McCurdy - How Much Is Enough: Balancing Todays Needs with Tomorrows Retirement Goals (Canadian Edition)

Copyright 2013 Diane McCurdy

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Library and Archives Canada Cataloguing in Publication Data

McCurdy, Diane (Diane Lynn)

How much is enough? : balancing today's needs with tomorrow's retirement goals / Diane McCurdy. Canadian ed.

Includes index.

ISBN 978-1-118-49363-2 (pbk); 978-1-118-49365-6 (ebk); 978-1-118-49366-3 (ebk);
978-1-118-49367-0 (ebk)

1. Finance, Personal. 2. Retirement incomePlanning. I. Title.

HG179.M3245 2013 332.024'014 C2012-908215-5

Production Credits

Acquiring Editor: Karen Milner

Managing Editor: Alison Maclean

Production Editor: Lindsay Humphreys

Cover design: Adrian So

Interior text design: Pat Loi

Composition: Thomson Digital

John Wiley & Sons Canada, Ltd.

6045 Freemont Blvd.

Mississauga, Ontario

L5R 4J3

Preface to the Third Edition

Some people are musical, some can talk the birds out of the trees, some are born with the ability to make machines run. We all receive different God-given talents. Mine is handling money, and I'm very grateful for that gift.

When something comes so easily, it's easy to think that it's perfectly obvious to everyone else as well, but as a financial planner I've learned that this is far from true. Over the years, I've worked with many wonderful people for whom personal finance has been a mystery or a challenge, and they have taught me so much about the human side of money management. I learned early on that you can't just tell people what to do and they'll go off and do it. You have to find the thing that motivates them to help themselves. And as I tried out different things with different people, I eventually developed the concept on which this book is based: that people have one of four built-in emotional approaches to money, and that their particular approach should be factored into their financial planning.

Since the first edition of How Much Is Enough? was published in 2001, the world has changedand not necessarily for the better. We lost our sense of security in 2008 when the financial institutions of the world seemed to be crumbling around us. All of a sudden, many people who thought they were comfortable weren't feeling so comfy anymore.

If you were panicking in 2008, you were in good company. Economies were shaken to the core, not just in the United States and Canada, but worldwide. Everybody was worried. And what about financial planning in this climate? How could you possibly start a program or fix your personal finances with the banks and markets imploding around us? How could you ever have Enough to retire on? Did the same rules even apply?

Fortunately, Canada remained relatively stable through these tough times. But there are risks to this stability, too. We feel very proud that our country has a stable banking system, our housing market maintained overall strength and our dollar remained relatively strong. What is surprising is that in 2012, Canadians took on more personal debt than Americans. Perhaps we felt flush because our country was doing relatively well as a whole. But it's an ominous trend.

If you find your line of credit is creeping up on you or you're paying interest on out-of-control credit card debt, you may be on a slippery slope. This new edition is here to help you, with the sound principles found in earlier editions and a new focus on the risk factors in today's economy. Maybe you're on track but considering a change in lifestyle (like a vacation home, downsizing the house or travelling for a few months each year). There's advice here for you as well. If you're caring for your parents, your children and your children's children, and you're wondering how to manage your finances in light of all these demands, this book can help. If your kids go on wild spending sprees and you're aghast at their lack of financial responsibility, you'll find the solutions here. In fact, a whole new chapter on family finances has been added. And if you're starting your planning nice and early and want to get it right from the start, the tools you need are here.

The world has changed and so has how we think about our money. This new edition addresses these new fears and concepts. It is also a treasure chest of tried and proven techniques that are certain to be effective for you going forward.

What has really changed since 2001 is our ability to believe that we can have Enough. Can you still save what you need to retire on? How on earth will it be possible?

Breathe.

By following the simple, effective program in this book, you and your family can live your lives with joy, enthusiasm and peace of mind, knowing that you have enough for today and enough for your future. No matter what age or stage you're at, it's never too late. Now more than ever, good planning is essential. But with the right tools and a plan that fits your lifestyle, you can reach your dreams and goals. You will indeed have Enough.

Acknowledgements

I believe that anything we ever accomplish, we don't accomplish alone; it's always in conjunction with others. And that belief is powerfully reinforced when one is writing a book. These are the particular others who helped me bring this book to life.

Paul Sullivan has been incredibly wonderful. Right from the beginning, he kept me motivated and on the right track. Taking time from his thriving business, Sullivan Media, he kindly gave his time and energy. His encouragement, direction and great editorial judgement made the book possible.

Elizabeth Wilson was able to capture and record all of the things I believed would be lost in a stream of half-finished thoughts, enthusiasms and verbal meanderings. She did this all tirelessly and cheerfully. Elizabeth possesses a magic butterfly net that amazes me.

My colleague Don Pooley was a great resource and gave some excellent additional suggestions. He's a man on the leading edge of technology.

Mike Wilcox has always been an inspiration, encouraging me to do my best and giving me opportunities to grow and learn. John Nicola always shares all he knows about the business, and he challenges me every step of the way. A great big thank you to John Smith, one of the most brilliant minds in the investment field. One of the unsung heros of the financial services industry is Joe Dickstein. He has quietly motivated, supported and inspired hundreds of advisors across Canada. Thank you so much, Joe!