[Shin Pad]

Originally Posted by flamesfever

I think it's important to do an annual summary of your assets and liabilities, just so you can see how well you are doing in preparing for retirement.

As a retiree, my advise would be to:

1. Minimize the number of toys you acquire i.e. anything that depreciates with time e.g. boat, atv, motorcycle etc.

2. The TFSA is the best vehicle to come along in some time. Put all you can into it. It's important to have non taxed investment income when you retire. I understand the Conservatives are going to increase it. As for investing in it, unless you are a very shrewd and experienced investor, I would keep it in a balanced account i.e. 1/2 good quality stocks and 1/2 good quality bonds. This also applies to your RRSP, especially if you make the big buck.

3. Your house is likely to be your best investment. Hopefully it is in an area that keeps up with, or rises above, inflation. Keep it in good shape.

4. Try not to spend too much on your vehicle. If you purchase a new one, plan on keeping it for 10 years. I never bought a new car until I turned 65.

5. The OAS and CPP are really important. It's much better if there are two of you. Keep on good terms with your better half.

6. Chart the percentage of your income that goes to interest. Try to be out of debt, or close to it, the day you retire.

just my opinion

I too am retired. I agree with all your points. I've cut back on a lot of stuff I didn't really need. We are just getting more frugal, but still living comfortably.