investment planning

All-Weather Investing

There is almost always chatter in the media about the next possible correction or recession. The most recent buzz is about a possible US recession where Canada would likely follow suit. The chatter also includes opinion about a "soft" versus a "hard" landing, etc. The primary challenge for individuals trying to build wealth is that this background noise (chatter) has nothing to do with…you!

Interest Rates and Your Financial Strategy

Working towards financial independence includes assumptions about how the world operates and how we navigate within that environment. These assumptions work best when the world remains the same allowing you to make reasonable future projections.

Challenges come when changes occur in the operating environment which may require reassessing wealth building strategies. The disruptions from early 2020 (Covid, supply-chains, etc.) seem to have ushered in some significant changes in our world.

TFSAs: Leveraging the Benefits

The Tax-Free Savings Account (TFSA) was introduced in 2009 to offer Canadians an incentive to save over their lifetimes. TFSAs provide tax-free growth, flexible investment options, and easy set-up and withdrawals, making this registered account a powerful tool for financial well-being. Below are some key features.

Below are some key features:

Don't Give Up on Growth

If you are a prudent investor, then you have a financial retirement plan that will ensure you have sufficient funds for the lifestyle you envision after you stop working. What constitutes sufficient depends on your ambitions and your hobbies, and also on how long you live. People are living longer, and it's not unreasonable to think that you could live into your 90s.

New Back Office System and a Good Finish to a Tough Year

Anyone reading my newsletters throughout 2022 is well aware that this has been a tough year. We've dealt with significant Inflation, higher Interest Rates and a weak Stock Market. In past years, when the Stock Market struggles, you might get some help from your Bond Funds. Not in a year like this. In 2022, with Interest Rates quickly rising, it has put some serious downward pressure on the Bond Market. Very few things have worked well this year and this rare phenomenon of Stocks and Bonds being so heavily correlated is very rare.

A Tough First Half to 2022

It's been frustrating to have to report bad news in a number of newsletters this year but anyone who knows me knows that I won't try to gloss over things. 2022 has been a tough year with War in Europe, Rising Prices across the Globe, Labour Shortages, Supply Chain Issues, and now, Higher Interest Rates. It has been a very hard year to navigate through. In fact, it has been the worst first six months to a year on the Stock Market since 19621.

Portfolio Diversification

Looking back over the past few years, one thing is certain - we can never be absolutely sure what the financial markets will do at any given time. We can study charts and graphs, both historical and forecasted, we can consult with economic experts, business leaders, and government officials, we can look at inflation and interest rates, and still we cannot predict the markets with absolute certainty.


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