There are copious numbers of articles and information written on how to invest your money-and specifically how to invest for retirement.
I come across them everyday and I know that my clients and contacts do as well.
While some are useful, many provide contradictory advice that just leads to confusion for many investors.
I do my best to seek out and find articles that will provide you with a core approach that when implemented will help you to achieve your long term goals, and dreams, and help you to build funds for retirement that will stand the test of time.
Here is an excellent article, that is in line with my own core philosophy.
The Best Way To Invest For Retirement
Turn on CNBC for two minutes and it’s easy to believe you need to stop everything and invest in the hot stocks the “experts” are recommending and get out — NOW! — of the ones they’re bearish about. Chris Minnucci, author of the ironically titled The Death of Buy and Hold: How Not to Outlive Your Money — Investing for, and in, Retirement, says do so at your own peril. Minnucci, an early retiree and self-taught investor, says you’ll be far likelier to make your retirement money last if you take a more cautious, deliberate approach to investing, using diversification using what he calls “the principle of correlation combined with the complementary principle of compromise.”
Read more here
For many people crunching the numbers to determine whether you will have enough to enjoy a comfortable retirement can be very intimidating & stressful.
In fact, coming to grips with your own “retirement reality” is something many people, like the author of this attached article tend to procrastinate on.
However, like the author discovered, when you take the time to go through some retirement planning questions and gain clarity around what a comfortable retirement means to you, you find that your reality is not so scary after all.
I encourage you to read the enclosed article to gain more clarity around your own retirement reality.
If you would like a helpful guide to take you through simple exercises, I know someone who can help you out….wink wink, nudge, nudge.
Retirement Reality Is Catching Up With Me
New York times columnist John Schwartz writes about approaching retirement with trepidation. He says: I am an idiot. That, at least, is the impression I get from personal finance websites and magazines and books. They all seem to say I’m doing pretty much everything wrong when it comes to my financial life, basically because I don’t pay that much attention to my finances. But with some consultation and some strategizing, he makes the point that retirement reality is nothing to be afraid of.
Read more here
One of the most common financial questions I have heard over the years, is whether it is better to pay down your mortgage or save for your retirement?
Recent behaviour indicates that many people have chosen to focus on paying down their mortgage vs saving for retirement.
In my opinion this is a reflection of the time tested adage that money is about more than math. The emotional decision to seek out security over more financially profitable alternatives often takes precedence.
When you do take a look at the numbers; (particularly expected rates on return on your RRSP compared to the prevailing cost of mortgage debt) the decision definitely favours adding to your retirement savings.
Here is an excellent article that takes a look at the math, as well as the emotion.
How saving for retirement beats paying down your mortgage
Saving for retirement beats paying down your mortgage. There – a long-standing debate in Canadian personal finance is settled. To build wealth in today’s low interest rate world, divert money you were going to use to pay down your mortgage balance to your registered retirement savings plan or tax-free savings account. This is the conclusion of a report to be issued Thursday called “Mortgages or Margaritas: Is Paying Down Debt Putting Your Retirement at Risk?”. Read on to see the proof.
Read more here
Last weekend I sent out on article on RRSP’s that seemed to strike a cord with many people.
I received a number of comments about the article-which made reference to the generally believed notion that RRSP’s are a terrific investment & planning tool, but are not ideally suited to every person, or every situation.
I thought I would follow up on last week’s theme by sending along a thought provoking article on the 7 Misconceptions about RRSP’s.
I trust you will enjoy it.
Be sure to pass along your comments & feel free to forward it to a friend.
7 misconceptions about RRSPs
As RRSP season gets into full swing, every financial institution you’ve ever walked past is suddenly your best friend. Don’t delay, make a contribution today! There’s no question that Registered Retirement Savings Plans are a good idea. As we live longer and as fewer among us can count on company pensions, personal saving has to fill the gaps. Author, investment expert and Star columnist Gordon Pape calls RRSPs the “ultimate wealth builder,” but even though they’ve been around for almost 60 years, there are plenty of misconceptions about RRSPs.
Read more here
This is the time of year that many Canadians look to top up their Retirement Savings contributions-in large part to create a larger tax deduction, or to reduce potential taxes owing to the government.
This is definitely a very sound and prudent strategy, but it may not be the best course of action in all cases.
Here is a great article to get you thinking about how to best maximize your after tax dollars over the long term.
Be sure to give it a read before you decide what to do with your annual RRSP this year.
Don’t fall into the RRSP ‘tax trap’
As the annual RRSP contribution deadline approaches, it’s worth considering more than just how much money you can afford to stash away. Specifically, it’s worth thinking about taxes.
For many investors in registered retirement savings plans, the tax strategy starts and ends with deducting their annual contributions from their income. But this is a shortsighted approach that will likely lead to much larger tax bills than necessary down the road, financial advisers and tax specialists warn. How can you avoid the RRSP tax trap?
Read more here