The world can be a busy place and carving out time to simply exist can be difficult. Can we try to shift the focus and be better off? We sure can. We have some tips to share on how to remain grounded.
Can you believe it? November is here! How 2019 seems to have flown by!
Halloween has now come and gone, we have all eaten way too much candy (perhaps) and now we are going to be subjected to 2 months of dizzying pressure to buy gifts for the holiday season. Christmas and Hanukkah…all rolled into one huge, pressure-filled, buying frenzy, celebration.
Can we avoid this? Can we remain grounded and not be swept up into the commercialism of this upcoming holiday season? Here are a couple of tips to keep in mind between now and the end of the year:
Watermark Wealth Management4 tips to remain grounded
Should you be paying your child’s allowance digitally? We explore cash vs. cashless technology and how best to teach your kids about money using their allowance.
According to an analysis by Forex Bonuses, Canada is the top country for embracing cashless technology. And the trend goes all the way down to our kids. A 2018 study by TD found that “nearly 68% of parents said their children are more or just as comfortable using digital payments as they are handling cash”.
Watermark Wealth ManagementAllowance in a digital age
Bad investment habits can hurt us financially, so we’ve come up with a list of 10 bad money habits we think are worth noting. Hopefully you don’t see yourself in any of them, but if you do, maybe you’ll think twice before committing these 10 bad money habits next time:
Reaching for returns
A risk discussion is one of the most important conversations to have with your advisor, both when you first open your account, and when you experience significant life events. Investors get into trouble when they go outside of their comfort zone. Investments that provide remarkable positive returns in rising markets can also have great dips in falling markets. When markets are rising, you can feel like a genius, but when markets take a tumble, the losses can send you on an emotional roller coaster. This often causes investors to panic and sell into a dropping market – not ideal for long-term investing.
Watermark Wealth ManagementBreak these 10 bad investing habits
Are you ready to retire? We’ve compiled some items you should think about and review with your advisor one to two years before you officially retire.
Know where you stand
Meet with your advisor one year before retirement. Bring statements for all of your assets (and your debt) in order to create a comprehensive retirement plan. Don’t forget your insurance policies!
In the perfect situation you would bring your budget, having tracked your expenses down to the dollar for an entire year. This way you won’t be guessing how much you spend – you’ll have a true reflection of your annual expenses. Dynamic Funds crafted a Retiring Budget worksheet that allows you to compare your current expenses with your expected retirement expenses.
Watermark Wealth ManagementAre you ready to retire in 1 to 2 years?
Pull out one of your investment statements. Do you hold only Canadian investments? If so, you may be suffering from Home Country Bias. While picking investments can cause paralysis by analysis, taking a global approach and tracking multiple asset groups can help both preserve and grow your money.
The world can be a demanding place with countless decisions that need to be made on a daily basis. Most of us don’t have free time to spend sitting in front of computers looking at bar charts, pouring over historical market research and deciphering economic reports. Putting together the perfect investment account can be difficult given the endless investment choices available in the marketplace. It’s enough to make one suffer from paralysis by analysis.
What is Home Country Bias?
In order to simplify the situation some of us decide to own only companies we know well, companies headquartered in the country in which we live. This is called Home Country Bias. However, cheering for the home team in your RRSP may not be your best bet.
Our friends at Franklin Templeton have created a video that walks you through why backing your country in your investment account, might not be your best bet.
Retire on your terms. We explore the two phases of retirement; accumulation and distribution. And why you should start your journey towards retirement now.
Saving for retirement is not easy. Dealing with day-to-day expenses can prevent people from looking at their long-term finances. Especially when they are young and haven’t yet seen retirement peak over the horizon. The Ontario Securities Commission (OSC) released a study in November of 2018 that found that 34% of men and 43% of women aged 18-34 haven’t started saving for retirement.1
The OSC found a scarier statistic in those aged 55+. 8% of men, and 18% of women aged 55+ hadn’t started saving for retirement.1 At this point there’s simply not enough time left to properly prepare, make informed decisions, and know that you’ve chosen the right path. Those in this situation will find themselves either accepting a retirement that is less than they dreamed, or they will work longer than expected and experience fewer years in retirement living.
But what if we told you that there was a way in which you could ‘retire’ early? And no – we don’t mean at 55!
You may not be entirely familiar with this idea, but there are actually two different phases of retirement – and one of them can start as early as you would like!
Watermark Wealth ManagementThe Two Phases of Retirement
Ok, be honest. Were you one of those people scrambling for savings in order to meet the RRSP deadline?
Are your RRSP savings habits like a bad thriller movie? You move funds from this account to that, trying to come up with that bold number haunting you from the bottom of your Notice of Assessment – RRSP deduction limit.
You say to yourself, if I just move this here, and move that there, then it will all be in my bank account by Feb 28th. Then I have to make a bill payment to HollisWealth, gosh, they’ve changed their name so many times, where was that payee name that they sent me? Oh, I’ll just email the Watermark team, they’ll know. Why have they not responded to my email? It’s been 5 minutes already!!! Okay, I heard back.
Now I just have to put the kids to bed and unload the dishwasher and then I can do the bill payment to my RRSP. Except I forgot and went to bed without doing it! Now it’s March 1st and oh gosh, hopefully if I do it today it will still count…
Sound familiar? Maybe it’s time you take the drama out of your RRSP contribution and put your savings on repeat.
Watermark Wealth ManagementPut your savings on repeat
The investment industry likes to talk about risk in terms of holdings in your investment account.
They talk about whether you have enough country diversification and diversification of types of investments, whether your time horizon is long enough for your risk level, and whether your investments will keep up with inflation. While these factors are important to creating an effective portfolio, keeping your emotions under control is equally as important.
The investment gurus here at Watermark Wealth Management, Chuck Magyar and David Lyon, recently attended the 13th annual iA Securities Year Ahead Investment Conference in Toronto. By showcasing the differing viewpoints of more than 20 industry experts it provided us with a better sense of what we should be expecting from financial markets in 2019.
We heard from an impressive group of individuals including iA Financial Group’s Chief Economist, Clément Gignac and Brian Belski, who is the Chief Investment Strategist at BMO Capital Markets. A number of prominent money managers lent their thoughts as well, including Peter Norman, one of Canada’s leading experts on the residential housing market.
Here are some of David & Chuck’s key takeaways of the day:
Watermark Wealth ManagementWhat does 2019 have in store for us?
Supporting those that need a little extra help – follow up from our day in December…
Back on December 19th, before the Christmas break, the team at Watermark Wealth Management, once again teamed up with the amazing folks at Dixon Hall Neighbourhood Services to deliver meals to those that need some additional help. Kate, Chuck, David, and I participated in our third Meals and Wheels program, delivering meals to individual’s homes in the downtown Toronto area.
Watermark Wealth ManagementMeals on Wheels with Dixon Hall