Wealth Management
Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.
If you’re new to investing, a good place to start managing your wealth is to consult your tax preparer or accountant. They may be able to provide you with financial planning services. They may also be able to refer you to somebody who can.
There are three types of professional wealth management services you can use.
1.    A full service stock broker – A good stock broker is one who understands investing and who has the integrity to settle conflicts of interest in the client’s favour. Good stock brokers can provide an effective and economical way to manage your investments. But if you are going to use a full-service broker, take the time to find a broker you can trust.
2.    A discount stock broker – A discount stock broker will simply carry out buy and sell orders for their clients, and charge lower commission rates than full-service brokers. You pay even lower commissions if you trade stocks online, instead of placing orders over the phone.
3.    Portfolio managers – A portfolio manager is someone who fully manages your wealth portfolio and has a fiduciary responsibility to make sound investment decisions on your behalf. Portfolio managers are more stringently regulated than full-service or discount brokers.
canadian retirement planning

Smart Canadian retirement planning involves a diversified portfolio and these savings plans

We recommend that, above all, you base your Canadian retirement planning on a sound financial plan. That’s because a successful retirement begins with a successful retirement income strategy.

One of the things that investors of all ages fear is that they won’t have a good financial plan in place so that they have enough retirement income to live on once they’ve stopped working. If you’re looking for a retirement planning guide, continue reading our recommendations below.


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Canadian Retirement planning guide: Four key factors to consider when investing for retirement

A successful retirement begins with a successful retirement income strategy. Your retirement plan should address the following factors to ensure that your retirement investing generates enough income in retirement:

  • How much you expect to save prior to retirement;
  • The return you expect on your savings;
  • How much of that return you’ll have left after taxes;
  • How much retirement income you’ll need once you’ve left the workforce.

An RRSP as part of your Canadian retirement planning

RRSPs are a great way for investors to cut their tax bills and make more money from their retirement investing.

RRSPs are a form of tax-deferred savings plan. RRSP contributions are tax deductible, and the investments grow tax-free. (Note that you can currently contribute up to 18% of your earned income from the previous year. March 1 is the last day you can contribute to an RRSP and deduct your contribution from your previous year’s income.)

When you later begin withdrawing the funds from your RRSP, they are taxed as ordinary income.

Shelter your gains with a tax free savings account

You can use your tax free savings (TFSA) account to complement your RRSP.

Your TFSA can generally hold the same investments as an RRSP. This includes cash, mutual funds, stocks, GICs and bonds.

Contributions are not tax deductible, as they are with an RRSP. However, withdrawals from a TFSA are not taxed. This makes the TFSA a good vehicle for more short-term savings goals.

If funds are limited, you may need to choose between RRSP and TSFA contributions. RRSPs may be the better choice in years of high income, since RRSP contributions are deductible from your taxable income. In years of low or no income—such as when you’re in school, beginning your career or between jobs—TFSAs may be the better choice.

Investing in a TFSA in low income years will provide a real benefit in retirement. When you’re retired, you can draw down your TFSA first, then begin making taxable RRSP withdrawals.

RRIFs as part of your Canadian retirement planning

A RRIF is a Registered Retirement Income Fund, a tax-deferred retirement plan for your Registered Retirement Saving Plan (RRSP). RRIFs are used by those who don’t plan to cash out their RRSP as a lump sum when they retire, and prefer to extend their investment and take smaller withdrawals by converting to a RRIF. Registered Retirement Income Funds offer more flexibility and tax savings than annuities or a lump-sum withdrawal.

Like an RRSP, a RRIF can hold a range of investments. You don’t need to sell your RRSP holdings when you convert—you just transfer them to your RRIF.


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Our portfolio diversification approach gives you strong potential for long-term gains and is considered one of the best Canadian retirement planning strategies

If you diversify as we advise, you improve your chances of making money over long periods, no matter what happens in the market.

For example, manufacturing stocks may suffer if raw-material prices rise, but in that case your Resources stocks will gain. Rising wages can put pressure on manufacturers, but your Consumer stocks should do better as workers spend more.

If borrowers can’t pay back their loans, your Finance stocks will suffer. But high default rates usually lead to lower interest rates, which push up the value of your Utilities stocks.

As part of their portfolio diversification strategy, most investors should have investments in most, if not all, of these five sectors. The proper proportions for you depend on your temperament and circumstances.

For example, conservative or income-seeking investors may want to emphasize utilities and Canadian banks in their portfolio diversification, because of these stocks’ high and generally secure dividends.

More aggressive investors might want to increase their portfolio weightings in Resources or Manufacturing stocks. For example, more aggressive investors could consider holding as much as, say, 25% to 30% of their portfolios in Resources.

However, you’ll want to spread your Resource holdings out among oil and gas, metals and other Resources stocks for diversification and exposure to a number of areas.

What does your Canadian retirement planning involve? Share your tips with us in the comments.

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Wealth Management Post Archives

Your Guide to Building a Strong Investment Portfolio

Your Guide to Building a Strong Investment Portfolio

For successful investors, good portfolio management centres around building a well-balanced portfolio.
Portfolio management is the process of choosing and monitoring the investment holdings for an individual or institution.

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Your guide to tax-free savings accounts

Your guide to tax-free savings accounts

Tax free savings accounts let you earn investment income tax free. Make sure you’re getting the most profit and tax benefits from your TFSA.
The federal government first made the tax free savings account (TFSA) available to investors in January 2009. These accounts let you earn… Read More

Retirement investing

Retirement investing

What is retirement investing?
Retirement investing is the process of investing money in stocks or other securities, often with the goal of using the funds to pay for living expenses in retirement.
One of the things that investors of all ages fear is that they won’t have… Read More

Wealth building strategies for long-term investing success

Wealth building strategies for long-term investing success

Here are some wealth building strategies that will help boost your long-term portfolio gains
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