Friday, August 22, 2014

No need to pity the rich

TORONTO—No need to pity the affluent—even if they have to save more than twice as much as average Canadians before retiring.
A new poll issued by BMO Harris Private Banking says richer Canadians, on average, feel they need at least $2.3 million set aside before calling it a career.

The figure for the affluent—those defined as having at least $1 million of investable asset—is two-and-a-half times the $908,000 that average Canadians said they needed.
But the study also found that most affluent Canadians—fully 95 percent—were confident of their ability to fund their ideal retirement lifestyle.
That compared with 69 percent of Canadians overall.
Meanwhile, the majority of respondents among the affluent (70 percent) expected stocks to generate the most solid returns over the next five years, well ahead of real estate, bonds, and cash.
“How much you require will be determined largely by what kind of lifestyle you envision for yourself, including where you plan to live, how much you want to travel, and other factors that could require funding,” said Yannick Archambault, chief operating officer at BMO Harris Private Banking.
“While it’s encouraging that so many of the country’s affluent are feeling good about the prospects for their retirement, it’s important to be mindful that market conditions can change very quickly and impact one’s investments,” he warned.

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