The Immigrant Life
The Immigrant Life Podcast
ILP-0094: Planning For Retirement As An Immigrant - 2

ILP-0094: Planning For Retirement As An Immigrant - 2

My interest is in the future because I am going to spend the rest of my life there. ~ Charles Kettering

Where do you start?

1. Get rid of your debt - first and foremost - consumer - credit card, car, student loan, etc. and even housing loan (I know most experts don't like to group mortgage loans as consumer debt but top each his own. It just makes sense. Here's why.

Most interest loans range from 13 - 21% p.a. (APR - annual percentage rate) or even more, depending on your situation. I read somewhere that between 1950 and 2009, the stock market grew by as much as 7% p.a. which is a great return. However, it never makes sense to be investing for retirement when you are paying between 13 and 21% on interest for loans you took. Kill the debt first.

2. Create an emergency fund. Usually, people say 3 - 6 months, I'd say 6 - 12months of expenses.

3. Put away 10-20% away from your regular earnings towards retirement.

4. Have proper life insurance. Not those ones tied to your home. The specific type? Talk to your adviser.

5. Create a will. I came across which I find very helpful in my own personal journey.

6. Decide exactly when you want to retire. It sounds simple but it's true. Remember the lifestyle design we talked about in episode 92 and 93?

7. How much should you have in retirement? Varies with everyone.

Since life expectancy in Canada is quite high, I'd just use a flat number as an example to estimate what you need to prepare for in retirement. Simply; prepare for whatever life expectancy you expect to live to. e.g. 90? And if you want to retire at 50? Prepare for 40 years' expenses.

According to a CNBC article (

In your 20s, put enough away so that by the time you turn 30, you’ll have the equivalent of your salary saved. By 40, aim to have three times your salary saved up. By age 50, you should have enough saved to equal six times your salary. By age 60, your savings should be eight times your salary. And 10 times your salary by the full retirement age of 67.

Tools to help:

Retirement Planning

Investment Calculator

The Immigrant Life
The Immigrant Life Podcast
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