Seven key strategies to ensure you don't outlive your savings

You’ve worked hard, saved hard. As the dream of retirement becomes real, you have a new worry: will I outlive my savings?

Imagine how much better you’d feel if every month you were earning investment income. It would be as if you still had the security of a paycheque. But this time your investments are doing the work.

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On Oct. 22, Dan Keil, a chartered investment manager (CIM) and senior wealth advisor with Scotia Wealth Management, is hosting a seminar at Beach Grove Golf Club in Delta. It’s called 7 Key Strategies for Outliving Your Savings.

“The majority of people who meet with me have done a good job of saving for retirement but if those investments are not structured towards income generation, people are ill-prepared to actually retire,” he says. “We’ll discuss several alternative strategies to reduce risk and increase the monthly income generation that we’re creating to replicate a paycheque.

“An income-based portfolio is a specialty unto itself,” he adds. “Creating it requires a very clear understanding of both the income required and a risk-reduction strategy when creating it.”

He likes to include a variety of strategies. “One of the best examples,” he says, “is investing in commercial and industrial mortgage pools. Conservative in nature, they are primarily first mortgages, generating between five and seven per cent per year in monthly income. This allows us to not only generate income not available in the general stock market but to diversify us away from traditional stocks and bonds which, in my opinion, have more volatility.”

Before you dive into these mortgage pools, however, you need someone to check their depth. “The challenge with all investments, particularly with investments such as mortgages, is that there’s a wide range of product offerings, ranging from very high quality to very low quality. As an income specialist, I pride myself on differentiating between the two and only incorporating mortgages in my clients’ portfolio that add both value and stability.”

Still an avid believer in traditional stocks and equity markets, Dan says “incorporating alternatives such as mortgages increases the stability of a portfolio in bad times and acts as a tail wind by generating high levels of income in the good times.”

The Oct. 22 seminar is free, but people are required to pre-register here. Attendees have the choice of 2 to 3 p.m. or 5:30 to 6:30 p.m. For more information, you can also contact Nandita Puri, senior associate, at nandita.puri@scotiawealth.com 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.

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