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BMO Emphasizes the Importance of Financial Planning in Defeating Unstable Economic Conditions
Having retirement savings is known to be a necessity today. Despite the effort made by an individual in saving for his or her retirement, it is still impossible to do it because of several factors. These factors include the uncertainty in the global economy and unstable stock markets. For these reasons, BMO stepped up to giving Canadians a significant advice they can use to succeed in achieving their financial goals. This advice concerns the involvement of a careful financial planning.
To support this, BMO Financial Group also published a financial strategy that Canadians can use regardless of their age. The detailed financial strategy is designed to cater all stages of life, with specific ones provided for each of the stage. A financial planning strategy is laid out for Canadians that can be used by the time they reached their 20s and started working until they retire.
The financial planning strategy designed by BMO is meant to help Canadians realize if the ones they currently apply are ideal for their age or for the anticipated occurrence of events in life. These events include marriage, house buying or retirement.
Serge Pepin, BMO Investments’ head of investments said that Canadians need to properly align their investments with the life stage they are in at the moment. This should be done in order for them to ensure getting the most from what they have, from their money. He also added that it is vital for individuals not to lose sight of their needs. They must learn recognizing the importance of a comprehensive financial plan. This is especially the case considering how unpredictable the present market is.
The report made by BMO also indicated the importance of planning financially at the present time. This planning should start sooner as they reach their twenties. In this stage, an individual should start building their long term financial plan. This is the stage wherein diversification and the need to pay off debt are important. This way, they can save more money. Then there is the next life stage which starts from 30s to 40s. This is also the period when individuals should start juggling their priorities. BMO recognized that this is also the stage when individuals encounter a lot of challenges. In this stage, it is important to manage the debts carefully while planning for the education of the kids. Investors should start saving for their retirement.
People who are already in their 50s and 60s need to start focusing on shifting their investments from the long term to mid-term. This move is essential to ensure a sturdy retirement savings. More importantly, they need to start paying off their outstanding debt before their eventual retirement. The last stage is about the retirement stage for people in their 60s and beyond. This stage is all about making final decisions regarding what they want their life’s next phase should be. They should also have their own income-generating investments at this stage.
Having a financial planner by their side also helps during these situations. This is especially true in eliminating stress caused by personal finances. With the help of these experts, Canadians will be able to able to make better decisions concerning their life insurance, retirement and more.
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