Everything in moderation. There’s something to that advice for building a retirement portfolio, according to one expert.
“When you hear about investments, people’s mindset goes immediately to stocks,” Mitlin Financial founder Lawrence Sprung, who is also the author of “Financial Planning Made Personal,” recently told Yahoo Finance Live (video above). “And it doesn’t have to just be stocks. You want to build out a balanced portfolio.”
That includes assessing your risk tolerance and time horizon and diversifying your portfolio with stocks, less volatile investments like bonds or total stock market index funds — mutual funds that track the total returns of the entire US market — and perhaps a dash of alternatives.
In fact, with the market uncertainty of the past year or so, it’s safer to be as diversified as possible.
“It’s really up to each individual to build out an asset allocation that is right for them,” Sprung said. “That’s going to include stocks, that’s going to include bonds. And within stocks, that may include several different types of stocks, large-cap, mid-cap, small-cap. Bonds may include government bonds, international.”
You might also consider making some new retirement plan contributions into an alternative investment, like a real estate investment trust or a mutual fund that buys them. Commodities might be a good place for an inflation hedge, he added. “Real estate is another good option.”
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How much in stocks?
Owning stock is essential for those who have a long-term horizon, say, two decades, until they plan to start dipping into their savings. And the standard piece of advice has been to take 100 or 110 minus your age and that’s the percentage of your retirement savings that should be invested in equities.
For a 57-year-old, for instance, her retirement account might be 65% in stocks and 35% in bonds — a breakdown that suits her age if she has a moderately aggressive risk tolerance.
That’s to take advantage of the upside potential growth over time that stocks typically deliver when compared with fixed-rate options such as bonds, money market, or certificates of deposit.
But when the stock market is on a tear, it’s tempting to go a bit bonkers. Discipline is critical. When you let the stock portion of your portfolio get overweighted, it makes your savings vulnerable when the market turns south.
Other income streams
There are myriad channels you may have to tap for retirement income from a traditional pension to your employer-provided retirement plan, such as a 401(k), to income-producing real estate properties or a small business you own. Whatever that may be, it’s something that folks should start considering and more importantly planning for.
While rental properties could be part of your retirement plan, many retirees don’t want the hassles of managing that kind of investment.
“If you’re not somebody who wants to be that owner-operator, you could look at real estate investment trusts, where you’re going to own a piece of a portfolio and perhaps get an income stream,” Sprung said. “There’s really a flavor for everyone, it’s just a matter of finding what’s right for you in terms of what your goals are, your risk profile, and what your time horizon is.”
Of course, there are plenty of other alternative investments that people dabble in, but they are often riskier.
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“I don’t think the average person has the ability necessarily to invest in a wine collection unless they’re doing it in some kind of private placement and group platform,” he said. “Crypto obviously is a little more accessible. Crypto is something that they can in most cases easily convert to cash, assuming that crypto is still around and viable.”
Social Security has always been a major income stream that retirees rely on. But Social Security’s reserves are projected to run out in 2033 if Congress doesn’t act. At that point, Social Security will only cover 77% of full benefits.
It’s a big problem, and one that Capitol Hill is not yet acting on, which raises the question of whether millennials and Gen Zers should expect to lean on Social Security as income in retirement.
“The reality is the vast majority of folks who are retiring are really relying heavily on Social Security,” Sprung said. “It’s important to the fabric of the country to maintain that status of Social Security. So I don’t think they’re going to get rid of it, but they are going to tweak it.”
“So it’s going to be very important for people like millennials to make sure that they’re positioning themselves in a way to have other income streams.”
Kerry Hannon is a Senior Reporter and Columnist at Yahoo Finance. She is a workplace futurist, a career and retirement strategist, and the author of 14 books, including “In Control at 50+: How to Succeed in The New World of Work” and “Never Too Old To Get Rich.” Follow her on Twitter @kerryhannon.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
