Excerpts from the Book – Preserving Wealth – written by Jack Lumsden, MBA, CFP®
It has been my experience that personal finance has not been taught well in high school or even University. I know that our kids had no such education at school.
Simple ideas such as paying off your credit cards monthly, compounding, how taxes work, joining your company savings plans are a few of the concepts that everyone should know about.
The Next Gen Education Conversation
This is a conversation you may want to have with the next generation to emphasize the importance of financial education and help them to be well equipped to handle their own financial affairs as they go through life’s transitions. Your financial advisor may be able to assist with this. Some key concepts and topics to review include:
- how to budget for post-secondary school
- your first job and setting a lifestyle you can afford
- simple budgeting and cash flow planning
- understanding how taxes work
- leasing versus buying a car
- understanding your employer’s benefit package
- setting up a savings program
- understanding the impact of interest charged on credit cards
- the difference between good debt and bad debt
- types of investments, such as high interest savings accounts, mutual funds, stocks, ETFs, etc.
- types of savings vehicles, such as TFSAs and RRSPs
- the financial impact of life’s transitions, such as:
o getting married
o buying a home
o having children
o changing jobs or careers
o getting divorced
o caring for an elderly parent, and
o safeguarding any inheritance, they may receive.
For more information you can refer to Chapter 4 Tax Concerns, RRSPs, and TFSAs: Protecting and Preserving your Wealth from the book Preserving Wealth: The Next Generation – The definitive guide to protecting, investing and transferring wealth by Jack Lumsden, MBA, CFP®
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This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see me for individual financial advice based on your personal circumstances. The information provided is for illustrative purposes only. Commissions, trailing commissions, management fees and expenses, may all be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. Please read the Fund Facts and consult your Assante Advisor before investing.
