Every year on July 1, Canadians come together to celebrate Canada Day—a day that marks the country’s Confederation in 1867 and the beginning of Canada’s journey as a nation. It’s an opportunity to reflect on our shared history, celebrate our diversity, and appreciate the people and communities that make Canada such a special place to call home.
Canada is known around the world for its breath-taking natural beauty, multicultural communities, and spirit of kindness and inclusion. From coast to coast to coast, people celebrate Canada Day in many different ways. Families and friends gather for picnics and barbecues, communities host festivals and live entertainment, and the evening often ends with spectacular fireworks lighting up the sky.
For many, Canada Day is also a time to reflect. It offers an opportunity to recognize the rich histories, cultures, and contributions of First Nations, Inuit, and Métis Peoples, while acknowledging that Canada’s story continues to evolve. Celebrating Canada means appreciating both the achievements we’ve made and the work that remains in building a more inclusive, respectful, and equitable future for everyone.
One of Canada’s greatest strengths is its diversity. People from every corner of the world have chosen to build their lives here, bringing with them unique traditions, languages, perspectives, and talents. Together, these differences create vibrant communities and remind us that our diversity is what makes Canada stronger.
Whether you’re enjoying a neighbourhood celebration, spending time with loved ones, exploring the outdoors, or simply taking a moment to appreciate the freedoms and opportunities we share, Canada Day is a chance to celebrate what unites us: compassion, resilience, respect, and hope for the future.
This Canada Day, let’s celebrate not only where we’ve come from, but also the inclusive and welcoming country we continue to build—together.
Honouring the People Who Guide, Support, and Inspire Us
Every year, Canadians celebrate Father’s Day on the third Sunday of June. While the day is traditionally dedicated to fathers, it has also become an opportunity to recognize all the people who have played a fatherly role in our lives—grandfathers, stepfathers, uncles, mentors, coaches, and other father figures who have offered guidance, support, and care.
Fatherhood comes in many forms. Some fathers are the quiet supporters who are always there when needed. Others are the teachers who share life lessons, encouragement, and wisdom. Many father figures help shape who we become through their patience, dedication, and unconditional love.
Across Canada, families celebrate Father’s Day in different ways. Some gather for a barbecue, enjoy time outdoors, share a special meal, or simply make a phone call to reconnect. While traditions vary, the heart of the celebration remains the same: expressing gratitude for the people who have made a positive difference in our lives.
Father’s Day is also a reminder of the values often passed from one generation to the next—responsibility, resilience, kindness, and caring for those we love. These lessons help strengthen families, communities, and future generations.
As we celebrate Father’s Day, we extend our appreciation to all fathers and father figures who provide support, encouragement, and inspiration every day. Your impact is felt far beyond a single day of recognition.
Happy Father’s Day to all who help guide, protect, and care for others.
The tax-free savings account (TFSA) is a very flexible tool for building financial wealth within a fully tax-sheltered environment. However, recent statistics show that tens of thousands of taxpayers are paying penalties – often over $1,000 – simply because they didn’t manage their deposits and withdrawals correctly.
Here are five things to keep in mind to to manage your TFSA Deposits and Withdrawals and avoid costly penalties.
Warning :TFSA tax rules may change, and how they apply depends on the specific situation. Conferring with your advisor is recommended.
How to balance wealth preservation and long-term needs?
When it comes to savings and investments, retirement often signals a transition from the “accumulation” phase to the “distribution” phase. Indeed, most people stop contributing to their retirement savings once their working life is over, and start using this money to provide an income.
At that point, it would seem logical to minimize portfolio risk to protect the precious accumulated wealth, even if it means settling for lower returns. But is that really the only option? Here are a few discussion points to help you make up your own mind.
Factor 1: The future lasts a long time
The first point to consider is the fact that in the past century, life expectancy has soared. These days, it’s not unusual for retirement to last 25 or 30 years, or more. So a person’s accumulated savings have to provide an income for all that time.
What does that mean in practical terms? Imagine a 65-year-old who has saved a million dollars in retirement capital and would like to withdraw an annual income of $50,000, indexed at 2% per year. Based on these simplified assumptions, an average annual return of about 5.5% would be required for the person’s savings to last until age 95 (note that for simplicity, taxes have not been factored into this equation, even though they could have a significant impact in a real-world situation).
Do you think that would be easy to achieve? Keep reading.
Factor 2: Risk
The second point to think about is the type of portfolio needed to generate the required returns. Would it be a conservative portfolio or, conversely, one highly exposed to market volatility?
Based on the Institut de planification financière’s projection assumptions (which can change over time), it would be reasonable to expect an average annual return of 2.4% for short-term investments, 3.4% for fixed income securities (considered safe), and 6.6% for Canadian and U.S. equities (considered riskier). So, to achieve an average annual return of 5.5%, and assuming the portfolio keeps $50,000 in short-term investments, the person in our example would have to invest about 68% of his or her savings in the stock market. This largely equity-based portfolio would thus have a relatively high exposure to stock market swings.
Finding the sweet spot
This example gives a good picture of the dilemma faced by retirees: finding the right balance between the performance they need and the risk they can tolerate. A negative market performance – especially early in retirement when the distribution process is beginning – could play havoc with a portfolio too heavily weighted in equities. On the other hand, if the equity weight is too low, the portfolio might not achieve its performance targets and the capital could be depleted too soon.
So it’s important to evaluate your risk tolerance throughout your retirement. In this regard, an old rule of thumb states that the proportion of equities in your asset mix should equal “100 minus your age.” Thus, someone who is 65 years old should only have 35% of his or her portfolio in equities, and this weighting should gradually be reduced to further protect the capital as the investment horizon diminishes. This rule, now widely questioned, should be used with caution. In our example, the result of applying this “conservative” weighting could result in the capital being depleted shortly before the retiree reaches age 95.
Which brings us back to the question: what’s the appropriate return on investment to aim for in retirement?
Getting your risk profile right
Clearly, the answer depends on your income requirements and the amount of risk that your personal situation allows you to tolerate.
For example, if the retired person in our example only needed to withdraw $40,000 a year from savings instead of $50,000, a lower return – and thus a lower-risk portfolio – could be enough to provide income to age 95.
Similarly, if you can rely on benefits from a private or public pension plan, your personal savings will play a different role in your retirement income, and you might assess the risk-return profile of your assets in a different light.
The distribution plan
Distribution planning is an important – and complex — operation. What are your needs and how will they change? What level of risk can you tolerate, and how will this tolerance change as you age? Are you planning to leave a legacy for your heirs? And so on.
So the answer to the question of what return you should aim for in retirement is a personal one. And a conversation with your advisor is a good place to start looking for yours.
Note: The assumptions and figures used in this article are based on historical data and reliable sources; however, past performance does not guarantee future results, and investing in the market always involves risk.
Rahimian Insurance Company has been operating in Canada since 2002.
We are an official member of the Insurance and Financial Advisors of Canada.
We offer individual, group, and investment insurance services.
I, Mohammad Rahimian, along with my experienced colleagues, am at your service—offering free consultations with our expertise in the field of insurance.
