First off I will start with BENCHMARKS so investors can have an idea of what their year to date returns should be (approximately). Look for your fixed income target allocation ( F ) and move across to the far column to see the benchmark return.
(THIS IS A GUIDELINE ONLY)
September 26th, 2017
*fixed income is TD Bond Fund
*Equity is ½ XIU and ½ XAW
Recent studies have shown that ‘tax breaks’ for the middle class are not providing a reduction in total taxes. For those that visited me to have their taxes done you may have already heard me saying this. With the abolishment of many tax credits I believe most ‘middle class’ are paying more tax.
Another ‘urban myth’ is getting some scrutiny and that is that home ownership is a way to secure your retirement. My personal view is that home ownership in combination with building a ‘personal pension’ (contributing to pension plan or RRSP) for decades is the key to secure your retirement.
The long term average (40+ years) for home appreciation is closer to the inflation rate than the average return seen over the last 10+ years as interest rates fell to historical lows. Now interest rates seem to be grinding higher which may cause home prices to grind lower or at least move higher in a normal fashion.
Most clients have been ‘hurt’ by the significant rise in the CDN$ versus the US$ (US$ has been weak against most currencies) but the last 2 weeks have seen a small pullback in the CDN$ versus the US$.
I encourage clients to arrange a meeting to review both their long term plans as well as their portfolio. Quarterly revises are ideal though reviews can take place over the phone as well. The retirement and investment landscapes are changing at too fast a pace for reviews to be annual (in my opinion).
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‘historical analysis does not reflect future returns’