The new rules of bond investing
For today's retired investor, safety is expensive
Invest for good: Impact investing for young Canadians
You started investing in your 20s, and you feel pretty good about doing it. But now what? Consider impact...
Ahead of MoneySense‘s May 7 Invest for Success event, editor-in-chief David Thomas asked Tom Bradley, president and co-founder of Steadyhand Investment Funds about the brave new world of fixed-income investing in a time of rock-bottom—or even negative—interest rates. What does this mean for investors?
DT: For years, investors could get by on fairly simple rules of thumb when it came to figuring out what to do with the fixed-income part in building a smart portfolio. Today it’s a lot less straightforward isn’t it?
TB: A decade ago, government bond yields were running at 2-4% above inflation. If an investor couldn’t stomach the ups and downs of the stock market, they could hide in bonds and GIC rates. Accordingly, the rule-of-thumb for your stock weighting was ‘100 minus your age’ (i.e. at 70 years of age, stocks should make up 30% of your portfolio, with bonds taking the rest).
Today, safety is expensive—secure, low-volatility alternatives barely offset inflation. To ensure a sustainable income, retired investors need to own more stocks and higher risk fixed-income vehicles than they used to.
Find out what kind of stock picker you are »
Want to learn more?
Hear Tom Bradley and others, including Kurt Reiman, chief investment strategist for BlackRock Canada, and MoneySense columnists Dan Bortolotti and Norm Rothery share more investing tips on May 7 in Toronto.
Tickets to Invest for Success are still available. Agenda and registration details are here.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Related Articles
Making sense of the Bank of Canada interest rate decision on October 23, 2024
Created By
Ratehub.ca
HISAs vs. bonds and GICs: Where should Canadians hold their cash?
Sponsored By
Simplii Financial
Scared of selling? When holding on to stocks can hurt you financially
Sometimes, it’s not action, but inaction, that can hurt you financially. Here are examples of when selling may be...
Canadian Financial Summit 2024: MoneySense sessions and free tickets
Created By
Canadian Financial Summit
The Magnificent 7 versus the other 493 S&P 500 companies: What’s the better investment?
Are the Magnificent 7 tech stocks a good investment? What about the other companies on the S&P 500? Find...
Canada’s inflation rate and what it means for your investments
Canada’s Consumer Price Index fell below target in September. How should that influence your choice of stocks, bonds and...
Private equity, private debt and more alternative investments: Should you invest?
Why private investments in Canada are booming right now and what you should know about them.
Making sense of the Bank of Canada interest rate decision on September 4, 2024
Created By
Ratehub.ca
Bonds vs. GICs: Where should you invest your fixed-income dollars?
Fixed income is finally back in a sweet spot. So, how should you take advantage, with individual bonds, bond...