Steve's Investing Insights
Real Life Investment Strategies #8: Transferring Wealth to Your Children, Sensibly
Canada is in the midst of a historic intergenerational wealth transfer, with over $1 trillion expected to pass from baby boomers to younger generations. For many families, the question isn’t just how much wealth to transfer but when and how to do so responsibly.
Should you give small, incremental gifts during your lifetime or leave a traditional large estate inheritance? Each approach has its merits, but both require careful planning to avoid unintended consequences like fostering dependency or jeopardizing your own financial security.
This blog introduces these two contrasting wealth transfer strategies for wealth transfer strategies. Along the way, we’ll explore how these approaches can be tailored to align with your goals while leveraging Canada’s tax rules and financial tools.
Betting on the Markets Being Wrong – Don’t Take Those Odds
A common refrain in investing is that news and expectations are already “priced in”. I often say this publicly and in individual client meetings. When clients are concerned about changes in the market and want to act on what they are hearing, I remind them that the market is ahead of the media rumblings and that snap financial decisions tend to sabotage positive financial outcomes.
So, it is much better to hold firm with your investment strategy, that should be based on a sound financial plan, rather than reactively sell, because those who react are most likely reacting too late. And I’m not just guessing. I’m advising based on my experience and deep understanding of how markets work. The reality is that those who stay disciplined see much better performance than those who try to bet on market mispricing and make changes.
Real Life Investment Strategies #7: A Better Alternative to Blindly Following “Investment Tips” including Focusing on Current Income or Yield
Why Investment Tips Fall Short … and What to Do Instead
Much of what passes for financial wisdom is built on speculation, short-term thinking, and hype. Stock-picking, market timing, and economic forecasts might make for engaging headlines, but they don’t hold up under scrutiny.
The reality? An evidence-based, disciplined approach to investing is far more effective.
Let’s have a look at some mainstream investment advice you might be hearing people talk about or maybe some investment rules-of-thumb that are not likely to pan out for you, if you follow them…
Timeless Financial Tips #1: Repeat After Me: “It’s Already Priced In”
A key concern many investors have at the moment is the impact of Trump’s tariffs on goods produced outside the U.S. on the markets.
I’m hearing from those wondering if they should sell quickly to protect their wealth; their primary question is: What should I do with my investments?
My answer (as it usually is when investors are concerned about the geopolitical impact on the markets):
Stick with the plan because, by the time you become concerned, the markets have already pre-adjusted (i.e. it’s priced in), so any reaction you take is too late.
Revisiting 2024 Real Life Investment Strategies
2025 is Coming… It’s Time to Revisit 2024’s Wealth Management Principles
Another year has come and gone. As we bid farewell to 2024 and welcome 2025, it’s the perfect time to reflect, set new goals, and plan ahead. Stay committed to your long-term financial planning and wealth management journey.
In 2024, I introduced you to Suzie & Trevor Hall (Accumulators), Jim & Carol Oates (Almost Ready to Retire), and Fred & Ginger Loggins (Accumulator Business Owners). Their situations allowed me to highlight the decisions real people, just like you, are making as they navigate their wealth management planning.
So, before 2024 comes to a close, let’s take a moment to reflect on some of the long-term financial planning principles we spotlighted this year…
Real Life Investment Strategies #6: Beware the Risk of the Cult Stock Roller Coaster
The Pitfalls of Fanatically Following the Stock Hype
It seems to me that the central tenant of the financial media (group-think central) is to glorify stocks or sectors that have experienced recent outsized returns. The hype of cult stocks extends and is amplified by social media channels and its various influencers. Ask any reputable financial economist about these past monumental gains and they will indicate that “past performance is not indicative of future returns”.
Despite the restrained advice of these financial experts, it’s easy to get swept up in the hype surrounding these popular stocks and investment trends. Some choose to surrender to FOMO (fear-of-missing-out) and follow these financial fads. for the chance of scoring a big financial win with a little excitement on the side. While these stocks may seemingly promise rapid growth, there are some obvious (and not-so-obvious) risks of chasing high-flying stocks.
It’s important to consider the other option: a more thoughtful, measured investment plan. Maybe not as thrilling, but certainly a better path to reaching your long-term financial goals.
Let’s explore some examples of how some stocks can achieve a cult-like following and a take realistic look at how they could play out for some real-life investors.