Stress from following the financial plan

The financial plan is a living document. It is not supposed to add more emotional burden but to manage the risks and alleviate future anxiety by guiding us to achieve our goals. Most of our life goals need a solid financial foundation. Here is an example. She already has a financial plan set up forContinue reading Stress from following the financial plan

Couple finance – big age gap

If a couple has big age difference such as 10 year or more, they might want to watch out for the dual goals to balance paying off mortgage and saving for retirement. Here is a hypothetical case as an example. The husband is the bread winner and in his late 40s. The wife is 15Continue reading “Couple finance – big age gap”

Couple finance – who pays how much for what?

Money is one of the top three reasons for divorce. Everything is easier if both partners/spouses share similar values or believes in money. For example, both like to save money. If one likes to spend while the other like to save, it is going to cause conflict. In this situation, the couple can reach anContinue reading “Couple finance – who pays how much for what?”

How much cash should we hold?

That is very timely question.  Putting cash in a high interest saving account can’t beat inflation still. However, we need to keep enough cash for emergency purpose. In retirement, the need for cash to cover living expense is even higher.  Therefore, it is important to maintain a fine balance of growth and security. In theContinue reading “How much cash should we hold?”

My take on investment portfolio mix

I used to think that as long as I have the right mix of bond and stock, I will be fine to withstand the market crash. How wrong was I! The 2020 Covid market downturn taught me that lesson. I was very lucky that I didn’t need to withdraw the money then. I had someContinue reading “My take on investment portfolio mix”

RRSP or Mortgage

This seems like an eternal question especially in North America where home ownership is sense of pride or American Dream/Canadian Dream. Should I pay off my mortgage first before I contribute to RRSP? It seems that there are different schools of thoughts on this. Some might want to focus on paying off mortgage first beforeContinue reading “RRSP or Mortgage”

How much is enough to retire?

The most common answer is the famous 4% rule. See here for its pros, cons and limitations. First, estimate your retirement annual expense. Ideally you would pay off your mortgage. You might want to travel more and spend more time and money on your hobbies. Based on this, you adjust your current expense for retirement.Continue reading “How much is enough to retire?”