Globe and Mail – Financial Facelift by Dianne Maley

“Ted and Tanya moved back to Canada from Britain in 2005 and invested their savings in the stock market “just before the collapse,” Tanya writes in an e-mail. “Unfortunately, we have lost about $350,000 in our investments since then,” she adds. Tanya is 63 and a self-employed consultant. Ted is 61 and retired from his university job because of ill health. Their income and assets are substantial, but they wonder whether they are enough to generate their after-tax retirement income goal of $100,000 a year. Roughly half of their $2.2-million in assets is in personal-use real estate, including their Vancouver condo. When it comes to investing, Ted and Tanya consider themselves knowledgeable to a degree, but “we find the choices bewildering and the financial environment a confusing and risky hall of mirrors,” Tanya writes. They have a fair amount of cash and cash equivalents, and are uncertain where to deploy the money. “We would like to earn a steady income that would enable Tanya to retire in two or three years,” Ted says. “We also would like to see our capital preserved in the process.” First on their to-do list when Tanya stops working is to travel. “We are keen to bring coherence to our financial circumstances so that we can understand and manage our financial resources,” they write. We asked Ian Black, a fee-only financial adviser and portfolio manager at Macdonald Shymko & Co. Ltd. in Vancouver, to look at Tanya and Ted’s situation.” Click here to read the rest of the article


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