Jakobs Financial Planning

Money So they say Is the root of all evil today But if you ask for a rise It's no surprise that they're giving none away  - Pink Floyd, "Money" from the album The Dark Side of the Moon So, are "they" really giving none away?  They are, and Canadians have some excellent sources of free money! Group R egistered Retirement Savings Plan (RRSP) An excellent source of free money is a group RRSP where  employers match employee contributions up to a certain amount (or percent).    This is one of the easiest ways you can earn free money.   Now some of you might be thinking this is an obvious source of free money, but according to a 2023  SunLife study , 73% is the average participation but with some industries participation rates are as low as 57%.  SunLife also reported little change in participation from their 2021 report. It seems that many employees are not getting the message and so it's worth repeating. With that, let's dive in. A group registered retir

Are you paying too much in investment fees?  Probably. That is, and per research from Questrade and as further discussed in this article from Moneysense, Canadians are still paying too much in investment fees . The Questrade survey found that 87% of Canadians either don’t know or underestimate the difference that a 2% or 1% fee has on their portfolios over the long run (of 20-plus years). We've all seen the TV ads too.  You know, those smug and smarmy investors talking about fees with their brother, friend, or parent and how it can mean a 30% difference to your portfolio value in retirement.  The truth is...this is not far off. Let's use an example to illustrate Jim is 40, single, and earns $95,000 per year.  Jim has managed to save $130,000 in his RRSP and $30,000 in his TFSA.  Jim is also disciplined and plans to save $1000 per month to his RRSP and $500 per month to his TFSA until his planned retirement at age 65.  At retirement, Jim hopes to have a $5000 per month spending