We have all witnessed and lived through a period of rapid worldwide changes that have affected our ability to accumulate wealth and secure our financial futures. Some of the factors currently influencing this include:

a) Relatively low (non-existent?) inflation.

b) Technological changes, rendering existing jobs and businesses vulnerable if they don't upgrade.

c) Raging bull stock markets.

d) High (too high?) levels of taxation on both income and consumption.

e) A declining Canadian dollar.

We are in for some turbulence in the future as interest rates, the Canadian dollar and stock markets "correct" themselves. This is natural, desirable, and unstoppable. Here's what we should do:

1. Pay ourselves first. Whether it is to RRSPs or other savings vehicles, the earlier we start and the more we put away, the more powerfully it works in our favour.
2. Develop a balanced portfolio of investments -- cash, term deposits, equities and real estate all have their place. Consult your advisor, set targets, and do it!
3. Aggressively pay off non-deductible debt. The largest one for most of us is a home mortgage. As taxpayers have to make these payments out of after-tax income, a superior return is enjoyed by accelerating the payments.
4. Both spouses should accumulate assets. The goal should be to create retirement incomes in both spouses' hands, which will lower total family income tax and create more family security.
5. Diversify into foreign content. Over time, a portion of your portfolio should consist of non-Canadian securities. This varies from person to person. Consult your Fraser Financial Group advisor to learn more.
6. Don't rely on Canada Pension and Old Age Security! These plans on their own will not lift a retiree out of official poverty. Use them as a base that can be built on.
7. Stay the course. Avoid spur of the moment, herd-instinct decisions. If your plan is sound, stick to it and you will outperform many of your friends who give you advice!