By Rodney Gelineau
written for the Chilliwack Times
A young friend of mine, new to the world of work, taxes, and saving (in that order!), recently asked me for some investment basics. This prompted me to dig up the financial columns I wrote for the Chilliwack Times in the 1990s. This column, originally published on August 14th, 1993, has held up surprisingly well over time.
Looking into the future is often a difficult exercise.
It is necessary though to look ahead and to set goals. These goals should incorporate your personal financial ambitions and be tough yet realistic. Set targets on where you’d like to be at retirement and then set shorter term desires which you feel will also ultimately get you to you longer term targets. Goals will keep you focused on your financial and personal affairs.
If nothing else is gained from this column, two concepts should be remembered.
Firstly, when setting aside money toward your goals, you are assembling pieces of the puzzle for your goals and dreams. Look beyond the obvious and review all possible options for that money. In reviewing all possible options, you are ensuring that you are getting the best possible rate of return (which allows you to achieve your dreams faster)
Getting the highest return is not of utmost concern, what is of utmost concern is the after tax return on your money. Taxes are different with each investment and should be an important consideration.
Secondly, in order to achieve your goals, time is the most important asset most people have. Due to compounding, slow and steady wins the race. There is no secret – just common sense and compounding. In order to do this, set your goals and begin putting money aside toward your goals today.
“Pay yourself first” and don’t put off reaching your goals. You will be surprised at what you can achieve with a consistent and focused investment plan.
