Tom Bradley is co-founder of Steadyhand Investment Management, a member of the Investment Industry Association of Canada’s Hall of Fame and a champion of timeless investment principles.
“I will be a steady, long-term investor.”
It’s easy to say and difficult to do. Particularly in the past few years. Think about what we’ve been through. In 2020, markets plunged when the pandemic hit and then quickly recovered, finishing the year well into positive territory.
2021 was the most speculative year I’ve seen in my 40 years in the investment business. It was hard not to suffer from FOMO as exciting growth – profits be damned – was the order of the day.
2022 was the opposite. Reality set in and investors prioritized profits and strong balance sheets. It was a down year but had a few positive runs, including a strong finish.
And then last year, the rebound continued, but again, it wasn’t a straight line. The stock market bobbed and weaved as expectations for inflation and interest rates flipped back and forth.
The swings were enough to make your head spin but they weren’t unprecedented. There are always risks to worry about. Stocks regularly zig and zag on their way to higher levels. And sometimes, there’s a bright shiny object that captures investors’ imagination and lures them in another direction. I’m referring to trends and products such as cannabis, crypto, AI, and more recently, higher-yielding GICs.
The point is that there’s a big gap between talking about sticking to a plan and actually doing it. Indeed, Joe Wiggins, a keen observer of investor behaviour and regular blogger, says “taking a long-term perspective is the most severe behavioural challenge that investors face.” Meeting the challenge means “frequently ignoring issues that we and everyone believes – at that moment – are absolutely critical. No wonder so few investors can do it.”
In this vein, I’d like to offer a few suggestions that will improve your chances of being a disciplined, long-term investor.
Pick a destination. You can’t stay on track if you don’t know where you’re going. Every decision should be made in the context of a plan that clearly defines the purpose of the money and when it will be needed. This helps determine what risk is to you. If the money is for near-term spending needs, then a weak stock market is a risk. If you’re making contributions to build your wealth for retirement, that same weak market is a godsend.
SAM is your friend. A strategic asset mix, or SAM, is a key part of any plan. It defines the mix of stocks, bonds and cash that best fits your goals and personality. SAM should encompass all your financial assets – TFSAs, RRSPs, company or government pensions, income properties, emergency reserves. It gives you a framework to act or, in most cases, not act, as you run the investing gauntlet.
Zoom out. You’re barraged with stock charts that go back five days, a month, or a year. None of them align with your investment time frame. Take a moment to go online and look at the path of a diversified portfolio, or the market indexes, over 10 years and longer. You’ll find that the critical issues Mr. Wiggins referred to disappear into a general trend that goes up and to the right.
Prepare to be contrarian. You know your portfolio will go through both wonderful and dreadful periods. You know it will be difficult to do the right thing in the heat of the moment. And you know what decisions you’ll need to make, perhaps topping up a spending reserve when markets are strong or sticking to your contribution schedule and averaging down when they’re weak. To do what you want to do, you need to prepare ahead of time when urgency is low and you’re feeling calm.
What’s love got to do with it? Emotion is an investor’s worst enemy, so instead of agonizing over where the market is going (which is impossible to do consistently), put your investment process on autopilot. Set up automatic monthly contributions and establish a routine to review your portfolio quarterly and meet your adviser annually.
K.I.S.S. According to Mr. Wiggins, simplicity reigns. “The idea that adopting a long-term approach to investing can have a profound positive impact on our results can seem perverse. How can something so easy – doing less/paying less attention – lead to better outcomes?”
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.
