The Very High Cost of Waiting to Save for Retirement

Albert Einstein was a big fan of compound interest. In fact he once said that "the power of compound interest is the most powerful force in the universe".

Scroll through the short presentation below to see why he would make such a strong statement.

Longevity Risk: The Biggest Real Retirement Risk You Haven’t Covered

This isn’t our parents’ or grandparents’ retirement anymore. Just a few decades ago, many retirees enjoyed the full benefits of the “three-legged stool” of retirement provided by guaranteed pension payments, savings, and Social Security. In addition, they didn’t have to be very concerned with how much of their income translated into actual purchasing power because, except for the mid to late seventies, inflation was not a big factor for several reasons. Today, the three-legged stool is barely standing on two legs and inflation, even at the lowest levels, can wreak havoc on our lifestyles due to the fact we are living 12 to 15 years longer.

How Confirmation Bias Could Be Hurting Your Investment Performance

Have you made up your mind on just about everything, even before you know what it is? For instance, when you meet someone, is your opinion of the person formed from the first impression? Or, when you hear a political argument from the other side, is your mind opened or closed? Are you able to concede the “good points” the other side make, or do you dismiss the whole argument? We encounter people and ideas every day, and, while most of us would like to think we are open-minded, human nature, being what it is, makes it extremely difficult to discard our preconceived opinions. So, we almost instinctively filter out the information that doesn’t support our preconceived notion or opinion, at least initially. Behavioral psychologists refer to this kind of selective thought process as “confirmation bias.”

Don't like where you are financially? Change your behaviour.

When people decide that they need to eat healthier or lose weight, they know that they have to change their behavior. That’s easier said than done for most, which is why programs like Nutrisystem and Weight Watchers are so popular; because they provide a system for automatically controlling portions and nutrition. More importantly, they provide an easy way to establish weekly goals, track activities and keep score for accountability. Within a few short months, eating behaviors can be transformed and new habits formed that can lead to a healthier lifestyle.

Studies clearly show that our behaviors produce the results we see in our lives. If you don’t like the results, then change the behaviors. Yet, this simple concept seems to elude most people who struggle each day to make the right choices and improve their lives.

The Cost Of Owning a Mutual Fund

Recently there's been a lot of renewed discussion in the media about the "supposed" high cost of owning mutual funds.

What Do Home Inspections Have to Do With Hiring a Financial Adviser?

Bye-Bye-Bernie-160x160.jpgYears ago, formal home inspections were a rarity.  Sure, uncle Buck or your friend Bill the builder may have dropped by to check it out, but that was about it.  Today, almost nobody buys a home without a home inspection. Why the radical shift to home inspections?

The 8 Most Important Criteria for Judging a Financial Advisers Professional Designation

Shark-160x160.jpgWhen trying to wade through the professional designation jungle, the third key question you should ask is: What requirements must an adviser meet to get and keep a particular designation? There’s an old joke about a doctor who got his degree from a Cracker Jack box. If indeed you could get a medical degree that way, would that doctor be as well trained as one who obtained hers over seven years of study and internship through a major medical university? Of course they wouldn’t. Furthermore, would a sane person deal with anyone other than a university-trained doctor? That said, how is the average person supposed to know about the requirements to obtain any of the many financial designations or the difference between them.

Do All Financial Planners Practice What Their Designations Preach?

Stethescope-on-Golden-Nest-Egg-160x160.jpgIn my last post I talked about the importance of finding a financial planner with a “relevant” designation for the job you need done.  In today’s post I want to talk about the need to work with a planner who practices the principles of the designation(s) they hold.  That is, are they actively using the specialized knowledge that came from getting the designation in the day to day activities with their clients?  Are they creating financial plans or just selling products?

Would You Hire a Plumber to Clean Your Teeth?

Golden-Egg-with-100-Bills-160x160.jpgIn my last post ” Swimming With The Sharks In Alphabet Soup” I discussed whether or not having a “so called” professional designations can help you select a qualified financial adviser. Just having a designation though won’t guarantee success. You need to ensure that the adviser meets 3 criteria with respect to the particular designation they hold.   The designation needs to have relevance to your needs. The adviser should actually practice the principles of the designation they hold. And finally you want to consider the requirements they needed to meet in order to get and maintain the designation.

Swimming With The Sharks In Alphabet Soup

Shark-160x160.jpgFinancial planning in Canada continues to be an “unregulated” industry, allowing just about anyone to put out a shingle and call themselves a financial planner.

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