It’s been a roller coaster ride for global markets this week as investors, central banks and governments try to gauge the economic impact of the Covid-19 virus. After last week’s steep equity declines, many investors were looking to central banks to stabilize markets and shield economic growth from the virus, which is nearing pandemic status.

North American markets regained significant ground Monday as central banks, including the Fed and Bank of Japan, pledged to take action. By Monday’s close, a sense of optimism had returned as the Dow jumped nearly 1,300 points, the Nasdaq surged 385 and the TSX recovered 290 points.

However, hopes for a sustained recovery dwindled Tuesday as U.S. stocks fell sharply after an emergency interest-rate cut by the Fed failed to reassure markets. Although stocks initially moved higher after the 50-basis-point cut, U.S. markets soon turned volatile, with the Dow swinging nearly 1,400 points during the day’s trading. By Tuesday’s close, the Dow had lost 786 points, the Nasdaq fell 268 and the TSX declined 130 points. As investors fled riskier assets, they flocked to U.S. Treasurys, sending the yield on the 10-year note briefly below 1%.

N.A. markets reversed course once again on Wednesday over hopes for a coordinated global response to the virus and a strong Super Tuesday performance by former Vice President Joe Biden. Meanwhile in Canada, the BoC cut its key interest rate by 50 basis points Wednesday, lowering its target rate to 1.25%–the first cut of more than 25 basis points since 2009. By Wednesday’s close, all three U.S. markets were up significantly, with the Dow leading the way with a 4.5% gain of nearly 1,200 points and the TSX up more than 350. Despite equity gains, 10-year Treasury yields dropped to 0.994% by day’s end.

Markets again plunged Thursday as the outlook for corporate earnings and economic growth darkened as Washington state and California declared a state of emergency over Covid-19. All three U.S. markets notched declines of more than 3%, while the TSX shed 1.3%. Ten-year Treasurys again fell to new lows at 0.934%. With no immediate end to the virus in sight, analysts are expecting more volatility in the weeks, or perhaps months, to come.

Read more…

source https://richarddri.ca/despite-rate-cuts-pandemic-fears-continue-to-rattle-markets/

Doug Lacombe is the founder and CEO of Communicatto, a firm that provides advocacy groups in western Canada with top of the line digital marketing services that include social media strategies, SEO consulting and content development. Doug admits that entrepreneurship wasn’t always his dream, and in fact it wasn’t until the 2008 financial crisis put him out of work that he chose this risky yet rewarding profession.

In this episode, Doug Lacombe lays out how much time and money goes into an effective digital strategy, explains how you increase your site’s ranking through smart SEO, and impresses the importance of participating in your own wealth plan as an investor.

Download the transcript here

Podcast highlights:

• Doug found working as an entrepreneur a very positive experience even in the early days, thanks in part to a strong network of professional contacts.
• What makes Communicatto stand out compared to its competitors is that it focuses on the “advocacy space”—associations, non-profits, etc.
• Working at a newspaper allowed Doug to realize the importance of deadlines and constantly turning out content.
• One of the big challenges Doug and Communicatto faced early on was having to scale up from a single-person business to managing multiple people and all of the logistics and resources that required.
• Doug sees himself taking on a less managerial role in the near future, formulating a succession plan that would allow him to work just as a consultant.
• Businesses should craft an online persona/presence around building trust so to improve their chances of word-of-mouth referrals.
• A small business can’t just build a website and sit back; they need to distribute and promote that content to draw people to the site.
• He advises young entrepreneurs to keep themselves open to a wide array of people so you can receive a variety of feedback and inspiration.
• His biggest money lesson is to not just give your financial advisor the reins and sit back, but keep yourself informed about your own investments and cash flow and overall be responsible.

Quotes:

“This has been a long-standing interest of mine and I was able to parlay that into a living.”

“I like to say I wouldn’t have jumped off the cliff myself, but since someone pushed me I might as well look for a parachute.”

“We’re usually selling messages and ideas, and not products.”

“Don’t write a cheque on social media that your website cannot cash.”

“Be good to people and they will support you in good times and bad.”

“Don’t ignore all the aspects of money management, even if it’s not your forte.”

“You don’t have to be great at everything, you just have to be good enough to know if it’s going well or not.”

Follow us on social:

Facebook
Twitter
LinkedIn

Listen to more podcasts by Richard Dri:

• Emergency and financial care with Dr. Paul Perlon
• Digital marketing and website design with Chris Crocker
• Honest Will preparation and estate planning with Nathan Bender

source https://richarddri.ca/getting-your-site-on-the-front-page-of-google-with-doug-lacombe/

Richard Dri – Insurance Advisor and Certified Financial Planner in Toronto, clients often come to me with questions about life insurance. Do they need life insurance? If so, how much? What kind of life insurance? What about life insurance for their spouse?

In some situations, clients arrive to the conversation muddled, frustrated or flat out angry. Some have met with an insurance agent who made their options clear as mud. Others have searched online and ended up overwhelmed and confused. When that happens, clients call me.

But why would a client call their Certified Financial Planner about life insurance?

I believe that I am exactly the right person to call, since I am also an Insurance Agent, which is what allows me to provide Insurance Advice and incorporate that advice into the overall financial plan.

My number one responsibility is to give advice that is in my client’s best interest. I help clients navigate through any confusion, because all that matters to me is what matters to them.

I believe that living without life insurance is not in anyone’s best interest, and should be considered during the development and implementation of any total wealth plan.

Life Insurance is designed to address financial concerns that arise upon death. It’s not a matter of if you will die; it’s a matter of when. Many of my clients have significant assets and liabilities which may create the need for additional liquidity upon death, making insurance a conversation worth having. Engaging someone with my background and experience will provide you with different options to consider, and will help you make an informed decision regarding what option works best for you and your families.

How do you know if you need life insurance?

When a client comes to see me about life insurance, my first step is to help them think through some basic facts about life. (I’ve learned from experience that unless you work in financial services or a related field, you may not think about this stuff on a full-time basis!)

Usually, I start by reminding them that we all die. Sounds obvious, but often most people haven’t really thought much about it.

From there, I remind them that people can die before reaching old age. (This is a topic I can speak to with some authority. I recently lost my wife to cancer. She was in her late 50s. I know firsthand that early death isn’t something that only happens to “other people.”)

After that, I bring things into perspective by asking, “What would happen if you got hit by a bus today?” That question tends to make the implications of not having life insurance pretty clear in a hurry.

The risks of not having enough insurance

I often help clients think about the risks of being underinsured by telling them a story about my parents.

When I was 15 and my younger brother was 9, we sat at the kitchen table in our home with our parents and a charming, detail-oriented Insurance Agent.

My parents knew nothing about life insurance, other than whatever had prompted them to engage the agent in the first place.

At the time, my dad worked for the retail store Eaton’s in its shipping department and my mom worked in the deli at a local Steinberg’s grocery store.

My parents had no clue how much risk they were living with by not having life insurance.

If my father had died prematurely, my mother would not have earned enough on a monthly basis to cover the mortgage, let alone other expenses. Dad’s situation was marginally, though not significantly, better. If mom died, he would not have been able to cover our monthly expenses.

His death would have left her destitute and forced to sell our home. Her death would have left him needing to take on a part-time job to cover her share of the monthly income.

They were a perfect couple for life insurance.

Sitting at the kitchen table, we listened to the nice insurance man lay out the risks my parents faced, similar to how I help clients think why insurance matters.

I can still feel the chill that went through my parents as the insurance agent explained the financial implications of a premature death.

My parents were already living in ongoing dread of a major expense that would throw them into financial difficulty. They did not have savings. They did not have family or friends who could help them out. They had no safety net.

So when the insurance agent described what life would be like if one of them died, it hit home for them. In that sense, he did his job. My parents were now clear that they needed life insurance.

But how much and what kind? That’s where things went sideways.

The insurance agent recommended that my parents purchase a permanent life insurance policy with a $20,000 death benefit on the life of my father. They also recommended that my parents not bother with life insurance for my mother.

Not knowing any better, my parents took the recommendation, filled out the application, and were eventually approved.

It was a horrible mistake.

The $20,000 permanent life policy on my dad’s life would have been entirely insufficient to cover the cash flow shortfall mom would have experienced if dad died. And if mom had died without an insurance policy, dad would have had no safety net to help him bridge his cash flow shortfall.

Fortunately, my parents have lived long enough to be reading this blog right now. They were very lucky. The policy was too expensive and insufficient for their needs.

I don’t want anyone to face a similar risk.

Considerations when buying life insurance

Let me share what I have learned about life insurance during the course of my career.

Here is the guiding principle I offer all clients when they ask, “How should I approach buying life insurance?”

First determine how much insurance is required if you or your spouse were to pass away un-expectantly by completing an Insurance needs analysis. Part of the analysis is determining for how long that level of insurance is required. Is it just required for a set time period? Or is this insurance coverage required for life?

If an individual has limited cash flow, and the amount of insurance required in the event of death is substantial, then the best option may be to buy the cheapest term life insurance policy they can find from a reputable insurance company. With that said, there are many benefits and circumstances where purchasing a permanent insurance policy makes more sense, and is used frequently by many affluent Canadians to enhance their total wealth strategy. That being said, today we will be focusing on term insurance, which is designed to cover off temporary liabilities, like a mortgage, in the event of a premature death.

1. Buy term life insurance

Term insurance is the simplest and most affordable form of life insurance. It pays out a death benefit to the named beneficiaries if the life insured dies within a specified timeframe. Premiums are guaranteed to increase overtime at pre-determined intervals based on the term selected, and the policy generally terminates on a pre-determined date. That being said, most term policies allow the coverage to be converted to permanent insurance without having to requalify medically, however this option generally expires at a certain age and is specific to each contract.

Term insurance has become a commodity. That means it is very competitively priced. It is also simple to understand.

2. Selecting the Right Term

It is not as uncommon as you might think for people as young as 25 or 30 to develop a “pre-existing condition”, which could impact their future insurability. As a result, you should consider selecting a term that is the same duration as the liability. Example, if you have 20 year mortgage, you may want to consider a Term 20 Life Insurance Policy. This guarantees that premiums will not increase for 20 years.

It is important to note that once the prespecified term is reached the term policies will automatically increase at a much higher premium.

3. Buy A LOT of insurance

Term insurance is very affordable when compared to permanent Insurance. So, if you are deciding between $1 million to $1.25 million of term insurance, my general recommendation is to consider going with the higher amount.

I think of it this way.

When I purchased life insurance for myself many years ago, I wanted to be sure my family could maintain the same lifestyle we enjoyed during my lifetime.

To determine how much to purchase, I completed an insurance needs analysis on my family. This analysis took into account the mortgage on the house, providing an income for my spouse Mary, and ensuring funding would be available for my children’s education. This coverage amount would have been enough for my wife Mary to continue to stay home and care for the children while also having what she needed to live comfortably in retirement.

If anyone is interested in determine what their coverage needs are, I highly recommend meeting with a professional like myself to complete a needs analysis that specifically addresses your family’s needs.

4. Buy from a reputable company

Through our insurance entity, Scotia Wealth Insurance Services Inc. We are contracted to work with some of the leading and most reputable insurance companies in Canada. While going through the purchasing experience we will survey the market to get you and your family the very best policy available to meet your needs.

5. Qualifying for insurance – The underwriting process

You must qualify medically for insurance. As a result, you will need to complete an application, and in most cases complete a medical exam. Although this can seem inconvenient and intrusive, it is a necessary step. In some situations the insurer may consider you a higher risk based on their findings during underwriting, which could result in them decline to offer coverage, or may result in them offering coverage at a higher premium than expected, to account for the additional risk.

The medical exam is also relatively straightforward. It usually involves blood, urine samples, and assessing your vital signs. The insurer may also request an attending physician statement from your medical practitioner. More information and tests may be required depending on age of insured, insureds life style and coverage amount being applied for.

If you would like to explore your insurance needs give me a call. My team can help you work through your options and quantify the decisions you need to make. Also, if you own older policies, we can assess each policy to ensure they are still meeting your current insurance needs.

Did this article resonate with you? What did I miss? Send me a note and let’s start the conversation.

The process of finding an Advisor can be overwhelming. Our process is designed with you in mind. Its structured framework helps you make an informed decision about engaging an appropriate advisor.

Get started here. 

Call me if you in want to map out how you can Never Retire. You can also subscribe to our Never Retire Newsletter, contact us to order a complimentary book, register for one of our events, and call us to meet with a Certified Financial Planner. We offer you a range of services from a financial plan to investment advice or helping you take advantage of our investment models. Call me at 416-355-6370 or email me at richard.dri@scotiawealth.com.

source https://richarddri.ca/wondering-about-buying-life-insurance-here-are-some-things-to-consider/

If you are like me, you find the daily onslaught of news about Coronavirus worrisome. It’s natural to wonder how the spread of the virus may impact you and your family.

For investors, these concerns come with additional questions about the impact on investment portfolios.

Obviously, I’m not a medical expert. But based on all available information, it now seems reasonable to assume that one or more of the following may occur:

• Canada may experience “clusters” of the virus (like those in Italy and South Korea).
• Quarantines and travel restrictions may be put in place in Canada and the US as governments try to contain the spread of the virus.
• Individual Canadians and Americans may restrict (or be restricted) in their day-to-day activities, such as shopping, dining out, travelling and going to work.

Given the above scenarios – some of which are already happening in other countries – there are also potential economic impacts to consider:

• There may be additional declines in the markets and stock prices.
• Depending on how quickly the virus is contained, there is the potential for a slow down and even a recession in the North American economy.

If you have been following my blog or reading my books, you know that this is exactly the sort of situation I often discuss. In the face of possible – or actual – market volatility, it is critical to maintain your investment discipline.

When I talk about being strategic, I mean making evidence-based decisions and avoiding the detrimental impact of investment decisions based on emotion.

I outline this thinking in my book The Introduction to the Investment Mindset: Minimizing Emotions to Maximize Returns. (If you haven’t read it, you can get a free copy here. It takes less than an hour to read.)

The book illustrates how unreliable our impulses can be during stressful times. It explains that instead of relying on your “gut,” you should rely on processes designed to optimize decision accuracy.

In particular, you want an investment strategy and investment models that are based on historical evidence about market success and guided by relevant information so you can maximize investment returns.

That’s what you signed up for when you joined Dri Financial Group. And that’s how you will stay rich.

How do markets perform when there is a viral outbreak?

I’m a big believer in getting the facts. So let’s ask ourselves, “Is there a precedent for how an outbreak impacts markets?”

The answer is “yes.” We know how the markets reacted during the Avian flu, SARS, H1N1, and Ebola.

Scotia Wealth Management’s February 25th 2020 Market Update shared insights about S&P 500 Index price performance following virus outbreaks:

• Subsequent to the announcement of the first COVID-19 case, the performance of the S&P 500 has closely mimicked a trajectory that is consistent with other viral outbreaks.
• Epidemic-related volatility has historically been short lived.

Our advice about what to do

The best approach for investors at this time is to stay the course, believe in the strategy, and keep your composure and discipline.

To that end, here are seven principles of the Dri Financial Group that you have been following and will, I hope, continue to embrace:

1. Philosophically, we believe that global economic conditions will continually improve (although not in a straight upward line). Investing in high quality companies allows you the opportunity to benefit from that progress.
2. We take a long-term view of investing and encourage you to follow your Investment Policy Statement.
3. Our asset allocation decisions for you reflect your age, risk profile and time frame.
4. Three to five years of your annual cash flow requirements (RRIF payments) are in guaranteed investments such as government bonds and GICs. This ensures that lifestyle expenses are funded by GICs in the event stocks need some time to recover.
5. We invest approximately 10-20% of our portfolios in a tactical model which transfers funds into the market during positive trends and out during negative trends.
6. Our models minimize the impact of volatility because they are historically back tested. (You can review the historical performance of our models here.)
7. Where possible, we institute a Dividend Reinvestment Plan (DRIP) which directs cash dividends to the purchase additional shares of the issuing company. (One inherent benefit of this process is that it involves buying more shares when prices are lower and buying fewer shares when prices are higher, which is a built-in buy low, sell high approach.)

What’s the bottom line? You made the right decisions long before the virus broke

I know this is a stressful time. My family and I are feeling it as well. Even just thinking about all the families that have been impacted around the world is troubling.

And I completely understand that you are worried about your investments. That’s natural.

You don’t need to be. When you joined our group, you committed to a long-term, evidence-based strategy designed to protect you at times like this.

All you need to do is let the process work.

That said, I’m happy to talk any time if you have question or just want to understand the situation better.

Feel free to call our office to book an appointment or The Dri Financial Group online appointment calendar.

I wish you health and patience as we endure another life event.

Did this article resonate with you? What did I miss? Send me a note and let’s start the conversation.

The process of finding a financial planner can be overwhelming. Our proprietary financial planning process is designed with you in mind. Its simple framework helps you make an informed decision about hiring the appropriate advisor commission free financial planner in Ontario.

Get started here. 

Call me if you in want to map out how you can Never Retire. You can also subscribe to our Live Well, Stay Rich, Never Retire newsletter, contact us to order a complimentary book, register for one of our events, and call us to meet with a Certified Financial Planner. We offer you a range of services from a financial plan to investment advice or helping you take advantage of our investment models. Call me at 416-355-6370 or email me at richard.dri@scotiawealth.com.

source https://richarddri.ca/how-investors-should-navigate-the-coronavirus-situation/

Sara Forbes is the founder and CEO of KaroTech Consulting, a firm that allows smaller businesses to outsource IT services if their budgets are unable to afford these resources full-time. KaroTech’s services include integrating and customizing Salesforce, CRM training, and analytics. Sara’s belief that IT training should be not only comprehensive but personal as well prompted her to launch KaroTech.

In this episode, Sara Forbes discusses why a VP she worked under had a significant influence on her career, breaks down when you should put your business before yourself (and vice versa), and explains why endurance is a vital trait for entrepreneurs to have.

Download the transcript here

Podcast highlights:

• Sara changed her major in university to finance because she realized that regardless of which industry she ended up working in, financial skills would always serve her well.
• The vice president of the company Sara worked for immediately after graduating from university was a major influence on her, particularly for how he was able to inspire trust, respect and commitment in his team.
• At this point, Sara is looking to move away from handling consulting herself and focus instead on running the business.
• KaroTech has been turning a profit every year since it launched, though Sara has had to adjust her own salary to ensure they stay in the black.
• The biggest challenges Sara faces are the difficulty of planning consulting work for the future, as well as this being her first time she’s managed anyone.
• In the next five years, Sara wants to increase the size of her team and bring more support for other Salesforce tech.
• She advises young entrepreneurs to have a lot of endurance so they can weather the ups and downs of running a small business in its early days.
• One of the most important lessons Sara has learned is that you can’t effectively run a business with poor cash flow. She’s even held off on paying herself if it meant maintaining a steady cash flow.

Quotes:

“Salesforce is a great way to provide visibility into what their salespeople are doing, who they’re talking to and what deals are coming through.”

“I like the consulting work but I have realized I really like running the business better.”

“I realized this is where for me being a jack of all trades was great because I can do sort of everything to a reasonable level.”

“Cash flow is such a huge thing when you’re running a business and you have employees, because you have to make sure your employees get paid.”

“Unless you are coming in with a million dollars to get you started, it’s going to be a long haul.”

“If you’re going into entrepreneurship for the glamour, you are not choosing it for the right reasons.”

Follow us on social:

Facebook
Twitter
LinkedIn

Listen to more podcasts by Richard Dri:

• Emergency and financial care with Dr. Paul Perlon
• Digital marketing and website design with Chris Crocker
• Honest Will preparation and estate planning with Nathan Bender

source https://richarddri.ca/keeping-cash-flow-consistent-with-sara-forbes/

Spread of the novel coronavirus outside of China raises risks to the global economy

• Global equity and commodity markets sold-off sharply yesterday on reports of new COVID-19 cases.
• The outbreak has already curtailed economic activity in China and threatens to influence other closely tied economies as the virus spreads.
• A epidemic-induced slowdown in China’s economy, ~16% of global GDP, could have a more meaningful and lingering impact than the SARS outbreak in 2003, when China represented ~4% of global output.
• While COVID-19 could become a pandemic that triggers a global recession, evidence and history suggests that the virus will have a transitory impact on the economy. Any deceleration in growth will likely dissipate as the outbreak is contained, resulting an extension of the business cycle beyond 2H20 amidst accommodative monetary and fiscal policy.

Read more…

source https://richarddri.ca/market-update-coronavirus-roils-risk-sentiment/

As I have often written about in this space, I view my role as something more than just helping clients with financial planning and investment management.

I believe that by achieving financial independence, a person can live their best life and become their best self. This view fuels me in my mission to help Canadians learn to apply simple techniques that put their progress toward financial freedom on autopilot.

This blog is one way that I pursue this mission. I also do so through my Podcasts, my books and the client events that my team and I host. We also support our clients, readers and listeners by continually adapting based on feedback to meet their needs in new and interesting ways. In that spirit, we have made some adjustments to how we share content with you.

The first change is that I am rebranding my blog to serve you better. Beginning next week, my weekly email blog will have the same name as the evidence-driven philosophy that guides my work: Live Well, Stay Rich and Never Retire.

This change is in line with the blog’s goal of providing business owners with insights and lessons that enable them to make the most of their lives while continuing to pursue their passion for running their business.

To further enrich your reading experience, I will now begin each blog with a profile of a public figure who is past the age of 65, remains active in their field and is, by all evidence, thriving. I want to offer a steady reminder of what is possible – at any age. I will also feature various public figures who have slowly withdrawn into a quieter life, and have done so on their own terms, which is one of the opportunities provided by the Live Well, Stay Rich, Never Retire philosophy.

Take Queen Elizabeth II¹ as an example. She was born April 21st, 1926, which makes her 93 years of age. She has been the Queen of the United Kingdom and the Commonwealth since February 6th, 1952. She remains perhaps the most famous woman in the world and is a symbol of inspiration, strength and duty to millions of citizens and followers.

Despite her age, the Queen remains head of the royal family. She fulfills a range of royal duties, including hosting heads of state, taking diplomatic trips, opening new sessions of Parliament, presenting citizens with awards, and meeting with the Prime Minister. She doesn’t seem to be slowing down.

Along with the above changes to my blog, I am also adjusting its timing.

Instead of arriving on Tuesdays, the articles will now appear in your inbox at 4:00 pm on Friday afternoon. My hope is that this timing will give readers an opportunity to quickly scan the content on Friday and then settle in for a more leisurely read during some downtime on the weekend. I’m also hoping this shift will give readers more of an opportunity to comment on the content.

I also wanted to let you know that The Wealth Navigator Podcast will be moving to a new time slot. New episodes will now be posted at 4pm on Tuesdays.

With those updates out of the way, allow me to give you a quick refresher on the Live Well, Stay Rich, Never Retire philosophy.

Live Well

As a certified financial planner, I have spent 25+ years helping my clients navigate the inter-connectivity of money and life. Though some people view accumulating wealth as a goal in and of itself, I don’t share that perspective.

I believe that the ultimate objective for every person is to live their best life. Through firsthand experience across decades, working with clients and travelling my own winding road, I have learned that financial independence is an important requirement for living your best life and being your best self.

When you achieve financial freedom, you are able to become the best spouse, parent, friend, colleague and person you can be.

To Live Well, I believe you must follow three guidelines:

1. Live deliberately. Do not simply “go with the flow.” Decide on your own route and assume full responsibility for the outcomes of your choices.
2. Identify and prioritize your goals. Take time to articulate your personal goals in writing. You can then move slowly, carefully and deliberately toward your dream life.
3. Decide on a plan to achieve those goals. Having goals without crafting a plan is like desiring a trip to a special city but failing to follow the steps to get there. You end up drifting along without a particular sense of purpose and your progress is limited as a result.

Stay Rich

As a wealth advisor in Toronto, I have asked numerous clients and friends to share their definition of what constitutes being “rich.” Based on this research, I discovered that there were as many definitions as people who were asked.

What does that tell you us? Your definition of rich is yours and yours alone.

Success – in your financial planning, investing and living – relies on you being true to your own definition of rich, no matter how much your friends, family or, most of all, the media seem intent on convincing you their definition is correct. If building wealth for its own sake is your thing, then by all means go after it. But if you see wealth as having a broader purpose, my Stay Rich philosophy may be a fit for you.

From my perspective, being rich is a means to an end. I believe it is a way to achieve the things in life that make you truly rich, like security, comfort, freedom, friendships and interesting experiences.

My view is that you shouldn’t strive to earn, save and invest just build you bank account. I believe that you should do so to Live Well.

To Stay Rich, I believe you must follow three guidelines:

1. Set a target for financial independence. My personal goal is to build an investment portfolio that generates enough annual income from dividends (and incoming rental income) to cover my family’s annual expenses.
2. Organize your earning and saving to ensure you reach your number. Slowly and steadily save enough each month and then learn to invest the savings in profitable long-term investments.
3. Make a plan. Develop a comprehensive financial plan, consistently comparing actual results with projections, and make adjustments as necessary when life changes.

Never Retire

I find the notion that a person should only work between the ages of 25 and 65 and then retire to enjoy their “Golden Years” insulting. The idea that a 65-year-old is ready to be put out to pasture makes no sense to me. I simply do not accept the notion, especially for business owners like me who are so passionate about running the company they built.

I believe that once you find your passion, you should figure out a way to keep doing it as long as you want to rather than be looking for a way to get out of it as soon as possible.

A simple truth about most business owners is that they love running their company.

Far too often, I have seen clients filled with dread at the idea of stepping back or, worse yet, making the decision to sell or transition their business to their children, only to end up drifting aimlessly through retirement, haunted by a lack of purpose.

As a commission-free wealth advisor in Toronto, I believe that every business owner should adopt the Never Retire philosophy so they can control the circumstances of their later years and be as involved in their business as they see fit.

To Never Retire, I believe you must follow three guidelines:

1. Determine your unique abilities. Every business owner has passion and the skills for certain roles, such as new business development. There are also aspects of running the company they resent or lack the skill and passion to fully engage with. These might include managing human resources or overseeing the operational elements of the business. When you reach a stage in your career when you are thinking about how you want to live and work, focus on sticking to the tasks for which you have a Unique Ability.
2. Accept your weak areas. As you focus on what you love to do and are good at, it’s also important to accept that there are areas of your company you aren’t well suited to oversee. Often, business owners find it hard to admit they aren’t good at certain tasks, particularly if they think they “should” be doing them. If you can be honest with yourself about your passion and skill, you can accept what you aren’t particularly strong at doing.
3. Find team members with the unique abilities you lack. Retiring “in” your business relies on finding team members whose Unique Abilities complement your own. When you can arrange your team in this way – you doing your thing and other people doing theirs – the business thrives, people enjoy their work and, most of all, you are in a position to retire in your business and live your best life.

That’s it.

Tune in to my newly branded blog on Friday afternoons and let me know how the tips and insights I offer are helping you to Live Well, Stay Rich and Never Retire.

Did this article resonate with you? What did I miss? Send me a note and let’s start the conversation.

The process of finding a financial planner can be overwhelming. Our proprietary financial planning process is designed with you in mind. Its simple framework helps you make an informed decision about hiring the appropriate advisor.

Call me if you want to map out how you can Never Retire. You can also subscribe to our Never Retire newsletter, contact us to Order a complimentary book, register for one of our events, and call us to meet with a Certified Financial Planner. We offer you a range of services from a wealth plan to investment advice or help you take advantage of our investment models. Call me at 416-355-6370 or email me at richard.dri@scotiawealth.com.

¹https://en.wikipedia.org/wiki/Elizabeth_II

source https://richarddri.ca/live-well-stay-rich-never-retire/

As I have often written about in this space, I view my role as something more than just helping clients with financial planning and investment management.

I believe that by achieving financial independence, a person can live their best life and become their best self. This view fuels me in my mission to help Canadians learn to apply simple techniques that put their progress toward financial freedom on autopilot.

This blog is one way that I pursue this mission. I also do so through my Podcasts, my books and the client events that my team and I host. We also support our clients, readers and listeners by continually adapting based on feedback to meet their needs in new and interesting ways. In that spirit, we have made some adjustments to how we share content with you.

The first change is that I am rebranding my blog to serve you better. Beginning next week, my weekly email blog will have the same name as the evidence-driven philosophy that guides my work: Live Well, Stay Rich and Never Retire.

This change is in line with the blog’s goal of providing business owners with insights and lessons that enable them to make the most of their lives while continuing to pursue their passion for running their business.

To further enrich your reading experience, I will now begin each blog with a profile of a public figure who is past the age of 65, remains active in their field and is, by all evidence, thriving. I want to offer a steady reminder of what is possible – at any age. I will also feature various public figures who have slowly withdrawn into a quieter life, and have done so on their own terms, which is one of the opportunities provided by the Live Well, Stay Rich, Never Retire philosophy.

Take Queen Elizabeth II¹ as an example. She was born April 21st, 1926, which makes her 93 years of age. She has been the Queen of the United Kingdom and the Commonwealth since February 6th, 1952. She remains perhaps the most famous woman in the world and is a symbol of inspiration, strength and duty to millions of citizens and followers.

Despite her age, the Queen remains head of the royal family. She fulfills a range of royal duties, including hosting heads of state, taking diplomatic trips, opening new sessions of Parliament, presenting citizens with awards, and meeting with the Prime Minister. She doesn’t seem to be slowing down.

Along with the above changes to my blog, I am also adjusting its timing.

Instead of arriving on Tuesdays, the articles will now appear in your inbox at 4:00 pm on Friday afternoon. My hope is that this timing will give readers an opportunity to quickly scan the content on Friday and then settle in for a more leisurely read during some downtime on the weekend. I’m also hoping this shift will give readers more of an opportunity to comment on the content.

I also wanted to let you know that The Wealth Navigator Podcast will be moving to a new time slot. New episodes will now be posted at 4pm on Tuesdays.

With those updates out of the way, allow me to give you a quick refresher on the Live Well, Stay Rich, Never Retire philosophy.

Live Well

As a certified financial planner, I have spent 25+ years helping my clients navigate the inter-connectivity of money and life. Though some people view accumulating wealth as a goal in and of itself, I don’t share that perspective.

I believe that the ultimate objective for every person is to live their best life. Through firsthand experience across decades, working with clients and travelling my own winding road, I have learned that financial independence is an important requirement for living your best life and being your best self.

When you achieve financial freedom, you are able to become the best spouse, parent, friend, colleague and person you can be.

To Live Well, I believe you must follow three guidelines:

1. Live deliberately. Do not simply “go with the flow.” Decide on your own route and assume full responsibility for the outcomes of your choices.
2. Identify and prioritize your goals. Take time to articulate your personal goals in writing. You can then move slowly, carefully and deliberately toward your dream life.
3. Decide on a plan to achieve those goals. Having goals without crafting a plan is like desiring a trip to a special city but failing to follow the steps to get there. You end up drifting along without a particular sense of purpose and your progress is limited as a result.

Stay Rich

As a wealth advisor in Toronto, I have asked numerous clients and friends to share their definition of what constitutes being “rich.” Based on this research, I discovered that there were as many definitions as people who were asked.

What does that tell you us? Your definition of rich is yours and yours alone.

Success – in your financial planning, investing and living – relies on you being true to your own definition of rich, no matter how much your friends, family or, most of all, the media seem intent on convincing you their definition is correct. If building wealth for its own sake is your thing, then by all means go after it. But if you see wealth as having a broader purpose, my Stay Rich philosophy may be a fit for you.

From my perspective, being rich is a means to an end. I believe it is a way to achieve the things in life that make you truly rich, like security, comfort, freedom, friendships and interesting experiences.

My view is that you shouldn’t strive to earn, save and invest just build you bank account. I believe that you should do so to Live Well.

To Stay Rich, I believe you must follow three guidelines:

1. Set a target for financial independence. My personal goal is to build an investment portfolio that generates enough annual income from dividends (and incoming rental income) to cover my family’s annual expenses.
2. Organize your earning and saving to ensure you reach your number. Slowly and steadily save enough each month and then learn to invest the savings in profitable long-term investments.
3. Make a plan. Develop a comprehensive financial plan, consistently comparing actual results with projections, and make adjustments as necessary when life changes.

Never Retire

I find the notion that a person should only work between the ages of 25 and 65 and then retire to enjoy their “Golden Years” insulting. The idea that a 65-year-old is ready to be put out to pasture makes no sense to me. I simply do not accept the notion, especially for business owners like me who are so passionate about running the company they built.

I believe that once you find your passion, you should figure out a way to keep doing it as long as you want to rather than be looking for a way to get out of it as soon as possible.

A simple truth about most business owners is that they love running their company.

Far too often, I have seen clients filled with dread at the idea of stepping back or, worse yet, making the decision to sell or transition their business to their children, only to end up drifting aimlessly through retirement, haunted by a lack of purpose.

As a commission-free wealth advisor in Toronto, I believe that every business owner should adopt the Never Retire philosophy so they can control the circumstances of their later years and be as involved in their business as they see fit.

To Never Retire, I believe you must follow three guidelines:

1. Determine your unique abilities. Every business owner has passion and the skills for certain roles, such as new business development. There are also aspects of running the company they resent or lack the skill and passion to fully engage with. These might include managing human resources or overseeing the operational elements of the business. When you reach a stage in your career when you are thinking about how you want to live and work, focus on sticking to the tasks for which you have a Unique Ability.
2. Accept your weak areas. As you focus on what you love to do and are good at, it’s also important to accept that there are areas of your company you aren’t well suited to oversee. Often, business owners find it hard to admit they aren’t good at certain tasks, particularly if they think they “should” be doing them. If you can be honest with yourself about your passion and skill, you can accept what you aren’t particularly strong at doing.
3. Find team members with the unique abilities you lack. Retiring “in” your business relies on finding team members whose Unique Abilities complement your own. When you can arrange your team in this way – you doing your thing and other people doing theirs – the business thrives, people enjoy their work and, most of all, you are in a position to retire in your business and live your best life.

That’s it.

Tune in to my newly branded blog on Friday afternoons and let me know how the tips and insights I offer are helping you to Live Well, Stay Rich and Never Retire.

Did this article resonate with you? What did I miss? Send me a note and let’s start the conversation.

The process of finding a financial planner can be overwhelming. Our proprietary financial planning process is designed with you in mind. Its simple framework helps you make an informed decision about hiring the appropriate advisor.

Call me if you want to map out how you can Never Retire. You can also subscribe to our Never Retire newsletter, contact us to Order a complimentary book, register for one of our events, and call us to meet with a Certified Financial Planner. We offer you a range of services from a wealth plan to investment advice or help you take advantage of our investment models. Call me at 416-355-6370 or email me at richard.dri@scotiawealth.com.

¹https://en.wikipedia.org/wiki/Elizabeth_II

source https://richarddri.ca/__trashed-3/

Investors remain focused on the spread of the coronavirus and China’s efforts to contain the disease–and its effect on global supply chains. While U.S. and Canadian markets were closed Monday, news about the virus continued to move markets abroad. On Tuesday global equity markets slid after Apple Inc. said it was unlikely to meet its sales guidance because of the outbreak in China, underscoring the epidemic’s threat to global growth and corporate profits. Gold climbed more than 1% in the day’s trading as investors flocked to safe-haven assets. In Canada, data released Tuesday showed factory sales decreased for the fourth straight month in December, perhaps paving the way for eventual easing from the Bank of Canada.

Optimism took hold of markets on Wednesday after China reported another decline in new coronavirus cases–and vowed its support for additional stimulus to counter a slowdown in growth. Adding to the upbeat mood was the Fed’s optimistic assessment of the U.S. economy offered in the minutes from its January meeting. In response, the greenback climbed to almost a three-year high, while the safe-haven yen sank to a nine-month low. In Canada, the annual pace of inflation jumped to 2.4% last month, its fastest rate in almost two years, largely fueled by rising gas prices. By Wednesday’s close, the Dow had gained 116 points, the Nasdaq was up 84, while the TSX jumped 67.

However, mounting gloom over the epidemic and its effects once again took hold of markets on Thursday. Although Q4 earnings for companies have generally exceeded or met expectations, forecasts for 2020 are being negatively impacted by the ongoing outbreak. Gold and bond prices rose as investors once again flocked to safe-haven assets. In the U.S., Labor Department data released Thursday showed the number of Americans applying for first-time unemployment benefits rose slightly last week but remains at an historically low level. By Thursday’s close, the Dow was off 128 points, paring declines of more than 300 points in earlier trading.

Read more…

source https://richarddri.ca/coronavirus-concerns-keeping-markets-on-edge/

Wendy Giuffre is the founder and CEO of Wendy Ellen Inc., a human resources firm specializing in personalized consultation for smaller businesses. An “outsourced resource,” Wendy Ellen uses a team of contracted consultants to work with companies on any number of human resources issues from hiring to harassment complaints to layoffs.

In this episode, Wendy Giuffre breaks down how she and her firm address certain cases and help to resolve conflicts, lays out the wide range of skills you need to be successful at business and discusses how she hopes to grow the firm in the next few years.

Download your transcript here

Podcast highlights:

• Wendy Ellen doesn’t compete with larger HR firms, instead offering lower rates and a more personal interaction style.
• The key to effective conflict resolution is getting people on opposite sides of the table to see each other as human beings and have an honest conversation
• Wendy considers the Wendy Ellen sign she has on the back of her car the cheapest and best advertising she’s ever down.
• To Wendy, the best reward is when old clients return to work with them unsolicited.
• What’s surprised Wendy the most is that in order to run a successful business, you need to be efficient at more than just your core business but taxes, budgeting and sales as well.
• Wendy plans to grow her firm through strategic partnerships and by relaunching the company’s online presence with an emphasis on subscriptions.
• She currently manages her own finances, focusing on “aggressive savings.”
• Her advice for younger entrepreneurs is to have a solid business plan, stay on top of debt, and be prepared to work very long hours.

Quotes:

“We really believe in the art of conversation.”

“You always have to have enough consultants for the work and you always have to have enough work for the consultants.”

“The best reward is when you get your old clients coming back unsolicited.”

“You have to be so much more than just what your expertise of your business is.”

“I can’t see myself ever just giving it up. I enjoy it.”

“I have 160 bosses: all my clients.”

“Never count on anything before you have it in your bank.”

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Listen to more podcasts by Richard Dri:

• Emergency and financial care with Dr. Paul Perlon
• Digital marketing and website design with Chris Crocker
• Honest Will preparation and estate planning with Nathan Bender

source https://richarddri.ca/outsourcing-human-resources-with-wendy-giuffre/