Cashflow

Hello everyone, 

I wanted to touch base with you and offer my take on the current market situation.  Everybody has an ‘opinion’ as to what is going on. For the most part, they are as right or wrong as the market decides.  What is important to understand is that the financial markets are extremely complex, possibly beyond human comprehension.  This opinion may be somewhat unnerving, to say the least, and we know that there is never an easy fix whether by government or central bank intervention.

The good news, and here is my opinion, is that the market operates rationally as a function of supply and demand as it always has.  Irrational human and institutional investor behaviour is what creates the short term volatility.  The long term upward trend is due to the ingenuity and productivity of humans who continue to create value for others.  I personally do not see that this will change this time any more than in previous ‘crises’.

Most of you are hanging in there and I applaud your courage in facing down the doomsday scenarios that you read, hear and see every day, or choose not to read hear and see as the case may be.  I know that you are all concerned and I don’t have the ‘right’ answer for you.  Perhaps the most important consideration is ‘how long do I hold on?’  Will I protect myself by getting out now?  I, personally, plan to stay invested as I have done in past ‘crises’.

We have a process at Informoney which uses your current data as a prognosis for your future and we track your performance.  For the few of you who have contacted us, the reality is much better than the assumption.  In other words, your portfolios are doing better than what the media would lead you to believe. 

We hope by your next meeting that there will be some positive outcome from the current turbulence.  In the event that the pressure is too great, we can deal with the reality of your situation by updating your plan.

Best regards.

Russell Schmidt, Bsc., M.Ed., CFP

Senior Financial Planner

INFORMONEY FINANCIAL PLANNING

Know how much you have made on your investments since you started.

The Big Picture.

Imagine being able to quickly capture the important data from each of your investment statements and calculate - simply - the profit (or loss) in a way meaningful to you. This would allow you to compare how each investment is performing. Now imagine - automatically - combining all this data into one overall meaningful result: The Big Picture.

The Profit Goal.

Your goal is for your investments to do better than inflation (average 3%) and on top of this to have profit after taxes. Therefore you will want to achieve a minimum of 7% profit, or better, on average. This tool will help your confidence by seeing your true results over time.

Be Careful

Eliminate your Bad Debt.

Ideally we all want to debt free. Practically, debt is a necessity for most of us,  which leverages our future*. Acting intelligently about our debt makes all the difference. 

In this workbook, you will identify your Bad Debt and use simple tools to save interest costs to help you pay it down faster. 

Bonus.  We have included a Wealth Tracker to see your debt decrease over time and your wealth grow over time.

* Leverage provides an advantage. By using a mortgage to buy a house, you can enjoy living in it and its value is likely to increase over time.

Smart Cashflow

Monthly Cash Flow.

Is the predictable month to month living expenses including both necessities and luxuries. This is a very common and powerful tool to find out where your money goes every month.

“Managing money is not rocket science, even though the financial industry makes it look that way.”

Yearly Cash Flow.    (Code name “Surplus”)
Is  money that may be difficult to quantify into a monthly amount. This is why cash flow tools fail to provide meaningful results - until now! Our changing lives and values require a tool to harness how we save and spend our Surplus money.

Here is link to the Buy Website: www.itsaboutyourmoney.com/index-dw-main.html