Make Money, Not Mistakes! 30 Winning Ways to Secure Your Financial Future

By Murdoch Matheson

Statistics reveal that many of us will retire with too little money to live comfortably. The assumption that life will carry us forward and 'we'll be fine' is terribly wrong. The choice is simple: either we secure our future with wise decisions now, or risk running out of money before we run out of 'life'!
In Make Money, Not Mistakes, Murdoch Matheson, CFP, shows us that financial security is indeed achievable, regardless of income level. Drawing from real-life scenarios, he shares powerful, time-tested strategies that, once applied, afford us the time and financial freedom to enjoy the things that really matter.

• Language: English
• Publisher: Murdoch Matheson
• Release date: Oct 18, 2013
• ISBN: 9781301668939

Murdoch Matheson

With his book, Building Wealth For Teens, author Murdoch Matheson is motivated by the desire to improve financial literacy by addressing teen topics of interest and to inspire our youth to lay the foundation for a bright and secure future. Matheson is a Financial Advisor with a national firm, having been involved in the investment world for over three decades. This is his second book in the area of personal finance. He lives with his wife near Gananoque, Ontario. Their two boys are currently finishing their university degrees.

Book preview

Many of us will retire with too little money to live comfortably. The assumption that life will carry us forward and ‘we’ll be fine’ is terribly wrong. Many of us spend more time each year planning a vacation than we do preparing for our retirement, a period that could last 30 to 40 years or more. The swollen part of the population, the boomers, will likely be the most denied group in history as governments struggle with unprecedented demands in terms of pension and health care. We cannot afford to squander time, the most important variable of all. Well-advised action now can turn the tables for our individual and collective benefit. Our hopes and dreams for financial security are achievable if we open our minds, challenge our assumptions and consider alternative strategies.

As a financial planner, I’ve witnessed the good and bad experiences of hundreds of clients over the years. I feel compelled to share a message of hope to those with ears to hear. I am motivated to pass along lessons learned before it’s too late. By using a case study approach, I’ve tried to illuminate the ‘real life’ human con• text in which financial planning issues surface. Sam wants to know what it will take to live comfortably. Jim doesn’t have a clue about goal setting. Sue wonders whether her perception of risk makes sense. Bill feels a financial plan sounds like work. Jenny feels imprisoned by her parents’ conservatism with money. Al speculates whether ‘worry free’ investing really exists. Practical tips are passed along, addressing everyday concerns drawing from a variety of client experiences. I remain attached to the hope that one good idea will improve the reader’s quality of life.

I’m a firm believer that each of us can build security for our loved ones and give more to society by rethinking our approach and implementing simple, proven strategies. Successful financial planning accomplishes four wonderful goals we all deserve:

1. It offers the prospect of financial comfort and independence in our retirement years.

2. It removes needless stress and worry and allows us to focus on living.

3. It gives us the potential of giving more to loved ones and other worthy causes.

4. It allows us to participate in the economies of the world, help build industries, companies, jobs and a broader tax base.

As time moves forward, I’m reminded of what really matters in our lives. They are the intangibles, things often difficult to describe. Before our kids would go to sleep at night, we’d talk about the three Fs and the three ls. Faith, family and friends and learning, laughter and love. If by reading this book, you gain a measure of financial comfort and security, then perhaps you’ll have more time for the things that really matter. I bid you every good wish in that endeavour.

Perhaps the most misunderstood word in the world of investing is risk. Lives have been lived and financially lost, due to misconceptions that run rampant about this four-letter word. There are risks associated with every investment choice we make. It’s incredibly important to have your financial planner put investment risk in perspective, given your life goals and time frame. There is a real irony here. With equity investments, loss of principal in the short term is possible; inevitable corrections can erode original investments, particularly in the short term. In a longer term, multi-year time frame, this same risk virtually disappears. Why? The power of compounding growth. As the portfolio grows, temporary setbacks have an increasingly insignificant effect. The real risk long term is not having enough money to reach financial security. This occurs when portfolios are composed of unproductive investments. Unfortunately, misplaced short-term risk concerns cloud long-term thinking. Sadly, the result for most Canadians is predictable. It is nothing short of a human tragedy to think that most people will invest in conservative, fixed-income assets, only to discover too late the error of their ways.

Susan’s Discovery

When I met Susan, she had just turned 50, and coincidentally, like so many of her peers, had just completed her divorce. For the first time in her life she had to come to grips with life on her own. Money was never of great interest, only a means to an end. In the course of our discussion, she spoke of the fears she had known in her life. The fear of losing a child, a spouse, a parent, even her own life. Beyond the issue of mortality, there was her ex-husband’s money fears, specifically, his fear of loss of principal.

After establishing a target amount of capital she would need to live comfortably, we than chatted about strategy. It became clear that with her limited resources, she had to adopt an aggressive stance and invest in the only asset class that would deliver above average growth over her 15-year horizon. Soon, a light went on and her persona changed as if she’d seen a ghost. She went on to say that the risk her husband feared was groundless. In the short term , the risk of loss of principal with equities was real; however, in the long term, the ultimate risk was not to invest in equities. Why? The important risk was not having enough money to live comfortably in retirement, or worse yet, running out of money! Suddenly, Susan knew the dragon that had to