Live Wealthy Blog

Fresh insights from our Professional Wealth Advisors.
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Have you been Diagnosed with Underliving?

Underliving is a common condition mostly found among retired Canadians, and it is caused by the individual’s inability to give permission to spend their own money. This inability is due to lack of planning—not knowing what you have—and what you can spend.
This lack of planning pushes people toward the default behaviour of hoarding money, as they are unsure of how long it will last. It is natural to hoard cash when you have no plan, and one should not […]

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Human Psychology, Market Timing, and the Inverted Yield Curve

Clients have asked recently about the reported inverted yield curve and what that means for their investments. Further, they have been asking if it is time to sell and go to cash. 
Many are pointing to the inverted yield curve as the predictor that a recession is around the corner. An inverted yield curve is when longer term interest rates (10 years) move lower than short term interest rates (3 month). This can be a good predictor that a recession will occur sometime […]

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New Retirement Investment Vehicle coming in 2020

The federal budget has introduced a possible solution to help Canadians highly concerned about out-living their money. A recent CBC news article refers to a new type of retirement savings product — ALDAs, or Advanced Life Deferred Annuity, and VPLAs, or Variable Payment Life Annuities — that may be hitting the product shelves of financial institutions in 2020. 
The plan will allow retirees to keep more savings tax-free until later in retirement. The rules are being amended to permit seniors to purchase […]

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Keeping the Elderly Safe

Are you concerned about elderly parents or relatives? A recent CBC news report provided a disturbing account of an elderly man who fell prey to an online dating scam. Over an eight-month period, he communicated with someone posing as his girlfriend and lost over $700,000 by wiring funds overseas.1
As it turns out, stories of financial abuse of the elderly aren’t as uncommon as we think. It doesn’t always happen from afar and can occur at home to acquaintances or […]

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No Safe Bets: Invest to Stomach some Uncertainty

I WILL NOT crave certainty. Although it’s our nature to seek assurances, “safe bets” in investing are either frauds or won’t deliver returns that keep up with inflation.
There are two types of “safe bets,” both of which promise a guarantee, but one results in financial hardship much more suddenly.
Bankers refer to the first type of “safe bet” as a deposit account. The second type is typically referred to as fraud, but conmen prefer descriptors, such as “risk-free” and “a […]

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The Patient Investor

The human brain is not equipped to be patient and stay disciplined when the market is in a tail spin. We are conditioned through millions of years of evolution to avoid pain and seek pleasure. This is why so many investors make the mistake of selling at the very worst times when the market is down. It’s moments like this that you see some of the best opportunities in the market.
How do you counteract making investment errors at […]

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Iwona Nicastri Named to Young Guns 2019 List

Precision Wealth Management is thrilled to announce our very own Iwona Nicastri has been selected by Wealth Professional as one of Canada’s top young professionals.
Here are some details from the article:
What makes a wealth professional a Young Gun? It is their contributions to the industry at a young age, the products they’ve developed, the leadership roles they’ve taken on, the awards they’ve won?
The answer is all of the above – and then some. The 2019 Wealth Professional Canada Young […]

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To be an Islander or not to be an Islander?

While I am far from a poet, I would consider myself an Islander, having spent the first quarter century of my life on Vancouver Island. In 2012, following the completion of my Business Degree, my wife Jackie (girlfriend at the time) convinced me to hop the pond and move to Vancouver with her. In hindsight, it was one of the best decisions that I’ve ever made, but at the time I only agreed with a fuss. That is in […]

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Pension Income Splitting: Can It Make a Difference?

Tax season is here! If you have eligible pension income, there may be an opportunity to split income with a spouse/common-law partner. But just how much of an impact can this make?  
For tax purposes, up to 50 percent of eligible pension income can be split with a spouse.
Eligible pension income is determined by the recipient’s age and the nature of the income. In general, under age 65, it includes amounts received from a registered pension plan.* Over age 65, it […]

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A Global Perspective: Where Does Canada Stand?

We may sometimes forget that the Canadian equity markets are small. Just how small? Canada’s equity markets represent less than 3 percent of the world’s total equity market (by market capitalization) and we rank as the 6th largest in the world.1 The largest, our neighbour to the south — the United States — represents around 42 percent of the worldwide equity markets.
When it comes to investing, in the past Canadians often had a home bias. Remember that until 2005, the federal government […]

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