The myth of never touching your capital starts when people are working and saving for retirement. Some become conscientious savers, never touching their nest egg. That mentality spills over into retirement. Changing habits can be hard.
The myth of never touching your capital starts when people are working and saving for retirement. Some become conscientious savers, never touching their nest egg. That mentality spills over into retirement. Changing habits can be hard.
How much income will you need during retirement? The myths and misunderstandings continue, despite growing evidence and research that debunk them. Retirement myth #4: You need 70-85% of your current income in retirement.
How much is enough? Books have been written on the subject of retirement and what you need to save. Myths abound on this question. Here’s one to consider: I need $500K, $1M, $2M to retire.
It’s surprising, even shocking, that with all of the attention devoted to an aging society and the need to save for retirement, that so few people are inspired to get started; and then save so little. Many do have a doom and gloom attitude about retirement. Myths aren't helping matters.
We are experiencing a silver Tsunami. The leading edge of the Boomers turned 65 four years ago. On average, 1250 Canadians turn age 65 every single day. It’s part of a 20 year trend.
Key takeaways:
Increased U.S. and international equities, decreased Canadian small cap equities
Tactical Update - October 25, 2019
The record equity bull market (now well into its 11th year) continues to grind higher despite prevailing headwinds. Given its extended run and a softening of various global economic growth indicators, we believe it prudent to implement some tactical asset allocation adjustments to reflect these shifting fundamentals.
Why do aging Canadians want more guaranteed lifetime income? I’ve written and spoken a fair bit about this. Here are some push factors in favour of guaranteed lifetime income:
Key takeaways:
Emblem Portfolios - Canadian: Tactically reduced cash, increased bonds
Tactical Update - July 22, 2019
Events have moved very quickly in bond markets. In the span of about seven months, the U.S. Federal Reserve (the “Fed”) has gone from increasing interest rates, to holding interest rates steady, and now market expectations are for multiple rate reductions over the remainder of the year.
What keeps you up at night? The Late Show, the party next door, crying babies, waiting for the kids to get home, that spicy meal and/or the weather? All of us have had trouble getting to sleep and many of us can relate to the list of things I just covered. Most of these things pass with time. Some other things stick with us. Consider the following concerns echoed by a survey of adults ages 35+.
I’ve written earlier about guaranteed lifetime income, its value and what Canadians want in terms of a plan or product that provides this in addition to what they may be receiving from government benefits. This is especially appropriate for those aging individuals that do not have a defined benefit pension plan through work, a plan that tells them how much they are “guaranteed to receive” for the rest of their lives.
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