Sequence of returns matter
When you start withdrawing cash, a downturn in the early years can have a critical impact.
While each person is unique, he or she undoubtedly shares some characteristics with others.
When you're transitioning into retirement, focus at this point should be protecting on the downside, given a major setback can have a significant effect on your savings. These setbacks can be costly as they require a longer period of time to recover from. However, it’s still important to have some growth to help ensure you don’t outlive your retirement savings.
The 2015 AGF Investor Study was conducted online among a sample of 1,238 Canadians ages 18 and older with some amount of investible assets (excluding real estate) and currently involved in mutual funds/stocks/bonds investments/RRSP/TFSA. The survey was administered from August 10 to August 23, 2015 by Harris Poll. As the study was completed using Harris Poll's proprietary online panel, it is precluded from reporting a margin of error. The margin of error for a representative sample of this size (n=1,238) would be ± 2.8 per cent, within a 95% confidence interval.
The information contained in this material is designed to provide you with general information related to investment alternatives and strategies and is not intended to be comprehensive investment advice applicable to the circumstances of the individual. We strongly recommend you to consult with a financial advisor prior to making any investment decisions.
This is not intended to provide tax advice. AGF Investments Inc. strongly urges investors to consult with a tax advisor to discuss their particular circumstances.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share and/or unit value and reinvestment of all dividends and/or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated.
The All World Tax Advantage Group is a mutual fund corporation that currently offers approximately 20 different classes of securities. Investing in any of the classes within the group offers the following potential benefits and features: deferral of capital gains tax on transfers between classes, potential capital tax savings for corporate investors and fund diversification by investment style, geography and market capitalization. For a more detailed explanation, please see AGF.com/disclaimers.
Publication date: 26 November 2015