Invited by a former ag retailer and farmer to conduct an investing workshop, I was once again surprised by how few had heard of the “Rule of 72.” While working through this simple formula someone asked, “Why don’t they teach this in school?”
Tag Archives Tax-Free Savings Account
The ‘Rule of 72’: Why don’t they teach this in school?
Investing for Fun & Profit: A couple of important but simple math exercises for those new to investing
Limited income, large hanging debt, retirement plan in jeopardy
Farm Financial Planner: What a couple in their early 70s needs to do to retire
A couple we’ll call Frank, 72, and his wife Helen, 71, live on a farm in southwestern Manitoba. They have 486 acres with mixed grains and cattle. Their present income — Frank’s Canada Pension Plan payments of $3,680 per year, Helen’s CPP benefit of $2,400 per year, two Old Age Security payments totaling $17,000 per year, […] Read more
The much-maligned RRSP
RRSP’s have a bad reputation lately, but for many investors, they’re a good option
By the time you read this the 2018 Registered Retirement Savings Plan (RRSP) deadline will have come and gone. However, I suspect most readers will have contribution room available, which can be found on your annual income tax “Notice of Assessment.” Many Canadians have tossed the RRSP into the trash bin, favouring the TFSA. I […] Read more
A dynamic investment trio: TFSA, Stocks, the ‘Rule of 72’
Use the three parts of this trio to build your own self-sustaining retirement program
The TFSA program is beneficial to all, but is especially beneficial to the younger generation who have an unprecedented ability to use its tax-free compounding potential for many years. Let’s look at how the TFSA can be combined with stock investments, compounding through the “Rule of 72,” to build a self-sustaining retirement program. Stocks are […] Read more
Farm Financial Planner: Selling the farm for cash to live on
For a widow needing to raise cash, a charitable donation could hold down taxes
A central Manitoba widow we’ll call Edna, 67, has a 320-acre farm she is no longer able to run. She thinks she can get $800,000 for the property. It’s clear of loans and any liens, so the sale should be quick and clean. Edna needs to raise her income. At present she has only $2,090 […] Read more
Where in the world should we invest?
Time to get down to the details and choose the stocks for your TFSA portfolio
With the groundwork for international diversification laid in my previous column, let’s now complete “construction” of a prospective TFSA portfolio begun on March 27. This prospective portfolio would be suitable for an account of $15,000 to $57,500, the current maximum TFSA contribution if you hadn’t made a previous contribution, and you were 18 years of […] Read more
How do we start building, secretively?
Get started soon, with a small portfolio, to build financial returns for your future
Have you kept our secret? You know, our secret about building wealth over time in the stock market. The secret that it’s about buying common shares in solid companies, and holding them for a long time. The longer we can keep this secret the more time we will have to build our portfolios, before others catch on. But […] Read more
Shh… don’t tell anybody. It’s our secret
Using a Tax Free Savings Account to build your off-farm investment portfolio
Of the three main tax-advantaged programs: Registered Retirement Savings Plans (RRSPs), Registered Education Savings Plans (RESPs) and Tax-Free Savings Accounts, TFSAs are quickly becoming the investment program of choice for Canadians. Personally I have taken full advantage of all three programs, because it’s hard to beat investment returns inside a tax-free program. The simplicity and flexibility of […] Read more
Farm Financial Planner: Income issues block couple’s retirement
Working, good investments and selling the land, will fund this couple’s retirement
In south central Manitoba, a farming couple we’ll call Jorg, 59, and his wife, who we’ll call Carole, 57, want to retire. Their 480-acre mixed cattle and grain operation has not been very profitable for many years. To keep the farm going, they have had off-farm jobs, diverting their income to the operation. Now, nearing […] Read more
Farm Financial Planner: Planning a less taxing retirement
Herb and Martha are working on a plan to retire while their son takes over the farm
In central Manitoba, a couple we’ll call Herb, 54, and Martha, 52, have farmed for 25 years. The farm is in a partnership with Herb’s brother, who we’ll call Larry. Each brother has an interest in the partnership through his own holding company. The main operating entity is the partnership that does the actual farming […] Read more
Cyber-Savvy Farmer
