If April showers bring May flowers, what do May flowers bring? I was going to talk about nourishing your portfolio, then reaping the results, but I have had many questions regarding the Budget 2008, especially the section regarding the tax free savings account so let's explore that.
Start with funds secured through mortgage financing, thereby freeing cash flow that will enable you to invest.
Alternatively, you can obtain an RRSP loan and apply it to the carry forward room you have available; this will give you a jump start if you are one of those that has procrastinated. Remember that the older you are, the harder it is to build up a good sized RRSP portfolio by the time you retire. Although this may seem like a contradiction to my earlier comments, RRSP loans generally are an exception to taking on debt, as long as it can be repaid in a relatively short period of time.
Here are five top tips to help stop financial holiday hangovers from lasting all year:
Be smart about managing your risk. Typically, RRSP funds should be invested to gradually decrease the percentage of equities the closer you get to retirement.
Protect yourself against currency loss; many mutual funds took a big hit in 2007 due to the rise of the Canadian dollar. This could be a good time to add US equity funds to a portfolio. As a rule of thumb, a balanced portfolio for someone under 50 holds about 40-50% of assets in US and global funds, someone older who needs regular income should still have 15-25% foreign content; talk to your financial advisor to determine the right asset mix for your portfolio.
Consolidate and pay off debt. You may be surprised to learn how much you can save with a debt consolidation strategy.
Baby boomers need to save more; counting on an inheritance is not a plan if you wish to be sure of your pre-retirement and retirement lifestyle, and.....the number one tip
By the way, pilgrims is the answer to the riddle.articles we will discuss how to keep it on track. Many people leave things as they are because it is easier, less stressful and less frightening than change; it doesn’t have to be, and I hope to show how you may be able benefit financially, and, more importantly, give you peace of mind.