Investing inside a corporation: what you need to know + MORE Jul 23rd

For retirees and near-retirees, at least five dire possibilities can threaten a long and fruitful retirement: taxes, investment fees, crumbling stock markets, soaring interest rates and inflation. 
We can largely control the first two by maximizing the use of tax-effective vehicles like TFSAs and RRIFs, and avoiding high-fee investment solutions. Stocks and interest rates are trickier, typically addressed by ensuring that the traditional free lunch of diversification and asset allocation are commensurate with your financial resources and lifestyle objectives. 
But what about inflation? Throughout the first half of 2021, inflation has variously been depicted as an ominous looming threat, or merely a “temporary” spike, triggered by the COVID recovery. It’s certainly been inching up this summer: food prices are at their highest level in almost three decades, and the prices of housing, energy and even used cars are soaring. U.S. inflation is up 5.4% versus a year ago and is at a 13-year high…

Each week, Cut the Crap Investing founder Dale Roberts shares financial headlines and offers context for Canadian investors.
Earnings season, part II: both sides of the border
In last week’s column, we kicked off earnings season and the projections for what is setting up to be a robust reporting period. It is likely to be the earnings growth peak in both the U.S. and Canada. 
A roundup report on Seeking Alpha offered… 
“The rally goes on…. A three-day winning streak on Wall Street—that followed a sharp selloff on Monday—is showing no signs of slowing down as futures continued to climb in overnight trading.
“‘The earnings results have continued to be strong and guidance is showing that the Delta variant isn’t impacting the recovery, so far at least,’ said Esty Dwek, head of global market strategy at Natixis Investment Managers. ‘That is giving confidence to the market that the recovery can continue’.”
Canadian stocks are also joining the rally. Here’s a snapshot of selected earnings: 
CN Rail beat projections on the earnings front, but trailed on revenue…

A MoneySense reader writes:
We have $550,000 to invest in our corporation and need something tax-efficient. Although we’re retired, we don’t need this money for the foreseeable future, so we’re investing for the long term. We’re considering either DIY investing following one of the Couch Potato-model portfolios or using a robo-advisor. As a third alternative, we’re also wondering if we should just buy Canadian bank stocks. Can you help?
FPAC responds:
Congratulations on your successful retirement! At a stage when most people are focussed on decumulation, you’re asking about establishing an approach for long-term, tax-efficient investing inside your corporation. Let’s walk through these important considerations:
Investment decisions: robo-advisor or DIY—and ETFs or bank stocks?
A robo-advisor is a great choice for automated, tax-efficient and low-cost investing. A robo-advisor will be able to set you up with a portfolio of low-cost, widely diversified ETFs. Regular rebalancing, quarterly reporting and ease of use will make this option attractive if you are looking for a hands-off approach…