Best of 2023: Top insights and financial advice

Season 1 of the Smart Advice Podcast brought a wealth of financial advice, tips and insights to help support Canadians along their financial journey. We covered a variety of timely and important topics, from the state of the economy and the markets to advice around investing and saving for life’s major goals.

In this bonus episode, we  look back at highlights from this season that can better position you for a successful 2024.

If you’re new to the Smart Advice podcast and want to learn more about the topics we cover , or you’re a loyal listener looking for the biggest takeaways of the year, this episode is for you.

Resources

• Visit CIBC for more smart advice
• If you want more insights, check out these previous Smart Advice podcast episodes:
  • Beyond the 60-40 rule: Rethinking the asset mix for modern investors with David Wong
  • Rent vs buy: A conversation with Benjamin Tal  
  • Banking on resilience: An outlook on Canada’s financial sector
  • The great Canadian wealth transfer: From baby boomers to beneficiaries  
  • Estate planning simplified: The Willful way with Erin Bury 
  • How the FHSA helps first-time Canadian homebuyers with Jamie Golombek 
  • What's next for inflation and interest rates? with Avery Shenfeld 
  • The art of financial multi-tasking with Rob Carrick 

Episode Highlights

[01:07] Financial advice 1: Rethinking the 60-40 asset mix rule

• A portfolio with 60% stocks and 40% bonds has provided a long-term balance of growth and stability.
• Remember that in the short term, you will face volatility in the market. When your assets are not diversified, it’s easy to make bad decisions.
• There’s a spectrum within the equity market. This includes markets that are from developed or emerging countries; as well as small-cap and large-cap markets.
• In bond markets, there’s a difference between value investing and growth investing.

[03:43] David Wong: “The more granular we can get in that asset mix, the more we can give better potential reward to risk in our portfolios.”

[03:51] Financial advice 2: Renting vs buying

• The changing real estate market has made many Canadians rethink homeownership options.
• There is nothing wrong with renting property. In fact, this may be the more sensible decision for some.
• Real estate investors should realize there will be more families looking to rent and prefer dealing with a landlord linked to a company.
• Demand for purpose-built rentals is rising annually, yet Canada does not have a good supply.

[07:06] Financial advice 3: The state of Canada’s financial sector

• The US banks are not likely to impact Canadian banks.
• The Canadian financial sector is much more regulated with 6 major banks and some financial institutions. On the other hand, the US has over 4500 banks.
• Over the past 10 years, the US had 73 bank failures. Canada did not face any bank failures in nearly 100 years.

[09:18] Financial advice 4: All about wealth transfe