The best strategy to manage investment portfolios is to have a plan that was in place long before a crisis begins. For example, your portfolio should be reviewed at least annually. In years like 2019 that produced exceptional returns, your portfolio should have been reviewed and very likely adjusted given the markets were at all-time highs. If you did that and reduced risk, you would have experienced less volatility during the early panic selling. This would also provide some investors with additional options for rebalancing when markets hit lows.
We put together some ideas and tips to help you deal with the financial impact many are facing during the pandemic.
When does your Financial Advisor call you? What number on his call list are you? If you are an investor, this is something that you likely haven’t thought about, but should. To understand why this really matters, let’s say you are a client of a Financial Advisor that is not licensed as Portfolio Manager (PM) and thus does not have the ability to service discretionary accounts.
It is that time of the year again, you are getting ready and gathering information to file your income tax returns. If you are a procrastinator, or not particularly organized, this time can be very stressful. Whether you prepare your returns by yourself or have them prepared professionally, you will still need to gather all the necessary information in order to proceed.
Separately Managed Accounts (SMAs) are not new. In fact, they have long been used by corporations, trusts, endowments, pension plans and high net worth investors. These investors demand a level of attention to their requirements that simply cannot be met by mass-market retail investment products. These investors require a focus and direct relationship with the professionals who are managing their investment portfolio.
The financial education of your children should start early. It should be a part of everyday life. The best way is to teach by an example. Here are some tips you can follow.
With all the ads running for Robo-Advisors you would think a computer and a few ETFs will solve all your needs. If you believe we are all alike, our needs are identical and that only thing that matters is cost – then maybe.
The law says that you died “intestate”. That means that you died without leaving clear instructions as to how your property (real estate, investments, personal property, etc.) is divided and distributed. In these situations, The Ontario Succession Law Reform Act will govern how your property will be distributed. It’s also important to note that even if you want your property divided according to provincial law it’s still best to prepare a will. That way you can reduce delays and expenses.
Let’s not forget, investors are human and many times act emotionally based on their biases. It’s who we are as individuals. It’s taken us decades to become who we actually are (not how we see ourselves). It’s very easy to come to conclusions and make decisions without giving much thought to the bias. I’ve often talked about “recency bias”. This is the tendency to weigh the latest information more heavily than older data. Investors often think the market will always look the way it does today or continue to perform as it did recently and make unwise decisions.
The first reason is you have nothing to lose and everything to gain. Most professional Advisors will offer you a no obligation free review of your investment portfolio and written financial plan (if you have one).
Universal Life Insurance remains one of the best tax shelters available to Canadian investors. Depending on several factors (like age, smoking status, family history, health, and lifestyle), you can purchase permanent, non-cancellable insurance at a rate that will never increase or a yearly renewable term (YRT) to 100 (your choice) to meet your individual insurance needs.
It's the rise of the machines. When you walk down the street, everybody is looking at some sort of device, staying connected. You want to have everything right now, right here. We want to get answers immediately, just by clicking the mouse or asking Google. Robo Advisors, which have made headlines in recent years, are online investment management sites that manage your investments for you through unique algorithms. So let’s pit humans: Investment Advisors and Robots head to head to see who you benefit more from when it comes to managing your investments.
If you operate as an Incorporated Company, Partnership or Sole Proprietorship, CRA provides you the opportunity to implement and participate in a Private Health Services Plan (PHSP) to reduce the sting of your medical and dental expenses.
One of the most common financial objectives is to leave money to children, but it is not always a successful endeavour. According to some projections, 70 percent of inherited money evaporates before reaching the third generation, with average losses climbing to a staggering 90 percent by the fourth.
When we are meeting with prospective clients, one of the questions we ask them is: what led you to your search for a new advisor? The answer that we most often get is that their current advisor no longer meets their needs. What we are told is that the advisor helped them to get to this point during the accumulation phase, but what they need now is someone that specializes in working with clients that are age 50 and over. This group is mainly focused on retirement income. They need to work with an experienced advisor that specializes in working with retirees and understands their unique needs.
Whether it’s from an increased life expectancy or growing financial pressures, the census numbers tell us that baby boomers are working longer than previous generations.
Investments can fall into categories that can be benchmarked. For example, if you own several Canadian companies they can be benchmarked against an index like the S&P TSX. The same can be done with U.S. companies or international companies or bonds. If your investments are up 4% and the index is up 7%, then you are underperforming and receiving no value for the money you’re paying. On the other hand, if your investments are down 4% and the comparable index is down 7%, then you’re receiving value - as you outperformed the index.
Failing to adjust your expenses to reflect your new reality can wreak havoc on your retirement. After many years of working it can be hard to adjust expenses to your new income. This might involve things like less dining out, reducing the amount of vehicles you own, downsizing the home you live in as well as many other possible changes. More than ever you will benefit with a new realistic budget to keep you on track. A Financial Advisor specializing in retirement income planning is best suited to assist you with this.
You might think this will never happen to you but our experience working with people that transition from a working career to retirement suggests this happens more often than not. You talk about retirement for a long time. You go from the stage in life where you’ve planned everything out and been in total control to what does the future hold. It doesn’t matter how much time and energy you’ve put into this phase of your life. It’s perfectly normal to be confused, excited and a bit overwhelmed all at the same time. After all you are entering a phase where you have zero experience.
An Estate is the property that a person owns or has a legal interest in. The term is often used to describe the assets and liabilities left by a person after death. Estate Planning involves the transfer of someone's assets (e.g. property, money) when they die, as well as a variety of other personal matters.
We are not all born with an incredible financial skillset.
Learning how to create a budget and live your lifestyle according to that budget doesn’t happen overnight. Just like driving a car or washing the dishes, these skills must be learned. It can take some time before you master them, and that’s okay. All that matters is that you’re taking the necessary steps to live a more financially-conscious lifestyle.
Let’s look at some of the most important steps to creating a perfect household budget!
Discretionary portfolio management is a form of investment management where all investment decisions are made by a Portfolio Manager or Investment Counselor for the client's account. The term "discretionary" refers to the fact that investment decisions are made at the Portfolio Manager's discretion.
Do you have an upcoming meeting with your financial planner?
Regardless if it’s your first meeting or an annual visit with your financial planner, it’s important that you arrive prepared. You should have a general idea of what to keep track of, so that you can make changes to your plan necessary, to better fit your goals. When you arrive prepared with the right questions and documents, you can expect to get the most out of your meeting.
Read on and explore the top five questions that you should ask your financial planner.
MoneySense recently chatted with James P. Gunn, a Certified Financial Planner and Registered Retirement Consultant with Halton Wealth Management Inc., an independent wealth management firm. We asked Gunn about how Canadians can expand their search and find the money manager that’s best suited to their long-term goals.
Are you worried about your financial future?
Stress regarding your finances can truly affect your quality of life. You deserve to feel confident and at peace with your long-term financial plan. That’s where assistance from a wealth management firm comes into play. The experts at a wealth management firm can help you create long-term goals, plan for retirement, monitor your assets, and more. There are so many benefits to working with a wealth management firm, let’s take a look at a few of them.
Risk tolerance comes down to how much risk you are willing and able to stomach. You should have a realistic understanding of your ability and willingness to stomach large swings in the value of his investments; if you take on too much risk, you might panic and sell at the wrong time.
When it comes to deciding which financial advisor to work with, consider the advisor’s registration and designations, as they change everything.
When it comes to investing, trust is crucial. You’re not inclined to give someone control of your life savings if they haven’t proven themselves trustworthy.
Financial considerations will change after retirement. Many retirees have to make changes to their budgets because their savings will now have to last for an indefinite period of time.
It’s easy to access information nowadays. If we’re looking to purchase a product, we can shop around for the best price, read reviews on product quality, and make decisions based on mass opinion.
People often approach retirement with a sense of uncertainty. This is understandable – it’s hard to predict exactly what life will look like, especially when you’re living off of a fixed income. We can give some hint to the changes you’ll discover along the way.
Imagine setting up a meeting with your financial advisor to discuss your investment portfolio. Imagine that, in this meeting, your advisor hands you documents outlining someone else’s portfolio.
Generally, people appreciate their independence. Having the freedom to make decisions with minimal limitation is important – that’s why we choose to work as an independent financial planning firm.