Introduction
It is my personal finance research. I found out that I need to sign up on reddit.com. Here is the post I read.
My first upvote
Well we don't buy GIC's for the rates - we do it for the portfolio stability. So that if his 95% equity portfolio drops 50% or more (which is a very real possibility), then the GIC's will limit the overall damage.
(mostly RBC stock)
Shudder. Give this podcast a read/listen: https://canadiancouchpotato.com/2018/09/28/podcast-19-the-big-tradeoff/
"between May 2007 and February 2009, Royal Bank stock lost over half its value, falling from $60 to less than $30 per share." Could happen again easily if we have another recession.
would that be bad advice in terms of decumulation and taxation?
Again I don't know his entire financial situation so I have no idea. Are all his investments inside his RRSP? Does he have TFSAs or taxable investments too? Is he married and what does his partner's investments look like?
You could start him off by giving him copies of the books Millionaire Teacher by Andrew Hallam. And this one https://www.moneysense.ca/save/retirement/retirement-income-for-life/
He should seek a fee for service financial planner and get a real financial plan done up.
No comments:
Post a Comment