The recent tremors in the US banking system (collapse of Silicon Valley Bank - SVB) have caused some Canadians to question how developments in the US might affects their own savings. The key thing to understand is that there are BIG differences between Canadian and US banking systems.
April may not have brought many showers, more like snowstorms, but the May flowers are certainly well on their way! We hope that you and yours have been able to spend some time enjoying the wonderful warmth and sunshine after what felt like a long winter.
Canadians have various existing tax reduction opportunities to consider for their own personal situations and one NEW strategy arrives this spring: First Home Savings Account (FHSA).
My last newsletter talked about the good start we were having to 2023 but was written just before we got the news of some US and European Banks failing. I don't want to say this situation is over, but as of this writing, we have seen a big rebound in share prices and much of the worry blew over. As of this newsletter, things seem to be contained. By early April, we had seen the Stock Market really rally. With Oil Prices rising quickly, the Toronto Stock Exchange made its way past 20,000 and maintained the level1. There has been good news on the Inflation front too.
Financial independence is an important goal that many Canadians aspire to - but achieving it can feel like an overwhelming task. However, with the right mindset and a few key strategies, it is possible to budget your way to financial independence.
We have listed several time-tested strategies below:
According to a 2022 survey,1 only 35% of Canadians aged 50 and older feel they're financially ready to retire. Sixty-two percent report being unprepared or unsure if they have the resources. In a similar survey, Bromwich+Smith and Advisorsavvy2 report that 71% worry they will never be able to save enough to retire comfortably. Sixty-two percent are delaying retirement indefinitely.