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 #1: Will Geopolitics Ruin My Financial Plans?
The poll of my blog readers (you) pointed out a major common worry: concerns around geopolitical events and their impact on your financial future.
Of course, it’s natural, and advisable, to want your investments to weather the market storms wrought by geopolitical forces. The catch is, there’s always a crisis going on somewhere, and we never know for sure how it’s going to play out, until it has. That’s true whether it is history repeating itself, a new and unexpected upset, or (usually) a blend of both.
The other reality is that the most significant risks, with the greatest negative financial impact, are those you don’t see coming.
Whether you’re an accumulator or preparing for retirement, how do you plan for saving AND spending your hard-earned cash in retirement?
My answer: It depends.
All those popular retirement spending rules you hear about in the popular press or through your favourite financial guru really should be called guidelines. Augmenting blunt estimates with finer-pointed planning may not be as quickly accomplished. But it’s a far more effective way to plan for how much to save as you accumulate wealth, and how much to spend as you withdraw it. In fact, it’s best to consider retirement spending as being a variable process, versus a one-and-done equation.
Which is why it depends.
Having an emergency fund is common advice, whether you are reading this in the financial media or hearing it from a financial advisor. Many people who are later in life and feeling comfortable with their financial situation might disregard this advice, assuming it only applies to those that don’t have as much financial stability.
The truth is that an Emergency Fund is something that everyone (even you!) should have. In addition, the added financial security planning of a Lifestyle Reserve should also be part of your financial plan. So, let’s explore exactly what an Emergency Fund is, how a Lifestyle Fund is different, and why both should be in place to ensure long-term financial alternatives and adaptability. Most importantly, I’ll highlight how this applies to Suzie & Trevor Hall (The Accumulators) and Jim & Carol Oates (Almost Ready to be Retirees), so you can see how it can work for you.
When you’re immersed in running a business, thoughts of saving for retirement often take a backseat, Employees in the corporate world may rely on employer pensions, but as a business owner, the responsibility for your retirement falls squarely on your shoulders.
Starting your retirement planning early and consistently contributing allows you to benefit from compounding returns to steadily build your nest egg over time. Investing in your retirement can ensure you have the financial means to enjoy life post-retirement, whether it’s traveling, pursuing new passions, passing along a little financial freedom to family members, and more.
This blog explores how business owners can utilize their corporation (Canadian-controlled private corporations or CCPCs) to retain business income that exceeds operational and personal lifestyle needs.
Most of us feel young well into our 60s (or even later) and retirement seems like a far away concern for the distant future. However, thinking about your retirement early allows you to comfortably enjoy your later years no matter what your priorities are – leaving a legacy for your loved ones, travelling, spending time on hobbies close to home or any combination. Putting together a retirement income plan early gives you the best path to safeguard your financial freedom post-retirement.
Retirement income planning doesn’t mean constant worrying and going without today. It just means taking stock of where you are financially, where you want to be in the future, and setting up a plan to get there. That retirement plan could include setting up the right investment strategies now to allow you the flexibility you’ll need in the future to generate cashflow from the right places and pay the least amount of tax. It also could mean contributing regularly and consistently now so you don’t have to make up for lost ground in the future.
Let’s get into what retirement investment vehicles and strategies you have, how to think about your retirement priorities and goals, and how you can plan a decumulation strategy for the retirement you want and deserve.
Planning Ahead: Financial Goals for 2024
Writing the 2024 Real Life Investment Strategies blog series was an interesting endeavor as I tried to picture many of my clients’ concerns and plans in Suzie & Trevor, Jim & Carol, and Fred & Ginger. I hope that reading about them helped you envision how different wealth management principles apply to your specific situation.
As we look forward to 2024, it may feel that all new financial anxieties abound. However, in my lengthy experience, most of what you are feeling is nothing new. A quick look at my historic financial planning blogs will illuminate just how common your fears may be and offer timeless advice as you continue your wealth management journey.
Steve Lowrie is a Portfolio Manager with Aligned Capital Partners Inc. (“ACPI”). The opinions expressed are those of the author and not necessarily those of ACPI. This material is provided for general information, and the opinions expressed and information provided herein are subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on the information presented, please seek professional financial advice based on your personal circumstances. ACPI is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and the Canadian Investment Regulatory Organization (“CIRO”). Investment services are provided through ACPI or Lowrie Investments, an approved trade name of ACPI. Only investment-related products and services are offered through ACPI/Lowrie Investments and are covered by the CIPF.
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