Unfortunately my industry is saturated with salespeople. Everyone wants to make a buck or more in the shortest timeframe possible. They will use every tactic available to scare you into buying investments. They will try to complicate things to make you throw up your hands and say “save me”.
I don’t believe in complicating things. As a matter of fact If you want to be extremely successful with your investments you really only need to know 2 numbers:
1) what rate of return (%) you need to earn on average per year to meet your goals (assuming you have some!) and
2) How much money you need to save per year.
That’s it. I promise!
There are many questions that need to be answered before we can conclude what % you need to earn and how much you need to save each year:
- What’s my goal for my money?
- when will I need it?
- What are ALL of the sources of my future income (pensions, rrsps, inheritances…?
- how will. future inflation affect me?
and more…
It’s not rocket science. A good financial planner should take the time to find out exactly what rate of return you need to earn per year and the savings you will need to make every year to fund whatever goal you have. Once this is figured out, you need to have a portfolio of investments that has, in the past given that rate of return WITH the least amount o risk.
The final and MOST IMPORTANT step for successful investing is the step that 90% of advisors miss(because they are not paid for it). Your portfolio needs to be reviewed and rebalanced at least 2-3 times a year. This is because when the markets move up or down your portfolio of investments change as well.
A well crafted financial plan will keep you on target to achieve your savings goals. If you don’t have one, you are basically shooting darts blindly and may be taking unnecessary risk.
If you would like to know what the 2 numbers for you are, let me know by calling my at 514-819-3370 or email me at johnkalos@ironshield.ca
*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2014-2015 Advisor Websites.
