Global markets have started 2018 in solid fashion with healthy performances across equities (S&P500 +3.1%; S&P/TSX +0.9%), commodities (WTI crude oil +4.1%, gold +0.9%) and currencies (CAD +1.0%) in the first week of trading. Bond yields are also on the march higher year-to-date with U.S. and Canada 10-year federal government bond yields up by 15bp to 2.54% and 2.19%, respectively. These early gains can be attributed to, among other things, ongoing solid economic growth data and the recently approved U.S. tax cut package in late December, which boosts the corporate profit outlook, in our view.
In wealth management, we often discuss the evolution of an individual’s needs and goals. While some of this evolution is a natural part of aging or reflective of a growing career, portfolio and financial situation, other factors are specific to one’s life path. For example, a marriage or divorce. The birth of a child (or several). Taking on financial responsibilities relating to a parent or dependent child. The death of a breadwinning spouse or an unexpected inheritance. These are all circumstances that we see regularly in our clients’ lives, and are common reasons a person will review their needs, goals and lifestyle.
But what about retirement?
Retirement is sometimes viewed as a destination; the reward or end goal after years of hard work and careful planning. However, retirement is more than a single stage you arrive or remain in. It’s an evolving, personal process that is perhaps the most universal and yet surprisingly challenging life change. While everyone’s retirement journey is different, several clear commonalities have been identified. Gerontologist Robert Atchley’s model of the six stages of retirement is an interesting and often accurate representation of a typical adjustment to retirement. Today, we’ll review the first three stages – be sure to check back next week for the second part of this series!