Retirement Planning Vancouver | Questions to Ask Before Investing

Now that we have gone over the very first questions to ask when just learning and discovering about planning for your retirement through your investments, it is time to get into the meat and potatoes of investing. It is not enough to hope for the best, you will need to do your research or have an expert do it for you.

Be sure you have questions to ask before investing. When it comes time to retire you will have worked most of your life. You want to have the sufficient funds to meet your retirement goals. You will have decided what will make you happy at retirement and you will have figured out how much money you will need to support that lifestyle. You cannot leave anything to chance.

Get knowledge in what you are doing

This is not the time to hope for the best in how well your investments perform. There is a lot of strategy at play here and if you are not savvy to investing it is strongly advised you partner with an expert who can make sure all your goals are met and on time.

Thomas C Chan is a trusted advisor in Canada who helps Canadians achieve financial stability. He is not shy about going to a deeper more personal level to help you get the advice you need. He is passionate about helping Canadians retire with abundance and vibrancy. He understands how to build wealth with the right financial strategies. He will always advise you to start early with your wealth building because even the small investment can grow large over time. When it comes to retirement he is sure to help you plan your funds, so you have all the bases covered, like essentials, vacations, and potentially medical care.

Debt and tax management can be crucial

Thomas can also help with debt management. Many people do not realize that there is good debt and there is bad debt. When you have your financial planning mapped out you will see that both are taken into consideration so that you reach your financial goals in the most advantageous way. There is no need to waste your hard-earned cash on bad strategies.

Tax management is one part of a larger strategy, and this is where Thomas Chan shines in his strategic financial planning. He knows the best methods to growing your wealth and giving the least of it away even for taxes. Canada is one of the best countries to live in but the heaviest taxed one as well. Thomas will be sure you are using the tools needed to lower your taxes and keep more money in your portfolio. The goal is never to evade or cheat in not paying taxes but rather to use the systems that the government of Canada has to offer. For example, Canada favours the family. It is best to take full advantage of this.

Keep a diversified portfolio

The next question to deep dive into is, are you diversified enough in your investments? This means do you have all your eggs in one basket, or do you have enough variety in your investment portfolio to weather any storm that comes your way? This is the time to assess your risk-taking strategy as well as diversify your assets. It is extremely important to not have all your money in one investment. Thomas helps you look at the micro and macro diversification in your investment portfolio.

Micro diversification refers to having certain stocks, and many diverse types of stocks. It also means to diversify into different industries. This protects you from localized issues in one industry or type of stock. Macro diversification refers to the different asset classes you invest in. Things such as mutual funds, ETFs and more. There are five asset classes. They are cash, paper, real estate, insurance, and commodity. When referring to asset classes you will want to diversify across the board starting with one and from there add more as you learn about them and get comfortable with investing in them.

You should have a strategy in place

Another important question you will need to think about is what is your tax strategy for your investments? If you are not even sure what this means or what it means in relation to your own investments, Thomas can walk you through this part of the strategy in great depth. Are you aware that Canada can legally take 50% of your investment savings. When you make a capital gain on an investment the Canada revenue Agency will take 50% of it through taxes.

Take advantages of the Government’s resources

Not only are you heavily taxed on what money you earned through honest and strong investment strategies, but your income will push you into a higher bracket and therefore higher tax bracket. The CRA will hit you from a few directions and take your hard-earned money. You will want to set up a tax shelter plan, such as a tax-free savings account (TFSA) and a registered retirement savings plan (RRSP).

A TFSA lets you use your after-tax money to invest without paying tax on it. It is possible to make a million dollars without having to pay tax on the interest, dividends, or capital gains you earned. These are tax free earnings and the beauty of this is you are still considered to have the lower income. Alternatively with an RRSP, the money you put in is considered income but the bonus here is that it is deducted from your taxable income.

You are using pre-tax money to invest. This can help you offset huge capital gains. The biggest downfall with an RRSP is however, that all money produced can be considered 100% income and is taxed when you withdraw it.

Contact Us For Help and advice

If you do not have someone to talk to for advice on investment strategies already then Thomas C Chan is the trusted financial advisor for you. He will always give you valuable advice as an expert on building wealth. You want to have someone in your corner to walk you step by step through the plan. That person should not only have expert advice but experience. For more general advice be sure to check out the YouTube Channel!

You could go to an investment community online first but eventually you will likely want to talk one on one with someone who has similar goals to you. Ask that advisor clever questions and absorb any lessons they offer. If you have any more questions or need some advice from the experts, be sure to contact us right away!