Planning for the (potential) costs of long-term care + MORE Feb 17th

Q. My husband and I have been reading about the all-in-one exchange-traded funds (ETFs), specifically those from Vanguard. The Vanguard Growth ETF Portfolio (VGRO) looks appealing given the asset allocation and rebalancing this type of ETF provides. Our question is, would it be a poor decision to sell all our ETFs (Canadian, U.S., foreign, bonds) and transfer everything to VGRO? It would make life a little easier, but my concern is that as we draw down our RRSP we would lose the ability to look at several ETFs and determine which is best to sell at the time we withdraw money from our RRSPs.
–Cathy and Brian
A. All-in-one ETF portfolios have so many positive attributes, especially for do-it-yourself investors: they are extremely well-diversified, super-cheap and easier to manage than a portfolio of multiple holdings. Ironically, one of their biggest downsides is that they appear too simple to many investors. It’s almost like they’re too good to be true. But, Cathy and Brian, I can assure you it’s a perfectly good strategy to use an all-in-one ETF in your RRSP*, even if you are drawing down the account to generate income…

According to the Ontario Long Term Care Association’s report This is Long-Term Care 2019, 82% of long-term care residents are 75 years of age or older, and 55% are 85 or older. Residents under 75 are generally those who “have experienced a brain injury, stroke, and other conditions that require 24/7 care.” About 64% of long-term care residents have a diagnosis of dementia and 90% have some form of cognitive impairment.
Statistics are helpful, but health issues can arise at any age and for many reasons. During your working years, life and disability insurance are advisable to replace your income if you die (for the sake of your dependents) or become disabled (for you and your dependents). Life insurance may be unnecessary in retirement, and disability insurance is irrelevant when you are no longer working and have no income to replace.
Critical illness insurance and long-term care insurance can provide some protection against health risks after you retire—and not the minor medical risks of needing new glasses or a root canal…

You’d think after decades hearing and reading about the long-term impact of high investment management fees on our retirement nest eggs, Canadian investors would have gotten the message by now. Among the more entertaining TV ad campaigns on this topic have been Questrade’s recent commercials about belatedly enlightened individual investors fending off the inane arguments of financial “professionals,” a.k.a. salespeople. “You’ll see the results in the end; it’s a long-term game,” an advisor at a large financial institution says smugly, in an attempt to brush off a client’s questions about high fees and his low returns. The client fires back: “It’s not a game. It’s my retirement.”
All of which makes the new RRSP survey from the same Questrade Inc. of more than usual interest. The survey—released this week by the independent discount brokerage—finds 87% of Canadians either don’t know or underestimate the difference that a 2% or 1% fee has on their portfolios over the long run (of 20-plus years)…