In a nutshell An annually exercisable feedback mechanism in tax-deferred retirement accounts (e.g. 401(k), IRA or RRSP) is provided to assess whether a pre-retiree is on track to achieve financial objectives for retirement and identify corrective steps required to align plan execution and expectations. Shortfalls to objectives can be eliminated by adjusting: annual savings-rate, retirement age and if necessary the planned retirement […]

In a nutshell The Government of Canada has recently announced a call for “Consultations on a Voluntary Supplement to the Canada Pension Plan” . The deadline for inputs is September 10, 2015 and the contact information is provided in the link. If you are opinionated on this important subject, please do so before the indicated deadline. […]

In a nutshell Selling and re-investing after-tax proceeds in the same or similar stock funds can be a ‘no-brainer’ when going from taxable to tax-free (TFSA) accounts. However when switching from high-to-low MER funds within a taxable accounts additional considerations come into play, such as: the tax on the unrealized capital gain, expected long term […]

In a nutshell The recent ruling by US and Canadian courts on the allocation of the US$7.3B proceeds from the Nortel asset sales was the first piece of good news for Nortel’s Canadian pensioners since the 2009 bankruptcy. The initially tabled equitable 71% recovery raised expectations for both a quick resolution and a better (than […]

In a nutshell Smart-beta is lower cost approach to rule-based algorithmic active management. In general, nirvana is to outperform the market, the strategy here is to use risk factor tilts which historically delivered risk premia. Outperformance, if any, is usually at the cost of higher volatility/risk without necessarily delivering sustained risk-adjusted return. Capacity limitations suggest […]

In a nutshell We don’t know what it is, but ‘Voluntary CPP’ can be a powerful addition to existing CPP. It presents an opportunity to offer effective retirement vehicles to all Canadians and deliver superior outcomes in concert with existing CPP.  A ‘Voluntary CPP’ addition: can overcome the current exclusion of homemakers/caregivers, can ‘nudge’ Canadians to a […]

In a nutshell How much stock allocation can I have, need to have and should I have in my retirement? Asset allocation considerations in retirement are determined by your personal: goals/objectives, overall financial picture (assets/income and fixed/discretionary expenses), risk tolerance (ability/willingness/need to take risk), required returns, withdrawal rates, taxes and capital market expectations. Management of […]

In a nutshell Two private sector pension related bad news stories landed in my inbox in the past week: (1) the Auditor General of Ontario warns that the province (via its monitoring arm the Financial Services Commission of Ontario, the FSCO) does an inadequate job in protecting pension plan members and (2) Nortel pension windup, […]

Contents:  format change, boosting retirement income, retirement ruined by adult children, lessons from “The millionaire next door”, Canada home price increases (mostly) slowing, housing bubble in Canada-yes/no/maybe? Impact of discriminatory property tax in Florida moves into high gear again, choosing a retirement community, pension privatization being undone by some governments, Bank of Canada interest […]

Contents: Healthcare cost in retirement? TFSA questions, avoiding RRSP ‘tax-trap’, impact of fees trumps asset allocation, getting even hotter: Toronto real estate, derailing drive to U.S. fiduciary standard? Sun Life insures BCE pension plan longevity risk, UK retirees no longer required to annuitize, active mutual fund managers attempt to stem exit of assets with opaque […]