A reader has asked if the wealthy barber mutual fund is still valid in 2015 and also whether his approach of refinancing his mortgage to put money into conservative mutual funds would be a good strategy to catch up on saving for retirement.
This is a complicated question and we have to stress that we are not financial planners and cannot provide professional advice regarding these questions. Reading the Wealthy Barber Returns and other financial books is a great start and one that should be considered for all consumers. The Wealthy Barbers advice includes to begin saving when you are young and watch your money grow as well as paying yourself first. If you start saving later in life and do not have a pension, your retirement may not be what you had planned. Even a wealthy barber can enjoy a very comfortable retirement by following this simple advice.
This reader plans to remortgage his home, take the proceeds and invest in a mutual fund. He hopes to catch up on his retirement savings by following this approach. He has a good credit rating and no other debt which is enviable. Provided that his home has the equity that he needs there should not be any problem being approved for this mortgage refinancing. We strongly recommend that he hire an accountant to ensure that he follows the appropriate process to enable his plan to deduct interest costs against the income he generates from his mutual fund. Most investment advisers will also recommend that the investments should be completed on a diverse basis to avoid any major losses from being invested in only one or two investments. Finally all investors should be aware that mutual funds charge MER’s which are an additional cost when you invest in mutual funds.