There have always been varying opinions regarding the amount of income needed to ensure a comfortable retirement. While some suggest an annual target of 70 percent of pre-retirement income, others advise 80 percent or more. Still, others argue that these targets may be too high, pointing to the fact that pre-retirement spending is often lower than we perceive. As payroll deductions, work-related expenses, mortgage payments and child-related costs make up a significant portion of expenses during our working years,...

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The new year is a time of anticipation and reflection. When it comes to the financial markets, predicting the future is never possible. But as investors, let’s hope that 2014 builds upon the successes of the year that has passed. In 2013, Canada’s economic news remained positive. Growth continued at a modest pace but commodities markets were slow to gain momentum, which impacted Canadian markets. Yet, the price of West Texas Intermediate (WTI) crude oil, a benchmark that influences...

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Whether it’s a family owned business or one owned by unrelated individuals, for private companies with multiple shareholders, a shareholders’ agreement can be an important tool for maintaining a healthy relationship between the owners. A shareholders’ agreement outlines individuals’ expectations, serves to minimize the potential for conflict and provides a mechanism to resolve disputes. Generally, it covers any or all of the following three areas: Ownership – This can be one of the most important provisions of an agreement,...

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Many investors expect the markets to be more placid than they really are. In periods of volatility, these investors may feel that they are caught off guard. In reality, markets are volatile by nature. Over the past 40 years, S&P/TSX Composite total returns have been about nine percent on average. If one were to expect low volatility, annual returns would cluster closely around that average. However this hasn’t happened. Since 1970, over 60 percent of annual S&P/TSX Composite total...

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We often stress the importance of reviewing how assets are allocated within your portfolio. Your current allocation should properly reflect your financial objectives and risk tolerance, and this can change based on your personal circumstances. But asset allocation can also be impacted by the current market conditions, which may necessitate changes. Today, the investing world is more connected and diverse than it has ever been. At the same time, it is experiencing new challenges. The outlook for growth of...

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As a Canadian citizen, you may not think that the U.S. estate tax applies to you. However, Canadians who hold what is termed as “U.S. situs property” may be subject to this tax. This includes U.S. real estate, such as the condos that many snowbirds escape to during the winter season, and shares of U.S. companies, even if they are held in a Canadian brokerage account, including securities held in registered plans. Canada does not have an estate tax;...

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