One of the most interesting facets of the new “culture of thrift” is that the cheap-o things I already like to do have become popular with a much wider group of people.

I’ve spent years thinking about and implementing ways to spend money efficiently - that is, to get the results I want for the least amount of cash. I routinely calculate the cost per serving of the meals I make, and I have long used Amy Dacyczyn’s “cost per wow” factor in making spending decisions (things that give me a big WOW for the cost are worth it!).

It isn’t that I count every penny – I don’t – but I get a lot of enjoyment, strange as this may sound, Read the rest of this entry »

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New survey data, just released in the US, finds that it is a good time to be over 65 or younger than 30 – but not such a great time to be somewhere in the middle.

The New York Times today reported data from the Pew Research Center which finds that senior citizens have generally been protected from the effects of the recession in the US, as have younger adults.

“The most vivid finding to emerge from this survey is that older Americans — most of whom have already retired and downsized their lifestyles — have been far better insulated from the current storm than those who need to worry about keeping their jobs and building up diminished retirement accounts,” write Rich Morin and Paul Taylor of Pew Research in their report “Not your Grandfather’s Recession – Literally.”

This finding holds true in Canada, as well. Recently-released consumer data from ad agency Bensimon Byrne (in their quarterly Consumerology report) show that while a national “culture of thrift” has emerged for Canadians, Read the rest of this entry »

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There’s a discussion going on at the Canadian Money Forum about the cornerstones of good financial planning, and the topic of life insurance has come up.

One contributor suggested the purchase of life insurance may increase your risk of death, because there are now financial gains to be made. Another community member responded that the purchase of insurance, by itself, will not increase the chance of your death.

It seems obvious that the chance of dying is not influenced by buying life insurance. Right?

Except it might be.

There are a couple of interesting phenomena from the world of medical science known as the healthy user bias and the compliance effect – both of which provide surprising evidence about what keeps us alive and healthy, paying life insurance premiums instead of collecting the payout.

What am I talking about?

Read the rest of this entry »

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Here’s the last principle in our series on how your finances are like your lingerie. BIG HINT: it’s the most important one! Read on for the goods.

Principle 4: You deserve a personalized fit.

You really do. Maybe you picked out that first “grown-up” bra on your own, peeked over your shoulder in the fitting room, decided it was a “good enough” fit, then plunked it down on the counter and paid. But every woman I have ever known who has been through the professional bra-fitting experience comes out a changed woman. Their clothes fit better. They stand up straighter. Their…assets are optimized.

How well your investments fit your life and how well they perform for you deserves at least the same level of care and attention as the fit and feel of your bra. And here is secret number four: getting that fit right can make a whole heckuva difference in how well you are set up to handle what life throws at you.

If you aren’t confident about how to judge how well your investments fit, consider working with someone who knows - someone who can cast a professional eye over your assets, help you understand your options, and suggest alternatives to empower you in achieving your own individual goals.

In future posts, we will explore how to find and work with a financial advisor, how various kinds of investments work, and more. But for now, pull up a chair, grab your glass of wine, and breathe: you’ve got four new secrets to share.

A version of this article was originally published at The Best Kept Secret: Toronto’s Resource for Women 40+.

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We are looking together at how your finances are like your lingerie. Here is the third principle for understanding how these two, seemingly-unrelated parts of your life fit together:

Principle 3: Like your bra size, your financial needs change over time.
How many of us figured out our bra size at some point in the past and have continued, year over year, to blithely buy that same 34B that fit us before kids and before, erm, gravity made its effects known on our bodies?

Same thing with your finances: the mix of approaches, strategies and investments that fit you at 20 is not the same as the right mix at 30, or when your first child arrives, or when that same child hits post-secondary education, or when you Read the rest of this entry »

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Follow along as we consider how your finances…are like your lingerie.

We already explored how your finances, like your lingerie, are intimate. But how else are they similar? Here’s principle two for understanding how these two elements of your life fit together (or not!):

Principle 2: You probably have a portfolio that doesn’t fit.

You likely know by now that most of us are wearing the wrong bra size. Oprah did a whole hour on this!

Here’s the comparison with money, gleaned from my work as an advisor: most people have investments that are a poor match for their circumstances. To the extent that they have a “financial plan,” Read the rest of this entry »

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Here’s a secret: your finances are like your lingerie. How so?

In the next four posts, I’m going to give you four principles for understanding how your approach to lingerie and your approach to your finances are related.

I’ve also thrown in four secrets of financial planning designed to, well, uplift and support you in this area of life.

Principle 1: Just like your lingerie, your finances are intimate.

Our current environment is one in which almost anything is fair game for public display and comment. But even in an era of persistent, pervasive TMI (”too much information” - when everyone knows Britney Spears’…um, Read the rest of this entry »

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You probably already know that the shelf at your local bookstore has a whole section on retirement, and most of the books have titles like “The Retirement Time Bomb” and “Smart Women Finish Rich“.

Those titles are meant to be motivational, but they might only motivate you to avert your eyes when you walk past that section of the bookstore, thinking if you aren’t among the “smart women” who “finish rich,” you will…get blown up by a Retirement Time Bomb?

Read the rest of this entry »

whats-your-number-300pxwhats-your-numberThis is the question that has been floating around me, in the air, over the last few months. People ask me this question, they tell me they lie awake contemplating it, and they want to know if I know the answer: how much money do they need to save for retirement?

What is the exact number of dollars they need to have socked away in retirement savings accounts to fund a post-work life that works?

A life that includes some luxuries, some long-hoped-for travel or the freedom to immerse themselves in a favourite hobby, while ensuring the kids (if there are kids) are fed and educated and Read the rest of this entry »

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New US data released earlier this week shows that index investing beat actively-managed mutual funds for every market sector studied over the past five years - and the results are similar for the previous five-year period, too.

“The belief that bear markets strongly favour active investing is a myth,” says Srikant Dash, global head of research and design at Standard & Poor’s, in the latest Standard & Poor’s “Index versus Active” report.

Do I think this style of investing is right for everyone? Maybe not. (But I’m not everyone!) Am I giving up alpha? Probably.

But here’s the main reason I invest this way: it beats most of the readily-available alternatives, most of the time. And the reality is that I only have a limited amount of time to spend thinking about investing.

I’d way rather research recipes and contemplate my garden than track stocks or pay an advisor to pick mutual funds for me. For me, and arguably for most people like me, passive investing using index funds is the most appropriate solution.

But the whole mutual funds industry is pretty much set up to provide anything but index funds, meaning that most index investors are DIYers. I’ll be coming back to the theme of index investing, including lots of info on DIY investing, as the days roll by. Stay tuned!

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