As Canadian and US stock market indexes hit new highs this year, many investors began expressing anxiety about a possible ‘correction’. Financial media personalities have also been speculating about the timing of correction from these recent market highs – following a strong run over the past year.
Before a sky scraper can reach for the clouds, it needs a very strong foundation. Once the building is complete, the foundation is virtually unseen. The same goes for our financial strategies. Following are the basics of a strong financial foundation:
Budget – Governments and businesses use budgets to properly allocate resources. It’s known as good business. A budget can help you figure out where your hard earned income is going and to identify ways to cut spending or increase savings.
Recently, a client wanted to leave all their money to two charities through their Will. They wanted to leave a legacy to a few charities, and they didn't have any close family members.
Here is her situation: Age 80, $550,000 in savings (75% non-registered and TFSA), with income of $70,000 annually from pensions and RRIFs. She was also spending an additional $20,000 a year from savings to support her lifestyle.
