Comments on: Retirement Plan Modifications – Part III http://blog.canadian-dream-free-at-45.com/2009/01/14/retirement-plan-modifications-part-iii/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2009/01/14/retirement-plan-modifications-part-iii/comment-page-1/#comment-18705 Canadian Dream Thu, 15 Jan 2009 12:23:00 +0000 http://blog.canadian-dream-free-at-45.com/?p=601#comment-18705 Mintycake, Yes I still will be investing during the mortgage paydown phase. My pension will continue and the RRSP's will still be maxed out. I will be holding off on taxable and TFSA contributions. Yes, both TFSA's are going to be investing accounts. Why? At most I have $3000 in savings typically so at 3% I'm only saving $32 a year in taxes. It's not worth doing compared to keeping the investments tax free. CM, Oh I agree the bear is still here and will be for some time. Actually I'm planning on it. I think your idea of another 50% down may be excessive. Besides in my stock picking case I'm looking for income streams. I'm not so concerned on return on capital (other than not losing all the capital and the income). Tim Mintycake,

Yes I still will be investing during the mortgage paydown phase. My pension will continue and the RRSP’s will still be maxed out. I will be holding off on taxable and TFSA contributions.

Yes, both TFSA’s are going to be investing accounts. Why? At most I have $3000 in savings typically so at 3% I’m only saving $32 a year in taxes. It’s not worth doing compared to keeping the investments tax free.

CM,

Oh I agree the bear is still here and will be for some time. Actually I’m planning on it.

I think your idea of another 50% down may be excessive. Besides in my stock picking case I’m looking for income streams. I’m not so concerned on return on capital (other than not losing all the capital and the income).

Tim

]]> By: Brian http://blog.canadian-dream-free-at-45.com/2009/01/14/retirement-plan-modifications-part-iii/comment-page-1/#comment-18695 Brian Thu, 15 Jan 2009 02:22:53 +0000 http://blog.canadian-dream-free-at-45.com/?p=601#comment-18695 CM: "The “Buy and Hold for the long term” is a fatally flawed thesis." Is this personal opinion? Research has shown that there is not a 30 year period in history with a return of less than 8%. Source: intelligent asset allocator. CM: “The “Buy and Hold for the long term” is a fatally flawed thesis.”

Is this personal opinion? Research has shown that there is not a 30 year period in history with a return of less than 8%. Source: intelligent asset allocator.

]]> By: Canadian Money http://blog.canadian-dream-free-at-45.com/2009/01/14/retirement-plan-modifications-part-iii/comment-page-1/#comment-18677 Canadian Money Wed, 14 Jan 2009 18:05:05 +0000 http://blog.canadian-dream-free-at-45.com/?p=601#comment-18677 The stock markets have the potential to go a great deal lower. Another 50 % cut from here is not out of the question. Do you really want to take on that risk? The Bear is still "in play". Consider waiting and take on the risk of missing out on the early part of the next Bull Market. Thinks don't go up the fast. It is not a great risk. Check the market history. There is no need to take my word for it. It took 25 years for the 1929 recovery to happen. You can easily miss the first 3-6 months of the best Bull Market in history and still be better off long run. The "Buy and Hold for the long term" is a fatally flawed thesis. CM The stock markets have the potential to go a great deal lower. Another 50 % cut from here is not out of the question. Do you really want to take on that risk? The Bear is still “in play”.

Consider waiting and take on the risk of missing out on the early part of the next Bull Market. Thinks don’t go up the fast. It is not a great risk. Check the market history. There is no need to take my word for it. It took 25 years for the 1929 recovery to happen.

You can easily miss the first 3-6 months of the best Bull Market in history and still be better off long run.

The “Buy and Hold for the long term” is a fatally flawed thesis.

CM

]]> By: zeromoney http://blog.canadian-dream-free-at-45.com/2009/01/14/retirement-plan-modifications-part-iii/comment-page-1/#comment-18673 zeromoney Wed, 14 Jan 2009 14:55:40 +0000 http://blog.canadian-dream-free-at-45.com/?p=601#comment-18673 that's a great plan, I'm working on something similar for myself, and hoping to get the girlfriend on board soon. I opened up a TFSA at Questrade.com and bought some stocks in BMO when it was down at $29.60 on the TSX. I'm planning to max out that account on Questrade for the full $5000 for sure. that’s a great plan, I’m working on something similar for myself, and hoping to get the girlfriend on board soon.

I opened up a TFSA at Questrade.com and bought some stocks in BMO when it was down at $29.60 on the TSX. I’m planning to max out that account on Questrade for the full $5000 for sure.

]]> By: Mintycake http://blog.canadian-dream-free-at-45.com/2009/01/14/retirement-plan-modifications-part-iii/comment-page-1/#comment-18671 Mintycake Wed, 14 Jan 2009 14:33:31 +0000 http://blog.canadian-dream-free-at-45.com/?p=601#comment-18671 This sounds like a good plan. However, can you pay off your mortgage and invest (maybe buy a little less?) I guess you have to figure out how much in interest you will save if you pay it off sooner rather than later. Also, are you going to use both your wife's TFSA and yours as stock accounts? My husband and I split it...our emergency savings are in my TFSA (high interest rate account) and his are going to be mainly in dividend paying stocks. This sounds like a good plan. However, can you pay off your mortgage and invest (maybe buy a little less?) I guess you have to figure out how much in interest you will save if you pay it off sooner rather than later.

Also, are you going to use both your wife’s TFSA and yours as stock accounts? My husband and I split it…our emergency savings are in my TFSA (high interest rate account) and his are going to be mainly in dividend paying stocks.

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