Enough Bull: How to Retire Well without the Stock Market, Mutual Funds, or Even an Investment Advisor

Table of Contents

Acknowledgements.

Introduction.

The Fall of 2008.

Angry Yet?

Why I Wrote This Book.

Your Retirement Journey.

Down the River.

Uh-Oh, It’s the Niagara River.

Retirement Journey: Plan B.

Here’s What They Don’t Want You to Know.

PART ONE: THE ANTIDOTE.

The Antidote: A Six-Point Plan for Financial Freedom.

1. Avoid Personal Financial Disasters.

2. You Don’t Need the Stock Market or Mutual Funds.

3. Buy a Home and Pay Off the Mortgage.

4. Reducing Expenses Doesn’t Have to Be Painful.

5. Forget RRSPs Until Your Debt Is Paid Off (the Opportunity Zone).

6. Ask Yourself if You Really Need an Investment Advisor.

Chapter 1—Avoid Personal Financial Disasters.

The Ponzi Scheme.

Bernie Madoff.

Our Very Own Canadian Fraud.

What Did the "Average" Victim Look Like?

How Did Investors Become Involved in Eron?

What Steps Did Investors Take Before Investing?

Why Did They Invest?

Where Did They Get the Money?

The Lessons of Eron.

Extraordinary Popular Delusions.

Other Potential Disasters.

Credit Card Disease.

Taking Out a Mortgage on Your Home to Invest.

The Latest Stock Chase.

Trusting Your "Friends".

Mortgage Fraud.

How to Prevent Personal Financial Disasters.

Conclusion.

Chapter 2—You Don’t Need the Stock Market or Mutual Funds.

The Worldwide Economic Meltdown.

What’s Next?

What Caused the Meltdown.

The Vicious Spiral.

Who Wants to Be Rich?

Why You Don’t Need Stocks.

Why You Don’t Need Mutual Funds.

Mutual Fund Risks.

Those Darned Mutual Fund Fees!

1. Fees and Expenses Payable Directly by You.

2. Fees and Expenses Payable by the Fund or Portfolio.

The Puke Point.

How to Get Rid of Your "Dog" Funds.

A Word about Labour-Sponsored Investment Funds.

We Won’t Get Screwed Again.

The Canada Deposit Insurance Corporation.

The Advantages of GICs.

Easy to Understand.

No Fees.

Flexible.

Insured.

Why They Try to Make GICs Complicated.

How and Why They Bash GICs.

The Laddered GIC.

Getting the Best GIC rates.

Consider a Deposit Broker.

Finds the Best Rates.

Saves Time.

Provides Advice.

You Don’t Pay Fees.

Who Regulates Deposit Brokers?

Fiscal Agents.

GIC Rates of the Future.

Chapter 3—Buy a Home and Pay Off the Mortgage.

Ya Gotta Live Somewhere.

Gains in Value Are Tax-Free.

Source of Cash.

Great Source of Retirement Funds.

Should I Buy a House?

Can I Afford a House?

Gross Debt Service Ratio (GDS).

Total Debt Service Ratio (TDS).

Just How Much House Can I Afford?

Saving for the Down Payment.

Buying with Less Than 20% Down.

Pre-approved Mortgages.

What If I Don’t Qualify?

Your Credit Report.

What’s in a Credit Report.

How to Get a Free Copy of Your Credit Report.

Getting Your Credit Report Online.

How to Improve Your Credit Score.

Your Home as an Investment.

"The Best Investment I Ever Made".

Conclusion.

Chapter 4—Reducing Expenses Doesn’t Have to Be Painful.

Reducing Interest.

The Spending Years.

Reducing the Amount of the Debt.

Debt and the Economy.

Reducing the Interest Rate on the Debt.

Reducing Taxes.

Pension Income Splitting.

Spousal RRSPs: Still a Useful Tool.

How to Calculate Your Tax Bill.

Happy New Year—Here’s Your Reduced Paycheque.

Marginal Tax Rates.

Self-Employment—King of the Income Splitters.

Conclusion.

Chapter 5— Forget RRSPs Until Your Debt Is Paid Off (the Opportunity Zone).

Pretend that the Stock Market Does Not Exist.

The RRSP Fallacy.

Compound This.

The Tax Turbo-Charged RRSP.

A Word About Your RRSP Limit.

Do You Trust the Stock Market?

Those Ugly Fees.

Don’t Put All Your Eggs in One Basket.

Conclusion.

Chapter 6—You May Not Need an Investment Advisor.

My Story.

What I Did Next.

What to Look For in an Investment Advisor.

Do You Have a Lousy Advisor?

No Advisor Is Better Than a Bad One.

Henry’s Story.

Conclusion.

PART TWO: THE DETAILS.

Chapter 7—The Canada Pension Plan Question.

What Is the Canada Pension Plan?

How They Calculate CPP Premiums.

How They Calculate the CPP Pension.

How the CPP Adjusts for Inflation: The YMPE.

CPP Pension.

You Must Apply to Start Receiving It.

My Service Canada Account.

My Service Canada Account epass.

How Do I Know How Much I’ll Get?

Money-Saving Tip: CPP Pensions.

CPP Pension Sharing Example.

When Should I Elect to Receive CPP?

The Time Value of Money.

Starting the CPP Pension Before Sixty-five.

Money-Saving Tip: Self-Employment Income.

Money-Saving Tip: Employees.

Warnings.

Conclusion.

Chapter 8—The Money Maximizer.

Why Work Against the Taxman?

The Value of Time.

The Time Value of Money.

The Money Maximizer Spreadsheet.

Meet Pat and Jane.

Pat and Jane: The Assumptions.

Pat and Jane: The Results.

Pat and Jane Try Income Splitting.

Putting the RRSP "Start Late" Theory to the Test.

Pat’s Tax Turbo-Charged RRSP.

Conclusion.

Chapter 9—How to Recover From the Stock Market Crash.

The Devastating Effect of the Crash.

Are You Going to Throw Good Money After Bad?

You Can Still Retire Well.

1. CPP Pension Splitting.

2. Electing CPP Early.

3. RRSP/RRIF Income Splitting.

4. Extending Your Retirement Date.

Other Ideas.

Conclusion.

Chapter 10—The Alternatives: Can Anything Beat an RRSP?

A Common Misconception.

Alternatives to RRSPs.

Investing Outside Versus Inside an RRSP.

Investing in Real Estate.

Investing in Your Own Business.

Investing in a Tax-Free Savings Account.

Main Features of the TFSA.

The TFSA as an Income Splitter.

Opportunity for Retirees.

Does Anyone Have $5,000 Outside a Registered Account?

Why the TFSA Is Better Than an RRSP for Home Buyers.

The RRSP Home Buyers’ Plan.

Keeping Profits in a Corporation.

Conclusion.

Chapter 11—The Antidote Summary.

1. Avoid Personal Financial Disasters.

2. You Don’t Need the Stock Market or Mutual Funds.

3. Buy a Home and Pay Off the Mortgage.

4. Reducing Expenses It Doesn’t Have to Be Painful.

5. Forget RRSPs Until Your Debt Is Paid Off (the Opportunity Zone).

6. Ask Yourself if You Really Need an Investment Advisor.

Index.