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“Is Your Financial Life Jacket Onboard?”

By: Rushit Goyani, RFRA

Storms don’t announce themselves. The same goes for financial disruption. So, when life gets choppy—are you wearing your financial life jacket, or are you just hoping to swim?

The market can be like the ocean—sometimes calm, sometimes wild, and sometimes, out of nowhere, a wave hits. And when that happens, you better have your life jacket on.

In the world of investing, your life jacket isn’t made of foam or nylon—it’s made of preparation. Two to three years’ worth of financial savings, kept aside for emergencies—medical, personal, or otherwise. It’s money that’s liquid and accessible, ideally in a conservative portfolio that doesn’t nosedive during a market dip but still grows more than inflation. That’s the peace of mind you need.

Last week, we saw the market fluctuate wildly—up 8–10% one day, down 6–7% another. By the end of it, we will back to square one. But for many investors, those swings triggered fear. Portfolios dropped, emotions ran high, and panic set in.

But not for everyone.

The investors who stayed calm? They were the ones with their life jackets on. They weren’t worried because they had their emergency funds in place. They knew that regardless of what happens in the market—or what headlines pop up—they’ll still eat good food, drive their nice cars, take vacations, and live their lives. Nothing fundamentally changes for them.

Now, let’s be clear: we’re not suggesting you pull everything and stash it in GICs. That doesn’t work either. GICs barely beat inflation, if at all. They might seem “safe,” but you’re losing money in the long term because your cash isn’t working for you. It’s just sitting there. Not ideal.

This is where a good financial planner enters the picture. At ECIVDA, we work with clients to design portfolios that reflect their risk tolerance and future needs. We call to check in, support you during turbulent times, and make sure your financial “life jacket” is always zipped up and ready.

Because when the market gets rough—and it will—those with a solid foundation don’t flinch. They float.

If you don’t have this kind of setup yet, don’t worry. We’re here to help.

Click HERE to book a meeting today!!

Why GICs Are Only for Short-Term Investments—and What to Choose Instead

By: Rushit Goyani, RFRA

Guaranteed Investment Certificates (GICs) are often seen as a safe way to grow your money. They offer guaranteed returns, making them attractive to risk-averse investors. But when you consider taxes and inflation, the real return on GICs is often disappointing.

The Hidden Reality of GIC Returns

A 1-year GIC may show a 3% return on paper, but once you factor in taxes and inflation, the real value of your money remains stagnant—or worse, declines. This is because:

• Taxes eat into your interest earnings.
• Inflation reduces your purchasing power.
• Over time, your money doesn’t truly grow, but simply maintains its value at best.

If your goal is purely capital preservation for the short term (6 months to 1 year), GICs can be a viable option. However, for long-term growth, they are not the best choice.

Balanced Mutual Funds: A Better Alternative

For investors seeking a similar risk profile to GICs but with better long-term growth, balanced mutual funds are a great alternative. These funds invest in a mix of stocks and bonds, providing moderate growth while minimizing volatility.

Let’s take a look at some real balanced mutual fund performances over the last nine years:

• Low Volatility: Out of nine years of data, balanced mutual funds have had only 2 to 3 years of negative returns.
• Strong Growth: A $100 investment in 2015 would have grown to between $150 and $220 by 2024, delivering an approximate return of 50% to 120%.
• Medium to Low Risk: These funds balance safety with reasonable returns, making them a great choice for long-term investors.

 Comparing GICs and Balanced Mutual Funds

Final Thoughts

While GICs are great for preserving capital in the short term, they do not provide meaningful growth over time. If you want your money to work for you while maintaining a conservative risk profile, balanced mutual funds are a much better alternative. With historically strong returns and limited downside, they offer an excellent way to grow your wealth over time while still protecting against major market downturns.

Before making an investment decision, consider your financial goals, time horizon, and risk tolerance. But if you’re looking for growth without excessive risk, balanced mutual funds are a smarter choice than GICs.

Book an appointment to talk to us today!  CLICK HERE

By: Shawn Todd CFP

We’ve all heard terrible financial advice at one point or another.

It might have been in the locker room at hockey, around the coffee machine at work, or even from a friend.

“Your most expensive advice is the free advice you receive from your financially struggling friends and relatives.” – Robert Kiyosaki

“Max out your credit cards to build credit.” This advice suggests that fully utilizing your credit limit will enhance your credit score. In reality, high credit card balances can lead to significant debt and negatively impact your credit rating. Terrible quote. Can really start someone off on a terrible foot.

“You don’t need a budget.” Some claim that budgeting is unnecessary. However, without a budget, it’s challenging to track spending and achieve financial goals, often leading to overspending and financial instability. I see this so many times. 80% of people just don’t take the time to write this out.

“Renting is throwing money away.” This advice implies that homeownership is always superior. However, owning a home comes with significant costs like maintenance and property taxes. Depending on individual circumstances, renting can sometimes be the more financially sound decision. A strong belief by many. Last time I did the math – I believe you are fine renting for about 7 1/2 yrs before seeing a crossover on benefit / cost. So no need to rush. Ownership over long term can help with wealth building in most cases though.

“You should buy as much house as possible.” Encouraging individuals to purchase the most expensive home they qualify for can lead to financial strain, especially if unforeseen expenses arise. This is terrible. I had a friend tell me this in my 20’s and all this mantra did was produce stress to buy a big house. This carries no great value to it,

“You don’t need insurance if you’re young and healthy.” Neglecting insurance due to youth and good health overlooks unforeseen events. Accidents and illnesses can occur at any age, and lacking insurance can result in substantial financial burdens. Again terrible advice. Many insurance disbelievers [and there are groups of financial advisers of the same thinking] that minimize needs for insurance, particularly for younger people. Getting approved mid 40’s and 50’s with high cholesterol and heart conditions can be difficult. Having the proper coverage starting young isn’t a bad idea at all.

“Always go for the cheapest option.” Opting for the least expensive choice isn’t always cost-effective in the long run. Investing in quality can lead to better durability and value over time. I see this a lot with investment discussions. I won’t argue the merits of trying to find affordable and cheaper investment options – that’s reasonable. Some believe that cost is the most important part of this conversation on any topic – and this isn’t always true. No matter if you are discussing investment options, insurance, the fee for advice from an accountant, lawyer, or financial planner…or a nice dress shirt. Or flowers for your spouse. And definitely do not take the cheapest rock-climbing course, or scuba diving course. You can see where this is going. If I have an option between a hand made, professionally inspected custom parachute for $500, and a machine made parachute [that everyone else is doing] for $99 that all of the articles assure me do the same thing, sometimes its worth just looking a little deeper at the more expensive parachute. Sometimes.

“You don’t need to save for retirement yet.” Delaying retirement savings can significantly impact your financial future. Starting early allows for compound interest to work in your favor, building a more substantial nest egg. This can really be costly. Delaying too long will back you into a corner that will cost you tens if not hundreds of thousands of dollars more.

“Follow your passion, and the money will follow.” While pursuing passions is fulfilling, it doesn’t always guarantee financial stability. It’s essential to balance passion with practical financial planning. I’m a big follow your dreams guy. I think this speaks to balance. Just opening the door, walking outside and declaring to the world you biggest dream, isn’t going to do it. Passion is important. Paying bills & saving – also important.

“Co-sign a loan to help a friend or family member.” Co-signing makes you legally responsible for the debt if the primary borrower defaults, potentially damaging your credit and financial standing. Scott Terrio – will lose it if I don’t mention this here. This has a small space in the terrible advice section here for a reason. So many make this choice without understanding what this really means. It’s not just a favour.

“You can’t get rich working a 9-to-5 job.” This mindset undermines the potential of disciplined saving and investing. Many individuals have achieved financial success through traditional employment by managing their finances wisely. So wrong. I see lots of manual, very traditional 9-5 job employees have significantly more wealth [monetary, family and life] with their situations. Working endless days does not equal financial freedom. Decision making does.

“Always follow your instincts when making financial decisions.” While intuition can be valuable, relying solely on gut feelings without research or professional advice can result in poor financial choices. We are wrong too often to rely on this. Sometimes the gut check is a big saviour. Sometimes it also will devastate you. This is where all those buying into weed stocks should please leave a comment below.

“You should get a credit card as early as possible to build credit.” While establishing credit is important, obtaining a credit card without understanding responsible usage can lead to debt accumulation and financial mismanagement. Credit is important. Living under debt =not important. Please be cautious.

“Investing is only for the wealthy.” This misconception prevents many from taking advantage of investment opportunities. Starting with small amounts can lead to significant growth over time through compound interest. Growing up, the only people I saw who invested were the ‘wealthy’. I feel this is where good planning, and good advice fits it. There are so many who should be investing, to build their own wealth. It’s often a missed strategy for so many.

“You should always aim to retire with $1 million in the bank.” Setting an arbitrary retirement savings goal without considering individual lifestyle, inflation, and future needs can be misleading. Personalized planning is essential. What will help someone else’s situation, may not help yours. This might work if you have no debt, and a decent lifestyle. If you are a spender, and carry debt, and want to retire earlier – this advice won’t be helpful.

“Borrowing from your retirement fund is a good way to handle short-term financial needs.” Tapping into retirement savings can jeopardize your future financial security and incur penalties, making it a risky short-term solution. Ripping out long term money to pay off the hot tub, vacation, or house reno you just did is terrible decision making, and bad advice all around. That $10,000 you removed from your RRSP at age 30 to do one of the above – will only get you $7,000 in your pocket, and would have potentially grown to $76,122 by age 60. That was costly.

I’d never shy away from listening to advice around the coffee shop. Great friends, great people – they all want you to hear what they have done. Listen, learn, act wisely.

My thoughts on this today –

Financial experts reveal the advice that they personally make sure to track their spend in their own lives.  There are many ways to achieve this.  Here are their top six:

1. Have one main investment account and another for short- to mid-term needs

Most people who have at least one long-term [investment] account should consider opening another account for mid-term goals. Mid-term goals might involve buying a house or paying for a child’s education.

Match your portfolio spending to the specific goals and time horizon.

2. Don’t be too restrictive with your budget

Trying to change your spending habits too quickly can result in burnout.  Make room for expenses that matter to you. If an activity with a friend is a priority, keep this in your budget. Find other ways to cut down on spending; like canceling unused subscriptions.

3. Automate saving money

You should automate everything you can about saving so that you don’t have to make a conscious decision to do it.   Money in a checking account can be tempting and easy to spend.  Make regular transfers to a high-yield accounts that can help you save for an emergency.

If applicable, automatically transfer your money to a retirement account. If you work for a company that offers a shared RRSP plan, it’s ideal to sign up for the full employer match. Not taking advantage is like leaving hundred-dollar bills on the ground.

4. Spend more to save more

Focus on quality and spend more if it means it will last.  For big-ticket items take advantage of sales events and/or buying seasonal items at the end of the season. Participate in free loyalty programs and search for online coupons before making a purchase.

5. Look out for the small purchases on your credit card statements

When reviewing your credit card statements, it’s easy to just focus on the bigger charges. But it’s key to also review the smaller line items.

These purchases are easy to overlook. Check your statements monthly, and if you see something you don’t recognize (even a few-dollar charge), report it to your credit card company immediately.

 6. “One-size-fits-all” approaches doesn’t work

Personal finances should be based on your values.  Once you understand that other people’s priorities are not the same as yours, you will be able to make the most sense of the right savings methodology for you.

The question becomes: What is important to you may differ from your neighbours and friends.

Bottom Line

There are a lot of rules of thumb out there when it comes to money, but don’t feel pressure to follow them all.  The best thing you can build into your personal financial plan is the flexibility to make changes as needed.