can easily push you off track. That’s why it is essential to find strategies that work for you.

“The most important thing is to develop the habit of saving,” says Ayana Forward, a fee-only Certified Financial Planner (CFP) in Ottawa. So what are some easy ways to start saving without sacrificing too much from day to day?

1. Set mini goals as part of your long-term plan

“Saving money really comes down to self-discipline and goal setting,” says Brent Vandekerckhove, a financial advisor with RGF Integrated Wealth Management in Vancouver, B.C. To start, decide what you’re saving for and calculate how much money you need to meet your goal. Whether it’s saving for a car, a house, retirement or anything in between, your goal should be specific and measurable, as this will help you stay on track, says Vandekerckhove…

While exchange-traded funds (ETFs) are appropriate for investors of all ages and life stages, they make particular sense for retirees and those close to retiring. Things like quick and easy broad diversification of asset classes and geographic exposure at a reasonable price are especially relevant when you no longer wish to be exposed to single-stock risks. Mind you, concentration risk still exists even with ETFs because sector or regional ETFs continue to be released, typically with higher fees. Just look at the current furor over AI ETFs (those specifically for artificial intelligence tech companies). So let’s look at retirement ETFs for Canadian investors.

I began researching this topic as part of a MoneyShow presentation scheduled early in September on MoneySense’s ranking of the best ETFs in Canada. The session will be conducted by myself and MoneySense executive editor Lisa Hannam. Readers may recall I was the lead writer for the annual ETF package—when it was called ETF All-Stars—but after almost a decade, I passed the reins to new writers…