The chaos occurring in the world’s financial markets over the last year has had a serious impact on pension plan funding and will negatively impact corporate earnings in 2009, according to the latest estimates by Mercer. Read the press release.
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12Jan
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11Jan
Many times I am asked about how the markets are doing. Here is a quick overview of the…
EQUITY MARKETS
In Canada, the S&P/TSX represents the broad Canadian Market.
Click here to view the S&P/TSX
In the United States, the S&P500 represent the 500 largest US companies based upon market capitalization.
The international (equities outside of North America) market is best represented by
the EAFE (Europe, Austrail and Far East) index is used.
Click here to view the EAFE Index
You will notice two lines on each chart.
The blue line represents the 50-day simple moving average.This is a common short-term indicator.
The red line represents the 200-day simple moving average. This is a common long-term indicator.
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05Jan
In June 2006, I wrote an article on “variable annuities, the new kid on the block” which dealt with a new retirement income product that might be worth consideration. Until then, a retiree had only a few product choices on how to allocate their retirement savings to provide sustainable income as follows.
1. Variable products such as mutual funds, stocks, bonds or cash can be used to design a portfolio with which to take regular income withdrawals in retirement. These portfolios are subjected to sequence of return risk especially if you retire in a down market and are making regular withdrawals.
2. Guaranteed products such as GICs or annuities can also be used. In the current interest rate environment, GICs have low rates of return and generally do not keep up with inflation. Annuities provide a guaranteed income stream for life, much like a pension. However once purchased, there is no access to the capital and typically no estate value. Continue reading »
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05Jan
On Dec 1, 2008 Retirement 101 was successfully launched in the Quinte and surrounding area.
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19Nov
Here is an interesting video from Russell Investments
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12Aug
You may have seen several TV ads by a major credit card company in the US, which depicts a victim of identity theft. Using a voiceover by the thief, the victim recounts the story by the thief and the spending spree they go on. Is the ad catchy and humorous? At first, yes until it sinks in a few moments later. It makes you stop and think, could this happen to me? Yes! Continue reading »
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12Aug
It’s hard to argue with the merits of Registered Retirement Savings Plans. They’re one of the best tax breaks available to the average Canadian, and a great way to build retirement wealth. So why do most of us not contribute as much as we can each year to our RRSP? For many Canadians, the reason is simple. We don’t have the money on hand to make that maximum contribution. So we contribute what we can, or ignore our RRSP all together. Continue reading »
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12Aug
We’re well into yard sale season. We’ve cleaned out the garage, closets and under the beds. As the saying goes “If you can’t use it, lose it!”
Maybe it’s time for a portfolio clean up as well. A good place to start is the Investment Policy Statement or IPS. Continue reading »
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12Aug
Have you taken any additional steps towards reducing your income taxes?
I recently completed reviewing my annual client survey and the results were interesting although not at all unexpected. The number one feedback from clients was that they would like more assistance on ways to reduce income taxes. Big surprise!
I read an interesting book this summer “The Tax Freedom Zone” by Tim Cestnick. It’s not about paying no tax; it’s about reducing the amount you pay as low as possible given your personal circumstances i.e. The Tax Freedom Zone. Tim’s writing style with short humorous stories makes reading a tax book enjoyable.
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12Aug
The contributions to an IPP are graduated by age, and as such as the individual grows older, their contributions increases by a rate of 7.5% per year unlike the RRSPs fixed maximum of $14,500. For example an individual who is earning $100,000 per year at age 55 can contribute $22,400 for that year as opposed to the $14,500 limit imposed under RRSP rules. Continue reading »
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