At the beginning of the 20th century, few Quebecers could hope to live past 55 years old. Given « old age » was an exception rather than a norm, retirement was not a concern for most households. Today, women can live on average 30 years longer than before, whereas for men the average is 26 additional years. This new reality forces us to save more in order to ensure a comfortable retirement while maintaining purchasing power.
Life expectancy at birth in Quebec over time
Men (years)
Women (years)
Towards 1850...
Using this very simple rule, we are able to estimate the amount of time required to "double" your investment savings. The formula is simply to divide 72 by the yield expected on your investments. As an example, if we expect an average return of 10%, we can then estimate that our investment will double every 7.2 years (72/10). Following this small table, we are able to use this rule for various yields:
72 RULE FOR A $50 000 AMOUNT
Will generate an amount of :
Expected return
12%
10%
8%
6%
4...
Have you made a will? If so, great. If not, do you know how your assets will be disposed after death? The Quebec government via the "Civil Code of Québec" directs how property is allocated upon death of a person without a will.
Whether you are married, common-law partner or single, a will allows you to distribute assets according to YOUR wishes, and not those of the government. If you have a common law partner, it is particularly IMPORTANT to have an updated will. Without a will, your spouse might not receive anything. Even if you have been l...
Many of our partners have produced a great summary of changes recently brought forward by the recent federal budget. Enclosed are a few of them which we felt may be of interest to you. Rest assured that such changes will be considered when making investment recommendations and/or preparing financial plans for our clients. Do not hesitate to call us for more information on any of these changes.
Tax and estate strategies (Dynamic Funds)
Budget 2016 - Out with the old - In with the new (Manulife)...
What would you say if we told you that you could accumulate greater savings for retirement by investing less? Interesting?! It is actually possible! The secret lies in the age at which you begin your savings program.
Take the example of Mary and Peter. Both plan to retire at 65. Assuming they earn the same return on their investment, 6% compounded annually. Investments are made within an RRSP account (We would obtain the same result within a TFSA account).
Mary was able to put away $ 2,500 annually between the ages of 20 to 31. She then stopp...
This question is at the core of any financial planning work. Such a simple question yet… difficult to answer, especially if you are at the beginning of your career. Still, this information is critical.
It is very easy to generalize... Society looks for fast easy solutions. A saying like “ a person needs about 70% of his/her gross annual income earned over the last three years into retirement” is a generalization. Based on this example, if your average gross annual income is around $50,000 during your career, you would need $35,000 a year...
