While it may be tempting to start planning for your retirement alone, creating a financial strategy capable of maximizing your nest egg is no simple task. In fact, without the proper investment experience, you open the door to potentially taking a wrong turn that can ultimately impact the size of your retirement savings.
To assist you on the journey towards a fruitful retirement, the Financial Post recently spoke with Sightline Wealth Management to learn about some of the most common retirement planning mistakes and the steps you can take to avoid them.
One mistake, mentioned by Sightline Wealth Management Senior Vice President and Investment Advisor Paul de Sousa, is avoiding any risk in your portfolio. While many investors are constantly striving to safeguard their assets at any cost, often selecting the safest investments only leads to missing out on significant returns in the future. Fortunately, there is a way to steer clear of the problem.
“Understand that guaranteeing the preservation of your capital may earn an investment return so small that it won’t be enough to see you through retirement,” de Sousa warns. If you reallocate and diversify your investments with some level of risk, the end result may be greater returns and a more resilient portfolio that can better weather market volatility and economic storms.
Some other retirement savings wrong turns mentioned by Sightline in the article include:
- Relying on the advice of family and friends to create a retirement investment strategy
- A preoccupation with income rather than cash flow
- Putting off the creation of an estate plan
- Assembling the full force of your professional team too late in the game
To learn about the best practices to steer clear of these common problems, read the entire article here.
Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors primarily through fee-based accounts.
Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc.
(“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds.
Sightline Wealth Management (“Sightline”) makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Sightline assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Sightline is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not indicative of future performance. Please speak to your Advisor regarding the suitability of information provided in this article for you. The opinions, estimates, projections and/or recommendations contained in this document are those of the author as of the date hereof.