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Message From Terry |
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Financial
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This newsletter is courtesy of Terry Fay and RetirementByDesign.ca. Please remember that while strategies outlined within this newsletter may be appropriate for some investors, you should always consult a financial advisor to determine if they are appropriate for you.
Sincerely,
Terry
Hello
:
Recently I flew to Calgary for a conference. As we awaited take off, the flight attendant began the customary flight safety instructions. It struck me as odd. Seatbelts much like those on airplanes have been mandatory in cars since 1974, yet they still demonstrate the proper way to engage and disengage the belt. Unless you have been living under a rock since 1975, this is not new information. Nevertheless, airline regulations wisely require that the basic rules be reviewed and nothing left to chance, even though a problem during flight is a remote possibility.
Put your seats in the upright position; lock your tray tables while we review some of the basics in financial planning.
1.
Pay yourself first.
Having a regular monthly savings in an RRSP or open account with time
will save you thousands of dollars. This also makes for great dollar-cost
averaging.
2.
Protect both you and your family’s income. Have a proper estate
plan.
Common sense suggests that having the proper amount of life insurance
and disability insurance is the cornerstone to any good financial plan.
Review this regularly and make the appropriate changes when required.
Have you considered Critical Illness?
3.
Stay invested and buy low.
Whether buying tomato sauce at the store or making an investment, the
profit is in the purchase price. Don’t follow the herd. Invest your
money when markets are low. If this is not possible, refer to Lesson #1.
Buy monthly for great dollar cost averaging.
4.
It’s not what you make – it’s what you keep.
The direction of taxes – income, estate and local will be higher
over time. Taxes never go down, they just get camouflaged and increase.
If your tax planning isn’t current, it’s as good as non-existent.
5.
Review your Financial Plan regularly; at least once a year.
Take time to review your financial plan. Statistics show that people spend
more time planning their vacations then they do their financial plans.
Albeit the vacation is probably more exciting, the error of not focusing
on your retirement destination can have dire consequences.
You may now loosen your seat belts (but keep them fastened). Recline your seats and relax. It’s going to be a great flight. Have a great summer holiday!!!
All the best,
Terry
SETTING REALISTIC INVESTMENT OBJECTIVES
Do you sometimes feel like you didn’t get what you expected from your investments while normal ups and downs of the market can cause emotional reactions, the question that we need to ask is, do we have realistic expectations? Experts in the world of behavioural finance would suggest we probably don’t. Here’s why.
According to the RCMP:
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In 2000, individuals age 60+ comprised 78% of all Canadian Telemarketing Fraud Victims.
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In 2000, the average dollar loss for individuals over 60 was $4,034.20.
If you or your parents are over 60, please be wary of any telemarketing calls. If it sounds too good to be true, it probably is too good to be true.
All you really need to know is that we are committed to helping our clients achieve financial security and peace of mind.
Our Mission: Enhancing peoples lives by creating a positive life vision and the money to support it through our unique approach to financial planning.
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