The first speaker I heard on Saturday was Doug Nelson talking about planning your retirement and withdrawals from your RRSPs. He first starts out to ask; what is the answer to having enough money in Retirement is. Perhaps you can delay your retirement date. Maybe you can work part-time in retirement. You could invest more money into your plan. You could take more risk with your retirement funds. You could reduce your expenses. Perhaps you could start a small business to fund some of your retirement requirements. Maybe you could draw less income from your investments.
Doug goes on to give the following steps. Step 1: Do a Retirement Plan. You should define what you want in retirement. You need to define your overall plan. Step 2: You need to define your "after tax" monthly and annual income needs. Step 3: You need to differentiate between your basic income needs and your lifestyle wants. Think about having part of your money in an annuity to cover basic living costs. Step 4: Look at tax efficiency. You will have to deal with clawbacks and tax credits and also with income taxes. Step 5: You need to design a portfolio to meet your income needs in an efficient manner. You need to match annual expenses and annual income. Step 6: You need to compare an investment portfolio with 100% guaranteed solution. Step 7: You need to compare any investment portfolio with your personal risk profile. See we all go to www.myrisktolerance.com and assess our risk level. Step 8: Select investments that meet your income needs, your tax efficiency goals and your risk profile.
Doug recommended we go to www.knowledgebureau.com. I looked at this site and perhaps you might be interested in the free webcasts. He feels we all need a “Master Plan” for retirement. He also feels that a lot of us need to look at annuities to provide some of your retirement income.
The next people I heard from were “The Market Guys” and their talk was on options. They have their own web site at www.themarketguys.com. The next speaker was Jim Ruta on “How to Build an Expert Financial Team”. He basically says that we need to have a number of advisers such as a Financial Planner, an Investment Advisor, a Life Insurance Agent, a Financial Advisor and a Mutual Fund Representative. There is not one person that can cover all our financial needs. However, one of these advisors can plan the role of team leader.
The next speaker I heard was Ken Norquay of Castlemoore Inc. They have a website at www.castlemoore.com. This site has some free newsletters and multimedia stuff. Basically, he said we are in a cyclical bear market. No one knows when it will be over. We have been in cyclical bear markets before. These past cyclical bear markets were in the years of 1906-1916, 1929 to 1942m 1966 to 1982 and currently since 2000. He says how you invest in cyclical bear markets is to buy and sell. Buy at bottoms and sell at tops. When we go into the next cyclical bull market, which occur between cyclical bear markets, how you invest is to buy and hold. If you have read anything about bear and bull markets, you will find that people define the dates of bull and bear markets differently. The above is just the opinion of Ken Norquary.
The last speaker I heard was Kurt Rosentreter, who has a website at www.kurtismycfo.com. He produces a number of newsletters. He says some interesting things. The first thing is that you should divide your expenses into 4 categories. They are core fixed, core variable (ones you can control the costs somewhat), discretionary (like dinner at restaurant), and luxury (like a good expensive car). He thinks that we should avoid condos as retirement homes (as there is big correction in price coming). He thinks that we should not put too much of our wealth into non-income producing property. He says that the stock market will correct every five years, approximately, and we should prepare for that. He finishes with the statement, I am sure you have hear before, that you should never, ever, buy anything you do not understand.
I talked to some people at this forum. When I told people that my dividend income went up this year, they were shocked. Tomorrow I will put up a spreadsheet on this subject.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
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