Long Term Financial Goals Archives

Real Life Investment Strategies #4: Business Owners Should Leverage Their Corporation for Retirement Savings

Post published:September 3, 2024

When you're immersed in running a business, thoughts of saving for retirement often take a backseat, Employees in the corporate world may rely on employer pensions, but as a business owner, the responsibility for your retirement falls squarely on your shoulders. Starting your retirement planning early and consistently contributing allows you to benefit from compounding returns to steadily build your nest egg over time. Investing in your retirement can ensure you have the financial means to enjoy life post-retirement, whether it's traveling, pursuing new passions, passing along a little financial freedom to family members, and more. The best advice I can give you is to step back and view these tax changes versus your long-term financial goals, and to avoid making hasty decisions. If there is major tax reform in the next few years, many individuals might find their hasty planning decisions to be very costly. Even with higher capital gains inclusion rates, investing in your corporation still has many advantages. After reading about the ins-and-outs of using your corporation optimally as a savings and withdrawal vehicle, let’s see it all in action with business owners like you…

Read more about the article Real Life Investment Strategies #3: What is the Difference Between a Lifestyle Reserve and an Emergency Fund / Financial Cushion?

Real Life Investment Strategies #3: What is the Difference Between a Lifestyle Reserve and an Emergency Fund / Financial Cushion?

Post published:March 27, 2024

Both Emergency Fund and Lifestyle Reserve Planning are Crucial Whether You are Accumulating Wealth or Getting Ready to Retire Having an emergency fund is common advice, whether you are reading this in the financial media or hearing it from a financial advisor. Many people who are later in life and feeling comfortable with their financial situation might disregard this advice, assuming it only applies to those that don’t have as much financial stability. The truth is that an Emergency Fund is something that everyone (even you!) should have. In addition, the added financial security planning of a Lifestyle Reserve should also be part of your financial plan. So, let’s explore exactly what an Emergency Fund is, how a Lifestyle Fund is different, and why both should be in place to ensure long-term financial alternatives and adaptability. Most importantly, I’ll highlight how this applies to Suzie & Trevor Hall (The Accumulators) and Jim & Carol Oates (Almost Ready to be Retirees), so you can see how it can work for you.

Real Life Investment Strategies #2: Debunking Retirement Financial “Rules”

Post published:March 19, 2024

Should You Plan Your Retirement Savings According to the 4% Withdrawal Rate Rule or 70% of Pre-Retirement Income Rule? Whether you’re an accumulator or preparing for retirement, how do you plan for saving AND spending your hard-earned cash in retirement? My Answer: It depends. All those popular retirement spending rules you hear about in the popular press or through your favourite financial guru really should be called guidelines. Augmenting blunt estimates with finer-pointed planning may not be as quickly accomplished. But it’s a far more effective way to plan for how much to save as you accumulate wealth, and how much to spend as you withdraw it. In fact, it’s best to consider retirement spending as being a variable process, versus a one-and-done equation. Which is why it depends. LET’S BEND SOME RULES: THE 4% WITHDRAWAL RATE RULE & THE 70% PRE-RETIREMENT INCOME RULE

Timeless Financial Tips from 2023 As We Turn to 2024

Post published:December 8, 2023

Yet another year has gone by. With 2023 behind us and 2024 on the horizon, it’s important to take stock, set goals, and make plans – keep steadfast in your quest for long-term financial planning and wealth management success. In 2023, I shifted my focus to keep some core financial planning principles at the forefront of your mind. These principles are timeless and are a good touchpoint for whenever your financial resolve starts to soften. Let’s look back at these timeless financial tips from 2023…

Play It Again, Steve – Timeless Financial Tip #10: Making Legacy Planning More Meaningful

Post published:November 6, 2023

Let’s face it: When families list their favorite financial planning projects, legacy planning rarely makes the cut. It may feel as if you're putting the emphasis exclusively on death and taxes, rather than your lifetime pursuits such as building a career, pursuing your personal interests, stewarding your kids into adulthood, and retiring in style. Then again, I believe the term “legacy planning” is misleading to begin with. It sounds so dry and formal—as if it’s only for uber-rich, multigenerational dynasties, or the tail end of your lifespan. No wonder most people put off planning for it. In reality, legacy planning can be worthwhile for almost anyone. And it’s not just for later in life; key aspects of it can help you enjoy a more enriched life today. In today’s Timeless Tip, we’ll cover the possibilities.

Play It Again, Steve – Timeless Financial Tip #8: 6 Enduring Insights for Fixed Income Investing

Post published:September 7, 2023

When’s the last time someone tried to talk you into chasing a “hot” Treasury bond run — NOW, before it’s too late! Probably never, right? Most of us recognize that’s not what fixed income investing is for. Bonds create stability; stocks and alternatives are where the excitement is at. And yet, I often see people forgetting this timeless truth, or at least investing as if they have. Plus, to further complicate things, not all bonds are created equal. This can trick you into thinking you’re playing it safe … Following are 6 best practices for fixed income investing across all kinds of markets, whether rates are rising, falling, or in a holding pattern.

Play It Again, Steve – Timeless Financial Tip #7: 6 Steps to Retiring as Planned

Post published:August 4, 2023

Retirement isn’t the only reason to set aside current income for future spending. But since it’s usually the elephant in the financial planning room, it’s worth a Timeless Tip of its own. Following are 6 ways to leverage lifelong financial planning, so you can retire on your own terms and on your own timeline.

Play It Again, Steve – Timeless Financial Tips #6: Aligning Your Investments with Your Investment Time Horizon

Post published:July 10, 2023

I’ve spent my entire career railing against the dangers of market-timing—i.e., dodging in and out of markets based on current conditions. But there is a time when “timing” of a different sort matters. I’m talking about your investment time horizons. Today, let’s look at how to use your personal time horizons to successfully separate today’s spending from tomorrow’s future wealth.

Play It Again, Steve – Timeless Financial Tips #5: Trust the Evidence

Post published:May 24, 2023

If I could, I would grant amazing investment returns to every investor across every market. Unfortunately, that’s just not how it works. In real life, we must aim toward our financial ideals, knowing we won’t hit the bullseye every time. That’s why I recommend evidence-based investing—or investing according to our best understanding of how markets have actually delivered available returns over time, versus how we wish they would. Our “best understanding” may still be imperfect, but it sure beats ignoring reality entirely. Let’s look at why evidence-based investing based luck-based investing…

Play It Again, Steve – Timeless Financial Tips #4: How To Manage Your Financial Behavioural Biases

Post published:May 1, 2023

There are countless external forces influencing your investment outcomes: taxes, market mood swings, breaking news, etc., etc. Today, let’s look inward, to an equally important influence: your own financial behavioural biases. When we make snap financial decisions that “feel” right but are rationally wrong, we tend to sabotage our own best interests. By recognizing these reactions as they occur, you’re more likely to stop them from ruining your financial resolve, which in turn improves your odds for better outcomes. Let’s explore some behavioural finance examples that you’ll want to prepare for…