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Sorting accumulated investment clutter key to worry-free retirement plan – Red Deer Advocate

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CALGARY — A long life of assorted jobs, good times, hard times, moves and mistakes can result in an investment portfolio that looks like a jumbled basement storage closet.

Your working life goal of accumulating as many assets as possible to build a nest egg for retirement ends along with your employment income when retirement day arrives at last.

Now, investment experts say, de-cluttering those tangled stocks, bonds, mutual funds and can’t-miss-opportunities — and making sense of them so they last at least as long as you do — is your most important chore.

“Many people, especially those who live here in Alberta, have had a lot of different jobs throughout their careers,” said Willis Langford of Langford Financial Inc., a retirement income adviser in Calgary.

“So they may come with a TFSA (tax-free savings account), RSP (retirement savings plan), they may have a LIRA, which is a locked-in retirement account, they may have a defined benefit pension plan, a defined contribution pension plan, plus they have non-registered accounts.

“And those, technically, could be all over the place in multiple carriers with financial institutions all across Canada.”

Returns are vitally important when accumulating investment assets but tax planning and managing risk gain priority when retirement becomes a reality, Langford said.

“If you’ve got things in your plan of action that don’t fit, you’ve got a mumble-jumble, you’ve got stuff bought over the years and nobody can remember why, you have to do something about that,” said Adrian Mastracci, Vancouver-based fiduciary portfolio manager for Lycos Asset Management.

“Quite often, people come in and they’ve got 30, 35 mutual funds. I have no idea how somebody can look after 30, 35 mutual funds. Or even 15.”

Cluttered portfolios are often marked by missing written plans, non-existent savings projections, too many scattered accounts and either too many or too few different classes of investments.

They can contain mutual funds where costs and exit charges are unclear. Or different funds that contain the same kinds of securities.

Both Langford and Mastracci recommend finding a single trusted adviser to look at the entire portfolio and give advice on how to clean it up.

They recommend choosing someone who is paid with fees, not commissions, to get the most unbiased recommendations.

The result should be a schedule of actions designed to provide maximum income and tax efficiency with the least amount of risk over the client’s expected remaining lifespan.

“How you take income from those sources will dictate how much taxes you pay over your lifetime. If you don’t do it right, you will pay more than necessary,” said Langford, adding improper tax planning can cost hundreds of thousands of dollars.

The adviser should be chosen for what he or she can do for you, said Mastracci. Different clients need different services depending on the size and complexity of their investment portfolio.

A good retirement planner should also be able to help the client track down investments he or she has lost track of by tracing past employers and going through records, he said.

He presented the example of a 65-year-old client whose goal is an income of $100,000 a year for the rest of his life.

That could mean 20 or 30 years or more, which is where the math gets complicated enough to test even the smartest non-professional investors.

“Chances are your portfolio will not receive any savings from you, the client, for that period of time,” Mastracci warned.

He added: “Sometimes you have to tell the client something he doesn’t want to hear.”

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New Brunswick announces $84.7 million investment to support public schools – CTV News Atlantic

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The New Brunswick provincial government has announced they will invest $84.7 million to support public schools in the province.

The government says the investment will be made during the 2022-23 fiscal year and will include $3.7 million for two new projects and $8.8 million to support the provincewide ventilation program.

A large portion of the investment, $72.2 million, has been earmarked to support ongoing construction projects, capital equipment, improvement work, and the dust collector program.

Dominic Cardy, education and early childhood development minister, tabled the department’s capital budget estimates today in the legislative assembly.

“Students need safe learning environments that meet their educational needs in order for them to learn and be successful long after graduation,” said Cardy.

“The investments we make today will not only support learning and address space deficiencies, but they support long-term community growth and strategic infrastructure planning across the education system.”

According to the province, the projects include a new kindergarten-to-Grade 5 school in Fredericton, which will replace Nashwaaksis Memorial School and McAdam Avenue School, and a new kindergarten-to-Grade 8 school for Saint John’s central peninsula.

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Oil Investments Must Rise to Offset Energy Prices, Soaring Inflation – Bloomberg

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The Riyadh-based International Energy Forum has called on companies to raise investment in oil and natural-gas production to $523 billion a year by the end of this decade to prevent a surge in energy prices and economic unrest.

The think tank’s comments echo those of Saudi Aramco, whose chief executive officer on Monday said there could be “chaos” unless governments stopped discouraging investment in fossil fuels.

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Personal Finance: Investing in Fund Managers in 2021 Was a Bad Investment Idea – Bloomberg

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As Leo Tolstoy taught us at the beginning of Anna Karenina, “Happy families are all alike; each unhappy family is unhappy in its own way.” It’s a lesson being relearned by investors in European asset managers, whose shareholdings have woefully missed out on the gains enjoyed across the broader equity market this year.

The environment for the fund-management industry continues to be challenging, to say the least, with downward pressure on fees, investor preference for cheap index-tracking products and an expensive arms race to keep up with the latest technology. But the biggest laggards among Europe’s standalone money managers have underperformed for idiosyncratic reasons.

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