This Thanksgiving Give Thanks For Your Financial Well-Being
Thanksgiving is a holiday to share and appreciate our blessings. Originally the idea was to give thanks for the harvest season, but the tradition has changed over time and we now get together with family and eat a large turkey dinner.
Our financial well-being enhances our security and happiness, so this Thanksgiving be grateful for all the good things that have been going well for you financially.
The bull market has been going strong
Even though there have been a few blips in the stock market in the last few months, on the whole, the bull market is still strong. It has been over ten years since the last major bear market and the S&P/TSX has increased over 120% since then, reaching an all-time high of 16,947.23 in September 2019.
That means your retirement investments should be flourishing.
Keep in mind that it also means increased risk. When the market is going strong it’s easy to overlook your tolerance for any loss. This may be a good time to rebalance your portfolio to make sure your equity allocation hasn’t grown too big.
The economy keeps growing
Even though it has slowed down this past year, especially in the oil and commodities sectors, it is still good news for the Canadian economy which has been driven by robust household spending in recent years. A major benefit is job creation with unemployment at an
The Bank of Canada will continue to do a balancing act on interest rates. Growth often means inflation. However, interest rates will likely remain low for some time.
You are sticking to the budget you created
You created a budget that works for you, your income and your retirement lifestyle. Sometimes it can take a few adjustments before you find the right combination of spending and saving that will also keep you from feeling too restricted. Be thankful you adapted to living on a fixed income and were still able to take that trip, buy a new car, or indulge in whatever makes you happy.
You should be proud of yourself for being so committed.
Related: Stretching Your Retirement Dollars
No more debt!
You were diligent in paying off your mortgage and made a huge effort to aggressively reduce other consumer debt well before you retired. That means more discretionary income to spend on your lifestyle wants, rather than having draining debt payments with their accompanying high interest rates.
Don’t fall into the trap of tapping into your home equity and accumulating more debt for income replacement or to help maintain the lifestyle you enjoyed before retirement.
You’ve accumulated investments and other assets
It’s hard to keep up with family expenses, let alone save enough to invest or purchase an
It’ s a big accomplishment to put in the hard work necessary to successfully plan for your future.
The bottom line
“If a fellow isn’t thankful for what he’s got, he isn’t likely to be thankful for what he’s going to get.” Frank A. Clark
Sometimes financial achievements take so long to accomplish we forget just how important they are and how much they can positively affect our lives.
That’s why it’s important to think about, and be thankful for, all the achievements you have made and not take them for granted.
Enjoy your Thanksgiving Day and thanks to all of you for dropping by.