Investing Returns Pave The Way To Financial Independence

  KNOW WHAT YOU WANT NOW SO YOU CAN PLAN FOR THE FUTURE   Reaching financial independence, the point where your investments cover your lifestyle and then some, is the ultimate goal if you want to retire comfortably. And in a perfect world, you would like that to happen sooner rather than later. I have good news for you today: it is absolutely feasible if you put in the right amount of effort and dedication. Yes, even on a small budget. Take a look at the CBB household for instance. They’re worth over $800,000 and on track to pass the million dollar mark by this time next year. And as a faithful reader, you know Mr.CBB is just your regular guy, who started a bit above minimum wage 8 years ago. He has worked two jobs for years and carefully budgeting every cent to make sure his family is safe financially. Related: 5 Simple Rules We live By To Stay Debt Free There you have two of the three steps to financial independence: earning as much as you can, and spending as little as you can. The third part is where you can actually accelerate the process quite a bit: […]

How To Ditch Your Pricey Mutual Funds

By: Mark Seed (If you’d like to contribute to CBB please contact me.)   GET PERSONAL WITH YOUR INVESTMENTS SO YOU KNOW EVERYTHING   Over the last few months, I’ve received a few emails from readers that go like this… I’ve been with my investment company for over 10 years now. I’d like to stay with them because I like them but I keep hearing that high fund fees are bad for your portfolio. Is that true?  Should I switch? If so to what? I like your blog a lot and I’m envious about how you managed to get out of your high-cost mutual funds into low-cost Exchange Traded Funds and some stock investing. Where do I start? What should I think about?  Readers, I sense your frustration.  I’ve been there so I know how you feel.  I feel my biggest investing mistake to date was investing in pricey mutual funds for far too long. Insanity: doing the same thing over and over and expecting different results – Albert Einstein. Today’s post will share my background in investing, why pricey mutual funds will hurt your portfolio and what you can do about it.   My background and mutual funds 101   […]

This Simple Living Concept Allows Us To Save Thousands

MOTIVATE YOUR FINANCIAL VENTURES BY MOVING FORWARD   Simple living doesn’t mean that you can’t enjoy all the frosting that life has to offer in order to live a better today for an amazing tomorrow. You can! Just about everything we do today will in part affect the outcome of our financial future and some people worry about whether they have done enough to get them to the finish line. I’ve blogged for a few years now and ever since the beginning there has been one simple living concept that I have encompassed our entire financial path around because it works, a budget. The concept of budgeting for us revolves around this saying which I created years ago which is also pasted on our refrigerator door. It’s not about how much money you make it’s how you save it – Mr.CBB I received an email from a reader who is looking for some insight about investing and her financial future and motivation about not finding this blog earlier. Dear Mr. CBB, About 9 yrs ago I moved from Europe to Canada. It was always a big dream for me to live abroad and when I turned 30 I realized my […]

Is It Better To Buy Life Insurance or Fund Your Retirement?

WHICH CHOICE IS BEST FOR YOUR SITUATION?   There is only so much money to go around right? We all have things competing for our hard-earned dollars. Often we have debt, medical expenses, food, shelter, kids, and a hundred other things that all require some amount of money to keep them afloat. But when it comes to protecting yourself by buying life insurance or funding a retirement that is 30 years away, the decision on which is choice makes more financial sense deserves some deeper thought.   Buy Life Insurance Or Invest For Your Future?   If you have kids, a spouse, a mortgage, or other financial commitments you need to ensure that money is available in the event that you unexpectedly die. Where would this come from? Well, a life insurance policy is the best choice if you are under the age of 50 and don’t have liquid money to cover your debts and care for your loved ones. Perhaps the best way to consider the need for life insurance is actually based on your age. For this reason we will go through some typical stages of life, and determine what if any, life insurance should be purchased. You […]

Saving for retirement on a lower-income

EVERY DOLLAR COUNTS   Let’s face it, saving for retirement is tough work. I mean, the concept is not difficult for us to wrap our heads around but finding the money, putting it away consistently and not spending it is challenging stuff. I suspect this is the case because money is an emotional subject and it’s easy to become attached to it; we work hard for it and want to reward ourselves with it. Saving for retirement takes discipline. When you’re not relying on paycheque to paycheque for living expenses, saving some money should be easy enough. You also have options on where to put your money for retirement, into Registered Retirement Savings Plans (RRSPs), real estate properties, Tax-Free Savings Accounts (TFSAs), non-registered brokerage accounts and more. High-income earners are often advised to contribute to their RRSPs in their highest-income earning years, and rightly so. This RRSP account is optimized when you contribute money when your income taxes are the highest, so monies can be withdrawn in the future when you’re in the lowest (or lower) income tax bracket, presumably in retirement. Low-income earners probably shouldn’t follow this advice, and they probably need different financial advice altogether. Today’s post will […]

To Take Or Not Take Early CPP

CANADA PENSION PLAN DILEMMA   My husband just turned 62 and we’ve been in a quandary about whether he should take his Canadian Pension Plan (CPP) early (before 65) with penalty or not. We’re both still working and plan to be for the next 4 years while we pay off a whack of debt. Because of penalties introduced in 2012, the amount you receive by taking your CPP early is less than before this legislation was introduced. Let me try to walk through the peculiarities of our situation and how we reached our final decision.   The CPP Rules   While I can’t walk you through all the rules, I will highlight the key ones or ones that were relevant for us but refer you to the CPP website which is actually pretty clear.  I just want to point out that the Quebec Pension Plan (QPP) has a different set of rules, up front. Normally CPP was collected at 65, with penalties and premiums if you elected to take it anytime from age 60 to 65, or from age 65 to 70. Contrary to popular belief, with the new rules introduced in 2012, the age for CPP has not changed […]