In the mid - 1960s conventional wisdom or motherhood for retirement planning said that you should take all of your investments and put them into government bonds or fixed income type products. The thinking was that you could not afford to take any 'risk' in your retirement years. Thus it was believed that guaranteed investing was the best approach to retirement planning and they were correct at that time.
There are many Baby Boomers who are anticipating hitting the jackpot via inheritances in the coming years as a solution to their own financial planning needs. We have heard many media reports about the tidal wave of money expected to move between the generations over the next 15 years or so estimated to be upwards of $1-trillion.
An HSBC report released last September found that 39% of working people are banking on some type of inheritance with a median value of about $77,000. While some 57% of fully retired people expect to leave some sort of inheritance.
The Tax-Free Savings Account (TFSA) was introduced in 2009 as a new way for Canadians to build assets and wealth on a tax-advantaged basis. Any capital gains, dividends or interest income are tax-free upon redemption from the account. The initial contribution amount was $5,000 with annual increases of $5,000. This has been increased to $5,500 in 2013 to offset inflation. This brings the maximum contribution amount for a new subscriber, in 2013, to $25,500.
Imagine it is late Monday afternoon and you are wrapping up your day at a large pension plan, as you stretch, your elbow hits the sell button on the keyboard. The board lot (100 shares) of a large Canadian telephone company is quickly bought for $20 and is the closing price as the final trade of the day. The previous closing price was $30.
In the last article we defined investing as buying an ownership stake in companies who are profitable today and whose profits are expected to rise over time. Trading is any other form of managing your money which may or may not take into account corporate profits as part of the decision-making process.
Thank you so much for the very generous donation to the "Teddy Bears of Hope Foundation".
I am very excited and looking forward to all the experiences I will share as I fufill my role as Miss Teen Ontario Canada 2014 and ambassador for the "Teddy Bears of Hope Foundation". The kindness and support of wonderful folks like you is very much appreciated, thank you again.
Mutual funds and segregated funds provided by the fund companies are offered through Worldsource Financial Management Inc., sponsoring mutual fund dealer. All other products and related services are offered through Brian Fitzsimons/Fitzsimons Financial.