• What’s the finish line? It’s retirement and some of us will reach that milestone and some of us won’t. Why? – simply it’s because we either lack a plan for it or we are leaving it up to somebody else to plan for it and either way you are going to lose!

    Lacking a plan or even if you have one, putting all of your eggs in one basket is a recipe for failure. Say you have a RRSP but all of those funds are in mutual funds or ETF’s. They are dependent on the stock market, which equals volatility.

    Then there are those, who use a financial advisor (no disrespect) but in many cases they are getting richer than you, simply because of the structure of the funds and the MER’s – management expense ratios. Even with a MER of less than 1% – if your funds are only making 1-4%, you are in a negative position, when you take into account inflation, which is less than 2% at this time.

    I’m not saying that investing in the stock market is wrong, but if you learn how to do it yourself and be a self-directed investor, you will certainly make more in the long run and learn a hell of a lot, while doing it – I know I did!

    Let’s look at investing in real estate. Same as above you don’t want to put all of your money in one basket, so the key in real estate is diversification. How do you reach the finish line in real estate investing? You pick a stream that is going to work with your lifestyle and your end goal, whether it is having some extra cash flow each month, retiring from your J.O.B. or even teaching others how to do it.

    The key for me is to have diversification. 1 or 2 single family properties, a multi-family or two and then letting my funds grow in a secured investment, such as a syndicated mortgage with an annual return of 8% and no landlord headaches.

    Do you have a plan to reach your finish line? Is it working for you? Do you need a new plan?

    Reach out – I would love to help you reach your retirement goals and I hope to see you at the finish line!