Broadstone Advisors’ Post

If you're a Special Risk participant, you might be considering the Investment Plan. But are you aware of the mistakes that could derail your retirement? Watch this video to learn about four of the costly mistakes we see participants make and how you can avoid them. https://lnkd.in/ehSszJkE

Strategies for Pre-Retiree Canadian Professionals to Diversify Their Investment Portfolios As a Canadian professional nearing retirement, diversifying your investment portfolio is essential to mitigate risk and ensure financial stability. Here are three investment strategies to help you achieve a well-balanced portfolio: - Invest in Canadian and Global Real Estate: Real estate can be a valuable addition to your investment portfolio, offering both income and potential appreciation. Consider investing in rental properties and Real Estate Investment Trusts (REITs). These options provide exposure to the real estate market without the need for direct property management, allowing you to benefit from rental income and property value growth. Diversifying across Canadian and international real estate markets can further enhance your portfolio. - Be Aware of the Tax Implications: You're nearing the point of life where tradeoffs are required. Very few will accumulate enough that they can just "invest and live off dividends". Sounds easy, but you'll likely have to sell off some financial assets as well. Luckily there are options on the market to help deal with this. Familiarize yourself with terms like Return of Capital and understand how each piece of income will be taxed - it may be the difference between living comfortably or running out of money. - Utilize Index Funds: Index funds offer a convenient way to diversify your investments across various asset classes, sectors, and geographic regions. By setting yourself up to mirror the index with a certain % of your portfolio, you'll have a built-in strategy to outpace inflation over time. Indexing will reduce the impact of poor performance in any single investment. Look for funds that focus on both Canadian and international markets to achieve a balanced portfolio. ***** Withdrawal, or setting yourself up for it, can be a scary time. More people die descending Mt. Everest than do climbing to the top. You only get one chance to live that ideal retirement - a good advisory team has guided hundreds of families through the process. Getting ready for the trip down the mountain & worried about the descent. Reach out and book a free conversation. https://ow.ly/ksTb50UCfQM

If you're a Special Risk participant, you might be considering the Investment Plan. But are you aware of the mistakes that could derail your retirement? Watch this video to learn about four of the costly mistakes we see participants make and how you can avoid them. https://lnkd.in/epMHG5ad

Today, I’m sharing something crucial that you likely haven't seen in the headlines. It's about one of the largest superannuation funds in the country—and its investments that resulted in $1.1bil loss. Do you know who I am talking about? Read More  https://lnkd.in/gmeHPENr #KatherineIsbrandt #Aboutretirement #AustralianSuperInvestmentLoss

Setting investing goals involves defining what you want to achieve through investing, such as saving for retirement, a down payment on a house, or a specific financial target. Here's a step-by-step guide to help you create investing goals:1. *Identify your goals*: Write down what you want to achieve through investing. Be specific and make sure your goals are measurable, achievable, relevant, and time-bound (SMART).2. *Assess your risk tolerance*: Consider how much risk you're willing to take on and how much volatility you can stomach.3. *Determine your time horizon*: When do you need the money? This will help you decide on the right asset allocation and investment strategy.4. *Set a target return*: Based on your goals and risk tolerance, determine the return you need to achieve your goals.5. *Choose the right investment vehicles*: Select a mix of assets that align with your goals, risk tolerance, and time horizon. This may include stocks, bonds, ETFs, mutual funds, or other investment products.6. *Develop an investment plan*: Create a plan that outlines how you'll invest, how often, and how much. Consider dollar-cost averaging and automating your investments.7. *Monitor and adjust*: Regularly review your progress, rebalance your portfolio as needed, and adjust your plan to stay on track with your goals.Some examples of investing goals include:- Saving for a down payment on a house in 5 years- Building a retirement fund to replace 80% of your income- Growing your wealth by 8% per year over the next decade- Saving for a specific financial goal, such as a wedding or education expensesRemember, investing goals should be personalized to your individual circumstances and financial objectives. It's also essential to consult with a financial advisor or conduct your own research to ensure you're making informed investment decisions.

𝐌𝐚𝐤𝐢𝐧𝐠 𝐈𝐧𝐟𝐨𝐫𝐦𝐞𝐝 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬: 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 𝐟𝐫𝐨𝐦 𝐌𝐲 𝐑𝐞𝐜𝐞𝐧𝐭 𝐐&𝐀 𝐒𝐞𝐬𝐬𝐢𝐨𝐧 Investing isn’t just about numbers; it’s about strategy, discipline, and clarity. During my recent live session on BWealthy with Swati Kumari, we tackled some of the most pressing questions about portfolios, tax-saving funds, and retirement planning. Here’s a glimpse of the key insights: 1️⃣ Diversify, But Don’t Overdo It One investor asked if adding micro-cap ETFs to an already diversified portfolio would be wise. 𝐌𝐲 𝐭𝐚𝐤𝐞? 𝐃𝐢𝐯𝐞𝐫𝐬𝐢𝐟𝐲 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜𝐚𝐥𝐥𝐲. While micro-caps offer high growth potential, they also come with higher risks. Focus on spreading investments across categories, but ensure it aligns with your goals and risk tolerance. 2️⃣ NPS Tier-II vs Mutual Funds Cost-efficiency and returns are two key factors in this debate. For moderate returns with lower costs, NPS Tier-II is a great option. However, for those aiming for 𝐡𝐢𝐠𝐡𝐞𝐫 𝐞𝐪𝐮𝐢𝐭𝐲 𝐞𝐱𝐩𝐨𝐬𝐮𝐫𝐞 𝐚𝐧𝐝 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐠𝐫𝐨𝐰𝐭𝐡, 𝐦𝐮𝐭𝐮𝐚𝐥 𝐟𝐮𝐧𝐝𝐬 𝐦𝐢𝐠𝐡𝐭 𝐛𝐞 𝐛𝐞𝐭𝐭𝐞𝐫 𝐬𝐮𝐢𝐭𝐞𝐝. 3️⃣ Simplify Your SIPs One question highlighted the challenge of managing too many SIPs across regular and direct funds. 𝐌𝐲 𝐬𝐮𝐠𝐠𝐞𝐬𝐭𝐢𝐨𝐧? 𝐂𝐨𝐧𝐬𝐨𝐥𝐢𝐝𝐚𝐭𝐞 𝐲𝐨𝐮𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬 𝐢𝐧𝐭𝐨 𝐟𝐞𝐰𝐞𝐫, 𝐰𝐞𝐥𝐥-𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐢𝐧𝐠 𝐟𝐮𝐧𝐝𝐬. This not only avoids duplication but also makes tracking and performance assessment easier. 4️⃣ Choosing the Right ELSS for Tax-Saving With tax season here, many are evaluating ELSS funds. Between SBI Long Term Equity and Parag Parikh Tax Saver, I highlighted that 𝐏𝐚𝐫𝐚𝐠 𝐏𝐚𝐫𝐢𝐤𝐡 𝐨𝐟𝐟𝐞𝐫𝐬 𝐞𝐱𝐜𝐞𝐥𝐥𝐞𝐧𝐭 𝐝𝐨𝐰𝐧𝐬𝐢𝐝𝐞 𝐩𝐫𝐨𝐭𝐞𝐜𝐭𝐢𝐨𝐧, 𝐰𝐡𝐢𝐥𝐞 𝐒𝐁𝐈 𝐦𝐚𝐲 𝐛𝐞 𝐦𝐨𝐫𝐞 𝐬𝐮𝐢𝐭𝐚𝐛𝐥𝐞 for those chasing higher returns in bullish markets. 5️⃣ Addressing Fund-Related Concerns If you’re feeling uneasy about a fund due to recent controversies, it might be best to step away. 𝐏𝐞𝐚𝐜𝐞 𝐨𝐟 𝐦𝐢𝐧𝐝 𝐢𝐬 𝐚 𝐜𝐫𝐢𝐭𝐢𝐜𝐚𝐥 𝐜𝐨𝐦𝐩𝐨𝐧𝐞𝐧𝐭 𝐨𝐟 𝐚 𝐬𝐮𝐜𝐜𝐞𝐬𝐬𝐟𝐮𝐥 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲. There are always alternative funds to consider that align with your financial goals. 6️⃣ Retirement Income for Seniors For one investor’s 68-year-old mother, we explored whether to invest in Senior Citizen Savings Schemes (SCSS) or Balanced Advantage Funds (BAFs) for SWP income. My recommendation: 𝐒𝐂𝐒𝐒 𝐟𝐨𝐫 𝐢𝐦𝐦𝐞𝐝𝐢𝐚𝐭𝐞 𝐧𝐞𝐞𝐝𝐬 𝐚𝐧𝐝 𝐁𝐀𝐅𝐬 𝐟𝐨𝐫 𝐦𝐞𝐝𝐢𝐮𝐦 𝐭𝐨 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐠𝐫𝐨𝐰𝐭𝐡. 👉 Watch the complete show here: https://lnkd.in/dKzwcgJQ 👍 My Guidance to investors Your portfolio is personal. Always evaluate your goals, timelines, and risk tolerance before making changes. And remember, investing is a marathon, not a sprint. 📞 Have a question about your portfolio? Let’s connect! #WealthCreation #TaxPlanning #PortfolioManagement #FinancialPlanning

Throughout different stages of life, we often find ourselves uncertain about the appropriate percentage of our income to allocate towards investments. Below is a general guideline, broken down by life stage, that may serve as a starting point for determining your investment contributions: 1 -> Bachelor (Approximately 22 to 30 years) At this stage, earnings are typically lower, and careers may still be in the early, unstable phases. Many individuals may also pursue higher education during this period. It is advisable to invest around 5-10% of your income, primarily to establish the habit of investing. 2 -> Married (Approximately 30 to 40 years) At this point, income is often more stable, and it is important to prioritize investment. Ideally, 20-50% of your income should be allocated to building wealth for the future. 3 -> Parent (Approximately 40 to 50 years) During this phase, a significant portion of income is often directed toward children's education and other family expenses, which may limit the capacity to invest. In some cases, contributions to investments might be minimal or even nonexistent during this period. 4 -> Approaching Retirement (Approximately 50 to 60 years) As retirement nears, maximizing investments becomes crucial. Aiming to allocate 50-70% of your income towards investments during this stage will help ensure financial security in retirement. Please note, these percentages are not rigid guidelines but general suggestions based on experience. Each individual’s financial situation and investment strategy will vary, and it is important to tailor your approach accordingly.    Note: I am not a financial advisor; I am simply sharing my personal experiences and insights. Please conduct your own research before making any investment decisions. Please share my post and follow me for more such knowledge.

Capital Group Names Top Focus Areas for DC Investment Consultants Evaluating plan needs and offerings for retirement income, TDFs and participant outcomes top the list for DC investment consultants for the next 12 months, according to a CapGroup study. https://bit.ly/4cdezcl

Did you know that 59% of eligible Australians aren’t using a Self-Managed Super Fund (SMSF)? 📉 Many Australians are missing out on the control and potential benefits of SMSFs due to misconceptions or a lack of understanding. Here are some key barriers: • 39% find SMSF setup too complex or daunting • 38% think their super balance isn’t large enough • 36% lack personal investment expertise • 26% feel they need more specialized advice At InvestorKit, we believe everyone should have the knowledge and tools to take control of their retirement. An SMSF can empower you to diversify into assets like property, helping you build a stronger retirement strategy. 🏠📈 Curious to learn more? Download our free whitepaper, The Evolution of SMSF Property Investment, which includes more insightful statistics and guidance to support your financial goals. Download now 👉https://https://lnkd.in/gDd_MvEi Let’s break down the barriers to confident investing together!

401(k) plan participants have incurred substantially lower fees for holding mutual funds over the past two decades, according to new research released from the Investment Company Institute. “The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2023,” shows that from 2000 to 2023, the average equity mutual fund expense ratio paid by 401(k) investors dropped by more than half (60%), offering them higher returns and higher balances in retirement. The average bond mutual fund expense ratio has dropped by 63%.