Good morning investors! The market remained stagnant due to the holiday season with movement in few stocks.

Today we cover:

• A look at the Canadian economy. 🇨🇦 

• Tesla preparing for a good 2024? 🚘

• How to save $5 million. 💵 

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📊 Economy and News 

Canada is struggling

Canada's economy unexpectedly fell 1.1% in Q3. However, experts don’t think a recession is coming. We must mention that its GDP per capita has also fallen 4.4%.

The country’s inflation rate stands at 3.1%, with costs for shelter growing at a rate of 6% per year. Some see a housing crisis occuring in 2024 as rents in top cities, such as Calgary, have jumped by over 17.2% in the last 12 months.

Unemployment problem also exists. About 5.8% of the population is unemployed and the country is heavily dependant on immigrants. But, the stock market has been doing well and most experts have a bullish stance.

Global hits:

• Apple Watch import ban temporarily stopped by U.S. appeals court.

• New York Times sues Microsoft, ChatGPT maker OpenAI over copyright infringement.

• Toyota-owned automaker halts Japan production after admitting it tampered with safety tests for 30 years.

📈 Stocks

S&P 500 4,781.58 (+0.14%)
DJIA 37,656.52 (+0.30%)
NASDAQ 16,906.80 (+0.17%)
BRENT CRUDE 79.65 (-1.75%%)
* Prices as of Dec 28th, 12:20 AM UTC

Tesla to revamp Model Y

Rumor is that Tesla is preparing to roll out a revamped version of its smash hit Model Y from Shanghai.

Expected to start production in 2024, the upgraded version may give investors more reasons to invest in Tesla. The company is expected to post another record quarter for EV deliveries; however, it might not meet the target of 2 million set by Elon Musk earlier this year.

The company has been in the news for slashing prices in several markets to boost sales and win new markets. The company has been struggling in several markets, including China, where BYD has proven to be a major competitor.

But, there’s good news since companies like GM and Ford are pulling back on their electrification plans, leaving Tesla as the undisputed leader in the US. But, there may be some challenges as well.

It will have to deal with the loss of federal tax credits for some of its cars in the US as well as in Germany, where the government is prematurely ending its EV subsidy program.

This may result in more price cuts, a move investors aren’t always a fan of.

💵 Personal Finance

Here’s how much you need to save to retire with $5 million

It is a dream for may Americans to have $5 million in their banks. Unfortunately, most are far from the goal.

The average net worth for people between 55 and 64 is only $1,175,900. We, however, think that this figure is not a reliable indicator and most people have even less money in their retirement fund with the average US resident 35 and under having less than $30,170 in retirement savings.

So, how much do you need to hang the boots? Americans thinks they’ll need at least $1.8 million to retire comfortably. But, you can even have $5 if you plan it right. It all depends on how much you save and where you invest.

• You will need to save $2,324 per month if you start at 21 and wish to have $5 million by age 67 assuming your money offers a 5% average ROI.

• You will need to save $2,922 per month if you start at 25 and wish to have $5 million by age 67 assuming your money offers a 5% average ROI.

• You will need to save $3,905 per month if you start at 30 and wish to have $5 million by age 67 assuming your money offers a 5% average ROI.

The takeaway:

• You need to start early if you want to save less per month.

• You can reduce the amount of money needed to save per month if you can increase the return ROI. 

Note: You do not need $5 million to retire peacefully but this can be a good amount to have in your retirement fund.

We feel $5 million is doable but some might find it intimidating. It might be a good idea to start by creating smaller goals and then move to your final goal.

Check this video for some great tips:

💰 Be a Better Investor

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.