{"id":345,"date":"2015-08-05T14:48:26","date_gmt":"2015-08-05T21:48:26","guid":{"rendered":"https:\/\/chaltenadvisors.com\/blog\/?p=345"},"modified":"2015-08-05T14:48:26","modified_gmt":"2015-08-05T21:48:26","slug":"start-with-why","status":"publish","type":"post","link":"https:\/\/chaltenadvisors.ca\/blog\/start-with-why\/","title":{"rendered":"Start with Why"},"content":{"rendered":"

\"Mint<\/a><\/p>\n

No matter how you feel about investing – whether you think it’s fun, a chore or you are totally indifferent – you can’t neglect it. \u00a0It’s important for the financial well being of your family, to fund your children’s education, and of course to secure your future and restful retirement! \u00a0Getting the “Where”, “What”, \u00a0“How” and “Who” right, things like\u00a0the most appropriate accounts to house your investments, the right mix of the different types of assets\u00a0and how and\u00a0who to implement your investment plan, are really important decisions. \u00a0But the “Why” is most important.<\/p>\n

Unless you can tie your financial situation and investment plan to goals that are meaningful to you it is unlikely you’ll care, and therefore unlikely you’ll stay on track, rendering useless all the work you put into the where, what, how and who! \u00a0So the “why” is that it will help you achieve what you desire in life.<\/p>\n

And why take the time to do it properly? \u00a0If you do it properly, you’ll probably stay out of trouble. \u00a0With investing, we’ve seen trouble manifest itself in some fairly tangible ways – high and hidden fees, poor diversification, inappropriate investments for your risk profile, under-utilization of tax-efficient accounts, conflict of interest between you and those who want to sell you financial products and, perhaps most importantly, your own behaviour. \u00a0All of these can mean trouble to you as an investor and trouble can knock one, two, three percent or more off your annual investment returns and that can be the difference between achieving\u00a0what you desire in life and not. \u00a0It could be the difference between retiring when you’re fifty-five or sixty-fine, between travelling the world in your retirement or staying home and pinching pennies. \u00a0It could mean hundreds of thousands of dollars!<\/p>\n

We like to make this a bit more tangible by\u00a0using a hypothetical\u00a0TFSA\u00a0account as an illustration. \u00a0If you are forty\u00a0years old and you and your spouse have decided to start contributing to a Tax Free Savings Account (TFSA), you would have built up $41,000 each of available contribution room through 2015. Let’s assume you’ll stay disciplined and continue to invest\u00a0the new maximum annual contribution of $10,000 each. \u00a0Assuming annual investment returns of 7%, twenty\u00a0years down the line at age sixty\u00a0you’ll have more than $1.1 million (that’s tax-free by the way). \u00a0If you could carry on\u00a0until seventy\u00a0you’ll have more than $2.5 million (tax-free). \u00a0Compounding is a blessing. \u00a0On the other hand, if trouble gets in the way and knocks 2% off your annual investment returns you’ll have more than $250,000\u00a0less\u00a0<\/em>by the time you’re sixty\u00a0or more than $800,000 \u00a0less<\/em> by the time you’re seventy. \u00a0This is the why! \u00a0These are significant amounts of money.<\/p>\n

To give yourself the best chance of achieving what you desire in life, take time up front to understand your own Why\u00a0and then do your best to stay out of trouble.<\/p>\n","protected":false},"excerpt":{"rendered":"

No matter how you feel about investing – whether you think it’s fun, a chore or you are totally indifferent – you can’t neglect it. \u00a0It’s important for the financial well being of your family, to fund your children’s education, and of course to secure your future and restful retirement! \u00a0Getting the “Where”, “What”, \u00a0“How” […]<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,19,7],"tags":[],"class_list":["post-345","post","type-post","status-publish","format-standard","hentry","category-all-posts","category-financial-planning","category-graham-bodel-posts"],"_links":{"self":[{"href":"https:\/\/chaltenadvisors.ca\/blog\/wp-json\/wp\/v2\/posts\/345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chaltenadvisors.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chaltenadvisors.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chaltenadvisors.ca\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/chaltenadvisors.ca\/blog\/wp-json\/wp\/v2\/comments?post=345"}],"version-history":[{"count":2,"href":"https:\/\/chaltenadvisors.ca\/blog\/wp-json\/wp\/v2\/posts\/345\/revisions"}],"predecessor-version":[{"id":348,"href":"https:\/\/chaltenadvisors.ca\/blog\/wp-json\/wp\/v2\/posts\/345\/revisions\/348"}],"wp:attachment":[{"href":"https:\/\/chaltenadvisors.ca\/blog\/wp-json\/wp\/v2\/media?parent=345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chaltenadvisors.ca\/blog\/wp-json\/wp\/v2\/categories?post=345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chaltenadvisors.ca\/blog\/wp-json\/wp\/v2\/tags?post=345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}