The economy is suffering, but that doesn’t mean you have to. Instead, put your money toward a vacation, a boat, a beach house and – oh, and a dark, perfectly ventilated, temperature controlled wine cellar with nothing, but the finest reds…but I digress.

I know it sounds crazy, but the advice is sound and here’s why: stocks are low. When stocks are low, they inevitably and eventually increase in value. When you buy low, you can look forward to higher returns later.

In other words, if you invest now, you’ll have a greater return down the road. For anyone serious about retiring in style, this is the time to make that happen.

RRSP season is upon us. February 29th is the deadline. I strongly suggest you act now and think ahead.

I know that every year at this time we’re bombarded with RRSP messages. We’re always reminded of the immediate tax breaks and the rewards ahead. There are so many messages that we shut them out. But, this year, for your sake, please don’t. The greater your investment, the further your dollars go toward achieving your retirement goal.

To me, this is as exciting as a great Boxing Day sale. The difference is that this isn’t an opportunity that comes around every year. By next year, the deal may well be gone.

Stocks don’t stay low. They never do. In fact, here are just some highlights of how positively our market has recovered over the years:

  • In 1985, our market increased by 107% over 36 months
  • In 1995, it increased by 105% over 46 months
  • In 2003, it increased 168% over 68 months

In short, over the past 30 years, the S&P/TSX Composite Index increased by approximately 9% per year with 22 of those years ending with positive returns*. Bear markets usually recover within 9 months with an average loss of -28%. Meanwhile, the average length of a bull market is 50 months with an average gain of +126% **

What’s more, here’s some positive news to consider with regard to our forecast:

  • Our cheap dollar makes our exports very appealing to the US, our biggest customer
  • Positive effects of various government stimuli will show results in the next year or two
  • The price of oil has increased demand and increased demand helps bring up our prices

Just for fun, let me say again – invest now while prices are low because both the past and the future indicate they’ll all go back up again. Invest now and in a few years, you’ll be doing a happy dance (on your boat, in your beach house and in your wine cellar!).

Call us to make your contribution today and we’ll defer payment until the RRSP deadline on February 29th.

*Source: TD Asset Management Inc. and Morningstar En Corr

**Source Bloomberg S&P /TSX Composite data 1956 to 2015

Actually, the economy is great…

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