Archive for the ‘News’ Category

CANADIAN RETIRMENT PLANNING MISTAKES #6

Posted on: July 4th, 2018 by Kevin Lavigne

Cdn Retirement Mistakes

Not Managing Risk!

There are more investment management programs available for Canadians today than ever before. There are now several different opportunities for investors to diversify their portfolios through managed programs, which used to be designed only for the wealthy investor in North America.

Understanding the benefits of these programs comes down to a few simple things.

First, if you realize that almost 90% of your return comes from diversification of your assets–for example, by asset class, geography, market capitalization, and investment style–then portfolio-managed programs may be for you.

Second, rebalancing or adjusting your portfolio to market conditions to minimize risk and maximize returns in the best possible way takes a team of expert managers. The rebalancing is what most investors are missing.

Third, teams of professionals and pension style managers–who manage millions for pension plans and private institutions–can be accessed today. They can manage your money in the same manner that successful pension plans are managed.

Finally, you get three sets of eyes looking over your portfolio–the investment manager(s), the portfolio rebalancing and review team, and your advisor–all working to make sure you have ongoing, appropriate diversification. And with several portfolio options from which to choose in Canada, managed pro-grams are helping more and more Canadians invest in programs that are tailored for them. Find out or ask about managed programs.

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

CANADIAN RETIREMENT PLANNING MISTAKES #4

Posted on: May 28th, 2018 by Kevin Lavigne

MONEY MISTAKES ANY RETIREE CAN AVOID

While the world is changing and the markets evolve over time, learning and understanding risk and the obstacles can be a challenge. Here are some simplified ideas.

The difference between having and not having money is simple. The wealthy invest their money first and spend what is left. The people without a great deal of money spend what they have and try to save what is left. Do you have an automatic saving or investing program,

or are you waiting until all your bills are paid? What other mistakes do people make with money?Investing without purpose. Do you just want more money, to travel more, to go to Hawaii in the winter, or to go skiing with your family? Do you have an investment rebalancing program? Do you just invest and hope that it rides out the poor periods and grows rapidly in the good times, or do you and your portfolio manager(s) have a system for rebalancing in good times and bad for optimum interest rates?

Have you ever invested in a GIC or locked into a mortgage for five years only to soon find you could have saved or gained another half to one percentage point? You shop around for the best prices in groceries and clothing, why not do the same with your investments? Not understanding risk–perhaps the greatest mistake of the last decade. Who knew the Canadian dollar would rise dramatically against the US dollar?  Going global is great, but it is worth diversifying to avoid wiping out your gains by speculating which way the Canadian dollar will go. Do you only dream of retirement income, or do you invest so you will have a predictable and comfortable retirement income? Knowing this can be the difference between having money or not in your retirement.

Call Reid & Associates Financial Solutions for more information – 250-860-6464

FOUR MAJOR PITFALLS OF RETIREMENT

Posted on: May 18th, 2018 by Kevin Lavigne

Investing in retirement can be tricky, as it requires that you consider several factors of lesser concern to younger investors. Make a mistake and you could find yourself surviving on less income than you planned, paying more in taxes, or leaving a smaller legacy to your heirs. Here are the 4 biggest pitfalls of retirement.

  1. Planning for the right time horizon. Longevity is the #1 risk

facing retirees. Your life expectancy, if you are now 65, is at least

20 years more; but that represents an average.

  1. Market Risks. Retirees still need to invest a portion of their

nest egg for growth yet cannot afford to take on the same level

of risk as a younger person, because there is less time to make up

for bad decisions.

  1. Inflation. Most investors do not realize that your income

must double every twenty years just to keep up with the average

rate of inflation.

  1. Starting retirement with too large a draw-down. The amount

of income you need to draw from your savings to maintain your

lifestyle will increase with time. Other costs, such as medical.

 

Call Reid & Associates Financial Solutions today at 250-860-6464

 

 

 

CANADIAN RETIREMENT PLANNING MISTAKES #2

Posted on: May 11th, 2018 by Kevin Lavigne

NOT SEEING DANGER SIGNS IN YOUR PORTFOLIO

 

Problem: Unless you’re an asset-allocation specialist, how do you know whether your portfolio is matched to your risk tolerance?

 

When an investor is frustrated with lack of performance, nine times out of ten it is based on asset allocation and a lack of diversification.  Here are nine danger

signs possibly lurking in your portfolio.

 

  1. Lack of clear investment policy statement (IPS)–a structure that is not clearly defined and understood
  2. IPS for your portfolio.
  3. Investments mismatched with objectives or risk tolerance–under-
  4. standing risk and how it relates to your money and portfolio.
  5. Under-performing investments or managers–know when to hold
  6. them and know when to fold them.
  7. Style drift portfolios–that look at risk-adjusted return.
  8. Overlapping investments or management styles.
  9. Excessive expenses or trading activity.
  10. Lack of a system or lack of regular monitoring, adjusting, and
  11. rebalancing.
  12. Unclear or untimely reporting–when do you review this stuff ?
  13. Lack of communication and service.

Please contact Reid & Associates Financial Solutions today @ 250-860-6464  about potential danger signs in your portfolio.

CANADIAN RETIREMENT PLANNING MISTAKE #1

Posted on: April 16th, 2018 by Kevin Lavigne

 

NO CLEAR WRITTEN RETIREMENT PLAN; NOT TAKING CONTROL OF YOUR FINANCIAL FUTURE

 

The road to financial freedom, wealth, and prosperity requires an accurate map that will let you plot a journey, monitor progress, and change direction if  you venture off  course. To help you get there, here are ten ideas for developing a sound financial plan with your financial professional.

  1. Know where you stand–complete a net worth statement listing assets and liabilities.
  2. Define your financial goals based on personal needs and wants.
  3. Know how much money you need now, five and ten years from now, and in retirement–including inflation and taxes. Consider increasing your net income by reducing or deferring taxes.
  4. Increase discretionary savings by decreasing your expenses.
  5. Know your monthly cash flow needs and separate that from major annual expenses such as trips, cars, home renovations, etc.
  6. Expand your knowledge of financial issues and economics–check out the library.
  7. Reduce or defer income taxes wherever possible. Review your tax plans and make sure your financial advisor has a copy of  your tax return.
  8. Develop a sound plan for your estate including wills, powers of attorney, and life insurance–lower monthly life insurance costs can save you money.
  9. Adjust plans and goals as your circumstances change and review your written plans at least once a year to track your progress.

 

Simplify

Use the services of professionals (accountant, financial advisor, lawyer). These professionals usually pride themselves on keeping their clients up to date when taxes, investments, and laws change. If  you are not retired now, how much do you need to retire? We all want to retire someday. Some may be wishing it was sooner than later. Here are some ideas to help you. First, retire to an income, not an age. How much income do you need to live on? Think in terms of  monthly income. Once you have an idea of  how much you need to live on per month, think of  a large emergency or slush fund to spend in early retirement. For example, this money can be spent on large items, outside your monthly budget, such as extended vacations, home renovations, or vehicles.

Second, plan for where the money will come from. Factor in when pensions will kick in (for example; company pension(s), Canada Pension, and old age pensions). You can usually find this with your notice from the Canada Pension Plan statement mailed to you or you can request a copy to be mailed to you: Service Canada. Then add up all of  your investments, such as stocks, bonds, GICs, mutual funds, and RRSPs. Take the total amount and expect income to generate from 4% to 6% annually; however, this depends on your risk tolerance, time horizon, and how long you want the money to last. Take an average of  5%, for example, of  $200,000, which will generate additional income of  $10,000 per year or $833 per month. Finally, look at real estate and businesses. Do you plan to sell off  real estate and downsize or generate income from rental real estate? Do you plan to sell any businesses or generate income from them? Now that you have all the sources of  capital, ask yourself  what percentage of  capital you would like to have at the age of  85. Do you want 100% of  your money, 50% of  your money, or do you want it all spent by then? This will help determine your time horizon as well as your estate wishes. Remember to retire to an income and lifestyle, not an age.

Please contact Reid & Associates Financial Solutions to see how our process will benefit you. 250.860.6464

Exciting News!

Posted on: April 10th, 2018 by Kevin Lavigne

Happy Spring Everyone.

The time has come where Rob is starting to slow down and golf a little more.  He is excited to announce that Kevin will be handling the day to day operations at Reid & Associates Financial Solutions with both Joy and Brittney.

You will find below a final letter from Rob  with a notification that he will still be around for a few more years with Reid & Associates.

There is also a welcome letter from Kevin who ensures that Reid & Associates commitment to you is not changing.

With the addition of Kevin’s name to the company there are some instances where you will need to reset your login and password.  Please contact Joy or Brittney if you require new logins.

If you have any questions please don’t hesitate to contact any of us at the office.

Thank you.

====================================================================================================================================================================

Most important news this year is that I have sold Reid & Associates to Kevin Lavigne recently. That  doesn’t mean I have been put out in pasture as I will be around for the next couple of years helping  Kevin with the transition. I have been in this industry for 44 years and I started when I was 24.  I’ll let you  do the math but it is time to slow down. I still love what I do so I could not just leave it thus you have to  put up with me a little longer as I will remain mostly as a consultant.

I mention my succession plan in past communication however I will revisit the process. Five years ago I  decided that I needed to plan an exit from Reid & Associates with the obvious reason being my age. Four  years ago I hire Kevin Lavigne as an associate. In my search for a person to take over Kevin was the best  choice by far and there were many people interested. Kevin has a success pattern from the past as well  as he has been an active investor on his own. I decided 20 years ago that I want to practice  comprehensive personal and small business financial planning. So everyone I dealt with I built a personal  plan identifying their needs and objectives and to this date this is still a unique way to practice. If your  friends or children have not gone through this process they could be wandering aimlessly with no viable  plan and that will cost them. Our process works more efficiently because we treat each individual at a  personal level. Kevin saw the merits of the method and was eager to continue it. So for the last four  years he has honed his financial planning skills along with committing to providing outstanding personal  service (no 800 numbers). Again Kevin in his own right was very successful at what he has done in the  past; he has his commerce degree so he is well educated for this business. Kevin has a great young  family which he adores, another great quality. Most of all he understands the reasons why I did all of
this, it is so that you our clients have a smooth transition to a younger well trained, smart, caring,  professional partner that will work for you.. So I truly believe that I accomplished my succession  objective. And also it’s good for you to know that Joy is still and will remain working for Reid &  Associates for three days a week.  I know that Kevin will do a great job for you along with Brittney  and  Joy.

Again I will be around if you require my services but Kevin will be the main guy going forward. I loved  working with all of you and thank you for your patronage and wish you great success and health going  forward.

All the best
Rob Reid CLU,ChFC,CFP

====================================================================================================================================================================

To all our Reid & Associate Clients,

First I wish to thank you all in advance for your trust.   Your trust in Rob for the past 22 years  and now your act of trust in Rob’s recommendation of me is very encouraging.  As a company  our commitment to you is to continue to help guide you in your financial decisions.

Right from the very start I saw that Rob’s process was more comprehensive then I had seen  before.  I also came to learn that his approach to active investment was one of the best in the  industry.  So in this regard, you will see virtually no change in the way yourselves or your  finances are managed.

Rob has already told you that he will be staying around for another few years.  Joy is also  staying on with Reid & Associates for another couple years.  I am so very lucky to have them  both around as they can add the personal touches and history to your file.

This career is about competence, commitment and integrity.  My education and commitment  to a positive work ethic is to be the best in the business and to always think what’s best for  you.  As you have come to know this about Rob my intention is for you to recognize those  same qualities in me.

Prior to joining Rob five years ago I was involved in banking and revenue management  however investments and planning have been my hobby since Mom and Dad forced it on me  when I got my first job at Burger King at the age of 13.

Moving to Kelowna in 2008 my wife Amy and daughters Mara and Lenora have made Kelowna  our home.

I look forward to continuing on the great planning that Rob has done for you and anticipate  that together we will continue to develop successful financial decisions.

Kevin Lavigne

Rob n Kevin Email Pic

Kids are leaving so TIME to focus on you!

Posted on: July 12th, 2017 by Kevin Lavigne

So your 50ish years old and you’ve worked hard the past 30 years just to pay your expenses and support your family.

Your kids are moving away to go to school or do some travelling and NOW it’s time to make retirement planning your first priority.

You can see the light at the end of the tunnel and you only have once chance to do this right. A personal plan based on your retirement wants and needs is CRUCIAL to have unless you want to be forced to work into your retirement years.

As human beings we always go towards our most dominant thoughts so having a clearly identified retirement goal will be important if you intend on enjoying your retirement in good financial health.

So if you thinking about retirement and you’re not sure on how it is going to look or maybe your overwhelmed come in and see our retirement planning process.

Once you understand what you need to get there you can relax and enjoy the next 10-15 years knowing that your retirement will be in place.

My plan is complete but your’s isn’t so it’s TIME to go to work.

WIN by not Losing. It’s Sun Tanning TIME!

Posted on: July 6th, 2017 by Kevin Lavigne

Win by not losing!

Do you know how long it will take your original investment to recover if it has lost money.

If your investment was worth $100,000 and you lost 15% due to a correction in the markets you would be left with $85,000. Using a reasonable 7% annual rate of return combined with Canada’s average 2.5% inflation your original investment would take 5 years to recover to the original $100,000.

If the annual interest rate was 6% it would take 6 years to recover but if the interest rate was 8% it would still take 4 years to recover.

Shocked already?

We haven’t added in the interest lost in that time frame.

Again using the 7% annual return rate over 5 years is over $40,000 lost.

Crazy isn’t it.

When the wind blows hard enough even turkey’s can fly but when the wind stops blowing where will you be?

You need a professional who is going to WIN by not losing.

Warren Buffet has 2 rules about investing.
1. Never lose money
2. Never forget rule #1

My plan is complete, I’m not a turkey It’s TIME to catch some rays!

Knowledge is Power. It’s TIME to walk my dog!

Posted on: June 29th, 2017 by Kevin Lavigne

Are you behind or ahead on your retirement savings? What does actually mean to you?

Everyone has heard that you need to save 10% of your pay cheque to reach your retirement goals. In fact it all depends when you start saving.
Fidelity says that you need to save 15% of your salary for 30 years to maintain your lifestyle throughout retirement. So if you started in your 20’s then yes 10% might suffice.

On the flip side if you’re starting in your 50’s then they estimate that you need to save 39% of your income which for most would be a stretch for most.

You can approximate your net worth and see where you fall compared to other Canadians with a wealth test but in reality it doesn’t matter if you’re happy with those results or not, you still need a plan.

You need to know what your options are, whether there are opportunities to work less sooner or you might need to increase your savings to reach your goals. Perhaps you can increase your travel budget now or buy that new house you’ve always wanted.

Our financial planning process takes where you are today and helps you get to where you want to be most efficiently with a few stops along the way.

Stop guessing and make an appointment with us to see how our process will give you all the answers you need.

My plan is complete so I am going to go walk my dog.