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Philosophy to Investing

Philosophy to Investing

Who should benefit from the money you have accumulated and

the legacy plans you have put in place?

Lifestyle for Yourself  

  • How much money does it take you to be comfortable?
  • Are you going to spend all of this before you die? 
  • Perfect financial plan?

Lifestyle for Family

  • Are there family members you want to benefit?
  • When?
  • Now? 
  • After you die?
  • How?
  • Legacy for Family
  • What do you want future generations to know about you? 
  • Trusts or specific bequeaths

Legacy for Community

  • How do you want to be remembered in your community?
  • Ongoing or one time?

Canada Revenue Agency

  • Taxes

The answer to the above questions form the basis of

“Your Financial Plan”

Biggest Fears 

Permanent Loss of Capital

  • 1930 Depression


  • Recession resulting in a temporary loss such as C-19 or 2008
  • Risk tolerance – the level of risk you can handle and still sleep at night, the quintessential “risk vs reward” battle

Structural Risk Factors


  • Currently historically low rates

Interest Rates

  • Currently historically low rates but what about the future?  Debt?

Taxation of Capital

  • Interest or salary – 100% inclusion in tax return
  • Capital Gain – partial inclusion in tax return; change in amount as governments need more money
  • Dividend – partial inclusion in tax return

Time Horizon

  • Influence Factors: Age, physical and mental health, financial health
  • Short Term – Parking funds until decision made
  • 0 to 3 years
  • 3 to 10 years
  • 10 years plus


  • Non-Registered Products
  • Registered Products
  • RRSP
  • TFSA
  • RESP
  • Insurance
  • Life
  • Disability
  • Critical Illness

Portfolio Concept

“How we are going to invest the money to get the rate of return we need for your financial plan?”


  • Low risk – Preservation of capital – Guaranteed up to CDIC limits (Currently $250,000)
  • Insurance
  • Bank account
  • GIC (Cashable ↓ or Uncashable ↑) using the Laddered GIC Concept with 20% in each year
  • 1 Year _______          
  • 2 Year _______          
  • 3 Year _______          
  • 4 Year _______          
  • 5 Year _______          

Low to Medium Low

  • Laddered Bonds – similar to laddered GIC concept but slightly higher rates than GIC, duration risk – locked in for specific time

Asset Allocation

  • Capital Market Strategy Model Asset Mix (as of June 30, 2020)
  • fluctuating risk levels from low to high

  • High Risk and Speculative
  • List of individual stock portfolios or high risk mutual fund e.g tech or emerging markets
  • Combination Plans for Your Portfolio
  • 50% insurance, Bank GIC and 50% Balanced/Moderate Portfolio

Source: https://www.manulifeim.com/retail/ca/en/landing-page/manulife-asset-allocation-portfolios

Customized Plans

  • Based on what you want to accomplish
  • Taking into consideration the factors of time, health, risk, legacy, taxation
  • Tools used include asset allocation as the engine for product selection