New rules and a digital future

OK, you’ve likely heard MoneySense is going all-in on the digital revolution. That means Canada’s leading media brand on all things money will be wrapping up its print product at year end. It’s momentous but it also makes a lot of sense, even if it will mean my kids will no longer be able to draw a Dali moustache and rabbit ears on my photo on page 4.

The reality is that while the magazine is an intense labour of love with its own brilliant, glossy design magic, our future—as well as much of our present—is all digital. (Besides, our online content doesn’t get all wrinkled like the issue on your coffee table that has been serving double duty as a mat for the tea pot.) And while print readers already read us on the web, about a third of print subscribers never pick up the magazine at all, with that number growing dramatically. (If subscribers have questions about these changes, please see here.)

You can look forward to a continuation of what MoneySense has always done best, which is to help you understand money and how to build wealth. This issue’s cover story on the “New Rules of Money” is a great example of that.

When I opened an RRSP years ago with a few hundred dollars, I was amazed to learn the rule that the stock market could conservatively be expected to double every nine years at a “modest” average total return of 8%. Many strategists are now urging us to get used to 6% or even 4% returns, going forward. At the latter rate you can still get your double—but it will take you double the time to get there.

That detail is a crucial fact to take into account in your own financial planning. So is a persistent environment of near-zero yields on bonds. How do these trends change the rules on portfolio allocation? And how do you handle a real estate bubble in your asset mix? Many Canadians, especially those in Toronto and Vancouver, have found themselves unable to invest outside of their homes because they can barely keep up with their mortgage payments. So much for the traditional rules of not spending more than 30% of your income on shelter costs and ensuring you are diversified in your assets.

The rule changes are not all for the worse and, as always, we’re here to help. So if your parents badger you to feed a rainy day savings account that pays no interest, remind them we now have TFSAs. And we are not about to complain about the ‘threat’ of rising longevity; there are worse challenges than living longer, even if it may mean we need to have part-time jobs after age 65.

More from MoneySense:

• Canada’s Best Dividend Stocks »
• 3 scenarios where term life insurance is a must »
• It’s time to revise your financial plan »