Embracing a minimalist life has a lot of benefits. Since
the beginning of the year, I have adopted this approach to living my life. The
following are the positive things I have seen:
Financial Independence 55 (Fi55)
A Certified Financial Planner (CFP®) living in Canada who is looking forward to sharing my retirement planning experience and topics of interests such as health, fitness and food!
Wednesday, 18 October 2017
Wednesday, 27 September 2017
In Search of Bond Yields and Safe Haven
In my previous post, I discussed the role of Bonds in mitigating risk in your investment portfolio. In the era of low interest rates, purchasing a Canada 10-year government bond yielding 2.1% is not going to generate the necessary income to survive unless you have several million dollars to invest. Corporate bonds probably pays 1% or more than government bonds. I then search for other countries government bonds to see what they yield.
Thursday, 21 September 2017
Interest Rates and the role of Bonds/Fixed Income in your portfolio
With global interest rates beginning to rise due to central
bank unwinding their balance sheet and low interest rates policies, this is
indeed positive news for retirees, prospective retirees or investors seeking a safe
haven from the volatility in investing in equities. Mind you, I think we are
still in the early stages of a rising interest rate environment. Based on
historical evidence, equities will continue to do well in the initial stages of
rising interest rates (due to indication of economic growth).
Sunday, 10 September 2017
How to identify the FI in you?
How do you know that you are not already a Financial Independence Retire Early)(FIRE) or aspire to be one? If you answer "YES" to most of the following questions based on my observations and my personal traits, then I congratulate you for joining the bandwagon.
Tuesday, 5 September 2017
Retirement Planning beyond just Investment
As a practicing Certified Financial Planner (CFP®), I always
advise my clients to look at retirement planning on beyond just the numbers. I
can always input different assumptions, i.e. return on investments, allocation
between equity and fixed income, longevity and inflation rate to arrive at the
desired outcome. Since these are just assumptions used to project outcome for
25 years or more, there could be adverse deviations that could drastically impact
the final outcome. A significant and prolonged market correction, and we are
certainly due for one, can significantly lower the investment balances.
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