Question from a young investor: “I just started investing two years ago. I’m freaking out about what’s going on right now. Should I sell everything?”
Answer from Darryl Brown,an independent investment consultant and founder of You&Yours Financial in Toronto.
I know it feels like the sky is falling. And honestly, there are some pretty big cracks up there right now. But freaking out, much like hoarding toilet paper, will do nothing to help.
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Darryl Brown, investment planner and founder of You&Yours Financial in Toronto.
Handout/Handout
Instead, let’s answer the following questions to determine if it’s time to sell:
1. Do you have an emergency fund? This is six months worth of your required living expenses. An emergency fund is essential and a best practice for everyone before they start investing. Given the current situation, I recommend increasing this amount beyond six months if possible. This money should be in a high-interest savings account or cash in a TFSA. You want it liquid and accessible. If you do not have an emergency fund, you should sell off enough investments to establish one.
2. Is your budget still the same in light of the current situation? Reduced hours and closures are affecting a lot of us, especially hourly employees and small-business owners. Working from home and having the kids out of school can also impact our spending habits (and sanity), so revisit your budget with the assumption that things will be like this for a while. If you have major changes or gaps you need to supplement with investment money, then you may need to sell enough to do so.
3. Are you investing for the long term? I see far too many young people investing to fund short-term goals, defined as goals less than five years off. I don’t recommend this at the best of times. If you need your money in the next five years, pull it out of the stock market. As a rule, investing is for long-term goals, saving is for short-term goals.
4. Is your asset allocation aligned with your age and risk tolerance? Asset-allocation is how your portfolio is split between stocks – riskier, with higher returns – and bonds – safer, with lower returns. Usually, the younger you are, the longer you are investing for and thus, the riskier you can be withstanding market fluctuations over time. Older folks approaching retirement or on a fixed income have less time to ride out fluctuations and need safer, more predictable returns.
An easy way to calculate an appropriate asset allocation is the ‘100-minus-your-age rule’. If you’re 30, it’s appropriate for your portfolio to be made up of about 70-per-cent stocks, and 30-per-cent bonds. It’s common for investors to be over-exposed in stocks, especially those looking for higher returns. If this is the case, sell some stocks and buy bonds to bring it in line with the aforementioned rule and balance your risk.
If you’ve answered no to any of the above questions, you need to sell at least some of your investments. Locking down the above points should be your top priority. If you answered yes to all the above, you do not need to make any material changes.
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I’m like a broken record player when it comes to the importance of investing appropriately and creating an Investment Policy Statement (which is like an investing plan; click here to read more) and times like this are exactly why.
We can expect a lot of volatility in the months ahead as our economy adjusts, but if you’ve invested appropriately, this is part of the deal. We have to take the downs with the ups. Stay home, take good care of yourself and – I cannot stress this point enough – do not check your portfolio everyday.
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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.
