TD survey shows how financial preparedness can help manage unexpected
TORONTO, Aug. 11, 2015 /CNW/ - For many Canadians, the traditional
sequence of life events - finish school, get married, buy a house and
have kids - does not always happen as it typically did for previous
generations. A recent TD survey found nearly six in 10 (58 per cent)
Canadians have completed or are on track to complete their life's
milestones in a different order than they originally expected. More
specifically, Gen X Canadians are more likely to complete or be on
track to complete them in a different order (64 per cent) than
Millennials (52 per cent).
While we may all take different paths in life, thinking ahead about
goals and putting a financial plan in place can help manage the
financial impact of these significant life moments, whenever they
"We know that priorities are constantly evolving and the big moments in
our lives don't always happen the way we expect," said Lee Bennett,
Senior Vice President, TD Wealth Financial Planning. "In fact, the
survey findings also show that the best laid plans of previous
generations didn't always happen as anticipated either. This is
something Millennials can learn from so they can better prepare
themselves for unexpected - and sometimes simultaneous - life events by
planning to allow for financial flexibility."
Bennett says it's important to ask yourself some key questions and then
meet with a financial planner to help create a plan that's unique to
your situation and aspirations. Some questions to consider include:
How do I handle multiple milestones occurring at the same time?
Is it smarter to plan a wedding or buy a home first?
What costs should I factor in when contemplating buying a home?
How much do I need to save to comfortably enjoy a parental leave?
How do I know if I'm on track to save enough for retirement?
"Preparing for life's big moments requires planning and saving, and
regardless of your age, it's never too early, or too late, to build a
financial plan and set goals for your future," said Bennett. "Whether
starting an RSP or a Tax-Free Saving Account, your contributions are
really an investment in yourself and your future."
Many Canadians who have already completed these milestones also reported
having experienced unexpected costs, according to the TD survey,
especially for Canadians buying a home (52 per cent) and having their
first child (43 per cent). More than half of both Millennials (56 per
cent) and Gen X Canadians (58 per cent) said they experienced
unexpected costs when buying a home, and half of Millennials (50 per
cent) and Gen X Canadians (49 per cent) cited unexpected costs
associated with having their first child.
When it comes to being financially prepared for life's milestones, the
TD survey found:
Only four in 10 Canadians say they have properly budgeted or are
properly budgeting for having their first child (39 per cent) and for
retirement (41 per cent);
Millennials (28 per cent) are less likely than Gen X Canadians (42 per
cent) to say they have properly budgeted or are properly budgeting for
having their first child;
Only one-quarter (24 per cent) of Millennials and one-third (33 per
cent) of Gen X Canadians say they have properly budgeted or are
properly budgeting for retirement.
Bennett says being financially prepared can allow you to better enjoy
each and every moment of life's milestones - planned or unexpected.
For more information on financial planning for life's milestones, visit https://www.tdwaterhouse.ca/products-services/td-wealth/financial-planning.jsp
About the TD Bank Group Life's Moments Out of Order Poll
TD Canada Trust commissioned Environics Research Group to conduct a custom survey of 6,149 Canadians aged 18 years and older.
Responses were collected between January 20 and February 8, 2015.
About the TD Wealth
TD Wealth Financial Planning is a division of TD Waterhouse Canada Inc.,
a subsidiary of The Toronto-Dominion Bank. TD Waterhouse Canada Inc. is
a Member of the Canadian Investor Protection Fund.
SOURCE TD Bank Group
Image with caption: "Expecting the Unexpected: When Life Happens Out of Order (CNW Group/TD Bank Group)". Image available at: https://photos.newswire.ca/images/download/20150811_C9432_PHOTO_EN_44133.jpg
For further information:
TD Bank Group