How To Save $1 Million For Retirement

Marci • August 5, 2016

Starting to save early for retirement is extremely beneficial in the long run, especially if you have the dream of retiring with $1 million as so many Canadians do. It’s not an easy feat, but for most Canadians, retiring with $1 million is a realistic goal. You most likely won’t be flying private or have a butler, but retiring with $1 million means you can live comfortably (especially if you follow the 4% rule, which suggests withdrawing no more than 4% of your nest egg each year to maintain the principle, if you factor in interest rates and inflation). 

So how can you actually save a million dollars? Discipline and planning will help you pave the way to seven figures by retirement. Here are 8 tips to help get you there:  

1. Save early

Let’s say you’re 25, you have no real savings, your annual earned income is $40,000, and you plan to retire in 40 years. In order to retire with $1 million, you must save $502.14 each month for 40 years at a 6% rate of return.

Now let’s say you wait until you’re 45 to start saving (maybe paying off debt has held you back), and at this point you have no real savings, your annual earned income is $72,000, and you plan to retire in 20 years. In order to retire with $1 million, you must save $2164.31 each month at a 6% rate of return. 

What to take away from this: It’s never too late to start saving, however, building wealth later in life or in the last decade before you retire can be really hard. To live well when you’re old means you should start to save while you’re young. Most millionaires in retirement that I know developed good spending, saving, and investing habits when they were young. Also, starting earlier gives your money more time to grow through compounding interest. Saving thousands a month right now may seem (or be) impossible, but you’re better tp start saving something.

2. Pay yourself regularly

Setting up automatic withdrawals (or “payments to yourself” as I like to look at them) from your checking account to your savings (or RRSP) is a great way to build wealth. It may be an adjustment at first (since you’re used to having that “extra” income), but you’ll get used to it pretty fast. You’ll also feel great knowing you haven’t dipped into cash you “should be” saving, and soon enough you won’t even miss the money.

What to take away from this: You’re doing something really good for yourself (and future you) by setting up automatic payments ! Saving should be habitual and easy, so don’t make it painful or harder than it has to be.

3. Live within your means

This one shouldn’t come as a surprise to you! I’ve talked about living within your means before, and how you should avoid the pressure to spend and keeping up with the Joneses.  

To know if you’re living above your means, answer this one question: do you carry a credit card balance that you’re having trouble paying off in full? If you answered yes, please read on. 

You don’t need the biggest home or newest car (and anyone who makes you feel that way need not be in your life). Simply establish a comfortable standard of living you can maintain. Save at least 10% of your paycheque and save your bonuses (and raises) instead of spending them. If you live within your means you won’t need to dip into your reserve funds, and you can actually watch your savings grow. 

What to take away from this: Earn more money, or spend less of what you earn (the latter is much easier to do). 

4. Manage debt

Credit cards, lines of credit, loans, and any other debt you can think of should be managed and paid off ASAP, otherwise you risk throwing away thousands of dollars in interest each year. Even if you have to stop saving for a year or two, do it! 

Oh, and maybe before you lay down the plastic again, ask yourself if you have enough cash in your checking account to cover the purchase. If the answer is no, ask yourself why you’re spending money you don’t have. 

What to take away from this: Pay off your debt as quickly as possible (high interest debt first) and be responsible with your credit card(s).

5. Don’t splurge too soon

While a home may appreciate in value and help you eventually build wealth, a car depreciates the second you take it out of the lot, so consider where you’re making your big purchases. If you can afford the monthly payments on your leased Audi, great! But, if your monthly car payments are higher than your monthly RRSP contributions (or other savings), you need to reassess what you’re doing. 

A new job or pay increase can be exciting and trigger a desire to upgrade, but rather than going out and buying the most expensive sports car in the lot, or the biggest house on the block (hello, house poor!) consider an option that’s somewhere between what you have now and what your dream is. 

What to take away from this: Splurging too soon may throw you into debt you don’t want to be in. Also, buying top-of-the-line items right away leaves little to look forward to the next time you make a similar purchase. Spend your money thoughtfully. 

6. Be frugal

Being frugal doesn’t mean you’re cheap – there is a difference! Prioritize your spending so you can have more of the things or experiences you really want. Let’s say it’s your partner’s birthday. A frugal person would probably have made dinner reservations, since it’s an occasion to celebrate. A cheap person won’t make reservations and may not even make dinner at home.  

Indulging is okay; we all need it at times. But affordable indulgences are what you should be after (example: barbecue a surf n’ turf dinner at home instead of going to a pricey steakhouse). Make sure you’re spending within the lines.

What to take away from this : Understand that paying more doesn’t necessarily mean you’re getting better value. 

7. Invest  

“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” – Robert G. Allen

According to a study by Statistics Canada , 31% of those surveyed betweem ages 45 and 60 said their financial preparations for retirement were insufficient. Further, a study by RBC revealed 56% of non-retired Canadians were worried they wouldn’t be able to enjoy the life in which they are currently accustomed to. 

Investing is one of the most powerful tools to grow your wealth. Putting all your savings into a bank account that returns 1% is not the way to grow your wealth quickly. Investing your money provides larger returns and means you could have multiple income sources, helping you rest easier in retirement. 

Make sure to watch out for high and hidden fees , as they can eat away at your investments’ potential growth. Plenty of low-cost solutions for investors are popping up, and fee based advisors, like some robo-advisors , can offer unbiased investment advice, as well as help you set realistic financial goals that match your life goals. 

What to take away from this: Put your money to work for you , and you eventually won’t have to work so hard for it. 

8. Re-evaluate

Life changes, so don’t expect everything to go according to plan. It’s easy to say you’ll save 10% or 15% of each paycheque, but the reality is, it’s not so easy! 

Inflation, income changes, emergencies, employment changes, life expectancy, and priorities ( ever had a baby? It’s expensive, and wonderful!) in general can affect our financial plans. When it comes to saving, it’s always better to save more than to be sorry you didn’t.

What to take away from this: Stick to the fundamentals, and adapt as your life changes. 

Retiring with $1 million doesn’t have to be a dream if you plan for it. Use my tips as guidance, and you could make your dream a reality. 

 

Try out this Million Dollar Savings Calculator to see how much you should start saving each month to retire as a millionaire.

 

This article was written by Randy Cass, and was originally published here on June 8, 2016.

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Breaking Down the Real Costs of Homeownership

By Marci Deane • November 26, 2025
Don’t Forget About Closing Costs When planning to buy a home, most people focus on saving for the down payment. But the truth is, that’s only part of the equation. To actually finalize the purchase, you’ll also need to budget for closing costs —the out-of-pocket expenses that come up before you get the keys. Closing costs can add up quickly, which is why they should be part of your pre-approval conversation right from the start. Lenders will even require proof that you’ve got enough funds set aside. For example, if you’re getting an insured (high-ratio) mortgage, you’ll need at least 1.5% of the purchase price available in addition to your down payment. That means a 10% down payment actually requires 11.5% of the purchase price in cash to make everything work. Let’s break down some of the most common expenses you should prepare for: 1. Home Inspection & Appraisal Inspection : Paid by you, this gives peace of mind that the property is in good shape and doesn’t have hidden problems. Appraisal : Required by the lender to confirm value. Sometimes this is covered by mortgage insurance, sometimes by you. 2. Legal Fees A lawyer or notary is required to handle the title transfer and make sure the mortgage is properly registered. Legal fees are often one of the larger closing costs—unless you’re also responsible for property transfer tax. 3. Taxes Many provinces charge a property or land transfer tax based on the home’s purchase price. These fees can range from hundreds to thousands of dollars, so you’ll want to factor them in early. 4. Insurance Property insurance is mandatory—lenders won’t release funds without proof that the home is insured on closing day. Optional coverage like mortgage life, disability, or critical illness insurance may also be worth considering depending on your financial plan. 5. Moving Costs Whether you’re renting a truck, hiring movers, or bribing friends with pizza and gas money, moving comes with expenses. Cross-country moves especially can be surprisingly pricey. 6. Utilities & Deposits Setting up new services (electricity, water, internet) can involve connection fees or deposits, particularly if you don’t already have a payment history with the utility provider. Plan Ahead, Stress Less This list covers the big-ticket items, but every purchase is unique. That’s why it pays to have an accurate estimate of your personal closing costs before you make an offer. If you’d like help planning ahead—or want a breakdown tailored to your situation—let’s connect. I’d be happy to walk you through the numbers and make sure you’re fully prepared.

Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart

By Marci Deane • November 19, 2025
Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart There’s no denying it—buying a home is an emotional journey. In a competitive market, it can feel like you need to stretch beyond your comfort zone or bid above asking just to have a chance. That pressure can make it hard to separate what you want from what you can realistically afford. One of the biggest pitfalls buyers face is falling in love with a home that’s outside their price range. Once that happens, every other property seems like a compromise—even the ones that might have been a perfect fit otherwise. The best way to avoid this heartache? Get pre-approved before you start shopping. What a Pre-Approval Does for You A mortgage pre-approval gives you more than just a number—it provides clarity, confidence, and protection: Know your buying power : Shop within your true price range and avoid disappointment. Spot potential roadblocks : Uncover issues like credit bureau errors before you make an offer. Get organized : Learn exactly what documentation you’ll need so there are no surprises. Lock in a rate : Many lenders hold your rate for 30–120 days, giving you peace of mind if rates rise. Save yourself heartache : Protect yourself from falling for a home you can’t afford. Head vs. Heart Buying a home is about balance. Your head tells you what’s financially sound, your heart tells you what feels right—and both matter. A pre-approval helps bring those two sides together, so you can make confident choices without emotional stress clouding your judgment. The Bottom Line Looking at properties for fun is one thing—but if you’re serious about buying, a pre-approval is the smartest first step you can take. It sets realistic expectations, saves time, and protects your emotions along the way. If you’d like to explore your options and get pre-approved, I’d be happy to walk through the process with you. Let’s make sure you’re ready to shop with confidence.

Co-Signing a Mortgage in Canada: Pros, Cons & What to Expect

By Marci Deane • November 12, 2025
Co-Signing a Mortgage in Canada: Pros, Cons & What to Expect Thinking about co-signing a mortgage? On the surface, it might seem like a simple way to help someone you care about achieve homeownership. But before you sign on the dotted line, it’s important to understand exactly what co-signing means—for them and for you. You’re Fully Responsible When you co-sign, your name is on the mortgage—and that makes you just as responsible as the primary borrower. If payments are missed, the lender won’t only go after them; they’ll come after you too. Missed payments or default can damage your credit score and put your financial health at risk. That’s why trust is key. If you’re going to co-sign, make sure you have a clear picture of the borrower’s ability to manage payments—and consider monitoring the account to protect yourself. You’re Committed Until They Can Stand Alone Co-signing isn’t temporary by default. Even once the initial mortgage term ends, you won’t automatically be removed. The borrower has to re-qualify on their own, and only then can your name be taken off. If they don’t qualify, you stay on the mortgage for another term. Before agreeing, talk openly about expectations: How long might you be on the mortgage? What’s the plan for eventually removing you? Having these conversations upfront prevents surprises later. It Affects Your Own Borrowing Power When lenders calculate your debt service ratios, the co-signed mortgage counts as your debt—even if you never make a payment on it. This could reduce how much you’re able to borrow in the future, whether it’s for your own home, an investment property, or even refinancing. If you see another mortgage in your future, you’ll want to consider how co-signing could limit your options. The Upside: Helping Someone Get Ahead On the positive side, co-signing can be life-changing for the borrower. You could be helping a family member or friend buy their first home, start building equity, or take an important step forward financially. If handled with clear expectations and trust, it can be a meaningful way to support someone you care about. The Bottom Line Co-signing a mortgage comes with both risks and rewards. It’s not a decision to take lightly, but with careful planning, transparency, and professional advice, it can be done responsibly. If you’re considering co-signing—or want to explore safer alternatives—let’s connect. I’d be happy to walk you through what to expect and help you decide if it’s the right move for you.