How to go about securing the best Retirement Plan in Canada.
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Making sense of the markets this week: October 15, 2023 + MORE Oct 19th
Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.
Clearly, the biggest world news is the conflict in Israel and Gaza. This week we are holding off discussing the effects.... More »
Bear markets: What’s a long-term investor supposed to do right now? + MORE Jul 13th
My mutual funds are doing terribly, and I know they always say that it is better to stay the course and ride out this market crash and whatever. But I’ve been thinking about divorcing my big bank for awhile now. I have RRSP with mutual funds that have high management fees with RBC, slightly b.... More »
Is the Longevity Pension Fund a cure for retirement income worries? Jun 15th
Many retirees and near-retirees are enthused about the June 1 release of Purpose Investments Inc.’s Longevity Pension Fund. (For the sake of space, we’ll refer to it as LPF henceforth.)
Taking on the challenge of providing retirement income for the vast army of people who don’t have classica.... More »
TFSA contribution room calculator + MORE Jan 11th
Find out your current tax-free savings account (TFSA) contribution limit by using this calculator.
TFSA is a bit of a misnomer. While you can use it for straightforward savings, think of it more accurately as an investment holding account to store things like exchange-traded funds .... More »
How annuities work in Canada + MORE Apr 18th
Annuities are life insurance products that pay a regular income to a purchaser. When you buy an annuity, it’s like buying a pension plan with a lump sum premium paid from your savings. The payments you receive include a return of your original capital and interest income on that capital. It ma.... More »
“Why do I need a financial plan?”
– moneysense.ca
Q. I am in my early 50s, have a steady job, I’m not a big spender, and I make RRSP contributions. Why would I need a financial plan? I don’t see how it could help me.
–Tom
A. To answer your question (and it’s a good one!), let’s think about why people get a plan, the benefits of having a plan and how you can get the most out of one.
Planning is about mastering change, and there are generally two types of plans: reactive and proactive.
Reactive plans occur when there has been a change in a person’s life and they need a solution, such as a change of jobs, divorce, when transitioning to retirement, commuting a pension, etc.
Proactive planning is about thinking about life and seeing what is possible. You’re looking ahead at how to maintain and enhance your lifestyle over your lifetime without the fear of ever running out of money, no matter what. Proactive planning is almost always a work in progress, because life happens, and people’s needs and wants change. The important thing is to have a planning model you can access at any time to help you make important financial and lifestyle decisions…
–Tom
A. To answer your question (and it’s a good one!), let’s think about why people get a plan, the benefits of having a plan and how you can get the most out of one.
Planning is about mastering change, and there are generally two types of plans: reactive and proactive.
Reactive plans occur when there has been a change in a person’s life and they need a solution, such as a change of jobs, divorce, when transitioning to retirement, commuting a pension, etc.
Proactive planning is about thinking about life and seeing what is possible. You’re looking ahead at how to maintain and enhance your lifestyle over your lifetime without the fear of ever running out of money, no matter what. Proactive planning is almost always a work in progress, because life happens, and people’s needs and wants change. The important thing is to have a planning model you can access at any time to help you make important financial and lifestyle decisions…
Using The Wealth Formula to boost investment success
– moneysense.ca
For many Canadians, learning investment basics can lead to smarter choices and, ultimately, a better retirement. A good starting point is understanding the fundamental elements that determine investment success or failure. These elements can be summed up in a simple equation I call “The Wealth Formula.”Six powerful forces will determine the sum of your future wealth: three “Wealth Builders” and three “Wealth Killers.” Their impact will pull you and your money in different directions—often at the same time—working either to grow or shrink your wealth. Small variations in any one of these opposing forces can have an enormous influence on your ultimate results.
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Wealth Builders
Amount
All else being equal, the more money you save and invest, the more you end up with…right? Of course. Saving and investing more today, and regularly over time, means more wealth, perhaps significantly more wealth, in the future. But while that may be obvious, it isn’t easy…
