Get turbo charged
Patricia Lovett-Reid, Senior VP with TD Waterhouse, says work smarter, not harder as you prepare for retirement. Patricia, a published author and host of ROB TV's Money Talks, says the fastest growing population segment is people over 85 years of age. Today there are only 150,000 people over age 100. By 2050 there will be $2.2 million.
Her advice is to build a boring portfolio. Consider your attitude is more important than your intelligence; your investments cannot be left to chance; your potential is unlimited -- provided you let it loose and your time is precious.
Step one is to pump up your attitude, visualize the outcome and visualize your retirement. "If you learn how to effectively picture yourself in retirement doing the things you really want to do and blocking out negative or distracting thoughts, then it will happen"
Step two is pump up your investment. The four keys to successful investing include risk, return, time and costs. "The purpose of asset allocation is to help you find and construct an investment portfolio that minimizes risk and maximizes return through optimal diversification among three key asset classes. (stocks/ bonds/ cash)"
Patricia's top ten tax savers include:
"Buy and hold" to defer taxes for a lifetime
Maximize your RRSP contributions
Split your income with family members
Invest in your home
Dividends - your secret weapon
Borrow to invest
Maximize your RESP contributions
Maximize tax deductions
Maximize employee benefits
Employ yourself, part or full time
Step three is to Pump up your retirement.
"Think it." by adjusting your attitude, setting realistic goals and start with a simple, achievable plan. "Relax; then visualize your financial future. Block out your negative inner voice ."
"Do it." by using asset allocation to minimize risk, maximize return. Diversify into quality, low-cost funds and investments. "Stick to the plan, blend your income in retirement. Fulfill your potential."