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Financial Planning

A resource forum for those interested in buying, selling, or developing a business; for questions about retirement plans; investing and basically any aspect of acquiring, keeping and increasing one's personal stash of filthy lucre.

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Re: Financial Planning

Postby GuyInTaiwan » 27 Nov 2011, 17:38

headhonchoII wrote:That doesn't work anymore due to low interest rates.

It also doesn't work because something growing at 8% interest p.a. will take nine years to double, not five or seven. The idea of it doubling in nine years is still inaccurate, however, because it doesn't take into account inflation. Taking into account inflation, it's actually going to take somewhere in the vicinity of twelve years to double.
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Re: Financial Planning

Postby finley » 27 Nov 2011, 18:02

And as Slater mentions in that interview, the possibility QE causing runaway inflation - maybe even hyperinflation - is very real, hence his relatively low cash allocation. Keeping all your savings in cash or bank deposits is a very ticklish situation to be in, although I must admit I'm in the same position since I'm not really sure what else to do at the moment.

Slater's recommendations seem quite sensible to me; I was especially surprised to see him mention agriculture, which almost nobody talks about, as if food just magically appears on supermarket shelves. Fact is, in a doomsday scenario, it'll be Cargill and the like that rule the world, not Goldman Sachs. I suppose his "5-10%" allocation reflects his perceived risk of serious financial turmoil.
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Financial Planning

Postby headhonchoII » 27 Nov 2011, 19:18

Ironically it may be better to purchase assets like houses with debt and hope inflation eats away at the debt. You have to have confidence you will keep your job in a downturn and hope that deflation doesn't take hold instead.
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Re: Financial Planning

Postby Jack Burton » 13 Apr 2012, 16:35

Chewycorns wrote:Ithink any expat that remains in Taiwan over 5 years and who isn't an entrepreneur should start their financial planning right away. If you're a Canuck, maximize your RRSP and TFSA options. If you have kids or will soon have kids, start your RESPs early. An added bonus of the RESP is that for every $100 contributed to an RESP by you, the government provides a $20 grant called the Canada Education Savings Grant. It is basically free money and can be as much as $500 a year for each child.

just checking, but this isn't available to non-resident Canadians working abroad with no income domestically and who don't want to be taxed worldwide, yes?
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