Advice from an expert: Your retirement questions, answered
We asked Chan Huynh, Senior Wealth Advisor at SCU and Credential Securities, about common retirement questions members have, and the best ways to save for the future. Here’s what he had to say:
With the recent market downturns, my portfolio has decreased. What should I do?
The normal ups and downs of the markets can trigger fear, which cause people to do the opposite of the basic formula for success: Buy low, sell high. There will always be reasons not to invest, or to pull your investments. But history shows that market downturns are temporary — you have to be patient and willing to ride the waves.
That said, market changes may mean you need to adjust your portfolio depending on your financial plan and life stage, which is where we come in. If you’re considering making any changes to your investment plan, a wealth advisor can talk through your concerns, look at your current plan, and work with you to make any adjustments as necessary.
Is now a good time to put my retirement savings in GICs?
This is a topic that comes up often in my meetings with members, as the recent rate increases have made them a far more attractive investment. This is especially true for conservative investors, or those close to retirement. Some investors may be tempted to wait for rates to continue increasing before locking in. But with the large difference in variable and fixed rates, you also need to look at what it’s costing you to hold off. Sure, you might get a slightly higher rate later — but by waiting, you’ve lost months where you could have been earning almost double on your savings.
Should I look into getting my Canada Pension Plan (CPP) early?
This really depends on your individual financial situation. When planning with members, I look at factors including what you’re holding in registered accounts, how soon you want to retire, health considerations, and whether or not it’s beneficial for you to pension split with your spouse. That’s why, at the end of the day, you need to sit down with a wealth advisor and look at all the factors surrounding this decision.
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*GICs require a minimum contribution of $500. If you choose a GIC for your TFSA, and are making regular contributions, first save in a variable TFSA until you have the minimum $500 contribution needed for a GIC.
**Mutual funds and related financial planning services are offered through Credential Asset Management Inc. Mutual funds, other securities and securities related financial planning services are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc. The information contained in this newsletter is provided as a general source of information and should not be considered personal tax advice, investment advice or solicitation to buy or sell any mutual funds.
Everyone’s saving situation is unique — and there are many strategies that work for different circumstances. We encourage you to seek personalized advice from qualified professionals regarding your unique savings needs and goals.