Читать книгу Enough Bull - Trahair David - Страница 6

The Antidote is a simple plan. It’ll only take you a few minutes to read the six-point synopsis below.

But here is the best thing about it: You don’t need to follow it in order. You don’t even need to religiously follow each one of the six points. The fact of the matter is that if you stick to just one of the points, you’ll probably make a significant improvement in your personal finances.

Follow it all and you can rest easy knowing that your retirement nest egg will never decline, even if your bank goes out of business.

Here it is.

1. Avoid Personal Financial Disasters

● Never touch anything that cannot be simply explained to you in plain English.

● Don’t invest in anything that is not guaranteed by the government.

● Never borrow to invest.

● Avoid complicated investment schemes. If it sounds too good to be true, it is.

2. You Don’t Need the Stock Market or Mutual Funds

● The truth is that you don’t need to risk your hard-earned money in the stock market and you don’t need mutual funds.

● You can use 100 % government-guaranteed investment certificates to achieve your goals without the risk of losing your shirt.

● If you want to take a chance, buy a lottery ticket.

3. Buy a Home and Pay Off the Mortgage

● Decide if you can afford a house and, if you can, buy one.

● Do the calculation of how many years it will take to pay off the mortgage and do it before you retire.

● Never risk your home for any kind of investment idea, no matter what.

4. Reducing Expenses doesn’t have to be Painful

● Focus on two of your biggest expenses – income taxes and interest on your debt.

● Pay to have your family’s personal income tax returns prepared by a qualified expert.

● Pay extra to have that expert analyze your family situation to minimize your tax bill by income splitting, etc.

● Find out what your credit rating is and improve it.

● Get at least three quotes on any debt that you get into.

5. Forget RRSPs Until Your Debt is Paid Off (the Opportunity Zone)

● Do not even think about saving for retirement until you have paid off student loans and bought a home.

● Pay off the mortgage before investing another dime in an RRSP.

● Never borrow to invest in an RRSP.

6. Ask Yourself if You Really Need an Investment Advisor

● If you’ve got a bad one, find a good one.

● If you can’t find a good one, simplify your finances so you don’t need one at all.