The idea that 30-50 stocks gives you enough diversification misses an important point.

Returns come from a handful of stocks, and most stocks are dogs.

You reduce risk by owning 30-50 stocks.

But you are likely to miss the stocks that drive the whole market higher.

There are 3 essential ingredients to building wealth.

1. A decent savings rate
2. Reasonable investment returns
3. Time

You have the most control over #1.

Focus on that.

Canadian Pension Plan (CPP) is a hedge against:

1. Inflation
2. Unlucky sequence of returns in retirement
3. Longevity

It's like insurance.

If those risks show up, you'll be glad to have it.

I've had clients earning over $1,000,000 per year break down crying in my office.

Why?

They didn't know where their money was going.

Increasing your income won't help if you can't get a handle on your expenses.

If you want to pay less tax:

Make less money and keep what you have under your mattress.

Less income = less taxes.

You're welcome.

Follow me for more great tax tips.