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The leading edge of boomers has already entered retirement, shifting their focus from wealth accumulation to ensuring they have an adequate income stream to maintain a comfortable lifestyle.
The number of retirees on your client list is only going to grow, and they’ll be looking to you for their paycheques from now on.
Income investing has never been more challenging, with interest rates stalled below the inflation rate, and a surge of retiree cash driving down yields on both bonds and equity dividends.
It’s time to look at your options and weigh the risks and returns.
Reaching for yield, taking on risk
The temptation to stretch a little further has never been greater. Investors must understand the risk-return trade-off. It pays to look beneath the labels, lest one mix apples and oranges. Different kinds of yield have different kinds of risk.
Low yields drive sales of low cost ETFs
Fixed income exchange-traded funds enjoyed a boom last year as cost-conscious investors sought yield amid weak equity markets. By the end of 2011, fixed income ETF assets stood at $12 billion, a 43% rise from the end of 2010, according to Investor Economics.
No shortage of risk in preferred shares
Bonds aren’t yielding what they used to, while equities seem to be a better vehicle for growth. Companies are sitting on hoards of cash that could be paid out as dividends, but a conservative investor may not want to take on stock market volatility.
Wealth preservation tops list of HNW concerns
With equities slumping, it’s a good time for fixed-income investment, despite a low-interest rate environment. While interest rates may change, fixed income provides other advantages for high-net-worth investors focused on capital preservation.
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Canadians fret over retirement income
Canadians are increasingly concerned about securing a reliable source of income for retirement, according to the results of the most recent Russell Financial Health Index.
Combine insurance to boost income
An insured annuity can be a powerful tool to help business owners maximize retirement income while minimizing tax. This type of annuity involves simultaneously purchasing a life annuity and a life insurance policy.
Income planning tips
When people think of income planning, they usually think of retirement. Prior to retirement, Canadians are mainly concerned with paying debt and accumulating retirement assets, so they ignore income-planning opportunities.
Effective income planning strategies
When people think of income planning, they usually think of retirement. Prior to retirement, Canadians are mainly concerned with paying debt and accumulating retirement assets, so they ignore income-planning opportunities.
Income solutions for everyone
The divide used to be fairly clear: Equities for the young ’uns, income solutions for retired folks. The mere mention of the word “dividend” to a pre-retiree sitting across your desk might have drawn stares.
Key risks to retirement income – Part 2
I think we can all agree that when it comes to retirement income planning it is better to be safe than sorry and it’s important to plan for the unknown as much as possible.
CE Credits
Stress Testing Your Retirement Plan
The single most important question of a client close to or in retirement is, “Do we have enough money to retire?” To measure the financial capacity of a client, I categorize him into one of the three zones: Red, green and grey.
Lifelong Retirement Income: The Zone Strategy
One of the difficult decisions that must be made at the start of retirement is how to create lifelong income for your client. There are several choices: You can generate income from an investment portfolio, you can buy life annuities or you can try the variable annuities with guaranteed pay for a specified term.
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