CANADIAN RETIREMENT MISTAKE # 5

Posted on: June 6th, 2018 by Kevin Lavigne

Cdn Retirement Mistakes

 

NOT MANAGING MONEY SYSTEMATICALLY

Because my crystal ball is broken and I do not know what the future holds. I did not predict oil and gas going from $10 to $140 a barrel, and I sure did not predict that the Government would announce a tax on income trusts. However, this is what I know for sure. Highly diversified portfolios tend to have less volatility and less dramatic ups and downs than non-diversified portfolios. They contain as many as fifteen asset classes  and are managed like pension plans, but unlike pension plans, managed asset programs are designed to match your specific goals and objectives, allowing for dynamic security selection, regular rebalancing reviews, comprehensive tax record-keeping, and client-friendly, easy-to-understand information. The process is very detailed but easy for retired investors to grasp and feel comfortable with. The multiple asset classes reduce the risk of loss due to poor performance in any given segment of the financial markets, while providing the opportunity to profit in additional areas that may be overlooked. Examples of some of these asset classes would include mid-sized global companies, global bonds, and real estate. The bottom line is to ask your financial professional how you are diversified and how many asset classes you own. If your investments are all in Canadian stocks and you hold three balanced funds that all invest in Canadian stocks, you may consider diversifying to minimize the risk of concentration in one area.   For more information please call us @250-860-6464

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