Increase Investment Savings

For most of us, the key barrier to financial success is our behaviour, both as a consumer and investor. Choosing to implement good ideas automatically over the long term is an effective strategy. That's why the most valuable three words in financial planning are "Pay Yourself First", or PYF. One simple decision set up in minutes can produce decades of benefit without any additional thought or effort.

As important as PYF is to financial success, there are two issues that can be improved to benefit investors, and the financial firm they deal with.

The second is that not everyone who should be investing automatically each month is. Talbot's "Painless PYF" approach is an improvement on traditional PYF plans, and makes it easier for those not yet saving automatically to get started.

The more fundamental way that PYF plans can be improved is that they don't automatically increase to keep up with inflation or as one's income rises. Government benefits, like Old Age Security, are indexed with inflation to maintain seniors' purchasing power. Even our tax brackets are now indexed with inflation each year to avoid bracket creep. By default, your savings plan should be indexed to keep up with inflation too.

While increasing monthly savings plan contributions each year by say 2% might seem small, the discussion takes only a few minutes and the benefits grow and compound indefinitely, for the investor, advisor, dealer, and money manager.

Learn more about Talbot's four related ideas to further increase benefits for investors and their financial firms, including his 6-sided pamphlet entitled "Simple Ideas to Boost Your Savings Plan", by calling 519-663-2252 or emailing info@TalbotStevens.com.