The new year is the season of planning for goals and for many of us, it is crucial to have money be there to meet those goals. Investing is the fuel that can get those funds to the right level, and you do not want to run out of gas. The biggest issue I see with investing is in many cases, the money is not tied to a goal.
On the coaching line, we often get calls from individuals who have cash that they want to invest for the long run but are struggling to find the right investment choice. Conversely, we have received questions from people who have 100% of their investments in the stock market but have reached a point where they need those funds and are now facing a loss if they sell that particular day. Here are some things to do at the beginning of the year to make sure you are in the proper investment position:
Be Clear About Your Goal
As you can imagine, one of the most common questions I receive as a financial planner is, “Where should I invest?” Rather than give them what they are asking for, I typically answer that question with the question “What goal are you investing for?” While this sometimes frustrates the person I’m talking to, answering that question will likely get them closer to their answer rather than me tossing out some stock or ETF.
Investing becomes easier to manage if you are clear about the goal. One framework to help you get clear about your goal is to make them Specific, Measurable, Assignable, Realistic and Time-related also known as SMART. You can find more information on the SMART concept here.
Time Your Investments to Your Goal
The biggest factor in matching the right investment with the right goal is time frame. If you need funds sooner rather than later, you will likely want to stick with more conservative options like savings accounts and short-term bonds. If your goal is 10 years or more away, the stock market has historically rewarded those who took on risk for the long term. (Your mileage may vary.)
If you want to design your own portfolio, you can use a risk tolerance profile to help determine the right investment mix for your situation. If you prefer to be more hands-off, target date funds are designed to help you invest for retirement in a manner that is reasonable and will get more conservative as your goal approaches. You can simply pick the one with the year closest to your expected retirement date, put everything into that one fund since they’re each fully diversified to be a one stop shop, and set it and forget it. It doesn’t get much easier than that.
Monitor Your Investments and Your Goal
Once you have determined the proper investment mix and tools, the next step is to regularly monitor them. This should be the easy part, but this is where many people get off track. For instance, if you keep changing your investment goal from saving for college to paying off debt, it will not bode well for your investments switching from long-term to short term. If your investment goal is constantly changing, make sure your financial foundation is sound. A robust emergency fund can protect you from having to dip into your long-term investments.
Once you have decided on using a particular strategy, you may want to stick with it until you have taken the time to get comfortable with another one. Be particularly cautious if you hear about a hot investment and you see that this investment has outperformed the strategy you determined you are comfortable with. This can lead to chasing returns, which can lead to underperformance, stress, and possibly taxes generated by moving from investment to investment.
This doesn’t mean you should never make changes to your investments. For example, rebalancing your portfolio quarterly or annually can help you maintain your desired level of risk since you’ll sell investments while they’re relatively high in price and purchase more of those that are relatively cheap. For example, if your target is 60% of your portfolio in stocks based on your time frame and risk tolerance, and you now have 70% in stocks after a good run in the stock market, you’re taking on more risk even if it doesn’t feel like it. By reducing your stock allocation back to 60%, you’re taking some of those gains off the table. When the stock market eventually declines, you can use that money in bonds and/or cash to buy stocks while they’re down and bring your stock allocation back up to the 60% target.
A new year is an exciting time to dream about the future. Your investments can be a key part of that. By carefully planning and monitoring your portfolio, you are more likely to make those dreams a reality.
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.
