She has been in investment business for 25 and owns her own Financial Planning Business. All the following has to do with Financial Planning:
- Soar High
- Tenacious Fearlessness
You need to create a vision. Money is emotional. You will make emotional decisions. You cannot ignore things. Review, plan, and update variables each year. You can reinvent yourself when changing jobs or at divorce. All business can run into walls.
Rule of thumb for CPP. If you take it at 60, it will be reduced and if you take it at 70, the pension will be higher. What you do depends on your and your vision. If you take it early and reinvest the money at 5%, you can have more money.
There is a 70% rule that your income needs in retirement is 70% of working income needs. This can differ by person. You have to figure out what you really need.
Spending rules say that you will spend more in active retirement than in inactive retirement. However, long term care is expensive. You do not want to have a plan where you run out of money at 90. The rate of return that Ms. Mallin uses is 5% and it is conservative.
You should not pay down your mortgage by sacrificing RRSP and TFSA investments. You might later have to sell your house or take out a mortgage in retirement. You might want to meltdown your RRSP because of tax on RRSPs at death. However, RRSP meltdowns do not always work. You should not do this as you can end up with higher net estate taxes.
Make taxes less by bypassing your Will. Only the main Will money is charged estate tax. If you have a business do two Wills. RRSP are taxed as a lump sum of income. Capital gain can be offset with any losses. Old unclaimed losses can go against tax in final tax after death.
Telecommunications Services is getting its own index section that will contain Telecom Services, Media, and Entertainment. The Tech index is losing google etc. and some Consumer Discretionary stocks are also moving to this new index.
The first trade idea is for Canadian REITs. They have been overdone and the current valuations and yields are attractive.
The second trade idea is US banks. US banks are still a great long term play. With a strong US economy and lower unemployment there is a greater need for bank services. BMO thinks that long term yields are going to go up.
The third trade idea is Tech. Tech is 25% of the market cap, but generates 50% of Cash Flow.
The fourth trade idea is Consumer Staples and Consumer Discretionary with May to October dates. Here risk is down and total return is up.
Trade idea 5 is Canadian Banks. Keep holding Canadian Banks. They are the best place to be. They have low P/E and P/B and high ROE.
On my other blog I wrote yesterday about North West Company (TSX-NWC, OTC-NWTUF) ... learn more. Next, I will write about Pason Systems Inc. (TSX-PSI, OTC-PSYTF) ... learn more on Friday, October 26, 2018 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
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