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Monday to Friday
appointments are suggested
2018 Investment Expectations
Understandably, double digit returns are desirable, but the most important principle in investing is to achieve balanced growth while still conserving your Capital.
Momentum in the USA continues on unabated and Global Stocks are on an upward trend mainly due to the accommodating stance of the Federal Bank. However, interest rates continue to increase albeit at a tempered pace because inflation remains low and under control.
With interest rates on the rise historical returns from Bonds may be diminished so I am recommending Credit Union GICs to my retired clients. At this time it is possible to receive a one year GIC rate of 2.25% which keeps up with inflation and has no inherent risk as compared to Bonds.
On the Market front I am still recommending that clients consider Global Funds with European and USA content. Fourty percent of USA Blue Chip stock's revenues are derived from European and Global sources so even though USA markets are rich they will benefit from synchronized Global growth.
The Canadian Markets under achieved in 2017 compared to the USA Markets but hopefully will rebound with Canadian Banks benefiting from higher interest rates and with the oil markets finally stabilizing
There does not appear to be a Recession on the immediate horizon but Market Volatility is certainly expected to return which could include the first Correction in many many months.
2018 Asset Allocations For Retired Clients
Investment Vehicle % Holdings Strategy/Approach
Credit Union GICs 65% Very Conservative
Global Equities 20% Moderate
(European and USA Bluechips)
Canadian Equities 10% Moderate
Asian Equity 5% Growth
Total Asset Allocatio 100% Conservative/Moderate
Allocation formula using age 100 minus your current age is a simple but effective formula for many of my clients: i.e.
Age 100 minus current age 50 equals 50% allocation to stocks.
Age 100 minus current age 65 equals 35% allocation to stocks
Age 100 minus current age 75 equals 25% allocation to stocks
Segfunds which have a 75% Guarantee at Maturity have lower Management Fees compared to Segunds offering a 100% Maturity and Death Guarantee. It is important that each client has their Asset Allocation designed to match their individual Risk Tolerance i.e. Conservative, Moderate, Aggressive.
Sample Fee Structure for Retired Client Above
Portfolio Sample Annual Fees
$65,000.00 Credit Union GICs 0% Management Fee
$35,000.00 Segfund Investment Plans $980.00 Management Fee
Total Fees $980.00 Management Fee
Based on this retired client's portfolio, the overall fees amount to less than 1% annually.
– Rick Reynolds CLU CH.F.C.
Please contact us if you have questions
or would like us to prepare a custom service
package based on your needs.
Tel : (250) 595-2419 Fax : (250) 592-4953
Victoria Office, #206 - 2187 Oak Bay Avenue
Victoria, B.C. V8R 1G1
North island Office, 3713 Shoreline Drive,
Campbell River, B.C. V9H 1L8
R. E. Reynolds Investments
& INSURANCE SERVICES LTD.
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