I’m going to tow a hard line on this blog – putting your kids financial needs before your own isn’t good for their future, or yours.

I’ve been a financial advisor for almost 30 years now. And after consulting hundreds of families over those years, do you know what surprises me most? (When, actually, it happens so often it shouldn’t surprise me a bit.)

The pains parents will go through to help their kids with money

That drive is so strong in parents that it often destroys both (a) their kids’ financial independence as adults, and (b) the parents own retirement plans.

But I get it. Parenting is hard. God knows I’ve made my mistakes, I still do. But as a parent – who’s also a financial advisor with 30 years’ experience – I’m confident talking about this aspect of parenthood.

But first, a little about me growing up.

I was raised in a modest household; I paid my own way through university, bought my first home (along with my late wife) at age 24, and started my own business at 27. And I did it all without financial assistance from my folks.

My family’s modest means and my own personal drive instilled self-sufficiency in me. And I believe that’s a must for any child; understanding the value of a dollar and the fact that money is never free.

To this end I’ve created a list of the ways parents spoil their kids and ruin their retirements.

1. Keeping the family finances a secret.

In too many homes, family finances are a taboo subject. I couldn’t disagree more. Family dinners, in fact any family time, are the perfect time to teach your kids about money.

My late wife Mary and I did it… sitting around the dinner table listening to our kids’ and injecting a life lesson or two at the right opportunity. We freely talked about what we earned, how much we spent on food, soccer, vacations and how much we saved. We never hid a thing.

It’s like having “the talk” (another uncomfortable subject). Yes, of course, some things can be learned in school. Unfortunately, financial literacy doesn’t’ seem to be high on most school’s curriculum. That leaves it up to parents.

If not, a financially ill-equipped child will keep coming back to the Bank of Mom and Dad again and again – because they haven’t been taught not to.

2. Ignoring the benefits of work

When kids are old enough, part time jobs during the school year, and full-time in the summer, are mandatory. At least they were in the Dri home.

Work teaches kids the lessons of trading time for money.

Kids need to realize that if they earn $10 an hour and a pair of running shoes cost $200, that means working 20 hours to buy those shoes. Are those kicks worth 20 hours out of your life? Or can those 20 hours buy something better, something smarter? What’s the trade-off?

Without this lesson, that only work experience can provide, they’ll always be asking for money. And those asks will get bigger as they get older.

3. Private school

A typical private high school in Toronto would cost you about $25,000 a year per child. University costs approximately $10,000/annum per child – discounting living expenses if the school is out of town.

Let’s break that down assuming you have two children:

What does this mean? For a taxpayer in the 50% tax bracket, they need to earn about 760k to net 360k.

You need to ask yourself: Is this realistic? What comes first, their private vs. public school education or your retirement? Only you can answer that… but a financial advisor can help run your long-term retirement projections so you can make an informed decision (and not “We’ll worry about that when the get there.”).

4. Buying the kids, a house

With housing prices sky high in the GTA, it’s almost impossible for younger people to enter the real estate market. With an average price of a home around $1,000,000, a down payment of about $200,000 is required just to get in.

What does that mean?

Many parents are taking out a first or second mortgage on their principal residences to raise that down payment for their kids. But is that the parent’s responsibility?
You might not like my answer.

It’s – NO.

Seriously, no. That doesn’t mean you shouldn’t help, period, it’s just that it’s not your job. Before buying or helping to buy the kids a house, work with a financial advisor and run the numbers. Can you afford such a huge expense? Many parents realize that financing their kids’ home will mean reducing their retirement plans, but is that fair? It’s a huge sacrifice – and will your kids appreciate a “free” home as much as one bought with their own money?

5. Funding your kids’ lifestyle after they move out

It happens at least once a week. My team receives a client who wants to withdraw
from their retirement pool for an expense their kid has incurred. We’ve seen everything from “Mom, I need $5,000 for a vacation – I’m exhausted” to “Dad, I need $50,000 to buy a motorcycle – they’re a great investment.” And worse.

Financing your kids’ “fun” only encourages more visits to the Bank of Mom and Dad… which is not fun for you.

Why do parents spoil their kids and ruin their retirement?

From what I’ve seen, it boils down to one word.

GUILT.

I know I’ve experienced guilt as a parent, and I think you have too. We all have.

Me, I feel guilty about all the hours I spent at work and not at my kids’ recitals and sporting events. Now that I’m a widower, I feel doubly guilty and feel the need to make up for all those times mom was there, and I wasn’t.

Some parents feel guilty about being divorced or raising kids in households where the family across the street had a nicer house and a newer car. The list goes on.

There’s a feeling that this guilt will go away if you just throw money at it. I know I’ve spent money we didn’t have on vacations to prove I was a good parent.

I can’t stop parents from feeling guilty. It’s in our DNA. But I can offer a suggestion: before giving the kids financial support, ask yourself these three questions – and be honest:

1. Can you really afford the expenditure?
2. If you can, should you?
3. What are you teaching the kids when you give them money?

Before you dip into your ‘future fund’ to give your kids money, give me a call. I’ll run your retirement projections and determine if you can really afford it, and its impact on how your kids manage their own financial future.

But first, close your eyes and picture your retirement – do you see yourself relaxing at your own cottage, or envying one of your kids motorcycling across the Trans-Canada?

I know what I see for me. And I won’t feel guilty for one second.

The process of finding a financial advisor can be overwhelming. It is our job to make that process simpler and easier.

Dri Financial Group’s proprietary Wealth Navigator Process is designed with you in mind.

Its structured framework helps you make an informed decision and feel confident in our team and management practices before we get started.

We offer you a range of services from creating bespoke financial plans and providing investment advice to helping you take advantage of our investment models. If you would like more information on the Wealth Navigator Process or our team, call me any time at 416.355.6370 or email me at richard.dri@scotiawealth.com.
—

Beyond helping you manage your finances, we take pride in motivating, educating and helping you expand your financial literacy. We are here to answer any questions you have and to help you feel in control of your financial destiny.

If you are ready to dive deeper into your financial literacy journey, we have a wide range of free tools and educational resources available.

• Subscribe to our ​Never Retire Newsletter
• Contact us to ​order a complimentary e-book
• Check-out our latest ​Wealth Navigator P​odcast
• Follow me on ​LinkedIn

source https://richarddri.ca/will-spoiling-your-kids-ruin-your-retirement/

The passing of my wife Mary filled me with grief – but gave me the impetus to ensure our three children would be financially protected. 

January 15th, 2020. The day my life changed forever – because the love of my life lost hers.

Mary, my wife of 33 years, was gone. We married when I was 24, I was a 57-year-old widower with three children. (Well, not quite children – they were 17, 25 and 27 at the time, but any parent will know exactly what I mean.)

Here I was, a single parent. And not at all ready for it.

Now the term “single parent” can often mean one parent having the main responsibility while the second parent plays a background role… in a divorce, let’s say, one parent takes custody and the other sees their kids on alternate weekends.

But a widow or widower is a true single parent. You’re on your own; no backup, no sounding board, no partner.

When I became a widower, not only did I become a true single parent, I became something else… a constant worrywart. And then something worse, which I’ll get to in a second.

First, the worrying. I became obsessed with my own mortality. Who would take care of my kids if I died prematurely, like their mom did? Yes, they were adults (or nearly adults), but still…

From worrywart to hypochondriac

All this worry ultimately manifested itself in hypochondria. Every sniffle and headache set my anxiety into high gear. It didn’t help that Mary died in early 2020, just as the stark reality of COVID-19 was setting in.

And I just knew it would get me.

This wasn’t me, I’m not generally a hypochondriac. But for the first 12 months of the pandemic, I rarely went out. If I did, I covered myself head-to-toe with a baseball cap, KN95 mask, and as much hand sanitizer as I could squeeze from a dispenser. (I imagine the kind folks running my local grocery and pharmacy constantly replenished theirs’ just for me.) The moment I got home my clothes went into the washer. I disinfected the doorknobs.

I was taking zero chances.

I wasn’t worried about dying myself. I was sick to death thinking my kids would be parentless with nobody to take care of them. It wasn’t an entirely unreasonable thought.

A somewhat startling statistic: Widowhood Effects

As a financial advisor to many families, I know from experience that some widows/widowers die remarkably soon (often within three months) after their spouse’s death.

A Google search reveals this phenomenon to be: Widowhood Effects.
Studies have shown a link between the death of a spouse and an increased probability of death for the surviving spouse. Recent research concluded:

• The death of a spouse, for whatever reason, is a significant threat to health and poses a substantial risk of death by whatever cause.
• Widowhood increases the survivors’ risk of dying from almost all causes, including cancer, but increases the risk for some causes more than for others.
• It also increases survivors’ all-cause mortality in response to almost all causes of death of the predeceased spouse, but the actual cause of death of the precedent spouse makes a difference.

How I set out to protect my children

Yes, I was overly anxious about COVID and knowledge of the Widowhood Effect didn’t help. But my concern was always my kids, first and foremost, especially my 17-year-old daughter.

I had to get my house in order… for them.

That meant my Will and guardianship considerations, and life insurance.

1. Wills

Wills are complicated legal documents, but for the sake of this blog I want to focus on the appointment of a guardian for children under the age of 19.

A guardian for minor children is the person legally appointed with the responsibility of raising your kids in the event of your death. Usually, spouse A appoints spouse B and vice versa. But since I no longer had spouse B, selecting a guardian became a more difficult decision.

Many people select godparents for each child when they’re born. But is it practical should the unthinkable occur? A number of considerations have to be factored in when determining a suitable guardian:

• Are the prospective guardians willing? Have you discussed the idea with them?
• Do they share your values and beliefs?
• Where do they live (same neighbourhood, city)?
• Do they have the ability and means to care for your kids, in addition to their own?

I redid my Will six months after Mary’s passing, choosing my oldest son to be my daughter’s guardian. Responsible. Willing. Loving. Stable in his home and professional life. All I could ask for.

If you don’t have an adult child to fill this role, you may want to discuss guardianship with grandparents, aunts and/or uncles, or a close friend.

Note, if you die without appointing a guardian in the province of Ontario, the courts will appoint a guardian, but the process may take several weeks. In the meantime, your children will be in the care of Children’s Aid (foster care). That’s why it’s so important to have a Will prepared and a well researched guardian appointed.

2. Life insurance

While selecting an executor for my estate I asked myself, should I die tomorrow (God forbid), how would my death affect the financial lives of my three kids?

Given that two of them were already financially independent, I was mostly concerned about my youngest and her education costs. Fortunately (and wisely), Mary and I had a healthy RESP that would cover her undergrad tuition, so I didn’t see the need for any additional insurance.
I also reasoned that my children would sell some or all of my investments and use the funds equally as a “start in life” fund.

That said, I’ve maintained my existing life insurance policies, consisting of one permanent life insurance policy (which I will keep for life) and two term-life policies that will lapse when my youngest turns 21.

My own insurance review was relatively easy, but other widows/widowers may find that if they died, there might not be enough money to properly raise and educate their children. If this is the case, term life should be considered.

Today, I worry less – and live more

The fretting has abated. I’m fairly confident I’ll be in my kids’ lives for many, many years to come.
It’s been a journey, though. I work hard to stay healthy and avoid depression. I exercise physically and emotionally. I spent hours with a grief therapist. I stay busy at work (I was back about a month after Mary’s death) and engage with family. I have purpose and a reason to get up in the morning.

I want to be alive on the day scientist find a cure for Cancer.

But if I don’t? I take solace in knowing my children will have the resources for a reasonable start in life and to thrive, always knowing their parents were looking out for them.

source https://richarddri.ca/their-mom-died-whod-take-care-of-our-kids-if-i-do-too/

1. Housing affordability
2. Personal tax measures
3. Business tax measures
4. Green economy

On April 7, 2022, Canada’s Deputy Prime Minister and Federal Minister of Finance, Chrystia Freeland, tabled the 2022 Federal Budget. This year’s budget focuses on making housing more affordable; supporting a strong, growing and resilient economy; improving clean air; and focusing on tax fairness.

We provide a summary of the most significant tax measures announced in the budget and the potential impact on you, your family and your business. This is not a comprehensive review of the 2022 Federal Budget.

Read More

source https://richarddri.ca/2022-federal-budget-summary/

You’d think a record high stock market would be cause for celebration. But what does it really mean for investors with a world in tumult?

On March 22nd, the Canadian stock market (as measured by the S&P/TSX) closed at a never-before-seen high. Maybe you missed it – the news cycle’s are pretty jam packed these days.

The past two years (or has it been three? Who can count anymore?) have been incredibly tumultuous. Far too many downs without enough ups. We need something good. A record high stock market is something to celebrate, right?

Yes, this was good news. But I’m not in a celebratory mood. Are you?

Just as the end of the pandemic seems near (for now, at least), the bloody conflict in Ukraine has plummeted the world back into despair. Hope is there, as ceasefire talks are on. Prayers for that.

The repercussions of all of this are hitting Canadians hard:

• The current cost of oil is setting gas and heating prices at historic highs.
• Supply chain disruptions are causing product shortages; sanctions against Russia may worsen the problem.
• This one-two punch of higher oil prices and demand for unavailable goods means higher prices (inflation) across the board.
• Surging inflation has led to the Bank of Canada raising interest rates – with further increases likely.

Yet, there is some good news:

• Canada’s unemployment level dropped to 5.5% in February 2022.
• Canada’s Real GDP posted a strong 4.6% growth in 2021.

What do I see? A country with a strong economy but clouded by higher inflation, rising interest rates, and the escalating effects of a war.

So, what does an investor do in times like this?

I’m loathe to make predictions – especially in unprecedented times. But it’s always good to fall back on the tried and true.

Over the decades we have been through the aftermath of the 9/11, the financial crisis and now the pandemic. Point is, unsettling times are familiar to us and our financial planning and investment strategies are designed to reduce risk, avoid acting on emotions (fear) and focusing on the long term.

To this end we’ve taken six, sensible strategies…

1. Ensuring cashflow needs for the next 3-5 years are secure

No matter what’s going on in the world, we’ve always recommended maintaining 3 to 5 years of cash flow needs in guaranteed investments such as Guaranteed Investments Certificates (GICs).

Let’s say you need an additional $25,000 per year from your investment portfolio to maintain your lifestyle expenses. We’d recommend a “ladder” of GICs:

• 1-year GIC of $25,000
• 2-year GIC of $25,000
• 3-year GIC of $25,000
• potentially 4- and 5-year GICs of $25,000 each

This way your short-term cash flow needs can be met, while giving the market adequate recovery time before you have to redeem.

2. Switching long term bond exposure for short

Bonds and interest rates have an inverse relationship – when interest rates rise, bond prices typically fall.

So, whenever interest rates are expected to increase (as they are right now), it’s wise to switch from long term bonds (10 years, for example) to short term (5 years or less).

We are reviewing client portfolios and where appropriate, adding short term government bonds and reducing the possible volatility of interest rate increases.

3. Reducing overweight positions

Over the course of the year, the value of some stock rise more than others, increasing the stocks weighting in a portfolio.

Right now, we’ve been trimming our overweight positions. We have always recommended restricting the value of each stock to 5% of the total portfolio value, and to sell any stock exceeding this amount – then reinvesting those funds in high ranking and under weighted stocks.

It’s a variation of “selling high, buying low” well suited for today.

4. Searching for possible inflation hedges: Gold

The definition of inflation: spending more than before for the same proverbial loaf of bread.

With our purchasing power diminished, Canadians are looking at how much our savings can buy versus how much we have in the bank. Whatever assets we’ve saved or invested need the ability to withstand any devaluation of the dollar.

One answer? Gold.

A Reuters article published February 2, 2022, entitled “Beyond CPI, Gold as a strategic inflation hedge” states: “…gold is a global asset and a hedge against not just the price of goods and services but also the erosion of purchasing power in general.”

Based on this established wisdom we’ve added two gold mining companies to our Canadian dividend growth model: Newmont Corp (NGT) and Endeavor Mining PLC (EDV), both of which pay a dividend (2.81% and 2.2% respectfully, as of March 23rd 2022).

5. Carefully adding commodities

Pandemic-fuelled global supply chain issues and current sanctions have created shortages and dramatically increased the costs of many commodities (food, oil, fertilizer, etc.).

We address this through commodity exposure, having ownership of three companies in vital sectors:

• Enbridge Inc.: a Canadian pipeline shipping crude oil, liquids and natural gas throughout North America
• Canadian Natural Resources LTD: a crude oil and natural gas explorer and development/production company
• Nutrien Ltd.: a provider of fertilizer (Potash, Nitrogen and Phosphate)

6. Comfortably holding “consumer cartels”

“Cartels” and “monopolies” aren’t words that are greeted positively by most. But let’s pop the hood on this one. What’s a “consumer cartel”, and why can they be a good thing?

Consumer cartels are companies that operate in a quasi-monopoly environment – with strong barriers to entry, few competitors, and the ability to protect their margins by passing on inflationary costs (today’s big concern) to the end consumer.

Among Canadian companies, banks, general insurance companies, railway and grocers fall into this category, all of which are represented in the Richard Dri Canadian dividend growth model:

• Banks: TD Canada Trust and Royal Bank of Canada
• General insurance: Intact Financial Corporation
• Railways: Canadian National Railway (and a trucking company: TFI International)
• Grocers: Metro Incorp, Empire Ltd (Sobeys Chain) and George Weston LTD (Loblaw and real estate).

It’s all about minimizing volatility while growing dividends

We’re confident that the companies held in the Richard Dri Canadian dividend growth model are well positioned for the negative impact of higher inflation and interest rates.

We’ve gone to great lengths to minimize volatility right now. Our model re-ranks stocks daily, selling those that have fallen in rankings and replacing them with higher ranking ones. It’s extremely forward-focused.

I’ll admit, no investment strategy is perfect. And I can completely understand uncertainty and confusion among investors right now, despite the S&P/TSX’s record high closing. No blog will set any investor entirely at ease, but a conversation might… at least it’s a start. If you have any questions at all, feel free to call.

We’re here, and we get it.

The process of finding a financial advisor can be overwhelming. It is our job to make that process simpler and easier.

Dri Financial Group’s proprietary Wealth Navigator Process is designed with you in mind.

Its structured framework helps you make an informed decision and feel confident in our team and management practices before we get started.

We offer you a range of services from creating bespoke financial plans and providing investment advice to helping you take advantage of our investment models. If you would like more information on the Wealth Navigator Process or our team, call me any time at 416.355.6370 or email me at richard.dri@scotiawealth.com.
—

Beyond helping you manage your finances, we take pride in motivating, educating and helping you expand your financial literacy. We are here to answer any questions you have and to help you feel in control of your financial destiny.

If you are ready to dive deeper into your financial literacy journey, we have a wide range of free tools and educational resources available.

• Subscribe to our ​Never Retire Newsletter
• Contact us to ​order a complimentary e-book
• Check-out our latest ​Wealth Navigator P​odcast
• Follow me on ​LinkedIn

source https://richarddri.ca/sp-tsx-closes-at-an-all-time-high-thats-good-right/

My kids’ post-secondary educations were taken care of well before my wife died. Younger solo parents may be far less prepared.

When Mary passed away in 2020, my kids were 27, 25 and 17. Two were old enough to have finished their educations; our youngest, now 19, lives at home with me while pursuing an undergraduate degree.

I was fortunate (and I do count my blessings despite my loss) that my children’s post-secondary education was planned and financed with Mary’s input and wisdom. But if a partner dies when their children are much younger than ours’ were, that’s not always the case.

When your kids are 8 and 5, their university years seem eons away.

I recently met a young widow who I’ll call Pela – just 42 years old, with two daughters aged 8 and 5. Pela’s husband died of leukemia a year earlier, before they had a chance to cement their financial future as a couple. (Be honest, how many 40-somethings are financially set?)

Pela was left with a mortgage, very little in retirement savings, and nothing set aside for the girls’ post-secondary educations. After all, university was years in the future. One plus was that Pela has a good job in a high demand industry, with a salary that could support her family.

She was set for today, but not tomorrow – and very concerned about ensuring her girls get the education they deserve. So, we talked.

Pela and I sat down and discussed four options.

1. REGISTERED EDUCATION SAVING PLAN (RESP)

An RESP provides tax deferred growth with a partial funding match by the federal government – a smart and solid foundation to build up tuition.

We suggested opening a family RESP. If Pela contributes $2,500 a year for each child, the government matches an additional 20% — that’s $500 per daughter, for a total of $3,000 each.

Here’s the math if Pela starts today and until the girls turn 18.

Once their post-secondary education begins, the girls can withdraw against these amounts for tuition, books and accommodations like dorms. Withdrawals against RESP contributions are non-taxable while any money withdrawn against the grant or investment earnings is taxable. But since most students are in a low tax bracket, the girls likely won’t pay any taxes.

With $11,500 in total grants and the possibility of withdrawing funds tax-free, an RESP is solid option for Pela.

2. LIFE INSURANCE

Nobody likes to think about life insurance (I know I didn’t), but with one parent gone, Pela absolutely needs it. Suppose she passed away as well – contributions to the girls’ RESPs would end. Who’d pay for tuition?

We advised Pela to apply for term life insurance equal to the girls’ total tuition costs. If Pela died before they turned 18, the death benefit would be held in trust. The trustee would ultimately use those funds to pay educations costs.

(There are other considerations with insurance, but that’ll be a different conversation.)

3. CPP SURVIVOR CHILD BENEFIT

Children under 18 (or 24 if full-time students) are eligible for a monthly Canada Child Benefit of $264.53 (in 2022). This is money Pela can add to her $2,500/year RESP contribution for each daughter. $264.53 times 12 is over $3,000 a year, so this almost doubles her contribution.

While any contributions above $2,500 aren’t eligible for the 20% grant, all funds in the RESP grow on a tax deferred basis. Again, withdrawing funds will probably be tax-free.

4. ONTARIO STUDENT ASSISTANCE PROGRAM (OSAP)

If necessary, government assistance is available for residents of Ontario. There’s two types:

• Grants. Money they don’t have to pay back.
• Student loans. Money that’s paid back once school is finished.

An application needs to be filled out with the Ontario government before starting university or college. The girls will automatically be considered for grants and loans; how much they’ll qualify for depends things like education expenses, course load, and the family’s personal financial situation. In Pela’s case, her higher-than-average income and relatively strong financial state may mean the applications are rejected. Still, it’s an option Pela can turn to as a “last resort”.

You don’t have to be alone in your decision making.

In chatting with Pela in my role as a “professional financial advisor” I realized, as a widower, how much I would have struggled if I hadn’t been able to discuss my own kids’ education with my partner.

Which university should they go to? Should they live on campus or at home? Should we pay our kids’ entire tuition, or should they chip in? These were conversations I was fortunate to have.

But for young widows and widowers like Pela the only real advice I can offer, beyond my financial expertise, is to turn to family and friends who can empathize with your situation. Do you know other widows or widowers, or solo parents? Have you encountered professionals who’ve walked in your shoes? Who’ve been there?

Remember, it’s okay to ask for help. Seek the advice of these “voices of experience” so you can make truly informed decisions about your children’s futures.

Believe me, you’re not alone.

The process of finding a financial advisor can be overwhelming. It is our job to make that process simpler and easier.

Dri Financial Group’s proprietary Wealth Navigator Process is designed with you in mind.

Its structured framework helps you make an informed decision and feel confident in our team and management practices before we get started.

We offer you a range of services from creating bespoke financial plans and providing investment advice to helping you take advantage of our investment models. If you would like more information on the Wealth Navigator Process or our team, call me any time at 416.355.6370 or email me at richard.dri@scotiawealth.com.
—

Beyond helping you manage your finances, we take pride in motivating, educating and helping you expand your financial literacy. We are here to answer any questions you have and to help you feel in control of your financial destiny.

If you are ready to dive deeper into your financial literacy journey, we have a wide range of free tools and educational resources available.

• Subscribe to our ​Never Retire Newsletter
• Contact us to ​order a complimentary e-book
• Check-out our latest ​Wealth Navigator P​odcast
• Follow me on ​LinkedIn

source https://richarddri.ca/a-young-widow-wondered-how-can-i-ever-pay-their-tuition/

Stocks and oil prices fell Monday as increased fears over global growth, the Ukraine war and impending rate hikes by the Fed negatively impacted investor sentiment.

The tech-heavy Nasdaq dropped 262 points Monday, as China battled Covid outbreaks in Shenzhen and Changchun, key regions for tech manufacturing. Also, the S&P 500 shed 31 points, the Dow was flat, and the TSX tumbled 281 points, weighed down by steep declines in the energy and materials sectors. Meanwhile, 10-year U.S. Treasurys climbed to 2.139% Monday, a sign that rising interest rates may not be deterred by Russia’s invasion of Ukraine.

In Tuesday trading, U.S. indexes regained significant ground after oil prices retreated below $100 per barrel, easing some investors’ concerns about U.S. inflation and the need for the Fed to act aggressively to battle rising prices. By Tuesday’s close, the Dow was up nearly 600 points, while the Nasdaq and S&P 500 added 367 and 89, respectively. The TSX ended flat as energy names weighed on gains in other sectors.

As expected, the Fed on Wednesday raised interest rates by 25 basis points, its first rate increase since 2018. While Fed officials predicted six more quarter-point increases for the year, these increases will depend on future inflation readings and the trajectory of the Ukraine conflict. While North American indexes pared earlier gains after the Fed statement, the indexes steadied as Fed Chair Powell spoke at a press conference later. By Wednesday’s close, the Dow rose 519 points, the S&P 500 gained 95, and the Nasdaq added 488. In Canada, the TSX jumped 281, its biggest gain since late February. Meanwhile, the yield on 10-year U.S. Treasurys also rose after Powell’s announcement, hitting 2.185%. In inflation news, Statistics Canada reported that the annual inflation rate in February climbed to 5.7%.

U.S. stock indexes registered solid gains Thursday, all climbing a bit more than 1%, while the TSX gained 1.4%. Oil prices were volatile again Thursday, with Brent crude settling at $106 per barrel. Finally, the average rate for a 30-year fixed mortgage in the U.S. topped 4% for the first time since May 2019, Freddie Mac reported Thursday.

Markets Gain Ground, Despite Ukraine Conflict

For the four trading days covered in this report, the Dow surged 1,537 points to close at 34,481, the S&P 500 rose 239 points to settle at 4,411, while the tech-heavy Nasdaq added 1,034 points to close at 13,615. In Canada, the TSX climbed 590 points to end at 21,771.

Read more

source https://richarddri.ca/ukraine-war-rages-on-fed-raises-interest-rates/

Mary and I knew exactly how we could financially assist our kids into adulthood. But now that she’s gone, does that change things?

In past blogs, I wrote at length about the pros and cons of helping out adult children financially. Most are at a turning point in their lives; weddings and new homes in their future, but not yet established financially. So, what to do? You can read some of my thoughts here:

• Please teach your children about money…
• A child’s first home: should the Bank of Mom and Dad help?
• To help or not to help your child buy a home. That is the question.
• Living inheritances: 7 big picture topics to consider.

These blogs weren’t based just on my professional expertise, my personal experience as a dad with three adult (or near-adult) kids played a role too.

They were also written before Mary’s death. And while I don’t think that fundamentally affects my stated positions, it did bring me a new perspective. But first, let’s go back to our plans before Mary’s passing.

Mary and my original plan to help our kids

As our kids grew up, their mom and I made two big financial decisions for their future:

• Early inheritances. We decided to provide each child with $50,000 during our lifetimes to be used for wealth building (education, investments, new home, etc.). That $50,000 would increase over time if our retirement projections allowed.
• No-strings-attached wedding gifts. Mary and I promised each child an undetermined amount of cash as a wedding gift. They could use it as they want, for wedding expenses, a big honeymoon, whatever. (Unfortunately, at the time weddings seemed so far away that we never decided how much.)

Would I do the same thing, now that I’m a widower?

I’m not 100% sure. That might seem cold or selfish, the thoughts of a grieving spouse – but hear me out. I’m just being practical.

First of all, a promise is a promise. All three received their early inheritance. The oldest funded the down payment of a home, the second put theirs towards student loans and our third, 19 and living at home while pursuing an undergraduate degree, says she doesn’t need the money. (Her words, not mine – subject to change!)

As for the wedding gift, my eldest is marrying in the fall. How much will it be? I don’t know yet, but if you have any ideas, let me know! No word on the other two yet, but I expect wedding bells will ring before I ever expect it.

Here comes the practical part.

As a widower – and a financial advisor – I’m now rethinking things.

Parents always want to support their children in any way possible – whether spiritually or financially. That’s just natural. Once one parent is gone, there may be the desire to bring family closer, which could manifest itself in giving your adult children money soon afterwards.

My advice? Think twice. When Mary died, my brain was in a fog. I was too overwhelmed to make anything close to a wise financial decision. At the same time, money wasn’t a priority for my kids – they just lost their mom.

Give yourself a year, minimum, before making any major financial moves. Let the fog of grief clear, so the right decisions can be made.

Okay, you’re ready. What to do?

First of all, ask yourself: Are you a Hoarder or a Cash Cow. Don’t know what I’m talking about?

A hoarder believes in tough love. Children should earn their own money and they’ll get what’s left over when I die and no sooner.

A cash cow widow or widower gives their kids money due to guilt, family pressure, or the need to control their children through money. This “generosity” can backfire, and can often make the widow or widower dependent on their kids for support.

Neither is ideal in this situation.

What you need to be is a caring – but practical – parent. Can you actually afford to help financially? If so, how, why and when?

Going by today’s market, a logical choice would be helping with their first home. But….

Their first home. And the Bank of Mom & Dad.

According to the Toronto Real Estate board, the average selling price of home in the GTA in February 2022 was $1,334,544 (up from $1,044,957 a year earlier). How many adult children have $270,000 at the ready for a 20% down payment?

Realistically, none. That’s why there’s the Bank of Mom & Dad.

An October 2021 CIBC study entitled: Gifting for a Down Payment—Perspective estimates that 70% of down payments come as gifts from parents.

But what about when it’s the Bank of Just Dad – or Just Mom?

Let’s say the average gift in the GTA is between $130-200k. If a typical widow has two kids, they need between $260 -400K of excess funds to gift toward a home purchase.

With two incomes and two sets of corporate and government pensions, the decision becomes easier. Much of that goes away when a spouse dies. That makes me far more cautious about giving money away. What if I get sick and can no longer earn? What if my health requires a support worker because I have no wife to take care of me? These are the things that are on my mind.

Don’t do anything without a financial planner.

I recommend hiring a financial planner. Run multiple retirement projections using conservative assumptions (that you’ll live to 100, future inflation vs. current rates, lower investment returns) before deciding if gifting is something you can afford, how much you should provide, and when’s the best time.

A few things to consider before gifting – first the “human side”:

• Gifts could delay your retirement plans
• Gifts might create tension among siblings
• It may create “entitlement dependence syndrome”

Now for the financial side:

Funds become the children’s property and may be subject to their creditors and lawsuits

Kids may be unable to afford the carrying costs of the home (mortgage, utilities, taxes)

Of course, there are ways to show support beyond helping with their first home. You can always:

• Contribute to your adult child’s RRSPs or TFSAs
• Start a RESP for your grandchildren’s education

I’m a Dad first, a Bank second.

Having finally put all this down on paper, I now know the biggest, best gift I can give my children. For me to stay healthy, financially independent, and engaged with life – and with my family.

They’ve already lost one parent. I’m here to provide, always – if not necessarily financially, then absolutely emotionally.

In other words, “Live well, stay rich and never retire.” Your kids’ futures depend on it.

The process of finding a financial advisor can be overwhelming. It is our job to make that process simpler and easier.

Dri Financial Group’s proprietary Wealth Navigator Process is designed with you in mind.

Its structured framework helps you make an informed decision and feel confident in our team and management practices before we get started.

We offer you a range of services from creating bespoke financial plans and providing investment advice to helping you take advantage of our investment models. If you would like more information on the Wealth Navigator Process or our team, call me any time at 416.355.6370 or email me at richard.dri@scotiawealth.com.
—

Beyond helping you manage your finances, we take pride in motivating, educating and helping you expand your financial literacy. We are here to answer any questions you have and to help you feel in control of your financial destiny.

If you are ready to dive deeper into your financial literacy journey, we have a wide range of free tools and educational resources available.

• Subscribe to our ​Never Retire Newsletter
• Contact us to ​order a complimentary e-book
• Check-out our latest ​Wealth Navigator P​odcast
• Follow me on ​LinkedIn

source https://richarddri.ca/helping-your-kids-on-your-own-its-tricky/

Losing a spouse is extraordinarily difficult but was losing a mother even worse for my children? And how do you cope, together?

My mother is heavily involved in my life – sometimes more than I might want her to be. She brings her well-earned wisdom to my romantic life, my parenting skills, she even gives financial advice to her son, the financial advisor. For free.

My mother is 88 years old. Needless to say, I’ve known her all my life. Sadly, my own children can’t say the same.

I know I’m blessed to have always had my mother at my side. Most of us might expect to lose one parent, or both, in our 50s. Not at 27, 25 and 17, which is how old my three kids were when their mom passed.

So how could I relate to their situation? I knew the pain of losing a partner, but not the pain of losing a mother.

My kids will never have my experience, but I’d like to share what I’ve seen of theirs. My children’s mother died when they were in or approaching adulthood, but it still hit them hard. Knowing how my family coped might help yours in a similar situation.

What happens when your “rock” is no longer there?

Mary was our family’s rock. For 30 years she was a stay-at-home mom, taking care of the house and kids so I could focus on my career and running my financial planning practice. When I look back, I had the easier job.

She was always, and I mean always, there for our three. When they were younger, she fed and nourished them – physically, emotionally, intellectually. As they grew older, she became a shoulder to cry on and a friend to laugh with. She went to hockey games and attended school plays, played referee in sibling rivalries, and presided over sleepovers. You name it, Mary was involved – happily so.

Family meant everything to Mary; bringing everyone together for birthdays, holidays, the annual yes-we’re-all-going-together family vacation… I wonder if those would’ve happened without her.

Yes, I’m going on and on about Mary. But only to emphasize the void not having her has created.

Mary’s illness meant she couldn’t be there as she’d always been before. The strongest person in our kids’ lives simply wasn’t strong enough. Believe me, she tried her best. Her absence was already felt before she was actually gone.

When Mary died on January 15, 2020, hope was replaced by reality. Now, our kids are as different as three beings sharing the same DNA could possibly be, but I was honestly surprised at how each approached grief in their own way.

Three children. Three very different processes.

For their own privacy I won’t name names – but they’ll know who they are. I also won’t use pronouns, I’ll go with them, they and their.

All three kids spent countless hours at Mary’s bedside in the hospital and, ultimately, at hospice. Two actually recorded these bedside conversations, knowing they’d never have the chance again.

Child A moved forward quickly, or at least seemed to. Child B struggled. Child C found it almost impossible, despite therapy.
Why so different?

It strikes me that Child A may have stuffed their grief into a neat box and closed the lid. Personally, I don’t think grief can be ignored – who knows what might trigger an emotion that might force Child A to deal with their loss. Anxiety, anger, depression, health issues… all of the bad things that accompany grief can’t simply be ignored. At least not for long.

Child B immersed themself in routine. So, grief is there, just in the back seat. More sadness might be waiting to pounce, but daily deadlines and routines come first.

And then there’s Child C, who seems to sincerely believe that forever grieving for their mom is honouring her, that being sad will make mom happy.

I have to admit, this all leaves me feeling powerless. I can barely cope with my own emotional gut punch, let alone my kids. Mary might have been able to do it if I was gone and not her, she may have been stronger and smarter than me.

But I work hard at being available to my kids and listening to them. Being the rock that was someone else’s job before.

“Moving on” vs. “Moving forward”.

Yes, there is a difference.

Leaving a job you hate, breaking up, that’s when you move on. It happened, you forget it, and say, “Next”. But my kids and I don’t want to forget Mary, so we can’t just move on.
But we do want to live and be happy. And that means moving forward. Yes, both the sad and happy of Mary will always be with us, but I’m permitting myself to go positively into the future.

How long does it take to move forward? I have no idea. I’ve read it can take six to 18 months, but that sounds terribly clinical to me and, honestly, somewhat condescending – like grief should work to a schedule. Like saying, “Get over it.”

Reality is, it takes as long as it takes. And it’s different for everyone. My kids are proof of this. Each had a difficult first year, and for two of them (and for me, too), Year 2 was harder. Now, a few months into Year 3, we’ve all passed that recommended 6-to-18 month guideline, and – while better – we still have some time to go. Yes, we’re progressing, but for each few steps forward we’ll inevitably take one back.

But it is progress.

Advice for those who have what I still do.

Losing the person who gave you life can be the most painful experience imaginable. I saw how it affected my kids; I wish I could snap my fingers and make that pain disappear, but I can’t. All I can do is ask myself, “What would Mary do?” Sometimes she actually answers me.

Ultimately, as trite and obvious as it might seem and while she’s with you, let your mother know what she means to you. Tell her how much you love and appreciate her. Do it while you can. Do it often. Do it as if she might not be here tomorrow.

I’m calling mine right now.

The process of finding a financial advisor can be overwhelming. It is our job to make that process simpler and easier.

Dri Financial Group’s proprietary Wealth Navigator Process is designed with you in mind.

Its structured framework helps you make an informed decision and feel confident in our team and management practices before we get started.

We offer you a range of services from creating bespoke financial plans and providing investment advice to helping you take advantage of our investment models. If you would like more information on the Wealth Navigator Process or our team, call me any time at 416.355.6370 or email me at richard.dri@scotiawealth.com.
—

Beyond helping you manage your finances, we take pride in motivating, educating and helping you expand your financial literacy. We are here to answer any questions you have and to help you feel in control of your financial destiny.

If you are ready to dive deeper into your financial literacy journey, we have a wide range of free tools and educational resources available.

• Subscribe to our ​Never Retire Newsletter
• Contact us to ​order a complimentary e-book
• Check-out our latest ​Wealth Navigator P​odcast
• Follow me on ​LinkedIn

source https://richarddri.ca/i-lost-a-soulmate-my-children-lost-their-mother/

Dating a divorcee, single parent or widow/widower can’t be easy. There is always baggage, albeit that most people have is safely stowed away.

But, for those brave enough to date a widow/widower, it’s doubly difficult as you’re involved with two people: your new partner and the memory of their late spouse. The latter aspect also comes with a persistent feeling of sadness.

Last week, over dinner I asked my new partner what it was like to date a widower. She set down her cutlery and said, “It’s wonderful to know that I am the reason why this man [me] is laughing, smiling and loving again after such sorrow and sadness. But equally, I know that my presence alone is not enough and there are times when he [me] needs to spend time with the memories of his first love.”

I was taken aback by her answer. She’d obviously been expecting this question and had pondered the answer for some time. It was such an expressive answer that I’ve handed over the writing reins this week. It wasn’t easy because I’m a scribbler and love to share my thoughts, knowledge and experience with everyone, but I’ve stepped outside of my comfort zone and gave my pen to my partner.

I asked her five questions related to dating a widower. Her answers are not dating advice, but her own feelings based on our time together. Our objective is to help widows/widowers break through the sadness of widowhood and help them move forward and to love again.

Up close and personal: a woman’s perspective on dating a widower

In her own words, here are her answers to the following questions:

1) Richard: “what should I call you?”

I love the word “girlfriend,” it sounds so pure and innocent, but that’s because it sounds like we’re both teenagers in high school, and alas we are not. But also, “significant other” is at the other end of the spectrum. It’s so formal and something you might write on a life insurance policy.

Id’ like to be called your partner. For me, it shows that we’re in an exclusive relationship and we’ve committed to sharing our time and love with each other. We rely on each other’s advice on life’s many thorny issues such as kids, family, career and money.

2) Richard: “So partner, I am curious to know from a women’s perspective how does being a widow compare to being a divorcee?”

I can only talk about my own experiences, but for me, there is a sharp contrast of emotions between a partner whose previous relationship ended in divorce versus a marriage that was ended by the death of a spouse/partner.

Divorce is an intentional decision to end a relationship and the emotions of anger and resentment may remain long after the divorce papers are signed. Yet, for a widow or widower, whose spouse was taken from them, the emotions of sadness, loss, pain, and love will always remain.

In my case, Mary’s pictures are a gentle reminder of your previous life. I know that you will always love Mary, and that should never change. I know that you will grieve her loss for the rest of your life.

In my opinion, this grief doesn’t mean that you can’t love again, and our relationship is proof of that. But it would be remiss of me to assume that you loving me, means you’ve stopped loving Mary, and miraculously, your grief has disappeared.

3) Richard: “how do you feel about my children?”

I’m sure that this is a sensitive subject for all couples in a blended family or those embarking on a new relationship that could eventually become a blended family. For me, Mary and yourself raised your children, who are now all adults, so I’m not in a position to start playing mom now.

As a mother, I know and understand the emotions that my kids experienced, so I can appreciate that your children are grieving for their mom no differently than you’re still grieving for Mary.

Of course, I worry that they’re forming opinions or conclusions based on the differences in my behaviour and personality versus those of their mother, and why wouldn’t they? It’s normal human behaviour. My only wish is that their opinions are fair and if there was anything that caused concern, that they’d be comfortable enough to talk to me.

Only time and grace will eventually help toward acceptance.

I also hope that your children don’t wonder if I have ill intentions for you. We read and hear so many bad stories these days that it’s entirely possible that people would think that I’m after your money. Obviously, my feelings for you are entirely the opposite.

4) Richard: “how do you feel about my friends?”

Irrespective of age or circumstance, most people are hesitant to introduce a new girlfriend or partner to their friends. It’s a natural defence mechanism to avoid being hurt. But we discussed the issue and I quickly learned that you still feel guilty about dating and you’re concerned that your friends would see us dating as a betrayal of Mary.

For people of our age, we’ve formed relationships over many years, and these relationships contain memories and experiences with other people. It’s not like any group of friends ever put a poster on a lamppost with a notice, “Group of friends has space for one more, please call the number below!” So it’s impossible for a newcomer to just fit right in.

At the beginning, I did worry that you didn’t like me. But after meeting some of your friends, I realized that they loved Mary and were also mourning her death. Not knowing Mary, I felt like an outsider and found it difficult to connect.

I hope that the feeling of being an outsider will eventually fade once your friends realize that I am not trying to replace Mary but begin a healthy and long-term relationship with you.

5) Richard: “What are the hardest parts of dating me?”

This is possibly the most difficult question to answer. I know that your underlying emotion is sadness, which may never change. So I’m constantly wary that I may be overwhelming you and scaring you away. My wariness may never change, either.

It is most definitely a fine balance between our love and happiness and the need to respect your grief for Mary, which does give me a feeling of being second best. You may love me, but I do feel like I’m in a competition, however, maybe that will change over time as well? And who knows whether you’ll ever want to remarry?

Final thoughts

Listening to my partner’s comments has helped me with my own journey along the road of widowhood, mourning and grief. I only hope that this conversation has helped you, or at least, provided some food for thought.

I often write about technical issues such as RRSPs and investments, and please don’t misunderstand, they’re critically important. But after Mary’s death, I realized that the “soft” issues in life are often neglected because they are so hard to resolve.

Yet, it’s the soft issues that drive most of our financial decisions.

These soft issues deal with our relationships, our emotional state, our hopes, dreams and desires. They affect our self esteem and our sense of being. So understanding and resolving our soft issues allows us to make better financial decisions.

Whether you’re a widow/widower or a divorcee, don’t procrastinate with the soft issues as they’ll hold you back from working on your financial decisions. We are here to help.

How can we help you through some of life’s most difficult transitions

We’re a small family at Dri Financial Group. We’ve been together for over 20-years. From years of experience, we’re able to provide the emotional support and financial expertise needed for every situation. If you have any goal in mind — big or small — that requires some financial planning, but you’re struggling with where to start, reach out to our team. We have the expertise and life experiences to help guide you to achieving your goals.

Contact us today to learn more about the options available to you. CLICK HERE.

Interested in learning more? Here are a few resources for you:

• Estate planning after a divorce
• Four lessons since becoming a widower
• Retirement starts with realistic goals
• Estate planning

The process of finding a financial advisor can be overwhelming. It is our job to make that process simpler and easier.

Dri Financial Group’s proprietary Wealth Navigator Process is designed with you in mind.

Its structured framework helps you make an informed decision and feel confident in our team and management practices before we get started.

We offer you a range of services from creating bespoke financial plans and providing investment advice to helping you take advantage of our investment models. If you would like more information on the Wealth Navigator Process or our team, call me any time at 416.355.6370 or email me at richard.dri@scotiawealth.com.
—

Beyond helping you manage your finances, we take pride in motivating, educating and helping you expand your financial literacy. We are here to answer any questions you have and to help you feel in control of your financial destiny.

If you are ready to dive deeper into your financial literacy journey, we have a wide range of free tools and educational resources available.

• Subscribe to our ​Never Retire Newsletter
• Contact us to ​order a complimentary e-book
• Check-out our latest ​Wealth Navigator P​odcast
• Follow me on ​LinkedIn

source https://richarddri.ca/the-secrets-to-what-it-is-like-to-date-a-widower/

Canadian and US Dividend Model As of February 24th

source https://richarddri.ca/canadian-and-us-dividend-model/