Accounting firm BDO Canada1, found that only one-third of family-owned businesses survive the transition to second generation, with just a third of these getting to the next - a mere 1 in 10 chance of the business surviving for three generations. Often, the reason is insufficient planning.
As we age, it becomes more likely that we may lose track of our finances. It could be because of physical reasons (failing eyesight, shaky hands, etc.), mental reasons (memory loss, cognitive impairment, etc.), or a little of both. It is common for someone not to seek help because of pride or fear of losing their independence and family members (the most common support system) are sometimes reluctant to step in to help.
From listening to the media and online commentators, we have identified two key observations that can impact your efforts to build assets and wealth over time.
The first is the way many individual investors place one-way bets on their market investments. As long as the investment is making money, all is good. But the minute the investment sinks for a couple of days or goes negative (relative to their starting capital), they quickly sell.
It's challenging to be patient in a fast-paced, immediate gratification world, but some things are worth the wait. Consider, for example, how a powerful financial reality (compound interest) can help investors accumulate a lot of assets over time to reward their patience and perseverance. Here's how it works:
Now is usually the best time to consider harvesting tax losses before the year-end to manage your overall income tax situation, based on various types of earned or investment incomes.
Exempt products provided through Sentinel Financial Management Corp.
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