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Take Control of your Money

Taking control of your money can change your life, here are a few tips that could help get your financial house in order.

Do you have good debt or bad debt? Are you paying off one debt with another? Credit card debt and vehicle or personal loans are bad debt. Lines of credit and mortgages* can be either - good debt if you used proceeds for investment purposes. This allows you to deduct the interest paid on your tax return. Investments can be investment products such as stocks or mutual funds, or buying a rental property or investing in a business. Typically, if you are investing to earn a return, the interest can be tax deductible. Paying off bad debt can be the best investment you make.

Understand what you need vs what you want. Make a list of monthly expenses that you need to live. Allow for a portion to be invested, pay yourself first - then you can determine how much extra you have to buy 'wants'. If you are diligent and precise, you may decide to forego some 'nice to haves' for a holiday fund, or a large 'special' purchase for you or your family to enjoy.

You don't have to pore over financial papers or websites, but it is important that you know what you are invested in, and why. The more you know about your investments, the more comfortable you will be.

Minimize the amount of taxes you owe. Tax planning should be ongoing process; compounded and tax free as it relates to your portfolio can greatly increase your wealth.

Have a plan. Your advisor can help you to prepare a financial plan, including an income plan for retirement and plans to reach certain goals or milestones.

Your future will not fall into place by accident. Some kind of future will, but not necessarily the one you want.

Contact Carol for more information on financial plans or a subject you would like covered in the future.

Carol Plaisier, CFP®, Investment Advisor with HollisWealth, a division of Industrial Alliance Securities Inc., and Insurance Advisor with Hollis Insurance Agency, can be reached at the HollisWealth office at 166 E. Island Hwy Parksville or by phone at 250-586-1332, by email at carol.plaisier@holliswealth.com, or online at www.carolplaisier.com.

This information has been prepared by Carol Plaisier who is an Investment Advisor for HollisWealth®. Opinions expressed in this article are those of the Investment Advisor only and do not necessarily reflect those of HollisWealth. HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Insurance products provided through Hollis Insurance Agency.

*Leverage Borrowing to invest is not suitable for everyone. You should be fully aware of the risks and benefits associated with using borrowed money to invest since losses as well as gains may be magnified.

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