The Tried and True Method of Investing: Playing the long game and why it works

The Tried and True Method of Investing: Playing the long game and why it works

As the saying goes, “slow and steady wins the race.” Profitable investing does not involve convenience. In fact, it is anything but a short game. Many individuals get lost in the idea that if they don’t see a quick return on their investment, they are playing the game wrong. But the fact is, investing is a game that requires significant concentration and perseverance, responding with aptitude through every twist and turn of the journey. 

As much as investing is about allocating your wealth to beneficial sources, it is also about harnessing a character trait that will allow you to not only have faith throughout the process; but in the long run of your investment journey. That trait? Patience. 

While holding patience, it is equally important to understand your investment capacity. Long-term investing looks differently for everyone and understanding capacity boils down to three important concepts: 

  1. Financial Goals: Where would you like to be in ten, twenty or even forty years? How do you want your retirement to look? How much money do you want to leave for your children? These kinds of questions become compasses in your long-term investment journey. 
  2. Risk tolerance: In essence, risk tolerance is about how much flexibility you have in market fluctuations, and how much loss you can financially handle. Low-risk tolerance means more conservative investments, while higher risk allows you to make more aggressive investments. 
  3. Time horizon: How much time do you have available to you? Long-term investments are defined as something that takes more than six years, but do you have the luxury of more time? Can it be stretched to ten or even twenty?

While the idea of letting your investment sit for at least ten years may be daunting, especially when you consider higher-risk investments that hold higher risk. What keeps everything anchored, is the idea that you have trust in the future. That means sticking it out through all the ebbs and flows to boost the resilience of your investment. 

Finding a balance between risk and growth is vital to ensuring your long-term investment stamina. While one stock can grow quickly, it may pose a higher risk, but that does not mean you stay away from risk entirely. It is about weighing the risks and the rewards for your personal financial status and understanding what balance works for you and your wealth. 

Wondering where playing the long game in investing can be most advantageous? Here are some investment options that honour your commitment to patience by giving you the reward of returned investment. 

Real Estate 

According to Forbes, “Real estate is one of the safest investments you can make.” Owning a property is both a good investment and a tangible one. 

In addition to lowering your taxable income, real estate investments, over time, can provide continued cash flow which can be reinvested into your property by paying off your mortgage.  There are multiple forms of appreciation for real estate as well, not only does it grow with the market and inflation, but any updates that you make to your property can increase the value of your investment. 


It is advised against making a short-term investment in a stock due to its tendency to plummet and skyrocket. While this defers the individuals who seek a quick reward, stocks are optimal for investors who are keen on the long game. 

Some common long-term stocks that are beneficial to be invested in include: 

  1. Dividend Stocks: With a rich history of handling the ups and downs of the markets, dividend stocks are a great option for long-term investors due to their slow growth and solid returns. 
  2. Exchange Traded Funds (ETFs): ETFs offer you the chance to invest in various stocks boosting your portfolio diversification. By investing in stocks with a smaller price while having a far-reaching time horizon, you can not only spend less but potentially gain more. 

While these are only a few of the many long-term investment opportunities available to you, each one of them holds distinct advantages and disadvantages. That is why it is vital to diversify your portfolio and support the long game by holding multiple investments. While one falls, another may climb. 

Like the short-term investors, the hare found significant returns, quickly.  While it was fine while it lasted, the tortoise famously came out victorious. Short-term investments do offer benefits of their own, but they lack one very important thing, endurance. 

When it comes to long-term investing, the longer you play, the higher the reward. Want to learn how you can play the long game? Speak with an advisor at RaeLipskie today and begin your long-term journey the right way.

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Setting Your Budget Priorities: Retirement, Investing and Donating

Setting Your Budget Priorities: Retirement, Investing and Donating

In today’s world, spending temptation is everywhere. Overconsumption is becoming increasingly common, while wealth saving is left on the back burner. In reality, saving all of our money is not the goal, but with a little prioritization in budgeting, you can turn your day-to-day wealth into future financial success. 

While budgeting may seem like a daunting task, it is not as complicated or overwhelming as it appears and the benefits can be transformative. The key to creating a budget is about understanding what you find value in and pouring your wealth into productive financial outlets. Get into a steady rhythm of consistency, and create a customized budget by documenting, tracking and prioritizing your spending categories. 

Starting With The Basics

No matter what kind of financial status you hold, budgeting for the essentials remains a universal priority. Integrating basic budgeting tactics promotes financial responsibility through monitoring and tracking expenses and allocating wealth to beneficial sources. 

If you are looking to implement budgeting plans into your finances, the 50/30/20 rule or “Zero-Based Budget” are commonly used to prioritize growth, needs and wants. If you do implement these strategies, it is important that you monitor your success and implement frequent adjustments.

If you are left with extra funds after filling your gas tank, paying your rent and buying your groceries, your next priority should be repaying credit debts and loans. Like the essentials, debts require budgeting and setting up a designated portion of money towards your amount-owing. By structuring your debt repayment plan, you can adjust your cash flow to make your payments a lot more manageable, making small steps for big changes. 

Long-Term Budgeting Tactics 

Using a basic budgeting technique allows you to monitor your short-term expenses and income. With this understanding, you can grasp how much is available to be invested into saving for the future. 

Retirement is an important long-term goal. Relying on alternate sources of income such as government benefits like Old Age Security (OAS), Canadian Pension Plan (CPP) and Guaranteed Income Supplement (GIS) is a given for most Canadians. However, what sets a financially successful retirement apart is the use of budgeting for saving in designated accounts like a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Account (RRSP). 

Setting aside money for retirement starts with defining your goals, when you plan to retire and how much you would like to have for retirement. Using the Canadian Retirement Income Calculator will give you a sense of how much money you will need to retire and how long it will take to get you there.  

Budgeting monthly income to contribute to savings accounts will allow your wealth to not only be saved but compounded. For example, TFSAs and RRSPs are the biggest tax havens for investment gains as they sit tax deferred. 

Budgeting For Investment 

If you are thinking about ways you can diversify your wealth through budgeting, consider investing. Mark Henry of Alloy Wealth Management states that you should invest “somewhere around 15%-25% of your post-tax income.” If this sounds out of reach, consider setting aside a manageable designated amount to invest each month. 

Investing in mutual funds, exchange-traded funds, real estate, stocks or bonds can use the power of interest to increase your investment and reduce risk through portfolio diversification. 


If you are looking for a meaningful budgeting tactic, allocate funds to charitable donations. Setting aside a portion of your income for charitable contributions permits you to lower your taxable income and increase your tax refund which you can invest and budget further. With an official donation receipt, all Canadians can claim a charitable donation tax credit, for 75% of their net income on their tax return. 

When donating, it is important that you look for organizations with a transparent track record and commitment to their mission. To ensure that you can also benefit from your contribution, confirm that the organization is recognized by the CRA

When it comes to budgeting, individualized approaches are essential for success. Everyone’s financial status and journey are different, and without understanding your own financial goals and plans, it may seem difficult to see results. It is important to know that frequent adjustments to your budget are normal and that with regular monitoring, you can shift your priorities to better fit your lifestyle. 

To begin or amplify your budgeting strategies, speak to an advisor at RaeLipskie and unravel the path to your future finances through your present-day wealth, contact us today!

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Wealth Building Wisdom: Investment Techniques for Female Investors

Wealth Building Wisdom: Investment Techniques for Female Investors

According to RBC, within the next decade, women’s personal finance assets are expected to grow more than 70 per cent. Stemming from inheritance funds, career earnings and entrepreneurship, women are set to be trailblazers in the financial future of our country. By 2026, it is projected that women will control nearly 50 per cent of all financial wealth.

Historically, the numbers have not been so even. The gender wage gap is a constant battle women face throughout the entirety of their careers. According to Statistics Canada, women average 89 cents to every dollar men make. The reality is, women battle a gender wealth gap that hinders their capabilities in securing a successful financial future. 

Women are also more likely to experience significant changes in career and life events which lead to early career plateaus. These setbacks are a result of the societal expectation to take time off work for domestic responsibilities, like caring for children and elderly parents. Even though women on average live five years longer, this gap in their careers has effects on their retirement funds as their contributions to the Canadian Pension Program are hindered.

Women are encouraged to build up their investment portfolios in efforts to close the gender wealth gap. Investing offers the opportunity to accumulate wealth and secure long-term financial security. While financial goals vary among individuals, it is important to recognize the distinct investment strategies women should employ. 

Patience – a Virtue 

Statistically, men trade 45 per cent more than female investors and studies show that women foster more patience in investing. Using this to their advantage, utilizing patience in investing will allow compounded interest to grow, providing the opportunity to reinvest dividends and capital gains as time goes on. 

By getting a head start on your investments, you can begin contributing to your retirement fund and reduce the risk of potential early-career plateau. Looking ahead at the next five, ten or twenty years, female investors need to identify SMART goals; specific, attainable, relevant and time-bound. 

Utilizing Patience to Get the Most Out of Your Investment

  • Capital appreciation investments are an excellent investment decision for women early on in their careers. It allows them to bank on their investments as they grow over the course of their careers. 
  • Target-date funds allow you to prepare your portfolio for life’s great changes. Gradual rebalancing and reallocation shift your assets from riskier investments to more conservative ones. 

Diversify to Multiply 

Portfolio diversification is another key aspect of ensuring women’s investment success throughout their careers. Using asset allocation, you can blend stocks and other investments to achieve a sense of security, avoiding excessive reliance on a single market or sector. 

Serving as a basket of assets, exchange-traded funds are a helpful resource in diversifying your portfolio, offering investment options such as stock commodities or bonds. Investments with higher returns such as real estate and equities are a great direction for women to take when investing as they offer long-term rewards and increased investment assortment. Diversifying your portfolio enables you to branch out your wealth while avoiding losses and increasing your chances of stable returns in the future. 

Risk and Reward 

Statistically speaking, female investors are more risk-averse than men. In the world of investing, a conservative approach is not always the most effective. By exercising caution, you jeopardize your long-term financial stability. When looking to reach your return goals, embracing risk is seen as an essential element.  

While a well-diversified portfolio manages risks, it is important to analyze your risk profile. The risk profile represents the lower value between risk capacity – your financial ability to endure loss of capital – and your risk tolerance – the amount of loss you are prepared to handle. By examining your risk profile your investment planning becomes increasingly more efficient. Women experience different financial needs throughout the multiple stages of life, and these shifts cause changes to risk profiles. Frequent reassessment of risk capacities and tolerance will ensure your assets are invested effectively. 

Whether you are at the beginning of your investment journey or want to learn more about productive financial choices for female investors, speak to an advisor at RaeLipskie. Let’s embark on a financial journey that optimizes your long-term success, contact us today!

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Tax Reduction Strategies: Setting yourself up for the future.

Tax Reduction Strategies: Setting yourself up for the future.

As the 2023 tax season comes to a close, it is time to shift your focus to optimizing your wealth for 2024. Implementing tax reduction strategies benefits your future financial success and maximizes your net income. There are many ways to achieve financial wellness and it might take some time to find what’s right for you, but when it comes to the many approaches, they all have a common objective: securing your future. 

When addressing your finances, it is vital to adopt a tailored approach that organizes your portfolio effectively. Prioritizing income tax strategies enables you to capitalize on the tax breaks and credits offered by the Canadian Revenue Agency (CRA). Stay informed about updates in tax regulations and newly added benefits as they are essential to achieve successful tax planning. 

New Year, New Tax Changes 

Like most years, there have been changes to federal funding outlets impacting the taxable incomes of specific tax brackets. This year, a 4.7% increase in personal tax brackets means individuals earning more than $55,867 will face an income tax rate of at least 20.5%. 

Canadian Pension Plan (CPP) 

The addition of another CPP tier and two maximum amounts means individuals with annual earnings between $68,500 and $73,200 will end up paying an additional 4% in contributions. This introduces a new tax obstacle for employers hiring workers that fall into the qualifying tax bracket; resulting in a 7.5% cost for the employer and a 7% contribution from the employee. 

Trust Reporting 

Bill C-32’s implementation focuses on increasing transparency around trusts with “bare trusts” being the main focus. Bare trusts refer to one individual acting as a beneficiary on a property or investment while another individual serves as a trustee and has no obligations. It is vital that trust holders are aware of their statuses when approaching 2024 as tax filing may be required. 

What’s New? 

Two new tax reduction options have been implemented this year, geared towards homeowners and potential buyers:  

First Home Savings Account (FHSA): For prospective new home buyers, this newly introduced FHSA is a registered plan for saving, buying or building a qualifying home while assisting in managing your taxable income. Contributions to an FHSA reduce taxable incomes, and investment returns remain tax-free, with a maximum annual contribution of $8,000 and a lifetime limit of $40,000 in 2024.

Multi-Generational Home Renovation Tax Credit (MHRTC): In the 2022 federal budget, a new refundable MHRTC was introduced for qualifying applicants to create a secondary unit within a residence for occupancy by the qualifying individual or relative. The credit amounts to 15% of qualifying expenditures or $50,000, whichever is lower.

Dependable Tax Saving Strategies 

Apply these strategies to your 2024 tax reduction plan to avoid tax burdens and maximize your wealth!

Registered Retirement Savings Plan (RRSP): RRSPs offer a means to lower taxable income, making them beneficial for those facing high tax burdens. While subject to contribution limits, RRSPs allow for tax-sheltered contributions and withdrawals, ultimately aiding in retirement planning. 

Registered Education Savings Plan (RESP): Thinking about saving for your children, or grandchildren’s education? Consider an RESP, designed specifically to allow your contributions to grow tax-free with a maximum contribution of $50,000 per beneficiary for the lifetime of a plan. 

Income Splitting: If you and your partner have differences in salaries, income splitting may be an efficient way to maximize your combined net income. Particularly beneficial for retired couples who are in different tax brackets and seeking to reduce their overall tax bill. 

When preparing for tax season, it is important to set up a strategic plan to organize your assets and minimize tax breaks. At Rae Lipskie, you’ll receive tailored advice to optimize your financial wellness and maximize your investment returns. Speak to one of our financial advisors and begin building your plan of action, contact us today!

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Financial Fraud Prevention: What you need to know

Financial Fraud Prevention: What you need to know

Financial fraud occurs when someone intentionally deceives or conducts criminal activities to take money or assets from others. In recent years, financial fraud has become increasingly sophisticated and prevalent, emphasizing the need for individuals to be vigilant and proactive in safeguarding their assets, whether managing personal finances or overseeing business transactions. Implementing effective fraud prevention measures is essential to asset protection.

Common Types of Financial Fraud

Phishing is a term that can be used to refer to many types of scams. It typically consists of a fraudster sending deceptive emails, posing as close relations like friends, family members, internet service providers, or banks. They exploit the personal information that is provided to open new accounts or infiltrate existing ones. We can further break this down into specific types of financial fraud scams.

Investment Scams: The digital era has introduced a new wave of invasive and effective methods for fraudsters. In 2022, digital phishing techniques accounted for the highest losses ever, with victims reporting over $136.5 million in losses. For example, some scams involve fraudsters luring victims through social media to their fake cryptocurrency investment websites.

Emergency Scams: Targets for emergency scams are often vulnerable individuals, such as grandparents and senior citizens, fabricating emergencies and requesting immediate financial assistance. Common ploys include urgent needs like bail or medical bills being paid to manipulate and coerce victims into sending money or transferring large amounts of money into untraceable accounts or currencies.

Service Scams: Fraudsters impersonate legitimate companies, such as insurance providers or utility companies, exploiting trust in these institutions to deceive their victims. They may also masquerade as familiar corporate entities like Amazon, fabricating account issues, credit refunds, or fake deliveries to extract sensitive information or payments.

Government Impersonation Scams: A prevalent scam in Canada involves impersonating government agents, financial advisors, or postal services, to dupe victims into believing they owe money to the government. This tactic preys on individuals’ trust in authoritative figures, and their fear of being penalized for missing tax deadlines or bill payments.

Oftentimes, financial fraud scams incorporate one or more methods for extracting information, including hyperlinks, text messages, telephone calls, emails, social media messages, and QR codes. Financial fraud scams are not limited to the above and can take shape in many forms. 

With fraudsters continuing to push boundaries and create novel and unique approaches, it’s important to look for signs of potential financial fraud scams.

Signs of a Financial Fraud Scam

  • Urgent Demands: Scammers pressure victims to make hasty decisions under threat.
  • Confidentiality Requests: Victims are instructed not to involve authorities or disclose details to trusted individuals.
  • Immediate Contact: Urgent messages that mandate immediate communication.
  • Unusual Payment Requests: Demand of payments via unconventional methods including gift cards, Bitcoin, or prepaid visas.
  • Suspicious Attachments: Unknown senders containing links or attachments encouraging you to click on a link or attachment and to follow it or download it.
  • Requests for Personal Information: Unfamiliar sources requesting sensitive data, such as bank details (card numbers, personal identification numbers (PIN), accounting information), and government-issued information and IDs (social insurance numbers (SIN), date of birth, and security answers).

Effective Precautions to Protect Your Assets

Recognizing potential threats is the first step in defending against financial fraud. Remain cautious of tactics such as impersonation, urgency, intimidation, and insistence on untraceable payments. 

Some tips to help safeguard your assets are:

  • Ignore Unknown Emails: Refrain from opening or engaging with emails from unfamiliar senders, and block them to prevent further contact.
  • Exercise Caution: If an email appears suspicious, refrain from opening attachments or clicking on links.
  • Verify Authenticity: Look for secure symbols, logos, and branded emails to validate the sender’s identity.
  • Avoid Sharing Sensitive Information: Refrain from disclosing personal or financial details via email or text, especially in response to unsolicited requests.
  • Confirm Requests: If contacted by an unfamiliar entity requesting sensitive information or payments, verify the authenticity of the request through trusted channels before taking any action.

By remaining vigilant and adhering to these precautions, individuals can mitigate the risk of falling victim to financial fraud and safeguard their assets effectively.

At RaeLipskie, we are here to help you make informed financial decisions to maximize your investment returns. To receive personalized advice from a trusted RaeLipskie financial advisor, contact us today!

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What it costs to retire in Canada: Maximize your RRSP impact

What it costs to retire in Canada: Maximize your RRSP impact

In Canada, Registered Retirement Savings Plans (RRSP) play a crucial role in building a secure financial future. Understanding how to maximize the impact of your RRSP contributions is key to achieving long-term financial goals. While the cost of retirement varies for each individual based on factors such as your age, lifestyle, and monthly bills, there are ways to maximize your RRSP impact to help ensure a comfortable retirement. Continue reading to learn more about strategies that can help you make the most of your RRSP investments. 

  1. Diversity your investments
    Diversifying your RRSP investments is crucial for minimizing risk and enhancing long-term stability. By spreading your investment across different asset classes, you can manage risk and enhance your opportunity for long-term growth.

  2. Take advantage of employer matching programs
    If your employer offers a pension plan or contributions to your RRSP, take full advantage of these benefits. It’s essentially free money that boosts your retirement savings.

  3. Utilize spousal RRSPs
    Consider contributing to a spousal RRSP to equalize retirement income. This can result in overall tax savings by potentially moving withdrawals to a lower-income spouse, therefore reducing the tax burden.

  4. Regularly review your RRSP portfolio
    Periodically review your RRSP portfolio to ensure it aligns with your risk tolerance and financial goals. Rebalancing helps maintain a diversified investment strategy.

  5. Delay CPP and OAS benefits
    If possible, you could consider delaying Canada Pension Plan (CPP) and Old Age Security (OAS) benefits. This could result in higher monthly payments when you start receiving them.

  6. Seek professional advice
    Consult with a financial advisor that can tailor your RRSP strategy to your specific situation. A professional will be able to provide you with personalized advice based on your financial situation and goals.

    At RaeLipskie, we are here to help you make informed financial decisions to maximize your investment returns. To receive personalized advice from a trusted RaeLipskie financial advisor, contact us today!
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