Financial Advisor

[Raf]

My FA has shown me just under a 10% return the last few years. I'm not complaining.

WHat's that mean Bill? 10% avg return/year or 10% return over the last 'few' years.

 

My self directed investments are at about the same clip last 3 years. 10% avg/year

 

It hasn't been all that difficult to post decent returns the last few years, it's when the times are really bad and your advisor can minimize losses or even eek out a win for you that he/she earns their pay.

Edited November 7, 2013 by Raf

[BillM]

WHat's that mean Bill? 10% avg return/year or 10% return over the last 'few' years.

 

My self directed investments are at about the same clip last 3 years. 10% avg/year

 

It hasn't been all that difficult to post decent returns the last few years, it's when the times are really bad and your advisor can minimize losses or even eek out a win for you that he/she earns their pay.

 

Just under a 10% return since the big crash in '08. Agreed on your last statement as well.

[crappieperchhunter]

 

It hasn't been all that difficult to post decent returns the last few years, it's when the times are really bad and your advisor can minimize losses or even eek out a win for you that he/she earns their pay.

Yep. Couldn't agree more.

[deermedo]

 

Just under a 10% return since the big crash in '08. Agreed on your last statement as well.

Bill ...... Name and contact info Pleeeaaaasssseeee!

I haven't made any more than 5%!

This guy must be special.

Thanks

[Garnet]

You sign a document when you see a FA. They will have a very fancy name to qualify you for risk.

 

This is a legal document and they can't put you in anything above the stated risk tolerances.

 

You likely signed for very low risk.

 

If this is the case 5% is doing very well.

[danc]

Just get a good union job that pays $1000.00 a month into a pension over and above your wage, and then spend every nickel that you make until you retire. And when you do retire, you'll have the same income for the rest of your life and you can keep on spending it. Works for me.

[Raf]

I'm tryin' Dan. LOL

 

definately the way to go if you can get in.

[dave524]

Just get a good union job that pays $1000.00 a month into a pension over and above your wage, and then spend every nickel that you make until you retire. And when you do retire, you'll have the same income for the rest of your life and you can keep on spending it. Works for me.

 

Unless you don't plan on living very long inflation will get you. Even with indexing it probably won't keep up.

[TennesseeGuy]

I'm not specifying an amount, but all I will say is I've quadrupled my initial investment from the beginning of the football season.

 

Amount of annual profit will show on your tax return. We might have a tax man lurking on this site.

[irishfield]

Yah but they won't get too concerned about $10 turning into $40 Connie!

[dave524]

 

Amount of annual profit will show on your tax return. We might have a tax man lurking on this site.

 

Not up here you can win 50 million in the lottery and it's all tax free

[Raf]

 

Not up here you can win 50 million in the lottery and it's all tax free

 

lottery winnings are tax free but capital gains, including those resulting from investments made as a result of those winnings, aren't. there are exemptions, such as gains held in a tfsa which do not get taxed.

[Old Ironmaker]

 

Unless you don't plan on living very long inflation will get you. Even with indexing it probably won't keep up.

 

How true, my monthly stipend sure looked mighty fine 13 years ago, today I always say a buck 60 will get you a coffee at Horton, the change is my pension I contributed to for 30 years.

[Tybo]

A smart man told me many years ago.Never think of your house as a investment and never use your house for investing.

[Garnet]

I wouldn't call that man smart. There are things you should be aware of. Most in his category make cases for never paying off your mortgage.

 

"Life Starts When the Mortgage Ends"

[danc]

 

Unless you don't plan on living very long inflation will get you. Even with indexing it probably won't keep up.

So what's your secret then? I have two work related pensions. One will be worth enough for me to live off when I retire in a couple of years. The other is a wide open investment which I can play with. Please tell what I've done wrong.

[Old Ironmaker]

So what's your secret then? I have two work related pensions. One will be worth enough for me to live off when I retire in a couple of years. The other is a wide open investment which I can play with. Please tell what I've done wrong.

 

So what's your secret then? I have two work related pensions. One will be worth enough for me to live off when I retire in a couple of years. The other is a wide open investment which I can play with. Please tell what I've done wrong.

 

"Unless you don't plan on living very long inflation will get you. Even with indexing it probably won't keep up"

 

 

 

Yes inflation will get you but the big secret and it's no secret at all is your lifestyle will change as you age.

 

Lets go back to 20 years ago. I'm 59 on a pension from the plant for 13 years, 25 and out deal.

 

Regularly went to ball games with the gang, any outing to Toronto or Buffalo was a minimum of $200.00, not including tickets, went to a few World Series games and went to the Superbowl many times when in Florida, don't even go to a Ti-Cat game now, been there done that.

 

Weekly the boys from work or the regular crew traditionally went out for drinks and dinner, $200.00 a pop, not including stopping at the bar for an hour a few more times a week, been there done that.

 

A few times a week for dinner and or lunches on dates, or with my now wife, done with that, would rather be on the deck at the lake BBQ ing. We do try to get out in the fall and winter at least once a week, maybe, not because of cost we'd rather be home.

 

Had a 4 bed, 3 bath home and the cottage we entertained at regularly, or every weekend at the lake, minimum $200.00 for a BBQ at the lake sometimes $500.00 for the weekend, same at home with overnight friends poolside, we are all the same age, we do get together but everyone wants to host now, everyone likes to stay close to home at our age. Been there done that.

 

Downsized from that McMansion, remodeled the cottage and moved in the year I retired. From 3800 ftsq to 1250 ftsq. Been there done that.

 

No mortgage, big difference not shelling out a grand plus big taxes, plus utilities for 3 bedrooms and 2 bathrooms no one used oh, and the finished lower level, all that empty space no one used but holidays and a few weekends a year.

 

When working drove a Benz, BMW and Cadillac , now it's Chevy, Ford, or Nissan. Had Armani in the closet, now it's Moores. Been there done that.

 

Boat and toys all purchased and paid for now, not 20 years ago.

 

Was a member at a Golf and Country Club and all the fees that go with it, now it's a semi-private course. I can shower at home as well as wait until we come back here for the 19th hole or at someone's place instead of staying for 3 hours for pop's and meet the wives for dinner at the club. $300.00 a month beverage fee, plus. We still stay for one or two and have a DD to support the course but the beers always better on the deck plus we have a better view of the lake.

 

Man I could go on and on, it's just getting a bit older and you just find yourself not spending as much. The quality of life retired isn't lesser because one can't afford it, it is just different and works out to be less costly than when working, it's just different needs and wants. It's mindset not net worth.

 

I give a simple analogy. When I was working up to 12 hours a day and on call the rest if I needed a new wheelbarrow I stopped at CTC and asked where the wheelbarrows were? Paid to have it assembled by the guy, went up to the cashier and then asked how much? Now I have the time to hunt around for a good deal, go out and pick one up on sale, have the time to put it together and the time to use it. When I was able bodied and working all those stupid hours I usually had a company do both places unless I was on vacation or had an extra 3 hours, yea right. Now I have time to do it and enjoy it usually. There's another few hundred a month. That's actually something I miss, having someone cut the grass. I still won't shovel or snowblow, if I have to go out and get a job to pay for it I will have a guy come here and do the snow.

 

You will be surprised, I took a very early pension. If I stayed 10 more years I would be dead by now. I haven't missed a meal and can say I honestly don't miss the money. I golf, fish, vacation (usually at home when my wifes off), enjoy myself a heck of a lot more at 50% of the wages I made. It would have worked out to only about 1% more per annum for every year I stayed past 27.5.

 

You just won't spend what you don't have and will be surprised at what you longer need that you thought you couldn't live without.

 

I watch the Super Bowl at home now with friends on the paid for big screen and surround sound, that is if you can pry those friends from their homes now.

 

As far as paying off a mortgage that's up for debate. I don't have any children as a legacy, my assets will go to my wife as well as 70% of my pension, if I life insure a line of credit I do like the idea of using cash paying 3% on a line of credit earning me a return of 12% or more in real estate. I knew a very successful business man that once owned an airline, we are talking big money here. He said if a business man doesn't go bankrupt at least twice I his life he wasn't doing very well? When asked to explain he said if I owe 10 million for fuel to Esso and I do, why shouldn't I pay them 10 cents on the dollar? Not every venture is a success, this is one, we do something else tomorrow. Didn't Trump declare bankruptcy once at least. So why pay off a mortgage? Basically not using that money to make more isn't a good plan.

Edited November 10, 2013 by Old Ironmaker

[dave524]

So what's your secret then? I have two work related pensions. One will be worth enough for me to live off when I retire in a couple of years. The other is a wide open investment which I can play with. Please tell what I've done wrong.

 

That is pretty much what I have done. I retired at 58 and have lived the last 5 years basically off the company pension. I also have a good sized RRSP that continues to grow until it is actually needed. Oh , started the Retirement Savings in my late 20's weekly deduction, bought the house in 84 when it was worth a 1/4 of what it is now. I had planned to be further ahead that what I am now. but I retired May 2008 , probably the worst month of the last 50 years to retire.

[Old Ironmaker]

That is pretty much what I have done. I retired at 58 and have lived the last 5 years basically off the company pension. I also have a good sized RRSP that continues to grow until it is actually needed. Oh , started the Retirement Savings in my late 20's weekly deduction, bought the house in 84 when it was worth a 1/4 of what it is now. I had planned to be further ahead that what I am now. but I retired May 2008 , probably the worst month of the last 50 years to retire.

Dave maybe not the best month to retire but any month you retire is a good one. Good for you. I did have a business up to 3 years ago, no one says because you have a business it makes you money, now it's my pension only, but my wife does work full time and is doing well at it. That really helps.

 

It's the first time my spouse earned more than me, I always looked at it the old fashioned way, man make money, wife cook and clean, sort of. I got used to this paradigm shift quickly. Your story sounds very familiar.

Edited November 10, 2013 by Old Ironmaker