Sitcom InvestingWritten by Kemberly Wardlaw
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Finally, there's "Use Asset Allocation." The missing part: "because I cannot tell you which asset historically does better in this particular market environment." There are many ways to accomplish diversification in your portfolio and it does not always have to revolve around division of stocks, bonds, and cash. Depending on your particular objectives, time horizons, and risks, an appropriate allocation may be derived from use of just one type of asset. Either way, there are no guarantees when you place your money in stock market and it is best to remind yourself of risks of each investment. Try including real estate, collectibles and insurance products in your general financial plan. We can all watch appearance investment gurus make on financial shows. Perhaps we can include light-hearted follow-up statements as if we were watching a Rocky Horror film. We often enjoy amusement provided by television personalities, however, it is important to review your investments regularly. Always examine your motive behind each buy and sell. In actuality, your financial future is no laughing matter and should be guided with thorough commentary. Television shows come and go; your finances may one day be a legacy.
Wardlaw's belief is that familiar life elements best illustrate practical investment strategies; not typical investment jargon. With that philosophy, the author assists financial planners/advisors, brokerage firms, periodicals, and other investment information syndicates create informative and entertaining articles. For comments and questions, please contact the author at tools2invest@yahoo.com
| | CAN I AFFORD TO RETIRE?Written by Peter F. Baigent CFP, CLU, CHFC, RFP
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unacceptable to you or vice versa. Many of our clients have down sized their housing in recent years to take advantage of high real estate values. They have moved to townhouses or further away to some of outlying suburban areas. As a result, they have come to us with difference, to invest it in an income producing portfolio. Although this may appear as an ideal solution to some, it is not for everyone. Some want to stay in their present neighbourhood, because of friends, family or health facilities. They see others as moving to wither away in wilderness. There is no doubt that you can buy two, three or more houses in smaller centers for price of one city house. If that fits your plans, it is a great way to be able to retire early. So, once you have decided how much gross, pre tax income you need to live on in today's dollars, we then need to know if you intend to use your investment portfolio for your retirement income or do you wish to leave capital intact for your beneficiaries. Many parents decide that children will inherit home and all of their personal effects, but they regard their investments as their pension plan and want to retire as soon as they can and will use capital as well, to supplement their income and to protect against inflation. With those two pieces of information and amount of existing investment portfolio, it becomes just a mathematical calculation to tell you how soon you can retire. With a little bit of advance planning it is often easy to achieve early retirement. It doesn't happen on its own, but nothing is impossible if you want it badly enough.Copyright 2004 – www.money-software.com
Peter F. Baigent CFP, CLU, CHFC, RFP. is a Past President of the Canadian Association of Financial Planners for British Columbia, a former Director of the Canadian Association of Financial Planners. He has spoken across Canada on financial planning matters and has taught courses for the Chartered Financial Consultants & Certified Financial Planners degrees. He is the founder of Money Minders Software which produces financial planning software.
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