Financial Planning secrets in Canada

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Canadian tax tips

--keep investing 10 percent of your income.

--start financial planning the earlier the better

--Nobody cares as much about your money as you do,you have to take responsibility for your own future, it's not hard.

--invest 10 percent of all you make for long term growth, not just save, invest for growth.

--most people convert wants into needs easily, that's why they can't save money.

--pay yourself first. pay-yourself-ten-percent-first rule.

-- invest into mutual fund, e.g equity mutual fund managed by good manager. benefits: 1.professional management. 2.diversification 3.hands-off, you don't have to track and trade it all the time. good for working people
  but remember also, there is no guarantee for return,it fluctuates.but also be aware of the "dollar cost averaging" principle: buying common stocks or mutual fund shares at regular intervals, say invest 200 dollars every month, you buy less units when price is higher but you buy more units when price is lower.

--how to choose mutual funds actually is to choose a good fund manager, by reading financial columns in newspaper, go to financial forum to ask.
  1.make sure the good manager is still there 2. the fund has good diversification 3. fund manager is value oriented.
  4.watch commisions, limit front-end load,you might negotiate your commision as well,better no-load funds. but commision is not the most important factor to consider 5. shopping funds around and compare.

-- you may buy monthly by sign a pre-authorized chequing plan. but don't sign contractual plans.

-- interest is fully taxable but capital gains of mutual funds is not fully taxable. and you won't pay tax if you don't sell your funds.

-- you may also invest a real estate if the market is stable and going up and the rent can cover your mortgage.and the interest rate is good.
  it may be risky in downgoing market. initialy, invest to mutual fund is good option.

-- for selecting property, locate a agent with good reputation.

-- do not: abuse credit cards, no RRSP

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