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DEEP DIVE
In Depth Article – Heavy on the facts and details definitely for the committed reader.

Rob's Read

Why Our Concept of Retirement is Outdated and How AI Can Help

TheGlobeAndMail.com:

"Since the dawn of the industrial revolution, our work lives have largely followed a predictable pattern: We learn, work and then retire. But the introduction of artificial intelligence and other advanced technologies promises to challenge this century-old model. In fact, this could be an opportunity to rethink a post-work component of the model that may no longer fit: retirement."

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Rob McClelland RFP, CFP, HBA Vice President, Co-Branch Owner, Senior Financial Planning Advisor The McClelland Financial Group of Assante Capital Management Ltd.

FINANCE
Light Read – Useful and Relevant

Finance

No more excuses. Don’t have a will? Get it done in less than a night…

A recent poll by the Angus Reid Institute has shown that 51% of Canadians do not have a will. Toss in the number of people who have outdated wills that have not been reviewed since being locked away in a safety deposit box, and you likely have a small minority of Canadians with proper wills.

Wills and powers of attorney are the cornerstone to a proper estate plan. The will literally allow you to provide instructions from the grave. Anyone who has accumulated assets in their lifetime, and care about who they benefit once they have passed, should have a will in place.

The current environment is likely preventing you from going to see a professional and having it done. Simple solution: An online will kit. If your estate wishes are relatively simple (probably are for the majority of Canadians), then you can complete your will in a couple of hours. Innovations in online tools have come a long way and estate planning documents have as well.

If your estate planning wishes are basic, then an online will kit can save you time and money. Simply complete it, print it off and get 2 people, with no financial interest in your estate, to witness. Done. Now you’re covered should anything happen. No more excuses.

Carlo Cansino FMA, FCSI, CFP Senior Financial Advisor The McClelland Financial Group of Assante Capital Management Ltd.

OPINION
Light Read – Editorial

Opinion

What lies beneath the carpet!

This week I was replacing the carpet in the bedrooms at my cottage. I know Rob would say “why don’t you just write the cheque and have somebody do this for you?”. Sometimes when you do this stuff, you can pick up more knowledge than you’d expect.

When I ripped up the old carpet, I noticed the underpadding was attached with newspaper that dated back to the time the carpet was laid. It was the Toronto Star from August 27th 1986. This was pre-internet days. Because, you couldn’t get quotes at the click of a button, the business section was very detailed. Included on this page were the Montreal Exchange, the Toronto Exchange and the Dow Jones Industrial Average (“Dow”). I just had to look at the number to cure my curiosity. The Dow level was 1,904 after coming off an awesome thirty-two point day. Thirty-two points may not seem like much now but back in the day it was a 1.6% increase. At time of writing, the Dow level is currently at 26,664. Using simple arithmetic, the index is 14 times the value it was in 1986.

As I continued to pull up more carpet, I came across some advertisements for condominiums in Toronto. One development in particular piqued my interest -- Eglinton Park Place. The prices were shocking. The units started at $86,900. Currently, those same condos are selling for $400,000 to $419,000. This is a price appreciation of just under 5 times the value in 1986. Significant growth, but not at the same rate as the Dow. Perhaps, you’re thinking, “yes, but you are receiving rental income over that period of time!”.

The Dow growth excluded dividends. Typically, net rental yield and dividend yield is very similar. This is a legitimate apples to apples comparison. Don’t get me wrong, I am not stating that real estate is a poor investment vs. the market. My data was literally obtained from the daily news, from a random carpet replacement. I am simply stating a fact. As nobel prize winner, Eugene Fama, has iterated, “this is not a theory, this is just math!”. Simple arithmetic has proven that since 1986, investing in the Dow would have provided almost 3 times more growth than investing in the Toronto condo market.

Michael Connon B.Sc, CFP Senior Financial Planning Advisor, Co-Branch Manager The McClelland Financial Group of Assante Capital Management Ltd.

THE ENVIRONMENT
Light Read – Useful and Relevant

THE ENVIRONMENT

Global Recycling Crisis

Many of us are avid recyclers as we are trying to mitigate as much human waste as possible. For years we have recycled and really don’t know what the end result is. For years, developed western countries have exported our recycling to China. However recently China no longer has the capacity to do so and will no longer be recycling for major western counties. This article from Visual Capitalist looks at what will be the outcome of this and what the future of recycling may look like

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John Iaconetti B.A.S., Spec. Hons. Administrative Studies (Finance) Financial Advisor The McClelland Financial Group of Assante Capital Management Ltd.

LIFESTYLE
Light Read – Fun and Enjoyable!

Lifestyle

Getting Your Home Cool-Weather-Ready

With Fall only being a month away and winter coming shortly after, it’s time to start thinking about our homes and getting them ready for the cooler temperatures both inside and out. This past weekend my husband and I finally got around to a little DIY (Do It Yourself) project that we’ve been wanting to do since we moved in – painting our front door. It only took us three years to get it done – but hey – it sure feels good to check things off the list!

After getting that done, it made us think of what other improvements or changes we can make to our house to make it more durable for the coming weather. Not that painting a front door makes a house more durable, but improvements in general are good for the home.

Some other things you could check off the list this Fall on the exterior of your home is taking a good look at your roof. Are there any rough patches that could use some TLC? Or maybe it’s time to get new shingles all over. If you have siding on your house, give that a good look to see if there are any weak spots where moisture could come through or even unwanted creatures. You can also give your gutters a clean (something good to do after the leaves have fallen), turn off your exterior water outlets, and get your landscaping/gardens winter-ready.

In the interior of your home, it is a good idea to check for weakening windows/doors for drafts. It’s easier to do this on a windy day while holding a candle or lighter around the edges of your windows/doors – if the flame flickers, it’s time to repair. It’s also a good time to have your furnace serviced and get your air conditioner ready for the winter. While you’re at it, change your air filter and check that all the batteries in your smoke/carbon detectors are in working order.

With all this in mind, enjoy these last few weeks of summer too!

Chelsey Chartren B.Comm. Financial Advisor The McClelland Financial Group of Assante Capital Management Ltd.

MARKET
Light Read – Useful and Relevant

MARKET

Understanding the Disconnect Between Consumers and the Stock Market

You constantly hear about the stock market hitting record highs despite the economy being in shambles. This article from Visual Capitalist sheds some light on it.

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Michael Ams B.Com. Strategic Associate The McClelland Financial Group of Assante Capital Management Ltd.

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Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see me for individual financial advice based on your personal circumstances. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

Commissions, trailing commissions, management fees and expenses, may all be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the Fund Facts and consult your Assante Advisor before investing.

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