If you're a Canadian and has been in the workforce for a decade or more, then you know that your income to purchase no less than today during your first year of business activity. Inflation is a part of our society and our government continues to devalue our money printing more and more, inflation is sure to continue. This is not just a Canadian concern, though. All over the world people are feeling the effects of inflation due to excessive money printing; but more on that another time. The long and short of it is that your money will buy less, because over the years.
A quick 100-year calculation Bank of Canada (BoC) inflation calculator shows that the cost of a fixed "basket" of consumer purchases in 1915. Amounted to $ 100.00. At the end of 2015, which amounted to $ 2,083.61. More recently, increased by 18.01% over the last 10 years. Has your income increased by the same or greater.
The answer is probably no.
Whether you're a six-figure earner or you make 30k a year, your "money" is losing purchasing power. There are many ways that you can protect your money from inflation, but we have to consider two options for ordinary people.
One option is the stock market. put a lump in your savings portfolio and see what happens. Sounds like gambling to me. But if you are willing to leave your finances to other factors (and others) other than your own due diligence, then putting your money in stocks may be a good fit for you the following two conditions:
You have the stomach for volatility and,
Your main goal is to see a substantial return in a short time ... I hope.
Another option, and this tends to be the easiest and most of it is to open a bank savings account. No hassle involved. simply open an account, how much and how often you want to save, put it on auto- pilot and watch your savings grow.
Really?
In today's economy, bank savings accounts are not viable savings vehicle. Most of the money offered rates below the inflation rate. The sad reality is that many Savers make future borrowing only to realize that the Lord your lost money after inflation basis.
So, what do you do if you are not a savvy investor.
Buy financial insurance.
We have almost all areas of our life insurance is insurance that is what many of us hope that we never have to use.
The purchase of financial insurance in Canada, or anywhere else for that matter, that putting your money into the machine, which has long protected the volatile ups and downs of the economy.
Buying insurance financial preserves your purchasing power and provides a hedge against inflation.
The world economy is changing, but only the economy that should matter to you is yours.
Take the time to be educated to buy financial insurance in Canada.
As an independent insurance adviser and income protection specialist for almost a decade, Ryan has been providing clients with customized financial solutions through personal insurance and disability, life, critical illness, long-term care and other personal insurance products while ensuring and maintaining income hedging strategies wealth.
A quick 100-year calculation Bank of Canada (BoC) inflation calculator shows that the cost of a fixed "basket" of consumer purchases in 1915. Amounted to $ 100.00. At the end of 2015, which amounted to $ 2,083.61. More recently, increased by 18.01% over the last 10 years. Has your income increased by the same or greater.
The answer is probably no.
Whether you're a six-figure earner or you make 30k a year, your "money" is losing purchasing power. There are many ways that you can protect your money from inflation, but we have to consider two options for ordinary people.
One option is the stock market. put a lump in your savings portfolio and see what happens. Sounds like gambling to me. But if you are willing to leave your finances to other factors (and others) other than your own due diligence, then putting your money in stocks may be a good fit for you the following two conditions:
You have the stomach for volatility and,
Your main goal is to see a substantial return in a short time ... I hope.
Another option, and this tends to be the easiest and most of it is to open a bank savings account. No hassle involved. simply open an account, how much and how often you want to save, put it on auto- pilot and watch your savings grow.
Really?
In today's economy, bank savings accounts are not viable savings vehicle. Most of the money offered rates below the inflation rate. The sad reality is that many Savers make future borrowing only to realize that the Lord your lost money after inflation basis.
So, what do you do if you are not a savvy investor.
Buy financial insurance.
We have almost all areas of our life insurance is insurance that is what many of us hope that we never have to use.
The purchase of financial insurance in Canada, or anywhere else for that matter, that putting your money into the machine, which has long protected the volatile ups and downs of the economy.
Buying insurance financial preserves your purchasing power and provides a hedge against inflation.
The world economy is changing, but only the economy that should matter to you is yours.
Take the time to be educated to buy financial insurance in Canada.
As an independent insurance adviser and income protection specialist for almost a decade, Ryan has been providing clients with customized financial solutions through personal insurance and disability, life, critical illness, long-term care and other personal insurance products while ensuring and maintaining income hedging strategies wealth.
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