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Finding Your Investment North Star: Choosing the Right Benchmark


Retirement marks a significant transition in one's life, and for many retired Canadians, it comes with the realization that their financial well-being is somewhat tied to the performance of their investments. In an era of global markets and diverse investment portfolios, retirees often find themselves wondering what benchmark should be used. However, amidst the myriad of benchmarks available, there's one benchmark that stands out as the most personalized and relevant - their financial plan.

Understanding the Financial Plan as a Benchmark:

A financial plan is not just a document; it is a roadmap that outlines an individual's goals, risk tolerance, and provides solutions for achieving those goals. When retired Canadians have invested in a global portfolio, their financial plan becomes the benchmark against which they measure their success. Their success should be defined by their ability to meet their goals.

1. Alignment with Goals:

• A well-crafted financial plan considers the retiree's short-term and long-term goals. Whether it's funding a comfortable lifestyle, traveling, or leaving a legacy for future generations, the financial plan acts as a compass, ensuring that their portfolio is aligned with their life.

2. Risk Tolerance:

• Retirement changes people’s mindset on their risk tolerance. The financial plan outlines the retiree's risk capacity and appetite, guiding investment decisions accordingly. It becomes the benchmark to evaluate whether their portfolio is within acceptable risk parameters.

3. Income Needs:

• A crucial aspect of retirement planning is ensuring a steady income stream. Another main worry for most retirees is, how long will my income level be sustainable for. The financial plan specifies the required income to sustain the retiree's lifestyle. The portfolio's performance is evaluated based on its ability to generate this income consistently.

4. Market Conditions and Economic Outlook:

• Financial plans should be very flexible and adaptive to changing market conditions. Retirees regularly review their financial plans to incorporate economic changes, ensuring that their portfolio is well-positioned to weather market fluctuations.

5. Regular Reassessment:

• The retirement phase of your life is not a static; it evolves over time. Financial plans are designed to be revisited and adjusted as needed. Retired Canadians can use their financial plan as an ongoing benchmark, periodically assessing if their portfolio is on track or if adjustments are required.

In the complex landscape of global investments, having a benchmark that is uniquely tailored to individual needs is invaluable. Retired Canadians who have invested in a global portfolio should recognize their financial plan as the ultimate benchmark for success. Regularly revisiting and reassessing their financial plan ensures that their investments stay aligned with their goals, risk tolerance, and changing economic landscapes. In doing so, retirees can navigate the complexities of global markets with confidence, knowing that their financial plan serves as a steadfast guide on their journey to financial success and a fulfilling life.

- Grant White, Portfolio Manager / Investment Advisor

Grant White is a Portfolio Manager /Investment Advisor at Endeavour Wealth Management with iA Private Wealth Inc, an award-winning office as recognized by the Carson Group. Together with his partners he provides comprehensive wealth management planning for businessowners, professionals and individual families. This information has been prepared by Grant White who is a Portfolio Manager for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth.

The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore ,they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained here in may not apply to all types of investors. The Portfolio Manager can open accounts only in the provinces in which they are registered. iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. iA Private Wealth is a trade mark and business name under which iA Private Wealth Inc. operates.


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