| Dear,
As suggested by one of our readers, we summarized the videos, as sometimes it is preferable to read than watch.
Keep the suggestions coming.
The first video demonstrates the financial planning software we use which is available to you and your friends. It provides a realistic model which acts as a "practice field" for real life. You test your solutions on the practice field, rather than in real life. You learn. You make the most effective decisions possible. |
Can Your Home Be Your Retirement Plan?
Click the image below to view the video.
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Click here to read an article written by Peter Drake. He attempts to prove which is better, invest in your home or invest for your retirement. His conclusion? Do both.
The highlights of the video are:
The appreciation rate of residential real estate varies per province.
A graph of real estate returns has a similar shape as a graph showing mutual fund returns.
The historical scope shows that real estate has beaten inflation by an average of 2%/year.
We look at 2 retirement income solutions for Bill and Mary that make use of their home equity:
1. Downsize to a less expensive home.
2. A self directed reverse mortgage.
Both solutions work but have different outcomes.
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The Cash Wedge:
Protecting your retirement income
Click the image below to view the video. | |
In retirement there is a new risk in town and it's called the "sequence of returns" This risk is not present while you're accumulating money but it is a real threat when you start to withdraw money form your portfolio.
If you are withdrawing money and your annual portfolio returns are 0%, 5%, 10%, 15% you will have less money in year 5 than you would if those returns were reversed to 15%, 10%, 5%, 0%, even though the average rate of return is the same.
The cash wedge says dedicate a minimum of one year's income to cash, a few year's to GICs, and then a mix of bonds and equities if needed/wanted.
Move profit from stocks to bonds, then bonds to GICs, and the GICs replace the cash as you spend.
If stock markets drop, don't withdraw any money from the stocks and wait for the recovery (yes, it will recover). That is why we have the cash, GICs and bonds, so you don't have to withdraw from the equities in a down market.
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R.L., Retired, Barrie | | Comment? |
Redefining Investment Advice?
So you don't have these kind of days.
Click the image below to view the video. |
This is an excerpt of a video originally produced in 2000 for advisors and presented by Dan Wheeler of DFA.
I thought it was interesting because he goes back to 1980 and talks about the dangers of investing based on the current economic theme or a good story that makes sense.
1980 - Doomsday - high inflation and the US dollar was going to be worthless. You had to invest in hard assets like gold and real estate. If you did that how did you do? Oops!!
1990 - Japan - Japan had it all figured out and they were going to take over the world. You had to invest in Japan. How did you do? Rats, lost again.
2000 - Technology - This time it is different, there is a new economy. You have to invest in technology. How did you do? Got me again. I'm out. I'm never investing in stocks again!
His point is this: If you invest based on the economic theme or story of the day you are speculating - you might be right, you might be wrong. What you are not doing is investing.
If you would like a copy of the matrix book Dan mentions you can download it here. It illustrates the historical returns of a number of different stock markets.
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I saw this video at a seminar. Is your career your sole focus?
Expect the best!
Allan Norman, M.Sc., CFP, CIM
Atlantis Financial Inc | |
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Disclaimer
This email newsletter has been prepared for information purposes only. The information has been drawn from sources believed to be reliable, but the accuracy or completeness is not guaranteed, nor in providing it does Atlantis Financial Inc. assume any responsibility or liability for any errors or omissions in the information or for any loss or damage suffered. Financial strategies should be evaluated in relation an individual's objectives. |
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Allan Norman, M.Sc.,CFP, CIM
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| Horst Janusch
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Donna Girdler
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When Face to Face is Not Convenient...
Click the image above or read about it here
On-line financial planning
or
Virtual financial advisor | | |
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A New Dawn in Financial Planning
Click the image above to view the video or click here to read the article. | | |
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We're never to busy to help your friends or family memebers | |
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