Do bonds still make sense for retirement savings? + MORE Apr 27th

Not sure how to make a retirement plan? Read on…

Latest News

The 60/40 portfolio: A phoenix or a dud for retirees? + MORE Oct 26th

For Canadian investors, one of the biggest shocks of 2022 is how poorly balanced mutual funds, exchange-traded funds (ETFs) and portfolios have performed. Investors with funds based on the classic pension fund asset allocation of 60% in stocks and 40% in bonds have been bewildered to experience loss.... More »

Making sense of the markets this week: December 24, 2023 Dec 28th

Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors. It’s a tough job, but… It’s really hard to predict what the investment world will do. It’s even harder to predic.... More »

How much of a pension does a survivor receive? + MORE Jun 27th

Ask MoneySense When my husband dies, do I still receive his or a portion of his pension, and if so, how do I find out what it is? –Donna Pensions can make up a significant portion of a someone’s income in retirement. As a result, it is important to understand what happens if a spouse—or.... More »

Russ Dyck financial advisor Nov 8th

Meet Russ Dyck Russ Dyck, a Certified Financial Planner and founder of Finovo, specializes in financial planning for professional couples and young professionals. He is passionate about helping clients navigate complex financial decisions with clarity and confidence, tailoring each plan to meet t.... More »

Stock news: Couche-Tard and BlackBerry post gains, Metro flags strike impact Jun 27th

Here’s a round-up of news for Canadian investors this week. Couche-Tard BlackBerry Metro Featured RRSP Accounts featured EQ Bank Build your retirement savings with 1.50% intere.... More »

Do bonds still make sense for retirement savings?

– moneysense.ca

Now that it’s clear interest rates bottomed some time ago and are well on an upwards trajectory, we’re seeing headlines declaring the “death of bonds.” Notable was the Globe & Mail article by veteran columnist and author Gordon Pape, announcing he was “getting out of bonds.”

What to expect from bonds

Considering that Pape is well past the traditional retirement age of 65, that must have shocked many of his retired readers. But he warned in his April 5 article that there is still “much more pain ahead” for bond investors. He said all but two of 40 iShares bond exchange-traded funds (ETFs) sold in Canada were in the red. Some were down 10% or more, like the iShares Core Canadian Long Term Bond Index ETF (XLB), down 11.8% from Jan. 1, 2022, to March 31, 2022. Even short-term bond ETFs, like Vanguard’s Short Term Bond Index ETF (VSB/TO), have suffered losses, albeit a modest 1% for 2021. If these were stock losses, he said, it could be called a crash.

In a similar vein were the pronouncements by financial planner Ed Rempel, who argues retirees should be out of bonds and ratchet up their personal risk tolerance to take on more stock exposure…

Continue Reading On moneysense.ca »