Let’s say you buy a nice waterfront condo in Tsawwassen as an investment property.
Not only would you expect it to increase in value over time, but every month you receive a rent cheque from your tenant. That rent income allows you to reap the rewards of your investment without having to sell your capital.
That’s the unique approach that Dan Keil, CIM, senior wealth advisor with Scotia Wealth Management, takes when he works with his clients on how best to invest in their financial future.
“I view investing as a combination of growth and income but, more importantly, I view every investment we own like a rental property,” he says. “Whether the value of that condo or an investment goes up or down in the short term, I want to ensure I’ve got high levels of income coming in during the good times and bad times, so my clients can live on the income and not be forced to sell their underlying assets.”
He will explore some of his strategies on how to achieve this goal at his Investing for Income seminar on Oct. 3 at Beach Grove Golf Club in Delta.
Today’s retirees face a different landscape than their parents who might have seen GICs and bonds as the safest investments. The interest currently earned with GICs is lower than inflation — “that’s a slowly decaying investment strategy as opposed to an income-generating strategy” — and bonds fluctuate according to interest rates.
“I look outside the box to find other conservative means of generating monthly income, such as mortgage pools in Canada, to sustain their monthly lifestyle without eroding their capital,” he says.
“I buy things that I have faith will rise in value but, just as importantly, are geared to generating a high level of income. Just as my clients were accustomed to receiving a paycheque, the portfolios I generate simulate this by giving them a monthly cash flow to mimic what they had during their working years.”
The Oct. 3 seminar is free, but people are required to pre-register here. Attendees have the choice of 2 p.m. to 3 p.m. or 5:30 p.m. to 6:30 p.m. Dan is also hosting Exchange Traded Funds Explained (Oct. 10) and 7 Key Steps to Ensure You Don’t Outlive Your Money (Oct. 22). For more information, you can also contact Nandita Puri, senior associate, at firstname.lastname@example.org or call (604) 601 1572.
Dan Keil, CIM, is a Senior Wealth Advisor with Scotia Wealth Management® ®Registered trademark of The Bank of Nova Scotia, used under licence. Scotia Wealth Management® consists of a range of financial services provided by The Bank of Nova Scotia (Scotiabank®); The Bank of Nova Scotia Trust Company (Scotiatrust®); Private Investment Counsel, a service of 1832 Asset Management L.P.; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance Services Inc.; and ScotiaMcLeod®, a division of Scotia Capital Inc. Wealth advisory and brokerage services are provided by ScotiaMcLeod, a division of Scotia Capital Inc. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.