The Number 1 Strategy for Taking Control of Your Financial Future

Investment, Insurance & Planning, Calgary

I vividly remember our lunch date that day. We had just come from an appointment at our bank finalizing some re-financing on our home and afterward, Nancy and I decided to grab a bite to eat at Chianti's, one of our favorite restaurants. During our lunch date I took out a clean napkin and we wrote down some goals and values that were important to us. 

  • go on a winter trip every year somewhere warm
  • pay off our mortgage in 10 years
  • serve on a mission trip every couple of years
  • increase our RRSP contributions
  • grow our wealth through real estate

The first thing we did was change our mortgage payment to bi-weekly. That would mean we were making an extra payment every year. Secondly, we decided to double the payment. I even added a third strategy. Each month I would add a few extra dollars in pre-payment to always bring the balance down to the nearest one hundred. We continued to this consistently and paid off our mortgage in half the time. You know what it feels like to be mortgage free. It's like shedding 50 pounds. It's like getting out of prison. It's like having this huge weight lifted off. It's like freedom. Not only freedom from the burden but freedom to do other things.

The third thing we did was to start a family vacation fund so that we could go on the winter trips in the sunny south. Our first trip was to the Dominican Republic. We went on an All-inclusive and learned how to boogie board, went on a jungle safari, swam in the warm Carribean sea and soaked up the sun for 7 days. Having that trip fully paid for before we even left the city was peace of mind. In the following years we did 3 cruises, 2 out of Long Beach, CA and 1 out of Florida. We have spent a week on the gulf coast and trips all over the USA. Some of our greatest memories are the trips we have been able to make as a family. We have no regrets.

In the winter of 2007, we were able to spend a week with about a dozen other people from our church and go to one of the poorest cities in Mexico serving in some churches, orphanages and a school. I have been blessed to be able to go back to that location about 5 times.

We also committed to monthly contributions to our RRSP's and a top up strategy for each year. Something we have done religiously since and are on track to easily retire at age 60 if we so desire when the time comes.

Since that day at the restaurant, we were able to add to our real estate portfolio numerous properties that have consequently helped us grow our personal wealth and create more monthly cash flow.

recent Schwab report shows that people who have a written retirement plan were 60% more likely to increase their retirement contributions and twice as likely to stick to a monthly savings goal than people without such a plan. Only 24% of those surveyed had a written financial plan, but yet it is the number one key to financial success.

2 big struggles for most young couples:

The first struggle is usually DEBT. When Nancy and I were first married it was very difficult to get financing for anything and the rates were so high. Today, it's easy to get credit and the rates are so low. This has resulted in most couples drowning in debt within a few years of married life. If you spend your 20's racking it up, you'll spend your 30's and 40's trying to pay it down and then, not saving for retirement until your 50's. By then you'll have lost the key ingredient to retiring well - TIME. You will end up having to save almost every cent you make or delaying retirement until your 70's. That's fine if you have a great job with a great salary, but what if you get downsized?

The second struggle is managing monthly cash flow. You have lots of money coming in, but you can't figure out where it all goes and why it disappears so fast. A lack of a "written cash flow plan" will cause a lot of money leaks, anxiety, marital stress and result in not reaching any of your financial goals. 

Was it luck for us? Maybe a little. Actually, what we did over the past 10 or so years anyone can do.

The first step is to write your goals down on paper. You greatly increase your probability of reaching your goals when you write them down on paper.

The second step is to create an action plan for reaching each particular goal.

  • How much extra do you need to pay towards your mortgage to be free from it in 15 years?
  • If you did not have a car payment what could you do with that extra money?
  • How much money do you need to put towards savings each month in your RRSP, TFSA and RESP?

"A goal without a plan is just a fart in the wind"

The third step is accountability. Whether that is a friend, a family member or an advisor like Nancy and I. As you get clarity around your goals, an action plan for achieving your goals and some accountability for staying on track and putting all of that in writing you will have the highest probability of reaching your financial goals. 

What happens to most people is that they have an array of financial products spread all over the place - banks accounts, credit cards, savings plans from past employers, RRSP's here and there. Each of those financial providers is just trying to get you to buy another product that helps them reach their required targets, not helping you reach your goals.

We can help you create a sustainable, predictable cash flow from your portfolio in the most tax-efficient manner to ensure you never have to worry about running out of money. It starts with a plan.

Want to retire in the next few years? Click here to Book  a Meeting

 

What are some of our goals for the next 3 years?

Retirement Income & Investment Advisors,

Willis & Nancy 

587-755-0159

info@langfordfinancial.ca

 

Book a time to meet:

 

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My wife and I realized a long time ago the value of a financial planner over just a bank representative. We just felt like a number to the banks as every year it seemed we saw a different adviser with a different view. But finding a trusted, knowledgeable and personable financial planner took a lot of time and effort. It just seemed, so many large corporate Financial Planners were more concerned about what they could make off of us rather than what they could make for us.
What we wanted, was not just reasonable returns now, but good personal advice in our preparation for retirement and what happens when retirement actually arrives. We wanted someone who would be walking with us, guiding us on our way to retirement.
From the first time, we found the web site for Langford Financial Inc, we could see the knowledge of Willis and Nancy and a real effort to educate and pass on their knowledge through seminars, workshops and their personal service. Once I reached out through their web site for more information, Willis was quick to respond, offering and giving whatever information I was looking for and never was there pressure to commit to anything.
The feeling of comfort and ease when talking with Willis was inviting enough for us to want to meet with Willis and Nancy, just to see firsthand if there was a connection and what working with them would look like.
And when we did meet for the first time, that feeling of comfort and ease was very evident. It was a unique experience for us to be able to sit down and get to know a financial planner (or a team of both Willis and Nancy) and not have any sales pressure on us. Just getting to know Willis and Nancy was important for us. We needed to be comfortable with them and see their competence in the business, and it was obvious that Willis and Nancy wanted to know us better so they could know how best to help us.
Once we decided to move our accounts over to Langford Financial, we found their process was comforting and refreshing as Willis and Nancy first worked at evaluating our complete situation. They dug down to get a complete picture of where we were at, where we wanted to be and how to get there. This took some reflection on our part but once we saw how they put it all together in our “Financial House In Order” binder, we were confident we made the right decision to go with Langford Financial.
Since the time we started working with Willis and Nancy I have attended many of their seminars and can say the information they have been teaching has been amazing. Always relevant, and consistent with their desire to help those coming up to retirement, and covering so many different situations as everyone has a different life situation. I know more than one of the tax-saving strategies they taught at their seminars will work for my wife and I, so we are very happy about that.
We would definitely recommend Langford Financial, not just for all your retirement planning needs, but they have great ideas on savings for your grandchildren too!
Paul and Elaine Radder

Paul & Elaine Radder
Long-term Clients

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