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Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® The following is an excerpt that describes how much income you need in retirement -   “You’ve been retired for a while. How much income do we actually need in retirement, Uncle Wayne?”  HOW MUCH INCOME DO YOU NEED IN RETIREMENT? Uncle Wayne got up, walked to the counter, and poured another glass of orange juice. “I like to break it down into day-to-day expenses, which are your normal daily living expenses and what I call ‘do what you want when you want’ spending, which is really your fun money. This could be travel, bird watching, writing a novel, and perhaps your bucket list items. For this spending, I’d suggest you plan to do that in your first ten to fifteen years of retirement, when you’re healthy. “Other costs to consider would be replacement costs for things such as a new roof, furnace, or car. Also, you have contingencies that may occur,...

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® How do you Develop a Diversified Portfolio? “So how do you actually develop a diversified portfolio?” asked Sally. “I understand the basics between bonds and equities, and clearly I haven’t been doing as much research and reading as Alice. How do we put it all together?” “From my experience,” Uncle Wayne continued, “there are six key factors to developing a globally diversified portfolio, and they are:  strategic asset allocation tactical asset allocation specific Investments and/or money managers risk management  fees  taxes “Whole books have been written about this subject; however, I will attempt to simplify this. Strategic asset allocation is basically what we have reviewed, and it’s your long-term allocation between bonds and equities. This also includes how much you would invest in Canada, the US, and internationally for both bonds and stocks.” Alice commented. “Is one of the reasons that we should invest outside of Canada because different country’s economies and companies do well...

Excerpts from the Book - Preserving Wealth - written by Jack Lumsden, MBA, CFP® RETIREMENT INCOME PLANNING OPTIONS “There are five main options to achieve the cash flow you desire from your own assets: income only investingincome focused investing.guaranteed income: life income annuity/guaranteed income productstotal return investing: diversified portfoliocombination of the above “Let’s start with income only investing first,” Uncle Wayne continued. “With this option, you would only invest in bonds or GICs, and the income they provide is what you use for spending. This is often the starting point in creating a retirement income and cash-flow plan. The challenge with this approach is that with the current low yield environment, the income earned may not be enough to fund your cash flow needs annually. Over time, the asset growth may not allow you to keep up with inflation, as your cash flow needs increase.” “So,” Alice asked, “low yield means low interest rates, and with the current interest rates so low, it could be...