Compile your vital money facts for 2018
Adrian Mastracci, Senior Portfolio Manager at Lycos Asset Management
There are prominent money facts investors ought to know and understand. I highlight some key ones for 2018. Having those money facts readily at your fingertips is a vital step. Investors will make better decisions with this bevy of information.
Today, I focus on simple facts that apply to most investors. The goal is to be knowledgeable of the top money facts that apply to each spouse or partner. Pay close attention to items on the roster yet to be dealt with, say a TFSA. It helps the planning process to ease them into the discussion.
Here are the vital money facts you should compile:
| Vital Money Facts for 2018 | Your Replies | |
|---|---|---|
| Estimate the capital sum that funds your retirement | $ | |
| Long-term portfolio return to reach your retirement | % | |
| Ballpark family saving capacity requirements | $ | Yr |
| Target asset mix in stocks and bonds/cash | Stocks:
Bonds/Cash: |
%
% |
| Number of different investment selections owned | ||
| RRSP room for you and your spouse | Self: $
Spouse: $ |
|
| TFSA room for you and your spouse | Self: $
Spouse: $ |
|
| RESP deposit for each child/grandchild | $ | |
| Marginal tax rate for you and your spouse | Self:
Spouse: |
%
% |
It is a flexible approach that helps manage the finances. For example, financial independence can be substituted for retirement. You can review the answers and implications of each fact vis-à-vis the needs and time horizons. Then expand your reach as your family finances may require.
Ask yourself what needs a tweak versus a complete rethink. The more key personal facts you deal with, the better your game plan. If you’re unsure about some of the figures, seek professional help. Treat them as core facts that guide your wealth strategies over the long run.
One good time to start is when you receive the notice of assessment for the tax filing.
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