Where should I go from here?

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First of all – thanks to the many of you who responded to the e-newsletter (…on a personal note) we sent out last week.  If, for some reason you didn’t receive it – and you’re checking this blog – please click here.

Not only did I receive e-mails and calls…those contacts culminated in some very good questions – some of which are going to make up today’s blog.

Q:   Is this a good time to be increasing our monthly contributions (into TFSA or RRSP)?

A:   That’s a good idea!  A monthly increase of, for example, $50 would take advantage of systematic purchases as the market moves forward.

Q:   Is this a good time to get “back into” the market?

A:   If you’re thinking of a ‘lump sum’ addition at this time – there’s absolutely an advantage to buy at the current (low point) in the market…expecting a very good upside profit over the next 12-24 months (or longer.)  One of the concerns I look at is this:  Will there be another drop in the markets as we continue through this COVID-19 recovery? 

If you are considering a lump sum investment, I suggest putting 25% in the market now and add the remainder to this over the following few weeks as we watch the situation (and the market) evolve.

Q:    In our current environment, should I be focusing on savings or debt reduction?

A:     Good question!  If your debt is credit card or other high interest balances, better to get them paid off and avoid all of the extremely-high interest charges.

The main difference between paying down debt at today’s low interest rates (3-5%) compared to the much higher potential return in the markets over the next 12-24 months (could be 20% or more) should be considered.

       The 20% will only just recover to the point of where the market was before COVID-19.  Let me remind you…the markets reacted to an event (COVID-19) and not a bank, credit, or financial product problem as in 2008/2009. 


The 2008/2009 decline in the market was 50%...BUT! the recovery from the bottom was 100% over the following 7 years (which would take us back to where the market was prior to the massive drop.)  In actuality the market RECOVERED AND INCREASED moving forward from there.

There’s lots to consider – and we’re here to help!  (click here)