What Do Rate Cuts Mean For Your Retirement?

It's expected that the Bank of Canada will be announcing more interest rate cuts in the coming months which could impact the portfolios of many retirees. In this video I'll offer up some solutions and give you a bulletproof strategy at the end of the video that will have you ready and prepared for what's to come.


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0:00 - Intro
0:34 - GIC Rates
2:21 - Low-Risk Investing
7:35 - A Bulletproof Strategy

This presentation is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter. Every effort has been made to ensure the accuracy of its contents. Certain of the statements made may contain forward-looking statements, which involve known and unknown risk, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Returns are not guaranteed and past performance may not be repeated.
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DISCLAIMER: The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adam Bornn is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adam is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment trades.

[EvelynRose-oh]

I retired at age 53, so I am in my early 60s. Many of them resisted me because they couldn't understand the idea of not working if it wasn't necessary. I considered the phases of my life. I worked very hard to achieve what I have now, but in my last years, I owe it to myself to "stop and smell the roses." In my instance, I departed the nation after retiring and currently reside in Latin America. It made it possible for me to appreciate my new surroundings while escaping all the bad things that were going on in America. Nobody that I know of regrets retiring has yet to come to me.

[rongrant]

The GIC rate has come down with inflation, so it's still offering relatively the same gains, against inflation. (just got a 1yr. 4% GIC, latest inflation number at 1.75%) Not big gains, but keeping ahead of inflation. And very safe, you know your money will be there, and no riding out low points in stock market, which can be prolonged and painful if you do need money from your stock investments when they're down. My retirement plan is based only on my investments keeping up with inflation, and returns above that are gravy. I do have a few relatively short term (conservative) market linked GICs, that have done well (conservatively speaking...6%). For me, the market linked GIC is still a wee bit of risk, you could get theoretically get a near-zero return (they often offer a tiny min. return, regardless), but you'll never lose any of your capital. Basically, for me it comes down to: If I make extra money investing in stocks, that's nice. If I loose a chunk of money invested in stocks, it could be catastrophic and at the very least very stressful.

[anastasiaromanov]

I buy more dividend growth stocks n ETF.

[AhhhSukeSuke]

People need to have the right mindset... invest now. Retire early. I've had family member get diagnosed with leukemia, within 3 mths after retirement, pass away a year later...

And, a travel-loving colleague invest entire working career in my company.... retire early 2019-right before pass away in 2024.

All of the above saddens my heart. They worked their whole life, and never enjoyed retirement. People should save money. Have an actual plan to enjoy life---- it should not be a 65yrold carrotonastick in the sky..

[alexandrailnyckyj]

The cash wedge approach seems very sound. How is the firm that buys these corporate bonds on my behalf get renumerated?

[josepinedo]

What would you suggest about the mix for a new retired couple in this actual enviroment?
90%, 80%, 70%, 60% or 50% in stocks?

[zoeslovely]

Thanks for so much great information! A good investment manager is EVERYTHING! ❤ But i still love watching your videos. We have the bulk of our retirement with a mgr but we do each have a little bucket of 100k that we each control for fun investing.

[robertdewalt]

With my retirement plan I have used 2.0% annual return once I am in retirement and increase of income at 3.0%. This also allowed me to determine how my money I need based on income amount that desire to live by. My goal for currently saving for retirement is 5% average return.

[paulgee]

Adam, I use a High Interest Savings Accnt (ie Tangerine) that I use for my cash wedge. Currently getting 4.75 % til the end of Oct/2024. What alternative product would you recommend to try and get similar rates of return? (but dont want to use GIC)

[brucerobinson]

Seems to have missed Blue Chip Canadian Dividend etfs here. Monthly income. Low fees. Dividend growth over time. Dividends are much more stable than stock prices Can be very tax friendly. Big ommission IMO.

[psychette]

I am so glad you said the solution was cash wedge and not covered

[frankszabo]

how do you account for inflation running at 2 to 3%- would you not look at how that will effect the yields

[macdaddymgiarc]

It really is a shame that rates are this low. Money should not be "virtually free' when accessing capital. It is not fair to those who want to make money with their money. The only ones that win are the large institutions. Us little guys should be able to earn at least a few points above inflation with our GICs. Crazy government monetary interference has just yo-yo'd us all for the last 15/16 years.

[crystalemmerson]

How do you recommend finding a financial planner?

[JoeSmith-puhi]

Meanwhile S&P 500 has 15% return for last 10 years. Buckets make sense.

[SimonXinCheng]

Is cash wedge called bucket method as well?

[haukenhung]

Private equity in land development, 20-25 percent return per year. Double your money every 4-5 years! 4-5 percent is less than inflation!

[SherriMiles-fi]

I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 43 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 46 yo and have put $9, 000 in an IRA and $40, 000 in my portfolio with CFA, Kathie. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150, 000. If I can do this in a year, anyone can.

[frankflex]

this is how canadians will pay for all the new canadians comming in.

[peterandersen]

What about taking a small mortgage on a fully paid primary residence and investing it in the stock market while interest rates are very low?