Sample Articles
Here are some excerpts from past newsletter publications. For more recent articles or additional information, please contact us.
Retirement: What’s Your Magic Number?
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,...
read moreFor 2014, Let the Bulls Run!
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...
read moreBusiness Owners: Shareholders Agreement
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,...
read moreWhy Volatility Isn’t So Bad
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...
read moreAsset Allocation in Today’s Changing World
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...
read moreThe U.S. Estate Tax May Affect You
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;...
read moreCommon Estate Planning Errors
Every so often we are reminded of the importance of proper estate planning by the consequences of improper planning. Sometimes assets are left to beneficiaries that were not intended because documents were not properly updated. Othertimes, estates experience liquidity issues due to taxes that must be paid by the estate. Have you updated your estate plan lately? If you are in the process of reviewing or updating your estate plan, here are some common errors to avoid: Forgetting what...
read moreDefending Your Portfolio Against Black Swan Events
The 2011 tragedy of the Japanese earthquake and tsunami once again highlighted an occurrence where a seemingly unpredictable, disruptive event, often referred to as a Black Swan event, affects the global economy. The origin of the term “Black Swan” dates back to a time in history when swans were believed to be only white in colour. A black-coloured swan was seen as an impossibility. More recently, former Wall Street trader Nassim Nicholas Taleb redefined a Black Swan event to...
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