TORONTO, Oct. 31, 2017 /CNW/ - Everyone hopes to be able to retire with enough put aside to live a lifestyle that keeps them happy, but Certified Financial Planner Ed Rempel finds barriers are keeping Canadians from achieving needed financial freedom.
In the November/December issue of Canadian Money Saver magazine, Ed Rempel outlines some of the obstacles in the way: People underestimate how much they need. They may be reluctant to stock market investments. And they don't have a plan or strategy to make retirement happen.
Rempel describes four main steps to creating a retirement plan, but says it must start with establishing the kind of lifestyle one desires. Do retirees want to be debt-free? Do they want to enjoy lots of traveling each year or little, and at what kind of cost? What other lifestyle choices are important and how much will those require? Once clear parameters are set, he says retirement financial plans must then capture ways to minimize taxes and optimize pensions. Success depends on effective investing that balances risk with long-term rates of return. A balanced portfolio with an emphasis on equities is also key.
Ed Rempel is considered a leading expert on the Smith Manoeuvre, an investment strategy that converts one's mortgage into a tax-deductible investment credit line. "Many Canadians can't invest enough to retire and maintain their desired lifestyle," Rempel says. "Borrowing to invest, through an investment strategy like the Smith Manoeuvre, may present an opportunity for investors who have a long-term investment horizon and are comfortable with a certain amount of risk."
The Smith Manoeuvre calls for homeowners to borrow the equity in their home to invest over time. As a mortgage declines, it is replaced by a tax-deductible credit line from the borrowed money. The interest can be capitalized, and the interest tax deductions provide tax refunds to pay down the mortgage more quickly.
Ed Rempel has been a fee-based Certified Financial Planner since 1993, helping Canadians benefit from the kinds of unconventional wisdom they need to prosper financially. He is also a well-known investment industry expert who regularly speaks and writes on various investment strategies.
SOURCE Ed Rempel
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