Building Wealth

For the first 30 or so years of working, saving and investing, you’ll be first in the mode of getting out of the hole (paying down debt), and then building your net worth (that’s wealth accumulation.). But don’t forget, wealth accumulation isn’t the ultimate goal. Decumulation is! (a separate category here at the Hub).

Confident domestic investors fuel Indian markets

Posted By Financial Independence Hub | June 16, 2017

By Dwarka Lakhan (Sponsored Content)

In a display of overwhelming confidence in India’s booming stock markets, domestic investors have for the first time ever invested more money than foreign institutional investors (FII) in Indian equities.

The surge in investments is being led by mutual funds and insurance companies, which over the 1-year period ending May 26, 2017 pumped Rs 71,665 crore (US$ 11.1 billion) into the market, compared to foreign institutional investor (FII) net purchases of Rs 60,000 crore (US$ 9.3 billion.)[i]

Mutual fund inflows into the market have been primarily channelled through systematic investment plans that have become increasingly popular in the lower interest rate environment, following the demonetization of large currency notes.

“Demonetisation pushed interest rates down and a large section of investors became wary of investing in gold and real estate. That increased the flow towards mutual funds,” says Susmit Patodia, Associate Director & Head, Institutional Sales with Motilal Oswal Institutional Equities.[ii]

Domestic Indian investors see more value in local equities

Traditionally, Indian investors have been more risk averse but their shift to equities over the past year is an emerging sign of market maturity and the recognition that they could derive greater value from investing in domestic equities. Continue Reading…

The 10 most common Millionaire Habits

Posted By Financial Independence Hub | June 14, 2017

By Jessica Kane

Special to the Financial Independence Hub

The ambition and ability that it takes to achieve wealth comes from all kinds of people, but not all from the same locale, upbringing or backgrounds. This begs the question, do rich people have anything particular in common? Well in a sense, yes they do.

Most of the people who have achieved the status of millionaires engage in daily rituals that help them meet their goals. These are primarily activities that engage them in a personal and private way, but many other millionaires share these daily rituals in common with other wealthy individuals.

So for readers who would like to become richer and realize their potential to become millionaires themselves, here are the ten things to consider incorporating into your own daily routine. These 10 daily rituals may be the boost you are looking for to become the next millionaire, or at least a person of better financial means.

1.) Be the Early Bird

Everyone has heard this one expressed by mentors in life, but not everyone takes it to heart like they probably should. Starting early is a common theme when discussing daily rituals with most modern day millionaires. Getting a jump on the rest of the day begins by being awake earlier than the other birds out there. Also, being up early allows more time in the day and more hours to engage in personal activities. This seems to be the most common daily ritual that most millionaires practice.

2.) Maintain a healthy diet

Staying healthy is important, but a lot of people don’t make it a priority. Not the average millionaire: these people understand that a sick day means a non-working day. The more involved in wealth building a person becomes, the more value they place on their personal health and well being. Because if you are not able to get out of bed, you surely cannot make decisions and be there when needed in the business world. So eating right is a first step to being more successful.

3.) Keep fit and exercise

Bad investment advice & clichés you should ignore

Posted By Pat McKeough | June 9, 2017

If you take bad investment advice from others, you may end up selling a stock too early or engaging in unprofitable investing strategies

Most investor sayings and clichés have at least a hint of truth. But they can still lead you to take good or bad investment advice, depending on how you apply them.

For instance, you’ll sometimes hear investors say that you shouldn’t fall in love with your stocks. This seems to make sense. You should keep an open mind on your investments, rather than falling in love with them and holding them forever, despite any adverse changes in their business or the field in which they operate. However, investors sometimes use this tidbit of advice as a justification for selling a stock that has shot up unexpectedly.

Unexpected strength in a stock you like is a bad reason to sell

The stock may be stronger than you expected because you underestimated the growth potential or competitive advantages that led you to like it in the first place. Experienced investors can tell you that some of their best stock picks started going up out of proportion to what they expected, and kept outperforming for years. By the time the first significant “dip” or setback comes along in a stock like this, it may have tripled.

Millennial Money: Can Money buy Happiness?

Posted By Financial Independence Hub | June 6, 2017

By Brandon Hill, CFP

Special to the Financial Independence Hub

Do you believe the saying money can’t buy you happiness? Most people laugh at that notion, while some of the wealthiest people sing its praises …

I recently read a book called Happy Money: The Science of Happier Spending by Elizabeth Dunn and Michael Norton.

The book set out to tackle the question – “Just because money often fails to buy people happiness, does that mean that it can’t?”

Luckily it can: it just depends on how you go about spending it. It turns out that our everyday spending choices releases a variety of biological and emotional effects – either positive or negative.

This book covers five specific spending strategies to spark positive effects and increase happiness. You may have heard of some – such as buy experiences, not “things.”

The goal is to maximize the amount of happiness you get out of every dollar you spend.

Some of the wealthiest individuals have mastered these tactics (Bill Gates / Warren Buffett) and don’t let their wealth become a source of anxiety or stress.

It’s important to note that these ideas aren’t supposed to encourage you to spend your way to happiness. All strategies are meant for your discretionary spending, after your needs and future savings goals are taken care of (see my previous article on Guilt-free Spending).

All of the ideas written about here are completely attributable to the authors of this book and include paraphrased ideas and/or direct quotes from the authors. I don’t take credit for the concepts written here. The full book is a quick read and if you are interested in reading more in-depth, you can buy a copy here.

Buy Experiences

A study found out that once an individual makes $75,000 or more (in the US), any increase in income has no effect on their everyday general happiness. Isn’t that crazy?
Continue Reading…

Blend income splitting with retirement strategies

Posted By Adrian Mastracci | June 5, 2017

My investing premise is straightforward: Splitting family income is very beneficial. Take full advantage of all provisions that apply.

Think of income splitting in the same breath as your retirement planning. In my view, the two camps ought to fit like a glove to deliver the best value. Families are keenly interested in paying the least income tax. There are a few low-cost activities left on the platter.

It’s never too early to get familiar with the menu. Let’s blend income splitting with your retirement strategies.

Ideally, a family pays less income tax where two spouses achieve similar income levels. Equalizing incomes allows each spouse use of the graduated tax scales from low to high.

Another beneficial goal is to equalize asset levels as much as possible. Retirees who reduce the “clawback” retain more of the OAS pension and, perhaps, the age credit.

A dozen tips for splitting income near retirement

Utilize these income splitting tips before and after retirement: Continue Reading…