Insights: Dying with zero, housing market, infrastructure + stick shift
Good reads:
?
·????????Weekly Investment Strategy
·????????Should You Die With Zero?
·????????4 Common Sense Rules of Investing
·????????The End of Manual Transmission
?
?
?
Best quote of the week:
?
“The most important quality for an investor is temperament, not intellect.” – Warren Buffett
?
?
?
Best soundbite of the week:
?
The following is a really interesting excerpt from an article that explored the concept of “dying with zero”.?While one of the most common personal finance questions is “Am I saving enough?” the author argues that many individual seem to be saving too much:
?
“The Investments & Wealth Institute reported, ‘Across all wealth levels, 58 percent of retirees withdraw less than their investments earn, 26 percent withdraw up to the amount the portfolio earns, and 14 percent are drawing down principal.’ This means that only about one in seven retirees are withdrawing principal within a given year! The remaining retirees are living off of their investment or less than what their investments earn annually. The end result of this behavior is lots of money left to heirs.” – Of Dollars and Data article
?
?
Some potential good news on the Canadian housing market:
?
“Immigration is rebounding from pandemic lows and new targets should mean a record number of newcomers, an RBC report released Wednesday said. The federal government is targeting 1.3 million new permanent residents, or 550,000 households, by 2024. But RBC said housing demand will also see a boost from another, often overlooked demographic change: shrinking households…RBC said smaller households should lead to 90,000 new households by 2024 (from 2021 figures). Taken together, the two trends of more immigration and smaller households “will strengthen demand for housing (whether owned or rented) and act as a powerful counter to sliding sales and prices —eventually putting a floor under the correction,” the report said.” – Investment Executive article
?
?
Some points to remember when the going gets tough in the markets:
?
“Stocks usually go up. A lot of people were confused when stocks just kept going up in the bull market of the 2010s. We lived through two separate 50% crashes during the first decade of this century so plenty of investors began to question stocks for the long run. Over the past 100 years or so, the U.S. stock market is up roughly 3 out of every 4 years on average. Almost 60% of all calendar years have seen gains in excess of 10%. More than one-third of all years have experienced returns of 20% or more. So you’ve been more likely to gain 20% or more than experience a down year in that time. Corporations like making profits. People like innovating. Money has to go somewhere and people like the returns they get in the stock market. So most of the time it goes up.” – A Wealth of Common Sense article
?
?
Best visual of the week:
?
The need for modernized and expanded infrastructure around the world has been growing substantially over the years, in large part due to growing populations. Here is a great infographic on what that is projected to look like:
?
?
?
?
You’re Invited: The Giving Imperative – Philanthropy Today, Tomorrow and for Generations to Come
?
A surge in donations at the onset of the Covid-19 global pandemic illustrated the generous spirit of Canadians and our collective ability to support those in greatest need. Today, many of us are concerned about the cost of living in a time of rising inflation eroding our purchasing power and limiting our ability to give back. The reality is Canada has some of the best tax incentives in the world for charitable giving and with proper planning, both you, your family and charities can reap the benefits.
?
In this presentation, Diana Mao, Senior Advisor, Charitable Giving Program with Raymond James Trust (Canada), along with Damian McGrath, Senior Trust Advisor will explore the importance of incorporating charitable giving into financial and estate plans in order to maximize donations to charity in the long term while minimizing taxes and creating a charitable legacy beyond one’s lifetime.
?
Date: September 22, 2022
Time: 10:00 am PT/ 1:00 pm ET
?
Contact us to register for this complimentary event: [email protected]
?
?
?
领英推荐
I’d love to hear from you!
?
Do you have a question about the markets??Or perhaps you’d like to know more about a particular financial planning topic??Maybe you’ve got a question about your own personal situation?
?
Let me know your question and I’ll include it as a topic in an upcoming newsletter: [email protected]
?
?
?
Beyond the markets:
?
?
For anyone who loves manual transmissions, this artcle from The Atlantic will probably make you both sad and nostalgic. I refer to my stick shift as my anti-theft device…I love it and am never giving it up!
?
Here are some interesting facts about manual transmissions:
?
·????????In 2000, more than 15 percent of new and used cars sold by the auto retailer CarMax came with stick shifts; by 2020, that figure had dropped to 2.4 percent.
·????????Only about 30 new car models in the US can be purchased with a manual transmission.
·????????Electric cars, which now account for more than 5 percent of car sales, don’t even have gearboxes.
·????????Early automobiles used?sliding-mesh?manual transmissions with up to three forward gear ratios. Since the 1950s,?constant-mesh?manual transmissions have become increasingly commonplace and the number of forward ratios has increased to 5-speed and 6-speed manual transmissions for current vehicles.
·????????Most manual transmissions for cars allow the driver to select any gear ratio at any time, for example shifting from 2nd to 4th gear, or 5th to 3rd gear. However, sequential manual transmissions, which are commonly used in motorcycles and racing cars, only allow the driver to select the next-higher or next-lower gear.
·????????The first 6-speed manual transmission was introduced in the 1967 Alfa Romeo 33 Stradale. The first 7-speed manual transmission was introduced in the 2012 Porsche 911 (991).
·????????In some countries, a driving licence issued for vehicles with an automatic transmission is not valid for driving vehicles with a manual transmission, but a licence for manual transmissions covers both.
?
Sources: The Atlantic , Wikipedia
?
?
?
Publishing hiatus:
?
?
I’ll be taking a two-week break from writing my newsletter, but I’ll be back in your inbox on September 9 to continue delivering my weekly sampling of Insights.
?
?
?
Thanks for reading and wishing everyone a great summer!?
?
Cheers,
Kim
?
Kim Inglis, BCom, CIM, PFP, FCSI, CAFA
Portfolio Manager
?
T: 416.777.6417 (Toronto)
T: 604.654.1160 (Vancouver)
T: 250.979.1803 (Kelowna)
TF: 1.877.363.1024
?
? ?
?
?
?
?
The opinions expressed in this newsletter are those of the Financial Advisor Kim Inglis, BCom, CIM, PFP, FCSI, CAFA and not necessarily those of Raymond James Ltd. (“RJL”) or Raymond James (USA) Ltd. (“RJLU”).?Statistics, factual data and other information presented are from sources, believed to be reliable but accuracy cannot be guaranteed. It is furnished on the basis and understanding that Raymond James Ltd. and Raymond James (USA) Ltd. is to be under no liability whatsoever in respect thereof. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Raymond James Ltd. and Raymond James (USA) Ltd. financial advisors may only transact business in provinces and/or states where they are registered. Follow-up and individualized responses involving either the effecting of or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in provinces or states where the financial advisor is not registered. Raymond James Ltd. is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund. Raymond James (USA) Ltd. is a member of FINRA /SIPC . Raymond James (USA) Ltd. (RJLU) and advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. This provides links to other Internet sites for the convenience of users. Raymond James Ltd. is not responsible for the availability or content of these external sites, nor does Raymond James Ltd endorse, warrant or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same privacy policy which Raymond James Ltd adheres to.