RBC Dominion Securities Global Limited
Investing in Your Retirement Making Your Money Work for Future You
Paul Broomes, CFA, CAIA – Investment Advisor, Service Desk and Branch Officer Alexandra Baena, MBA – Assistant Branch Manager Gordon Goss, CIM, PFP, FCSI – Investment Advisor
RBC DS Global Limited About Our Presenters Alexandra Baena, MBA •
Assistant Branch Manager
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Over 20 years industry experience, 12 years with RBC DS Global.
Paul Broomes, CFA, CAIA
June 18, 2020
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Branch Officer & Investment Advisor, Service Desk
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Over 10 years industry experience, 6 years with RBC DS Global.
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RBC DS Global Limited About Our Presenters
Gordon Goss, CIM, PFP, FCSI
June 18, 2020
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Investment Advisor
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Over 12 years industry experience, 2 years with RBC DS Global.
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RBC DS Global Limited Who We are • Wholly owned subsidiary of RBC Dominion Securities Inc., the largest fullservice broker-dealer in Canada. • As a member of RBC’s Wealth Management platform, our relationship with our Canadian parent ensures that all accounts are managed in accordance with the highest industry standards. • Our clients experience the benefits of having a Caribbean-based relationship with the safety and security derived from having their assets held with Canada’s leading investment and wealth management firm. • Our three branches in the Caribbean (Cayman Islands, Nassau, Barbados) combined manage and advise on USD 5.4 Billion in assets. • Very active in the Cayman community, supporting a wide range of community initiatives through donations, sponsorships and employee volunteer activities. • In collaboration with clients, we donated over US$38,000 to the Cayman Food Bank, the Red Cross Society in Barbados and Hands for Hunger in the Bahamas Investing in Your Retirement – Making Your Money Work for Future You June 18, 2020
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National Pensions (Amendment) Law, 2020 What’s in it for me?
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Law in force from 1 May 2020 to 31 October 2020
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Pension contribution holiday period from 1 April 2020 ending 30th September 2020
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Emergency withdrawal from pension funds for eligible persons • If pension fund <= 10,000 KYD, can withdraw up to 100% • If pension fund > 10,000 KYD, can withdraw 10,000 KYD and up to 25% of remaining balance of the amount that exceeds 10,000 KYD
Investing in Your Retirement – Making Your Money Work for Future You June 18, 2020
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National Pensions (Amendment) Law, 2020
June 18, 2020
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Before we move on:
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Important to emphasize this is an emergency measure.
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We agree with the Premier’s view that spending pension funds should only be an emergency measure if there are no other options.
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Our focus here is on persons who have withdrawn funds and are/will be in the fortunate position of not having to spend them.
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Investment Portfolio – Typical Components Typically cash and bonds because they pay interest and tend not to fluctuate a lot in value.
Typically equities because they tend to appreciate in value over time, but fluctuate in value more than defensive assets.
GROWTH ASSETS
HIGH
DEFENSIVE ASSETS
Alternative Investments
POTENTIAL RETURN
Stocks Real Estate Bonds
LOW
Cash
LOW
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EXPECTED RISK
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HIGH
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Higher Returns = Higher Risk: Why Diversification Matters
Stocks
Bonds
LOW TO MODERATE RETURNS
HIGH POTENTIAL RETURN •
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High potential fluctuations No guarantee of return of capital
Cash
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Low to moderate fluctuations
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Higher probability of return of capital
Inflation
LOW POTENTIAL RETURN •
Low fluctuations
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Guaranteed return of capital (T-bills)
RBC Dominion Securities Global Limited
ERODES THE VALUE OF YOUR INVESTMENT
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Diversification Illustrated
Source: RBC Global Asset Management; How to Diversify Across Asset Classes; CDN Equities: S&P/TSX Composite Total Return Index; US Equities: S&P 500 Total Return Index, Intl Equities: EAFE Total Return Index; EM Equities: MSCI Emerging Markets Total Return Index; CDN Bonds: FTSE Canada Universe Bond Index; US HY Bonds: ICE BofA US High-Yield BB-B Total Return Index Global Bonds: FTSE World Govt Bond Total Return Index; Cash: FTSE Canada 30 Day Tbill Index; Balanced Portfolio: 55% Equity/45% FI. All performance in C$, An investment cannot be made directly into an index. The above does not reflect transaction costs, investment management fees or taxes. If such costs and fees were reflected, returns would be lower. Past performance is not a guarantee of future results.
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Diversification Illustrated 75%
Range of Stock, Bond and Blended Total Returns Rolling Total Returns, 1979 – 1Q 2019 Stocks (S&P 500 Index1)
60% 61%
Bonds (Bloomberg Barclays US Agg.)
45% 45% 30%
35%
Balanced (50% Stocks, 50% Bonds) 30%
15%
20%
23%
19%
15%
17%
18% 11%
6%
0%
-7%
-9%
-15%
1%
-1%
-3%
3%
15%
4%
2%
-23%
-30% -43% -45% 1 -Year
5 -Year
10 -Year
20 -Year
Bar Chart Returns 1/1/1979 through 3/31/2019; Data source: Zephyr Associates. Bond source: Bloomberg Index Services Limited. Non-deposit investment products offered through RBC Wealth Management are not FDIC insured, are not a deposit or other obligation of, or guaranteed by, a bank, and are subject to investment risks, including possible loss of the principal amount invested. RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. © All rights reserved. 1The "S&P 500 Index” is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”) and Zephyr Associates, and has been licensed for use by Royal Bank of Canada. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); Zephyr Associates’ Trademarks are trademarks of Zephyr Associates and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Royal Bank of Canada. Royal Bank of Canada’s Product(s) is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, or Zephyr Associates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.
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5%
Time in the Market, not Timing the Market •
Investors who want to time the market have to make two correct decisions to be successful: • When to get out; i.e. timing the sell to as close to the peak of the market as possible. • When to get back in; i.e. putting cash back into the market as close to the lowest point in the market as possible
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Sounds easy enough?
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Our experience dealing with clients over the years unfortunately shows us that investors can get this wrong too often, which can be costly on your results.
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Time in the Market, not Timing the Market
June 18, 2020
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Retirement: Excitement or Dread? Some Pressing Concerns •
The average future retiree today can expect to live 20 – 30 years beyond the traditional retirement age of 65.
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How do I maintain (or improve) my lifestyle in retirement?
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What if I am sick or get sick?
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What about my children?
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What if I want to give to charity?
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An investment portfolio can play a key role in answering these questions.
Investing in Your Retirement – Making Your Money Work for Future You June 18, 2020
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Have a Plan, Stick to the Plan Creating an Investment Plan •
An investment plan is absolutely key to having the best investment experience and avoiding many of the pitfalls that come with investing. • The major inputs for an investment plan are: • Your tolerance for risk, • Your ability to take risk, • Important time frames and milestones, • Your financial goals, • Any other important details relevant to your situation. • Think of your investment plan as a living, breathing document that changes as your life circumstances change. • Gordon Goss, Investment Advisor, will provide some more insights on planning.
Investing in Your Retirement – Making Your Money Work for Future You June 18, 2020
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RBC DS Global Limited Our Recent Newsletter
Investing in Your Retirement – Making Your Money Work for Future You June 18, 2020
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Have More Questions? Contact Us! •
Check out our website: www.rbcdscayman.com
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Paul Broomes, CFA, CAIA – Investment Advisor, Service Desk • paul.broomes@rbc.com, or 926-8131 • LinkedIn: https://www.linkedin.com/in/paul-broomes-cfa-caia-43313030/
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Gordon Goss, PFP, CIM, FCSI – Investment Advisor • gordon.goss@rbc.com, or 526-8152 • LinkedIn: https://www.linkedin.com/in/gordon-goss-pfp-cim-fcsi-ab1a4138/
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Alexandra Baena, MBA – Assistant Branch Manager • alexandra.baena@rbc.com, or 814-8134
June 18, 2020
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Thank you!
The information in this presentation is not investment advice and should only be used in conjunction with a discussion with your Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest available information. This report is not an offer to sell or a solicitation of an offer to buy any security. Additionally this presentation is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. The contents of this presentation are provided for informational purposes only and do not constitute a recommendation to purchase a particular security or investment product. Nothing in this presentation constitutes legal, accounting or tax advice and you are advised to seek independent legal, tax and accounting advice prior to acting upon anything contained in this presentation. This document has been prepared for use by RBC Dominion Securities Global Limited, a foreign affiliate of RBC Dominion Securities Inc.*. RBC Dominion Securities Global Limited is licensed by the Financial Services Commission of Barbados, the Securities Commission of The Bahamas and the Cayman Islands Monetary Authority. RBC Dominion Securities Global Limited, RBC Dominion Securities Inc. and Royal Bank of Canada are separate corporate entities which are affiliated. * Member–Canadian Investor Protection Fund. RBC Dominion Securities Global Limited and RBC Dominion Securities Inc. are member companies of RBC Wealth Management, a business segment of Royal Bank of Canada. ® / TM Trademark(s) of Royal Bank of Canada. Used under licence. © 2020 RBC Dominion Securities Inc. All rights reserved. June 18, 2020
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