Summer 2014 Sovereign Wealth Letter

Dear friends,

I hope you are enjoying summer richly.  What are you enjoying most?  What memories are you building to carry you through the chillier seasons ahead?

As we pause to review investment results of 2014, all has been going well.  With statements arriving you’ll see significant growth.  As May/June continued, 6-month growth has been near 6-to-8%.   Also valuable is that we do this with considerably less risk than wider markets.

What is on the immediate horizon now?   What will the coming seasons bring?  You know it’s rare that investments go straight upward.  Some months slide while other months rise.  This is a natural part of investing to achieve long term growth.  And after markets fall a bit, we find a rally in mid/late summer and again before year-end.

Someone said the sky is falling and wanted to park their money in gold or 1% savings accounts.  But the sky is holding up rather well.  Economies continue to expand in Canada and all major countries of the world.  Growth of full-time jobs helps support homes and families.  Interest rates remain close to all-time lows …and Canada recently issued a 50-year bond at the super-low rate of 2.75%.  Even indebted countries of Europe are borrowing money today at ¼ of the interest rates of 1-2 years ago.  The world is sweeping away the 2008-2009 financial crisis, gaining new strength, expanding economic growth, and heralding stock markets setting all-time highs.  Perhaps this is a “goldilocks” period – not too hot, not too cold – just right for continued growth.

Our safeguard is investing not in “stock markets” but in “mandates”.   “Mandates” align with your personal needs, wishes, and goals.  We identify growth, income, high yield, reduced risk, and long term sustainability to support the Life you want.   You can review Life Income Mandates (here) or page 96 ff. in my book, A Lifetime Of Wealth – And How Not To Lose It.

Focusing on Life and Financial Security:  

  • Senior living:  we guard high income, and value for family estate.
  • Retirement preparation: we align income/resources with lifestyle.
  • Middle-years: overcoming debt, gain financial independence/freedom.
  • Younger ages:  we avoid losses & gaps that sabotaged others’ wealth.


I think about this for you every day.  And it’s my prime focus in serving anyone you refer to me.  How will your wealth and income continue to serve you?  What Life will it buy?  Will you continue to be safe?

Whether from pension, or sale of business, or other resources and savings, we must AVOID THE GAP.   You don’t want to worry about money!  Worry spoils the life you should be enjoying richly.

GAP __ avoid the (arrow) 

If you can see living to 95 or beyond and never running out of money, what does this do for you?  Does it relieve anxieties?  …would it help a friend who’s unsure of their future?  …would it support the lifestyle you want, and family you hold dear?  What would change for you (and close friends or colleagues) if money can be safe, abundant, and worry-free?

Younger journeys:  young adults deserve a strong start, without the risks that hurt their parents.  Avoid unwanted debts.  Avoid risky investments.  Save now to accelerate home ownership and other personal goals.  Build dedicated resources to carry you through job-change &/or illness.  Insure risks that you cannot manage alone, especially anything to do with critical illness.  Wise planning will build your wealth and secure against insurable loss.  (See financial security planning for young adults)

Middle-years may involve considerable debt, ongoing expenses, occasional job-change, and concern of never being ready for retirement.  You want strategies to eliminate debt, increase your disposable income, gain a strong ‘buffer’ against times of lower earnings, and a way to see that your net wealth is growing at least 8 years out of every 10.  Proper planning can align investments and insurances to reduce risk and increase your financial independence and freedom.

Retirement Preparation combines your savings, pensions, debts & family obligations, whether and how you may fully retire or continue working … to secure a lifestyle that you can fully enjoy!  Many expenses, including insurance costs, may reduce now.  Prudent investing will avoid unwanted risks in the key years before and after retiring.  (And retirement can arrive prematurely as jobs or firms disappear.)   We want to identify and align your resources to protect the lifestyle you want to achieve and enjoy through early, middle, and later retirement.

Senior living should avoid irreversible worries.  At 83 you don’t want to be looking for work!  Trudy said to me 21 years ago, “if we’d known how long we were going to live….” and her voice trailed off with the blunt financial sadness that she had to die – and so she did.  People like Trudy gave me the passion to design Life Income Mandates so people may never run out of money.  Your “Certified Life and Financial Plan” then continues to support life and comfort today and through the years ahead, and ultimately an estate for those you love.   (See more on financial security for senior years

Wishing you a superb summer-time!

That’s my update for mid-summer …next issue will be early September.  We can meet now or in the autumn as you prefer.   For family or friends, connect us when you know someone can appreciate help to avoid their gaps and ensure their plan for lasting wealth!

Further resources from our partner-firms may interest you, especially:  (i) “GLC Market Matters”, a 2-page overview from Great West, London Life, Canada Life, Quadrus Investment Services.   (ii) RBC’s key economic slides on Canadian and world-markets and immediate themes now and into 2nd half of 2014.  (iii) Franklin Templeton on the vigorous growth and resilience of Emerging/Frontier Market economies.  If you wish I can send these to you right away.


Brian Weatherdon, MA, CFP, CLU, CPCA, MDRT.
SOVEREIGN WEALTH MANAGEMENT INC.  .  (905) 637-3500 x 223
627 Guelph Line, Burlington, Ontario. L7R 3M7 ..  1-877-9337-3500 x 223
Life & Health Insurance. Business Succession. Wealth, Income, & Estate.
Author: A Lifetime of Wealth – and how not to lose it. (Amazon/Kindle)
Founder of web-learning resources at:
** This monthly letter touches on key strategies in Canadian and global investing and financial planning. This letter is not an offer to sell any kind of security, insurance, or program. Historical returns and risks are not a valid guide to future performance. For information on near 10,000 investment funds and other financial structures please feel free to contact me directly. Returns shown are from Morningstar and other major financial news media. Research is sourced from leading sources including GLC, RBC, CIBC, Franklin Templeton, Mackenzie, and a wide range of other highly reputed firms. Opinions reflected in this letter belong solely to the author and no other body is responsible for the content expressed here. We value opportunity to serve alongside your legal and accounting advisors with whom we can best protect your financial security and advance your goals. We are grateful always to receive your comments and questions.

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