Weekend Reading: What’s Your Savings Rate Edition
How has Covid-19 impacted your personal finances? For the past six months the focus has been on making sure income supports were in place for employees who lost their jobs and for businesses who were forced to shutdown or reduce their operating capacity. Outside of weekly trips to the grocery store, most of us sheltered…
Read MoreFinancial Freedom 45 Update: Have I Already Achieved F.I.R.E.?
For years I’ve been tracking my net worth with the dual goal of becoming a millionaire by the end of 2020 (Ha!), and achieving financial freedom by age 45 (in 2024). The financial freedom target did not necessarily mean a full-stop early retirement, but a point when I could realistically leave my day job to…
Read MoreWeekend Reading: Let’s Talk Inflation Edition
Since 1991, the Bank of Canada has used an inflation-control target framework to guide Canada’s monetary policy. The goal is to keep inflation at 2%, the mid-point between its target range of 1-3%. The inflation target framework is reviewed every five years, with the most recent agreement in place until the end of 2021. The…
Read MoreThe Risk Of Carrying A Mortgage Into Retirement
A mortgage-free home is the cornerstone of any solid retirement plan. Indeed, decades ago it would have been considered a major financial sin to carry a mortgage into retirement. But times are changing. The proportion of seniors with mortgage debt has almost doubled from 8% to 14% (from 1999 – 2016). Seniors also have the…
Read MorePreparing For Retirement: Understanding New Spending Patterns
Last week we talked about boosting retirement savings during your final working years. In an ideal world you’ll have the double-effect of being in your peak earning years while your largest financial obligations are in the rear-view mirror. In the real world, however, many Canadians are faced with an uncertain retirement because they lack adequate…
Read MoreHow To Give Financial Advice To Your Millennial And GenZ Kids
Many Boomer and GenX parents are both puzzled and frustrated by their children’s finances. Are kids these days really blowing money that could be used for a house down payment on lattes and avocado toast? Acknowledge that times of have changed One of the main points of contention between Boomer or GenX parents and their…
Read MoreWeekend Reading: Aeroplan Relaunch Edition
Despite its many flaws, Aeroplan has been my go-to program for flight rewards for the past few years as our family began to travel more often. I know the pain points well: high fuel surcharges on Air Canada flights, lack of available award seats on flights (especially for a family of four), less than ideal…
Read MoreBoosting Retirement Savings During Your Final Working Years
Whether you’re a late starter or seasoned saver, the five years or so leading up to retirement might be the most crucial time to get your finances in order. Here’s how to take advantage of your final working years. Most retirement readiness checklists suggest your final working years is a time to double-down on retirement…
Read MoreWeekend Reading: Real Estate FOMO Edition
The Canadian media loves to talk about real estate – particularly Toronto real estate – and its seemingly unstoppable climb to new heights. The average home price in Canada reached $538,831 (June, 2020). That’s up 6.5% versus the same time last year. In a pandemic. The national average doesn’t tell the whole story, though, as…
Read MorePast Performance and Your Investing Returns
“Past performance is not an indicator of future results.” Investors have heard this disclaimer for years, yet when it comes to picking investments we can’t help but look to a fund’s historical results to determine its quality. Indeed, it’s one of the first questions asked whenever I mention the idea of switching to an indexed…
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