Finance Expert Tina Tehranchian On What 20, 30 And 40-Something’s Should Be Doing For A Strong Financial Future

Tina Tehranchian is an Award-Winning Senior Wealth Advisor for Assante Capital Management and the first Canadian to be selected as Top Senior Wealth Advisor of the Year by the International Association of Top Professionals (IAOTP) for her outstanding leadership and commitment to the Financial Industry.

Tehranchian’s vision of helping Canadians become financially savvy has established her as a trailblazer in finance – a traditionally male-dominated space.

Since the uncertain economy will persist as a result of COVID-19, personal finance has been at the top of many minds. So, we posed Tina a question: What actions do you recommend we take in our twenties, thirties and forties for strong financial health in the future? 

Here’s what she said:

20-Something’s – “If you are in your twenties, now is the time to take control over your cash flow planning. This means setting a realistic budget for spending as well as for saving. If you are 25-years-old and can only save $50 a month, (assuming you have a 4 per cent annual rate of return on your investments), that $50 per month can grow to $59,296 by age 65. If you wait until you are 35 to start saving, your investment will grow to $34,997. This 10-year delay will cost you $24,299 in lost growth at the end of 40 years.”

 

30-Something’s – “If you are in your thirties, you are likely to have a substantial mortgage. You should make sure you have good risk management in place. This means assessing your need for life insurance if you have dependents and assessing your need for long-term disability insurance and critical illness insurance whether you have dependents or not. In your thirties, critical illness, and long-term disability insurance are relatively inexpensive if you are in good health. Keep in mind that your health is likely to deteriorate as you get older which will affect your rates and eligibility for life and disability insurance. Also, most people have their biggest mortgage debt in their thirties, therefore, it’s important to make sure you are consolidating your debts and paying the lowest interest rate possible. Have a good strategy for paying down your debt before retirement.”

40-Something’s – “In your forties, you need to start thinking seriously about your retirement planning. Of course if you start doing this when you are in your twenties, you would be well ahead of others in terms of savings. Unfortunately, most of us have other pressing obligations, like building a career, buying a home, getting married and starting a family in our twenties and thirties that prevent us from focusing on retirement planning. At this stage of your life, you should make maximum use of tax advantaged vehicles for saving for retirement such as RRSPs and Tax Free Savings Accounts (TFSAs). If you are a business owner or incorporated professional, you should look at Individual Pension Plans or Personal Pension Plans that offer many advantages over and above RRSPs for building your retirement nest egg too. Your forties is also a good time to ensure you have a comprehensive financial and estate plan prepared for you by a CFP professional to ensure that you can reach your retirement income goals and pay the cost of long-term care in your old age (should you need it).”

What are your biggest worries about having a financially sound future? Tell us in the comments below and we’ll be sure to report some helpful information back to you.