The circumstances may be different, but the message is still relevant

Back in 2016, we wrote a blog post about every successful investor’s secret weapon: Compounding. And in that post we also suggested that everyone should read the late Richard Russell’s classic letter, “Rich Man, Poor Man.” 

It won’t be long before 105 is the new 75. Are you prepared?

This is not silliness, neither is it far-fetched — it’s true. 

From the World Economic Forum comes this: “Two-thirds of the world’s population will be 65 years and above by 2050, according to the UN, and the projection for the global ageing economy is already estimated to reach $27 billion by 2025 — there will be more people ageing and living longer.” 

Too far in the future for you? Well, as of February 2021 there were already “more than half a million people aged 100 or older globally.”

Can you afford to live that long? 

Is “longevity” built into your financial plan and your portfolio? How long is your current “nest egg” projected to last? What happens if you live to 100 or more? Will you outlive your money?

History tells us everything we need to know, but do we always listen?

The longer I’m in this business, the more fascinated I become with investors’ behaviour. 

Intellectually we know that successful investing is all about the long term and what happens day to day, week to week, month to month or year to year will not have an adverse effect on our long term success. 

An article that should be of interest to all investors

We have always believed that “knowledge is power,” and are, therefore, committed to providing our clients and followers with reliable information on topics that are of value to all investors. 

One such topic, which is particularly relevant right now, is rising interest rates. 

There’s a reason why interest rates are such a hot topic right now

You can’t turn on the news or read an article that isn’t talking about inflation. In January the consumer price index, which measures the changes in the cost of everything from food and gasoline to housing, reported that inflation has hit its highest rate in 40 years — 7.5% in the US and 5.1% in Canada. I’m sure you’ve felt the impact. 

For investors everywhere it’s been an unsettling start to the new year

… which makes this a perfect time to take a deep breath and remind ourselves  that we’ve been here before. Different circumstances yes, but regardless of what was going on at the time, volatility and instability are nothing new. We’ve weathered times like this before and we will again. 

Creating real wealth

When we think of Warren Buffett, Bill Gates, Jeff Bezos or Elon Musk we all recognize the obvious. They are billionaires. Enormous wealth that was created by owning amazing businesses over very long periods of time. Through good and bad times the fruits of their labour took decades to harvest.

Investing is a marathon. Yet today the markets are dominated by short-termism.

Does your estate plan include everything it should?

I ask, because if you can answer “yes” to even one of these questions, simply including personal assets and investments in your estate plan isn’t enough. What I’m referring to are “digital assets” — certainly not something traditional estate plans ever included.

• Do you use email?
• Do you bank or invest online?
• Do you shop online?
• Do you collect and redeem airline points?
• Do you have a blog, are you on Facebook, LinkedIn, Twitter, Instagram, Pinterest or any other social media?
• Do you have photos or other documents stored in Cloud or other storage accounts?
• Do you use PayPal or Apple Pay?
• Are there websites where any of your financial information is stored?

Would you be surprised to learn that even if all you have is an email account, if you answered “no” to the rest of the questions, email is a “digital asset.” And frankly the truth is, most of us have expanded our digital presence beyond email, particularly since COVID curtailed so many of our activities.

Taxes can take a huge chunk out of your returns, which is where tax efficient investing comes in

If you look through our website you’ll see some quotes that reflect our thinking, beliefs and points of view. One that sums up our thoughts on tax effective investing is by Robert Kiyosaki: “It’s not how much money you make, but how much money you keep, how hard it works for you and how many generations you keep it for.” Which is the point of this post — tax efficient investing and the key role it plays in building and growing your wealth.

Most investors consider their risk tolerance and asset allocation when putting an investment plan together, but what about the location of those assets? As you may know, asset allocation is the process of determining the appropriate balance of different asset classes such as fixed income, equities, cash etc., given your objectives and risk profile.

A meaningful and actionable financial plan is more than some notes scribbled on the back of a napkin. It’s a thoughtful and dynamic process that helps ensure an investor’s success

It’s probably safe to assume that most of us invest for the same reason. To accumulate (and preserve) wealth — enough to live well in our retirement years and take care of our loved ones after we’re gone.

Investors tend to focus on short-term returns, so much so “performance” alone is often how advisors are judged by clients. What’s not often discussed — or even considered — is the value advisors provide that goes beyond returns — but does, in fact, play a very significant role in investors’ long term success — which is, at the end of the day, what investing is really all about. The long term.

We have no problem ascribing value to tangible goods. But it’s not that easy when it comes to the more intangible, like expertise or knowledge. Why?

There was a time when the only way an investor could buy and sell stocks was through a stockbroker who was, in effect, a gatekeeper.

It didn’t matter which broker you used. The only time you paid anything was when you bought or sold a stock. That’s the way it was done. And it was easy for investors to reconcile.