Enough Bull E-Book

David Trahair

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 256

Veröffentlichungsjahr: 2015

Beschreibung

The one book your bank REALLY does not want you to read. More than ever before, Canadians are frightened and stressed out about their retirement and financial future. With the mortgage, car payments and credit card bills, there never seems to be enough to pay the current bills let alone save thousands in RRSPs. At the same time, the large financial institutions are bombarding us with fearful messages of destitution unless we maximize our RRSP contributions. The stock market crash of 2008 has proven one thing: traditional retirement planning advice simply doesn't work. The risks are too enormous. Throwing money into RRSPs and trusting the stock market is like gambling with your family's future. But how do you plan for retirement without risking everything? In Enough Bull, David Trahair explains: * How to invest only in 100% safe investments that will never decline * How to get out of mutual funds and the stock market - forever * The "Tax Turbo-Charged RRSP strategy" - why you should wait until you are over 50 to start your RRSP * Exactly what age to elect to receive the CPP pension * How to avoid the scams that lead to personal financial disaster Easy to understand and simple to apply, Enough Bull shows Canadians how to avoid all the traps and why doing the exact opposite of what they have been told will leave them much further ahead. www.enoughbull.ca

Leseprobe

Table of Contents

Title Page

Copyright Page

Acknowledgements

Introduction

THE FALL OF 2008

ANGRY YET?

WHY I WROTE THIS BOOK

YOUR RETIREMENT JOURNEY

PART ONE: - THE ANTIDOTE

THE ANTIDOTE: A SIX-POINT PLAN FOR FINANCIAL FREEDOM

Chapter 1 - AVOID PERSONAL FINANCIAL DISASTERS

THE PONZI SCHEME

OUR VERY OWN CANADIAN FRAUD

EXTRAORDINARY POPULAR DELUSIONS

OTHER POTENTIAL DISASTERS

HOW TO PREVENT PERSONAL FINANCIAL DISASTERS

CONCLUSION

Chapter 2 - YOU DON’T NEED THE STOCK MARKET OR MUTUAL FUNDS

THE WORLDWIDE ECONOMIC MELTDOWN

WHAT’S NEXT?

WHAT CAUSED THE MELTDOWN

THE VICIOUS SPIRAL

WHO WANTS TO BE RICH?

WHY YOU DON’T NEED STOCKS

WHY YOU DON’T NEED MUTUAL FUNDS

MUTUAL FUND RISKS

THOSE DARNED MUTUAL FUND FEES!

THE PUKE POINT

HOW TO GET RID OF YOUR “DOG” FUNDS

A WORD ABOUT LABOUR-SPONSORED INVESTMENT FUNDS

WE WON’T GET SCREWED AGAIN

THE ADVANTAGES OF GICs

HOW AND WHY THEY BASH GICs

THE LADDERED GIC

GETTING THE BEST GIC RATES

CONSIDER A DEPOSIT BROKER

WHO REGULATES DEPOSIT BROKERS?

FISCAL AGENTS

GIC RATES OF THE FUTURE

Chapter 3 - BUY A HOME AND PAY OFF THE MORTAGE OFF THE MORTGAGE

YA GOTTA LIVE SOMEWHERE

GAINS IN VALUE ARE TAX-FREE

SOURCE OF CASH

GREAT SOURCE OF RETIREMENT FUNDS

SHOULD I BUY A HOUSE?

CAN I AFFORD A HOUSE?

JUST HOW MUCH HOUSE CAN I AFFORD?

SAVING FOR THE DOWN PAYMENT

PRE-APPROVED MORTGAGES

WHAT IF I DON’T QUALIFY?

YOUR HOME AS AN INVESTMENT

“THE BEST INVESTMENT I EVER MADE”

CONCLUSION

Chapter 4 - REDUCING EXPENSES DOESN’T HAVE TO BE PAINFUL

REDUCING INTEREST

THE SPENDING YEARS

REDUCING TAXES

CONCLUSION

Chapter 5 - FORGET RRSPs UNTIL YOUR DEBT IS PAID OFF (THE OPPORTUNITY ZONE )

PRETEND THAT THE STOCK MARKET DOES NOT EXIST

THE RRSP FALLACY

THE TAX TURBO-CHARGED RRSP

DO YOU TRUST THE STOCK MARKET?

CONCLUSION

Chapter 6 - YOU MAY NOT NEED AN INVESTMENT ADVISOR

MY STORY

WHAT TO LOOK FOR IN AN INVESTMENT ADVISOR

DO YOU HAVE A LOUSY ADVISOR?

NO ADVISOR IS BETTER THAN A BAD ONE

HENRY’S STORY

CONCLUSION

PART TWO - THE DETAILS

Chapter 7 - THE CANADA PENSION PLAN QUESTION

WHAT IS THE CANADA PENSION PLAN?

HOW THEY CALCULATE CPP PREMIUMS

HOW THEY CALCULATE THE CPP PENSION

HOW THE CPP ADJUSTS FOR INFLATION: THE YMPE

YOU MUST APPLY TO START RECEIVING IT

MY SERVICE CANADA ACCOUNT

HOW DO I KNOW HOW MUCH I’LL GET?

MONEY-SAVING TIP: CPP PENSIONS

WHEN SHOULD I ELECT TO RECEIVE CPP?

THE TIME VALUE OF MONEY

STARTING THE CPP PENSION BEFORE SIXTY-FIVE

MONEY-SAVING TIP: SELF-EMPLOYMENT INCOME

MONEY-SAVING TIP: EMPLOYEES

WARNINGS

CONCLUSION

Chapter 8 - THE MONEY MAXIMIZER

WHY WORK AGAINST THE TAXMAN?

THE VALUE OF TIME

THE TIME VALUE OF MONEY

THE MONEY MAXIMIZER SPREADSHEET

MEET PAT AND JANE

CONCLUSION

Chapter 9 - HOW TO RECOVER FROM THE STOCK MARKET CRASH

THE DEVASTATING EFFECT OF THE CRASH

ARE YOU GOING TO THROW GOOD MONEY AFTER BAD?

YOU CAN STILL RETIRE WELL

CONCLUSION

Chapter 10 - THE ALTERNATIVES: CAN ANYTHING BEAT AN RRSP?

A COMMON MISCONCEPTION

ALTERNATIVES TO RRSPs

INVESTING OUTSIDE VERSUS INSIDE AN RRSP

INVESTING IN REAL ESTATE

INVESTING IN YOUR OWN BUSINESS

INVESTING IN A TAX-FREE SAVINGS ACCOUNT

KEEPING PROFITS IN A CORPORATION

CONCLUSION

Chapter 11 - THE ANTIDOTE SUMMARY

1.AVOID PERSONAL FINANCIAL DISASTERS

2.YOU DON’T NEED THE STOCK MARKET OR MUTUAL FUNDS

3.BUY A HOME AND PAY OFF THE MORTGAGE

4.REDUCING EXPENSES DOESN’T HAVE TO BE PAINFUL

5.FORGET RRSPs UNTIL YOUR DEBT IS PAID OFF (THE OPPORTUNITY ZONE)

6.ASK YOURSELF IF YOU REALLY NEED AN INVESTMENT ADVISOR

INDEX

Copyright © 2009 by David Trahair, CA

Care has been taken to trace ownership of copyright material contained in this book. The publisher will gladly receive any information that will enable them to rectify any reference or credit line in subsequent editions.

Library and Archives Canada Cataloguing in Publication

Trahair, David

Enough bull : how to retire well without the stock market, mutual funds, or even an investment advisor / David Trahair.

eISBN : 978-0-470-67575-5

1. Retirement income—Planning. 2. Finance, Personal. I. Title.

HG179.T72 2009

332.024’014

C2009-902565-5

Production Credits

Interior Design: Adrian So

Typesetter: Thomson Digital

Printer: Friesens

Editorial Credits

Executive Editor: Karen Milner

Project Coordinator: Pauline Ricablanca

John Wiley & Sons Canada, Ltd. 6045 Freemont Blvd.

Mississauga, Ontario

L5R 4J3

FP

ACKNOWLEDGEMENTS

I’d like to start off by thanking the two people that are responsible for the creation of this book. Those people are my literary agent, Hilary McMahon of Westwood Creative Artists, and Karen Milner of John Wiley & Sons Canada, Ltd., my publisher. If not for Hilary’s belief in the idea and Karen’s enthusiasm for seeing it get into print, you wouldn’t be holding it right now.

I’d like to dedicate it to two other significant people in my life. First, to my mom, Florence Trahair, who passed away in 2008 at age eighty-two. She was always my biggest supporter. I felt her presence as I wrote this book. And second, to my father-in-law, Jack Baxter, who passed away in 2006 at age sixty-eight. Jack was one of my best buddies. He taught me how to enjoy life. I know he enjoyed each and every day of his.

INTRODUCTION

We have just lived through a period of time that shifted the financial world on its axis. The old rules regarding personal finance are now history, as in obsolete.

This happened in the last quarter, the autumn, of 2008. Let’s call it “The Fall of 2008.”

THE FALL OF 2008

During this period, decades-old financial institutions simply disappeared. World stock markets tanked. Entire investment portfolios were devastated. Retirement dreams were wiped out. And it’s probably not going to get better soon.

What this series of events has done is show quite clearly the naked truth: traditional financial planning techniques don’t work. In fact, if we had done the opposite of what the “experts” have told us to do to get ahead financially, we would be far better off today. Here are some of the past theories and the new reality:

• Trust the stock market to make us wealthy? Never again.

• Pay our investment advisor a fee of more than 2% a year to try to beat the market? I don’t think so.