The ABCs of cash flow planning
By Stephanie Holmes-Winton
Some people say managing your cash flow is as simple as spending less than you make. But cash flow planning is about a lot more than simple math.
Here’s the good news: all you need to start managing your cash flow is a written plan.
A IS FOR AUTHENTICITY
No matter what your income is, you can follow a cash flow plan. In fact, this method of financial management is highly efficient even for those who have high incomes.
Often, even advisors who are helping clients through the process commit to their own cash flow management plans. That way, they can answer clients’ questions and understand people’s challenges throughout the process.
Are You On The Right Track?
In bull markets some investors develop unhealthy expectations as to the long term yields their investments should provide. Ten years ago, some came to accept returns as high as 15% to 20% per annum as the base return their fund and portfolio managers were expected to provide. Of course, these expectations came crashing back to earth in 2008 as the bull was chased away by a very large bear. Today, many fund managers are of the opinion that double digit returns are going to be very difficult to achieve with any consistency over the long term.
Is it time for us to lower our expectations?
If we have to accept lower rates of return, do we still want to be exposed to the same previous level of risk? There can be tremendous volatility in the equity markets and, as a result, many wonder if they are on the right track with their investment strategy.
4 Questions to ask yourself about your investment strategy
What are my goals?
DM Monthly Report
Protracted Soft Patch or Full Blown Financial Crisis? – As most are well aware, stocks have set a horrid pace for 2016, with the S&P 500 posting its worst first week ever and the TSX battered by unrelenting energy weakness and a shared sense that our economy will be under pressure for some time. Though it’s true that Alberta, Saskatchewan and Newfoundland have been hit hard in recent quarters, the larger BC and Ontario economies have actually been adding jobs and are expected to post reasonable growth in the year ahead.
Click here to read more: DM-Monthly-Report-Feb-16
February Monthly Insight
Bottom Fishing – History has a way of repeating itself and it might be about to deliver a welcome relief from the Canadian stock market turmoil in the form of a turning point in what has been a one-sided slide since mid-April of 2015. Investors who are fearful should keep in mind what legendary long term investor Warren Buffet has long maintained; investors should, “be greedy when others are fearful and be fearful when others are greedy.”
Click here to read more: Monthly Insight – February 2016 – Bottom Fishing
