Featuring Ian Hardacre, MBA, CFAFund Manager
Empire Life Dividend Growth Mutual Fund
Empire Life Dividend Growth GIF
Empire Life Investments Inc.
Life is about choices - having them and deciding which ones work best for you. Retirees, for example, often feel that they must choose from a few possible alternatives for converting their retirement assets into income:
Now that the digital age is upon us, we’ve become experts at comparing various products and services. Conducting due diligence has never been easier. At the click of a button we can compare product features, sort by top sellers, and even read reviews and recommendations from other customers.
Retirees have three dominant concerns:
The Global Industry Classification Standards (GICS) just went through its first significant structural change since its inception in 1999. After the market close on August 31, 2016, Real Estate (formerly an industry group within Financials) was promoted to its own sector. The new GICS structure now consists of eleven sectors. GICS is the foundation for equity index structures and investment portfolio positioning. This change may have a significant impact on not only sector characteristics but also asset allocation decisions across the entire investment industry.
What defines a successful retirement? How do you measure it?
Investors are confused about what investments should be in their portfolios. In fact they are confused about what they have in their portfolios.
Going, going, gone are the days when we are forced into retirement because we hit a certain age. And boomers are redefining what that "R" word means to them. Retirement isn't about hitting a certain age or completely quitting what you have been doing. It may involve work, albeit perhaps on different terms or in a different field. It may mean adjusting that planned retirement date. There’s no shame in that. Late savers especially may need to consider what a difference an extra year of work can make in their lives.
The conventional method to reduce risk in a balanced portfolio involves decreasing the portfolio’s riskier asset class, which for most investors is likely the equity allocation. For example, shifting from 55% equities and 45% bonds to 30% equities and 70% bonds. The following graphic illustrates this as the move to the “lower risk benchmark portfolio”.