Article Licenses: CA, unknown, unknown, unknown
Advisor Licenses:
Compliant content provided by Adviceon® Media for educational purposes only.
In 2008, escalating mortgage debt caused a financial crash that decimated the retirement income of many. Debt control is becoming a critical issue.
Credit interest eats away at wealth. Every household has a budget and must live within its means and save for the future. We each must be careful not to allow debt interest repayment to reduce our ability to live comfortably or retire with financial security.
Interest on the debt except for investment or business debt is paid with after-tax income. It reduces our capacity to pay down the principle on our mortgages or increase our investments for retirement.
Shift your financial paradigm away from debt The fact that so many people act without discretion while increasing debt shows that consumers need a more mature view of finance. We need to examine our genuine need for each purchase and consider the effect on our family’s income-creating ability before giving in to the temptation to buy more of what we cannot afford.
To avoid debt, we need to govern our response to each desire to have what we cannot afford. How do we do this? Work at not buying what you cannot afford, meaning living by a responsible paradigm of fiscal temperance. Learning to say to yourself, “No. I will survive without this item and will be better off debt-free!”
“If worst comes to worst, meet poverty halfway by retrenching expenses. That is what I am striving to do and reform before poverty forces me to do so. Furthermore, I have established enough levels in my soul where I can get along with less than I have; get along contentedly, I mean, Not by the calculation of our income, but by your manner of living and your culture, is your wealth really to be reckoned”. Montaigne
Reduce debt for societal justice Good financial discernment directs our actions when considering taking on debt. If a man, for example, has borrowed fifty dollars from a friend to go to a concert with his girlfriend, the goal of fiscal justice is to pay his friend back what is due to him. In conformity with the right reason, Justice demands that the fifty dollars be paid back. But how and when shall it be paid back? An imprudent man might never pay it back, so he would fail to observe the rule of social justice in finance.
Develop a strategy to pay back debt To pay back debt requires the resolution to set aside a small sum from our income each week or month until we have allocated repayment of our obligations. Look at all of your debts and begin to pay down the higher interest-bearing debts first. Another approach would be to pay off the smaller loans and credit cards first to achieve victories sooner while creating the habit of debt reduction.
What is your financial viewpoint? We must be determined to be directed by wise discretion regarding how we use credit to attain financial goals. This is for the good of all – family and society. Your financial advisor can guide you to reduce debt and increase your investment portfolio.
All articles are a legal copyright of Adviceon®Media and are for educational purposes only. The particulars contained herein were obtained from sources which we believe are reliable, but are not guaranteed by us and may be incomplete. This website is not deemed to be used as a solicitation in a jurisdiction where this representative is not registered. This content is not intended to provide specific personalized advice, including, without limitation, investment, insurance, financial, legal, accounting or tax advice; and any reference to facts and data provided are from various sources believed to be reliable, but we cannot guarantee they are complete or accurate; and it is intended primarily for Canadian residents only, and the information contained herein is subject to change without notice. References in this website to third party goods or services should not be regarded as an endorsement, offer or solicitation of these or any goods or services. Always consult an appropriate professional regarding your particular circumstances before making any financial decision. The information provided is general in nature and should not be relied upon as a substitute for advice in any specific situation. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investment funds, including segregated fund investments. Please read the fund summary information folder prospectus before investing. Mutual Funds and/or Segregated Funds may not be guaranteed, their market value changes daily and past performance is not indicative of future results. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision. Talk to your advisor before making any financial decision. A description of the key features of the applicable individual variable annuity contract or segregated fund is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. Product features are subject to change.
This material was prepared by Adviceon Media on behalf your Investment Advisor with Aligned Capital Partners Inc. (“ACPI”). This material is provided solely for general information and should not be considered individual investment advice or construed as an offer or solicitation to buy or sell securities. The information contained herein may not apply to all types of investors. Before acting on this material, please seek professional advice, as appropriate, based on your personal circumstances. All opinions expressed and information provided herein are subject to change without notice. Although this material has been compiled from sources believed to be reliable as at the date of publication, we cannot guarantee its accuracy or completeness. All charts and illustrations in this document are for illustrative purposes only and they are not intended to predict or project investment results. In considering any particular investment, please remember that past performance is no guarantee of future performance. ACPI is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and the Canadian Investment Regulatory Organization (“CIRO”). Investment services are provided through Progress Private Wealth Inc. of ACPI, an approved trade name of ACPI. Only investment-related products and services are offered through ACPI/Progress Private Wealth Inc. and covered by the CIPF.
Aligned Capital Partners Inc. (“ACPI”) is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and Canadian Investment Regulatory Organization (“CIRO”). Investment services are provided through Progress Private Wealth, an approved trade name of ACPI. Only investment-related products and services are offered through ACPI/Progress Private Wealth and covered by the CIPF.
