There are very passionate views on both sides of the debate as to whether it is better for individual investors to use active investment managers versus using an index approach, with its main selling feature being lower fees.
Let us discuss a scenario that faces a high number of retirees and soon-to-be-retirees all over the country. You have spent years saving for your retirement and you have made smart decisions about using the power of RRSPs to accumulate a significant nest egg.
But now you’re unsure about how best to get income from your investment portfolio as your retirement day comes ever closer. In terms of your RRSP investments, as a decision must be made before the last day of the year during which the account holder turns 71.
Calgary had experienced more rain this summer than we could imagine and we were sick for a good chunk of August. That being said, we still had a really good summer. I got a road trip to Denver in and the girls and I made a couple of trips back to Saskatoon. We got a little time in at the lake and spent some nice weekends here in McKenzie Towne. Both Berlin & Vienna are excited to get back to school. Vienna will be entering Grade 1 this year and seems quite prepared. Her reading is already pretty good and so are her basic math skills.
Imagine one of the following scenarios. Suppose you have suddenly come into a significant sum of money. For the interest of this example, we will imagine that it is one million dollars. This might have come to you by way of a lottery win, an estate inherited after the death of a family member, or some other event that may have been either expected or unexpected. You now find yourself in an entirely unique financial situation from anything you have experienced before, whereas previously you were living paycheck to paycheck, you could now actually consider early retirement.
Imagine the following scenario for a moment. You and your partner have opened a business, and are feeling extremely confident about your current success. Your primary competition across the street cannot keep up after one of their co-owners passes away, eventually closing down. Their entire customer base eventually comes your way, and business has never been better. This might be a positive scenario strictly as far as your business is concerned, but a wise businessman or woman should be thinking one thing at a time like this—what if our positions were reversed?
We hope that everyone has been able to get outside and enjoy some sunshine during this wet and unpredictable July!
Vienna, Berlin and I were able to take the August long weekend to spend time visiting clients and splashing in the lake in Saskatchewan. Natalie and London stuck closer to home but we will all be heading back to Saskatoon at the end of August to celebrate Natalie’s birthday as well as see family, friends and clients.
Wishing you a wonderful end to the Summer before it is back to school in September!
Bryce A. Borden