In the process of deciding how your money will be invested in mutual funds, you answered questions that helped determine your tolerance to risk. You had to predict how you would react if your portfolio lost value, including by a significant degree.
An important part of wealth planning is managing the unexpected, which comes up throughout this newsletter. For example, the page 2 article points out unexpected education costs, while the page 3 article discusses unexpected situations that can impact retirement plans.
Investing that’s not goals-based typically measures success by comparing a portfolio’s performance to benchmarks or market returns. Performance still matters with goals-based investing, but success is determined by achieving a goal.
There’s no such thing as a typical market recovery. Past recoveries have lasted as little as a few months to as long as several years. Some have been generally smooth, while others have been extremely volatile.
Financial wellness is not a measure of a person’s wealth. It’s about the ways that financial aspects in our life either support or undermine our well-being. Stress over financial issues can affect Canadians of all income levels and age groups.
Do you ever find yourself daydreaming about how you’ll spend retirement? Whether you’re exploring the wonders of Barcelona or strolling through the woods with your grandchildren, these daydreams are more than pleasant thoughts. They’re key elements in the development of your wealth plan.