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Retirement Planning with Grant Hicks
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 Grant
Hicks, C.I.M., FCSI is a professional speaker, co-author and
a Retirement Planning Specialist A leader in
the financial industry, Grant has been helping Vancouver
Island residents plan and create their retirement lifestyles
since 1989. |
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Selecting Investments In Retirement
Last
week I came across an old article written for
retirees in selecting mutual funds. I wrote it over
20 years ago when I started in the investment
business. I wanted to help retirees develop a
format or process when they are selecting different
investment options.
Retirees are different people when it comes to
investing. They are usually looking for a way to
generate income , now or in the future and want to
look for yield.
For
all you yield chasers in retirement here are some
ideas to consider if you were looking at a potential
investment.
First, what does the investment yield, or pay and
how often, such as monthly or quarterly income?
Second, does the investment have a manager and if so
how long have they been there? Look for a manager
that has been there at least five years and over ten
years in the investment industry. This should tell
you if they are responsible for past returns and
tell you how they did in good and bad times.
Third, read the investment objectives of the
investment you are choosing. This can be found
online at the companies websites or in the companies
annual reports. It will also tell you what type of
investor it is suitable for, so you match your
investment objectives with the investment.
Fourth, does your investment option have a balanced
approach, meaning the investment balances risk and
return by holding stocks, bonds and cash, or is it
all just stocks ?
Fifth, look at the cost. If you can find a solid
investment that is too costly, would you put your
money there for long? Look at costs such as
management fee and commissions to see if you are
paying too much.
Sixth, flexibility, if you need to switch the
investment, are there other alternatives to switch
into?
Seventh, tax, does your investment generate tax
efficient income and can they shelter or defer
income from taxation and allow when you trigger the
tax, or are you just stuck with their tax decisions
every year?
Finally, returns, the best way to measure your
investment is look at year by year returns and
yields. Does your investment have a 5- 7 year track
record? This can tell you what to expect in good
times and in bad and you should ask yourself, in the
bad times would I stick in there. If the answer is
no, move on.
While there are numerous retirement investment
options and numerous criteria for selecting
different investment options, this is a short list
to help you make better decisions with your advisor.
.
, email:
web:
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