Time To Invest in Stocks?

Should You Invest Now?

Published Date: May 03, 2009

There will be no small number of people looking to save every penny they can get their hands on right now, in the midst of a lending crisis that has permeated even the most disciplined economies in the world. Putting money aside – squirreling would be the best way to put it – is certainly quite tempting as things stand, not knowing when the recovery will really begin in earnest. In order to be sure of having money in the months to come, it is perfectly sensible to put some by. On the other hand it could be said that if you don’t invest a bit now, there will never be a better time.

Sure, there will be some reluctance on the part of any of us to put money where it might lose value, and the fact of the matter is that investing does carry that risk – “remember, investments can go down as well as up” ring any bells for you? Without that kind of fluidity, there would be no chance of making a bit of money on the stock market, or through any kind of investing – and you would be better off just putting it in a savings account. What we can be certain of is that several investments are now at as low a value as most of us can remember – and ripe for the buying cheap.

Award-winning book Invest Now is jam-packed with timely information and timeless advice for the beginning Canadian investor. To purchase a copy, visit Chapters Indigo or buy online – Invest Now: A Canadian’s Guide to Investing

No-one with any knowledge of such matters will tell you that your investment is guaranteed to increase in value, and less still will you be told that you will get an instant return, so it is worth having a savings plan at the same time. The chances are, however, that a small investment will have an initial small return, and can even act as a dry run for investing in greater amounts. As rules of thumb go, “Only invest what you can afford to lose” is a good one. It will allow you to learn the ropes in a less pressurized context.

Of course, investing can be a daunting prospect. If you stand to make any kind of money at all, the chances are that it will carry a frisson of nerves as you watch and wait for the right moment to sell or stay in. The chances are that on your first investment you will be tempted to sell as soon as you realize any kind of profit on the deal. While there is every reason to be happy at turning a profit, it is worth taking into account that people who have been playing the market for longer will stay in longer than those who haven’t. The reason for this is that they have learned to recognize when a stock will keep rising.

It is worth purchasing a guide to investment because these are invariably written by people who have done it and been successful. Warning signs that might go ignored by the novice will be covered in these guides, as will those false alarms that make first time investors panic and get out. When you are investing for the first time, it is good to have this reassurance.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on May 3, 2009.

How To Save Without It Getting You Down

Save Money Easily

First Published Date: June 3, 2009

Saving money is a necessity – now more than ever. As the world becomes enmeshed in more and longer financial struggles, there is inevitably a knock-on effect on consumers, even if your income remains constant or improves. House prices are falling, and the value of the dollar in your pocket is dropping too. This is no terminal decline, but it is still quite troublesome for any of us. Unless you live in a forest and survive by hunting, gathering and bartering, the global financial crisis will affect you in one way or the other. As much as we are being encouraged to get out there and spend our pay checks, it is entirely understandable that many of us are taking that advice with a pretty huge pinch of salt.

If you have money to spend and there are things that you need, certainly there’s no reason you shouldn’t get out there and help stimulate the economy. That is undeniable, but at the same time there is no reason you should over-extend yourself in doing this kind of patriotic duty. Looking for ways to make a saving is not treason – it is simple common sense. Keeping it simple is the best way of doing this in any case. For example, are you taking advantage of existing discounts and special offers which are relevant to you?

Supermarkets and clothes shops will often have discount cards for students or other concessions. What is wrong with enlisting the student in your household to help you take advantage of these special offers? This can get you a cut of up to 15% on the cost of necessary purchases, making your dollar go further. Additionally, things like gas cards and loyalty programs with set outlets can result in a large saving for you, if you manage them correctly.

Often supermarkets or other outlets will have big discounts on food that has a long shelf-life. Building up a stock of the things you need and will use is always a good idea, and frees up money for the long term – often making a quite pronounced difference in the bottom line on your shopping bills.

Saving money does not need to mean opening a savings account, but it is obvious that the two naturally go hand in hand. One way that you can demonstrate to yourself the advantages of saving is to use your savings account every time you spend less than you had budgeted. No matter how much or how little the difference, if you put that money in the savings account every time it will quickly build up and accrue interest which benefits you.

Now, no-one is about to advise you to re-use old tea bags or anything like that, but there are tons of little things like those mentioned above which can make all the difference in seeing out the recession in better financial shape than might otherwise have been the case. If you do things correctly you can end up with a healthier bank balance and have the necessary spare cash to make you comfortable.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on June 3, 2009.

Now Is Still Not The Time For Major Borrowing

Government credit bad, Consumer credit good?

First Published Date: June 26, 2009

As the danger of a third election in four years hangs over a nation considered by the rest of the world to be so stable it is “boring”, it would be entirely understandable if the alarm bells in the brain of every Canadian started to ring right about now. After all, the prospects of the nation trading at a deficit any time soon are at present not amazingly good. This, however, has not stopped the press from suggesting that now is the time, if ever the time existed, to get out there, dust off your credit card and prepare to hit the shops with a vengeance. This advice comes via the newspapers from the Finance Minister Jim Flaherty.

If it sounds a little bit reckless for something a Finance Minister might say, this is with very good reason. The minister’s words were somewhat more considered, but by the time the press had had their way with them, it did sound a little bit more like incitement to spend the inheritance. What he actually said was “positive signs in financial markets give us cause for cautious optimism that a global recovery may not be far behind”. He added that Canada would lead this recovery and be at the front of the queue to boost business. There is, perhaps, some amount of mockery in the words as set out in the press, with some journalists not quite sharing the Minister’s optimism for the future.

Much of the implication behind the press reaction to what Minister Flaherty has said seems to be that the minister is saying everything he can think of in order to stimulate consumer spending in a time when the nation’s financial sector could do with a helpful push or two. This is not exactly an untried initiative, of course, but the average family may well be heartened by what they hear from the government. The theory of consumer spending stimulating the economy is a self-perpetuating one. Sure, it’ll boost the flow of cash through businesses. It will, however, only operate that way if it is allowed to, and this means that banks need to be as willing to lend as customers are to spend.

The next year to eighteen months will be interesting for those who like to read the global response to financial situations. Many countries in the developed world, including the United Kingdom, are due to hold general elections to decide on the makeup of their next government. Good governmental marshalling of the global economies in the next year and a half will see more incumbent governments re-elected, but to drop the ball now would be to almost guarantee and end to a government’s hold on power. Indeed, with one country’s economy affecting those of its neighbours, it could be that decisions taken in one country affect the election in another. Should you go out and spend, spend, spend in order to keep a few governments in their seats? Well, only if you can afford it. Now is still not the time for major borrowing.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on June 16, 2009.

More Money Saving Tips

How To Save Money

First Published Date: March 21, 2009

We could all do with a little more cash in our lives. Be it due to rising energy costs, a desire for a big purchase or saving toward a holiday, there is always room for a few extra dollars. There are a few tips and tricks you can try to save yourself a little cash and invest it toward a better future.

To begin with, evaluate your outgoings. Look closely at the price plans you are on for energy and heating, as there might be a better deal available. Check comparison websites and if there is a saving to be made, switch immediately. Some people have reported up to $160 a year saving on energy bills purely because of this.

Next up, look at your home and cell phone bills. Again, there might be a cheaper tariff available. A neat trick is to telephone your current provider and inform them that you’re planning to leave and would like to cancel your contract. At this stage, you will be put through to a department – often going by the name of “Cancellations”, though they are anything but – who will try and woo you and persuade you to stay. They’ll offer deals on your plan that could save you hundreds of dollars a year, just to keep your custom.

Continuing along the same theme, check the interest rate you’re paying on any credit cards you may have. Many people remain with the same provider for years out of habit, never bothering to see if there is a better deal available. Nine times out of ten, there will be – apply for a new card with a better rating, transfer the balance and cut up your old card. Your monthly payments will reduce and you’ll be paying less interest.

With these things in check, you can move on to trying to cut your expenditure. One of the biggest, and often unavoidable, expenses is the price of gasoline. To begin, consult a website such as Gas Buddy, to find the cheapest gas station closest to you. These done, then try to fill up your tank on a Monday. Gas prices traditionally rise over the weekend and dip again at the start of the new week, with Monday being the cheapest. It might only be a small amount, but every little helps.

On more frivolous pursuits such as shopping, savings can also be made. One priceless tip to remember is that eBay is not just for used goods. Many big companies – such as IBM – run eBay stores as a way of clearing old stock. Many brand new items are available on eBay for huge discounts off their original retail price. While online and buying a new purchase, try the many comparison websites – like the aforementioned for credit cards and energy companies – to get the best price.

When it comes to health and beauty, you can also make savings. Most salons charge high prices, but will offer discount rates if a junior treats you or trainee stylist. This may sound risky, and no one wants to end up with bad hair, but a senior stylist will usually oversee the junior and if something does go wrong, they’ll fix it for free. You can also try making your own skin care products – a bottle of branded exfoliating lotion will cost anything up to $25, where a warm bowl filled with sugar and rubbed in firmly with a sponge will have the same effect.

Essentially, there are ways to save money on everything. Utilize the Internet, as it genuinely does offer some spectacular deals if you have the patience to look for them. In the same vein, learn to haggle when in store – many retailers price their items with mark ups that allow for negotiation. 99 times out of 100, you can find a discount on something – all you need is a little clear thinking and a large amount of patience.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on Mar 21, 2009.

New 4 Percent Retirement Withdrawal Idea & Free Financial Planning Software

How Much You Can Spend in Retirement?

First Published Date: June 6, 2015

A retired financial planner in California, Bill Bengen, researched and came up with his 4 percent retirement rule. The New York Times recently published a detailed article on this, as his retirement 4 percent concept has attracted criticism both accepting and rejecting it.

Based on the assumption of that the retirees’ portfolio is made of stocks and bonds half half, Mr. Bengen’s 4 percent withdrawal concept survived every thirty year period from 1926.

However, there are other complex methods created by retirement analysts that call to withdraw from 2.85 percent to 4.95 percent, as the article points out.

Critics argues that Mr. Bengen’s method does not take account into various factors such as investment fees, tax rates, locations, etc. and should not apply to all retirees.

If you search online for various methods of retirement withdrawals, you will be astonished to see how many are there. The best course of action is not to go by any single idea you stumble into. As everyone’s situation is unique, it’s best to seek help and sit down with a qualified financial professional who can assess your own situation and create a plan that will suit your needs and lifestyle.

Free Financial Planning Software

Developed by Boston University economist Laurence Kotlikoff, ESPlannerBASIC Canada is free financial software that can calculate how much you can spend and save to sustain your living standard in retirement life. The planning tool takes consideration into other factors such as changing jobs, moving, having kids, pensions, etc. can affect your financial future. You can access this free tool here: