I did a segment on Global TV morning news a few days ago.
It was FINE, however, I never got a chance to drive home what I really wanted to drive home. I had a lot to say, which didn’t get said. (You’re shocked right?!)
AND I have a platform, as we all do, and so I’m going to share it because I still feel it needs to be said.
So here is what I REALLY wanted to say in my morning interview, colorful language and all…. but that’s at the end of this post (or just scroll to the end!) 😉
A couple Quick RRSP tips & Strategies to Maximize your RRSP (blah, blah)
#1) Save monthly. Because usually, it’s easier to have smaller chunks leave your bank account than have to come up with a large sum at tax time if you haven’t saved money throughout the year. However, on that note, lots of my clients get bonuses from their employer, usually in February, which they typically put in their RRSP which makes it easy to do, but nonetheless, I think creating a monthly saving habit is key. Plus, if you are investing in the stock market or mutual funds with your RRSP, then you can take advantage of dollar-cost averaging into the market, which means your just buying up new share or units every month and taking advantage of market cycles.
#2) I really want to make a point to say this. People are always so concerned about their Rate of Return on their investments. Which is super important, however, there is usually one BIG thing that I find people don’t talk about until after it’s too late, and that is TAX PLANNING. Be very aware that withdrawing $60,000 from your RRSP versus your TFSA have very different tax consequences. And I find the cooler talk, or what everyone wants to know about is what the rate of return on your investments is at, but they don’t really ask what after-tax return or what the real numbers are. $1,000,000 in your RRSP is NOT a million dollars in your hands to spend and I think that is one of the most overlooked aspects when it comes to investing in general. We all want to know what our Marijuana stocks or Bitcoin did because it’s fun and sexy and nothing about taxes is sexy. Let’s just be honest here…
#3) Reinvest your tax refund. If you overpaid your taxes you will be getting a refund. Take your tax refund and reinvest it. Especially if your income is consistent and high, this will help you in savings as well. (But if you feel you need to go on a trip to Europe to blow off some steam, then do that……)
Here are some more things, I planned to say but didn’t.
In regards to the question,
- SHOULD YOU INVEST IN RRSP or TFSA or Pay down debt or your mortgage?
These were my notes:
First, There is NO right answer here and sorting through that will for most people require some guidance from a financial professional. Hence, why if you are serious about paying the least amount of tax or wanting to grow your ASSets you probably should work with a financial professional.
I have 3 things here to consider as well to help you with this.
1) Canadians need to Start saving.
In 2015 only 65% of Canadians paid into either a TFSA, RRSP or Both. That means 35% of Canadians or basically one 1 out of 3 Canadians are not saving anything. And I think that number is alarming, as is the fact that out of the 65% that are saving, a majority of those people do not have adequate retirement savings and will still need to rely solely on government programs such as CPP and OAS.
Only 6 – 8% of Canadians have maximized their RRSP or TFSAs.
However, I will say every investment tool and strategy has a place and is not for everyone.
Cash is king for the most part – so on that note, so is liquidity or investments you can liquidate quickly if need be for an emergency and I don’t think most people have that – which is one of the foundational things in financial planning.
2) The second thing is this, you can make a plan to get out of debt and if you don’t incur any more debt, your debt is finite, meaning there is an end to it. On the flip side, saving, accumulating, investing, investing in yourself, or businesses that help others – there is unlimited potential there, and that means that your investments do have the possibility to grow, technically they are infinite. I think there is a way to save and pay down debt, anything is possible with a plan, which brings me to my last point…
3) And lastly, my third thing to consider is it’s never too late to start. One of the things I find, and a huge part of my message for Canadians is that it’s never too late to save, however, I find shame and embarrassment, and all the things we “SHOULD HAVE” done but didn’t get in the way of our “getting started”. Then we feel guilty for not doing that and then we panic and fear sets in and we get into overwhelm. A big part of my message is money forgiveness and getting people to forget their past money mistakes, make a financial plan, make a plan to get out of debt and move on. So forgive yourself. I’ve made huge financial mistakes, and I am 100% certain I will in the future, but it’s about forgiving yourself and making a plan and moving forward so you can live your dreams with clarity, confidence, and courage.
ALL THAT IS GREAT – and would’ve made a GREAT INTERVIEW, however…..
WHAT I REALLY WANTED TO SAY IS…
None of this shit matters. I mean, it does matter, as does anything we humans give meaning to, but we are the ones giving meaning to it.
Is it important to you? If it is, pursue it with your whole heart.
If it’s not, then it’s not for you. It’s not what you are here to do, or what you are called to do. If God didn’t plant that desire in your heart, then let that be someone else’s dream, don’t force something that’s not yours. (I mean this for ALL areas of your life, not just vocation & money goals.)
When it comes to money, and you know deep down in your soul that abundance in ALL areas of life is available to everyone once we decide to choose it and call it into our lives. All your needs will be met, and all your wants are a possibility that you can call into your life experience, then don’t be so focused on that lack side of this equation or the fear side of not having enough money. You can go about making money the hard way, or you can just call it in.
There is no magic formula for wealth. The choice is always yours.
- Are you living your life in a way that makes you feel self-expressed, full, deep joy, & happiness?
- Are you shining your light in the way that you know you were meant to?
- Are you keeping your word with yourself & honoring your HEART, body, mind & SOUL?
- Are you doing what you said you will do?
- Are you creating value and making a difference?
- Are you still just doing what you think will please other people?
- Are you still trying to impress your boss?
- Are you still trying to follow societies formula for success or wealth?
- Are you still letting your fear and ego run the show?
- Are you still not choosing beliefs that will serve you going forward?
The money is always a by-product of your thoughts.
End of story…. almost…
Ready for a run on sentence?
I personally think when you can get to a place where you love yourself, even if you cringe at seeing yourself on TV (I rarely re-read or re-watch any of my content because I find that doesn’t serve me…) and you get to decide what serves you and doesn’t serve you in this life, and you did your best and you know you are living in your purpose and living on purpose, and you know you have the power, knowledge & support of the entire universe at your back, you get to live in that magical place where you don’t give a flying fuck what anyone thinks (yes, she said that), and you can BE LOVE & SHINE LOVE.
This is all that matters.
Take it or leave it.
And I’m good if you leave it.
This is the message I need today.
PS. If you are serious about living a life on purpose in all areas….you need to be with me in Wealth Spa™! Go to wealthspa.ca to learn more!
PPS. Please share if this spoke to you 🙂