Financial resolutions that will set you ahead in the coming twelve months
1.) Delete one present for your young kids, grandkids, nieces or nephews this holiday and substitute an RESP contribution.
2.) Use your tax refund to pay down your debts.
3.) Lock down a five-year (or consider a 10 year) fixed-rate mortgage where possible
4.) Plan for higher interest rates in your household budgeting.
5.) Recognize that the housing market is weakening.
6.) Stop basing your expectation on what’s going to happen in the stock markets in 2013 by looking backward
7.) Consider moving your money away from the volatile stock market (where you have no control) into real estate backed funds like a REIT or Mortgage Investment Corporation (MIC) which create returns from rents, mortgage interest and property appreciation.
7a) – Option 1: Take any money you’ve been hoarding in do-nothing cash and divide it into four sections that you will invest in early January, April, July and October.
8.) Option 2: Invest your cash all at once in real estate backed securities (MICs & REITs saw no fluctuation when the global meltdown happened).
9.) Commit to judging your investing success not by how you’re doing a few months from now, but where you will be in 10 years. ( check out www.5YearstoaMillion.com if you want a quicker solution)
10.)Make saving money automatic: Put away as little as $10 per week – you won’t miss it…or 10% of every paycheck if you can handle it
11. Bonus: MICs & REITs invest in mortgages, income producing buildings like hotels, apartments and seniors homes to mention a few. These funds take RRSPs and other registered funds which historically are returning between 8-12%. Where else will you get RRSP returns like that with the safety of MICs & REITs?
Contact me if you would like more information.
To You Wealth