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TriDelta Insight
August 2015
Dear reader,
As we enjoy the last weeks of summer let's try to make the most of it.

The stock market correction is unsettling, but very common and healthy for markets. Our focus on quality investments in growing sectors means that we will weather this storm by maintaining the course.

Our late summer newsletter provides some prudent market perspective and food for thought on a variety of topics.

We look at CPP benefits, alternate investments, the financial effects of divorce, low interest rates and why not to own a cottage. Last, but not least a worthy read and movie is suggested.

Enjoy and be well,

TriDelta Financial

Stock Market Correction - Some Perspective
Global stock markets are taking a beating, which has more recently started affecting North American markets as well. The US has been in a bull market for seven years reflecting it's slow, but steady recovery.

However the growing fears of sluggish global growth, plummeting oil prices (U$110 a barrel down to the current U$39), the lowest since 2009 and more damage to commodity markets given concerns over Chinas economy have finally delivered a market correction that we largely expected.

Since 1980, on average, the S&P 500 has had an inter year pullback of 14.4%. What this means is that it is quite normal to see a top to bottom or peak to trough decline of double digits within a year, but keep in mind that the average S&P 500 annual return has been over 10% over the past 35 years.

At TriDelta we have the view that a 10% pullback is typically a buying opportunity. The reason is that 90%+ of the time it has proven to be the case in the short term and 100% of cases in the long term. Whilst we believe that there will be further declines and high volatility in the weeks ahead, selling excellent companies for cash is doing just that. It has no good medium term home with rates so low.

The problem is that global economic growth remains persistently weak despite all the efforts of the world's policy makers in recent years. This ongoing pressure has finally caused the S&P 500 Index to correct along with other global markets reflecting this.

The sectors of primary concern continue to be energy and resources, which reflect the real decline in Chinese growth. At TriDelta we have been proactive and sold these sectors months ago. We also remained exposed to strong sectors and captured most of the multi-year bull market.

We don't fear market corrections, but rather embrace them looking to understand the underlying cause whilst searching for excellent companies that can be purchased at unrealistically low prices.

In summary, we remain concerned about short-term market weakness, but confident that despite weak global growth, the US economy is fundamentally strong and that this will be reflected in the stock market. As a result, it is important to remain calm even if the declines continue into the coming weeks.
Updated Retirement Income Guide
When you retire, not only does your daily routine change, but you also stop receiving a pay cheque. With the traditional pension becoming less of a reality for many Canadians, building steady retirement income through your investments, asset base and government programs is a key part of any financial plan.

In our new updated 2015/16 guide, you will learn about some of the best ways to build your own retirement “paycheque” using the resources you already have.
Common questions about different retirement income streams will also be answered, and tax minimizing tips will be provided along the way.

We provide you with some of our best insight on when and how much to draw from RRSPs, RRIFs, TFSAs, investment options, how to access government pensions and where to find other sources of cash flow.

We trust that our new updated guide will be helpful to you. If you have any questions on the ideas and strategies presented or to find out more about our income solutions, please contact us.

To request your free copy of our guide simply click here.

What are alternatives?
Alternative investments are those other than traditional investments such as stocks, bonds or cash. Some of the more common alternative investments strategies include:
  • REIT’s (real estate investment trusts):
    A real estate investment trust (REIT) is a real estate company that offers common shares to the public. Rather than investing directly in a single property,

REIT’s typically hold dozens of commercial properties, including office buildings or exposure to real estate sectors such as seniors homes for example. REIT’s offer tax benefits, a portion of the distribution from Canadian REITs is a return of capital, which is not taxed.

Continue reading...
Divorce hurts retirement
There is a rising trend in Divorce after 50. Ending a marriage is one of the largest life events that can happen in a person's life. You may have tried to make things work, but now it’s clear, the marriage is over. What do you do next? How do you ensure you will be OK financially? How will this affect your retirement plans? Knowing your options and how the Divorce will affect you is key. The first steps are:

  1. Gather financial documents and know your financial picture.
    Make sure you know where all your

financial and legal documents are, including pension statements. Having important documents on hand in the divorce process means you avoid time and expense trying to get copies of them later. Know what assets are shared and which are exempt.

Continue reading...
Should I take CPP before age 65?
Two thirds of Canadians take their CPP benefits before age 65, but determining what’s best for you demands that you better understand your options. First let’s consider the rules around taking CPP – which changed January 1, 2012. The chart below from provides a nice summary. chart
Continue reading...
Benefiting from low interest rates
Summer is in full swing and as usual the investment markets have been drifting. There is however much happening including the ongoing global currency wars, upcoming elections in the UK, Canada and the US not to mention free-falling oil prices.

We anticipate interest rates to rise in the US
this year, but have seen the opposite here at home largely due to extraordinarily weak oil prices. Canada recently dropped rates for a second time in recent months, which is bad news for income seekers, but it does present significant opportunity for those approaching retirement in the coming months. Ted Rechtshaffen, President and CEO of TriDelta Financial explains in his recent Financial Post article; How the Bank of Canada’s rate cut may have added $100,000 to your pension in one day.

Cottage ownership
As you are reading this on what is hopefully a beautifully sunny and warm day, sitting on your dock on the water, what could be better than being at your cottage.

There is no question of how nice it can be, but do you really have to own it to enjoy it?

Occasionally clients ask our view on buying a cottage. This question usually leads to a broad discussion where the financial equation is only one part of the picture. Their stage of life, kids’ ages, desire to explore or stay put, comfort with property maintenance, and even their experiences growing up, play a big part in deciding whether to buy or not.

For me, I am pretty certain at this stage of life (with three school-aged children), we are not cottage buyers. I know that not everyone will agree with this opinion, but I know it is the right decision for me and my family. Here are five reasons why I won’t buy a cottage.
  1. Trying to juggle the summer plans of our kids leaves only two to four weeks of possible time the kids could be at the cottage each summer.
    At a different stage in life, cottage ownership could make more sense.
Continue reading...
Claire's Book Review
By Toni Morrison

To try and understand America, with its racial inequalities and tensions, one only has to take a glimpse into the history of slavery. When I watched the recent riots and shootings in the streets of Ferguson, Missouri, I wondered why isn’t it that society just can’t ‘move on’ from its past. That said, ‘moving on’ can sometimes be a lot more difficult than we think when faced with a past that is so dark, and when the scars still go so very deep. And it was in my latest read that I was reminded of those difficulties and brought a small degree of
clarity into why people feel the way they do.

Beloved is a finely written book by Toni Morrison who deservedly received a Pulitzer Prize for her work. It is a story of a determined and spirited woman, Sethe, who escapes from slavery in Kentucky and attempts to live a normal life in rural Ohio while haunted by her past. Daily she is faced with the terrible memories of what she and other slaves had to endure and she is forced to relive those memories when two characters re-enter her life and bring both comfort and pain. Beloved is occasionally confusing and may take a second read of the odd paragraph but the narrative is so well written, almost poetic in its descriptions of scenes and characters. Although it can be deep, it is not all doom and gloom as one gets to admire the spirit of those who suffered and lived through that time and the drive they had to rid themselves of the shackles of the past. The book is a reminder that physical freedom does not always mean that a person will be free of their painful pasts, which sometimes can transcend generations.

By Claire Corrie , Director, Client Service.
Claire's Movie Review
Netflix Series recommendation: Suits
Starring Gabriel Macht, Patrick J. Adams, Gina Torres, Meghan Markle, Rick Hoffman and Sarah Rafferty

My husband and I were late arrivals to this wonderful TV series that started in 2011 but thanks to Netflicks you can go back, binge watch and enjoy.

Suits is set in a law office in Manhatten and one can be excused for thinking many of the outdoor scenes look a bit familiar as the whole show has and is being made in Toronto.
Now into its 5th season the characters and plots have developed and continue to get stronger.

So what is different about Suits that has allowed it to endure? Well I would have to say the cut and thrust of the power plays within the law firm and from other law firms and lawyers, the in and out of relationships, a couple of really good quirky characters and the constantly changing legal cases and dilemmas that many of us can relate to. And on top of all that we have so much fun trying to pick out places that masquerade as busy New York Streets, bars and restaurants that we are familiar with. So why not try on a Suits, it may just be a good fit for you.

By Claire Corrie , Director, Client Service.
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For more information about TriDelta Financial and our services please visit us online at
TriDelta Financial - Toronto
Tel: 416-733-3292 ext. 221
2 Sheppard Avenue East, Suite 205
Toronto Ontario M2N 5Y7

TriDelta Financial - Oakville
Tel: 905-901-3429
146 Lakeshore Rd. East, Suite 200
Oakville, Ontario L6J 1H4