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money go, and how would it get there? It’s also essential to have the conversation with your executors; beneficiary’s et al. This conversation is best had while your living 😊 versus leaving your wishes to be interpreted by your heirs.
You need to update your investment strategy and allocation! Diversification has changed. We are a global economy and to truly diversify; you must include private investments. Think back to the great recession in 2008…which economy or asset class was spared? Think today with President Trump threatening tariffs and taxes? You must invest as the big pension plans do. There is a saying, “go to where the smart money goes.” These major pensions all have significant allocations to private assets, Canada Pensions Plan (CPP) 44% private assets, Ontario Municipal Employees Retirement System (OMERS) 32.5% private assets, Ontario Teachers Pension Plan (OTPP)33% private assets and the Harvard Endowment Fund 50% private assets. Private assets as an investment class only became available to Ontarians in 2016, so while they are new to Ontarians, the investments themselves have history. You need to have an advisor who is well versed in these and can help you incorporate them into your plan. The objective is to maintain returns while still reducing volatility.
Here is a peek at the Canada Pension Plan and a little bit about how they manage our investments.
Please note the exposure to Private equities, infrastructure and real estate. This number has been increasing dramatically.
CPP INVESTMENT BOARD 2019 ANNUAL REPORT
Please note the limited exposure to Canada. This is called country bias. Canada is a great country to live in but represents a small amount of global ecology. Professional money managers look outside of Canada, and so should all investors.
CPP INVESTMENT BOARD 2019 ANNUAL REPORT
Planning is critical; please find the link attached to help you have a better understanding of your plan. Any financial information entered is strictly confidential and will not be stored/shared with any third party.
https://my.razorplan.com/ca/Advisor?advId=D009ad818
Always speak to a qualified Certified Financial Planning professional about your specific situation to ensure the plan you have is right for you.