On BNN, portfolio manager Stan Wong highlights a major risk many retirees overlook: Longevity risk, or outliving your money. When planning for retirement, shifting everything into cash or low-yielding guaranteed products like GICs might eliminate short-term market swings, but it leaves you vulnerable to inflation destroying your purchasing power over 25 to 30 years. To protect your lifestyle, keeping a portion of your portfolio in growth-oriented, high-quality equities is essential for long-term purchasing power. Did You Know? 🧐 At just a modest 2% annual inflation rate, a lifestyle costing $100,000 today will require about $181,000 per year in 30 years just to maintain the exact same standard of living! That's why keeping a growth engine in your portfolio is crucial. Here are ways CAD and USD investors can maintain that vital balance of growth, income, and stability: For US 🇺🇸 Dollar Investors (USD) * Broad Growth & Inflation Defense: $VOO (Vanguard S&P 500 ETF) or $SCHD (Schwab U.S. Dividend Equity ETF) provide growth and rising cash flow through top dividend-paying companies like Microsoft ($MSFT) and PepsiCo ($PEP). * Capital Preservation & Income: $BND (Vanguard Total Bond Market ETF), $SGOV, or short-term U.S. Treasury Bills to manage short-term liquidity without risking long-term compounding. For Canadian 🇨🇦 Dollar Investors (CAD) * Broad Growth & Equity Exposure: $VFV (Vanguard S&P 500 Index ETF) or all-in-one equity portfolios like $XEQT and $VEQT ensure your nest egg keeps compounding. * Dividend Growth & Defensive Income: $VDY (Vanguard FTSE Canadian High Dividend Yield Index ETF) for reliable blue-chip income from stalwarts like Royal Bank ($RY) and Enbridge ($ENB). — This is for educational and informational purposes only and does not constitute financial or investment advice.
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2 Comments
Clantosa
@clantosa · 10d
It's definitely a balancing act. You don't want to die with millions in the bank but you don't want to get to the end with 0 either
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