Technology

How To Spend More Time Doing The Things You Want

By Nest Wealth on 15/08/2016Article 8 Minute Read

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We all know money alone doesn’t equal happiness, however, it is a means to be able to do what we want, when we want – especially in retirement. The big question is how can we spend less time thinking and worrying about our finances (and futures) to spend more time on what we love, and have more wealth?

“Time is more valuable than money. You can get more money, but you cannot get more time.” – Jim Rohn

Time is precious because it is limited. Did you know Canadians spend more time thinking and worrying about money than they do about their personal lives?

According to an online survey conducted by Pollara in 2013, 63 percent, or almost two-thirds, of Canadian participants accredited finances as their top issue, while only 14 percent cited love as the biggest issue on their mind. The same survey revealed Ontario residents seemed to be particularly pre-occupied with finances (a whopping 69 percent of those surveyed!). The study also found that fewer Canadians have a financial plan now than they did a couple years ago, and among those who do have one, 82 percent said having a financial plan helped them achieved their financial goals.

Findings from another survey, the BlackRock 2015 Global Investor Pulse Survey, revealed a concerning lack of investment knowledge, with one-in-four participants saying they were clueless about current investment options. Findings from the Investor Pulse survey also suggest retirement is one of the most important issues Canadians are facing today.

Money Alone Can’t Make Us Happy

We all know money alone doesn’t equal happiness, however, it is a means to be able to do what we want, when we want – especially in retirement. The big question is how can we spend less time thinking and worrying about our finances (and futures) to spend more time on what we love, and have more wealth? Hire a professional to help you.

Finding The Right Help

These days, with all the options out there, finding the right help can be quite a challenge. Luckily, there’s one option that can help free up more time (time that could be spent with family, or at the gym!), provide more wealth, and more peace of mind for retirement – Digital Wealth Managers.

Here’s How A Digital Wealth Manager Can Help You Free Up Time, And Retire With More Wealth:

They take into account your personal financial goals in order to help you reach them. 

With technology developing at the rate it is, Digital Wealth Managers can offer the same services as traditional advisers at a fraction of the cost! While not all Digital Wealth Managers are the same, there are some that tailor your portfolio to your personal financial goals and your life situation, which means no preconstructed portfolios or buckets to drop you in.

Your advisor is a financial expert that uses technology for efficiency.

Digital Wealth Managers like Nest Wealth manage your money based on proven investing principles and theories. They monitor your portfolio and rebalance it to keep it on track with your financial goals, which leaves more time for you to do the things you want. In other words, you don’t have to worry about sacrificing the quality of service you get for the price you pay, because your nest egg is in experienced hands.

Transparency is king. 

Do you want information on your investments and how they are performing at your fingertips? The Internet never sleeps, so your account is a click away at all times. Also, contrary to popular belief, most Digital Wealth Managers, like Nest Wealth, are available to talk over the phone or in person with their clients because we know some prefer a more personal relationship. Talk about convenience!

They can help automate your finances, so you spend less time moving money around. 

If you’ve ever wished for more time in a day or more hands to help, you’re not alone! Thankfully, Digital Wealth Managers like Nest Wealth, can help you automate your finances (example: setting up automatic contributions to your RRSP), which can substantially improve your life. They key is to be strategic with your money in order to see optimal growth. Instead of contributing part of your paycheque to a savings account (where it would sit, and you would see minimal growth), a Digital Wealth Manager could help you prioritize your financial goals and funnel your hard earned dollars towards them. Less stress, more free time, and fewer emotional decisions are just a few of the benefits to automating your finances

They can keep you from making emotional decisions, which are often the biggest disaster when it comes to investing and your personal finances.

When you’re in the midst of a tough market, sometimes the best thing you can do is absolutely nothing. One of the biggest mistakes we’ve seen investors make is to withdraw their money at the wrong time. Think about late 2008 and early 2009, when (according to the Investment Company Institute) more investors pulled money out of mutual funds than any other time in history. The market tanked as investors were fearful of losing even more on their investments, and we’ve been in a bull market ever since.

It would be nice if we had a switch to turn our emotions on and off as the markets go up and down, but we don’t, which means room is left for our emotions to take control of our decisions, potentially leading to portfolio damaging moves. Digital wealth managers help you keep your emotions at bay when the markets are rough, which can prevent impulsive financial decisions and mistakes. 

They invest your money in the investment style of Warren Buffet and how some of the best investors in the world invest their money.

When it comes to investing, Digital Wealth Managers like Nest Wealth know a passive approach to is the most effective way to reach your financial goals. A passive approach means your portfolio is built to “be the market”, not “beat the
market”
, because history has proven that passive investing is more likely to help you come out ahead financially.

They’re more affordable than traditional investing options, so you keep more of your money. 

Did you know that next to buying a home, fees paid on investments could end up being the average Canadian’s second largest expense during their lifetimeMutual fund fees could end up costing the average Canadian household $323,654.40 – and that’s just an average! To put that into context, that’s the same price as an average home in Ottawa, or the same price as a Ferrari. Chances are, if you’re investing in mutual funds, you’re probably paying more than you need to.

The biggest shocker is that many Canadian investors don’t know what they’re currently paying in fees, or that they’re even paying fees at all (because they’re taken out of your returns, or profits, before you see them). Investors that know they’re paying fees probably don’t think they’re paying that much. Well, Canadians actually pay the highest fees in the developed world, with a typical equity mutual fund charging 2.35% for management each and every year. That may not sound like a large number, but compounded over time those fees really add up. If you have a $1 million dollar nest egg with a 2.35% MER (Management Expense Ratio), you’re shelling out $23,500 – from your own profits! Think of all the things you could do with $23,500, and all the compound interest you could earn if that money stayed invested.

Some Digital Wealth Managers use ETFs to construct your portfolio, instead of mutual funds, so the fees paid on investments end up being significantly lower. Paying less in fees means you’ll have more money to invest. Thankfully, some Digital Wealth Managers have recognized the group of individuals with investable assets who are unable to afford or just don’t want to pay 2.35% in fees. Instead of charging a percentage of assets, investors have the option to pay a flat-fee for services – similar to a subscription model, like Netflix.  Find out how much you’re paying here

What Would You Do With Your Free Time?

Managing finances and thinking about the future takes a lot of time, effort, and energy. Most of us would agree that time is precious and should be spent on the things that money can’t buy, like family. At Nest Wealth we want our clients to spend more time doing the things they want to do, and less time navigating their investments. Sign up today to take back your time – start by telling us a little bit about yourself and your goals here.

What will you spend your free time on?