TORONTO — Finance tips and advice that worked decades ago aren't always relevant in today's day and age. Still, well-meaning friends and family often recycle the same information for younger generations — only for them to find out the hard way the advice might be inaccurate.
"A lot of people I talked to are skeptical about whether or not CPP will be around for them in the future — who think the federal government somehow has access ... and is going to use it for something else," Heath says. "Ideally, an investor should consider a combination of stocks with high and low dividends to have a well-diversified portfolio," he said."There's a lot of taxpayers, investment advisers and accountants who really promote the concept of putting as much into your as you absolutely can," said Heath.
Fifty per cent of the paycheque for needs, 30 per cent for wants and 20 per cent for savings — the popular budgeting strategy doesn't work anymore, says Morgan of Canadianbudget.ca. "But people don't think of every company out there in the world that has a budget and they stick to it because it's a way to use your money that benefits you and helps you reach your goals," she said.
Robo-advisors such as Wealthsimple and Questrade have democratized and simplified investing to a level that anybody can start their investment journey without specialized finance knowledge and still maintain a level of safety, she added.It doesn't require a complex understanding of financial markets and institutions but a general knowledge of how investing works and the fees involved, she said.