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(June 17, 2008) With the sunny weather of June upon us, many clients will be heading off to the cottage. Most will find it hard to pull themselves away from their vacation. And some just won’t bother coming back to the office at all..

According to the Fidelity Canadian Retirement Survey, June July and August are the months with the highest number of people entering retirement.

“Fidelity’s research shows that when it comes to the timing of their retirement, the summer months are the tops for Canadians,” said Peter Drake, vice-president, economic and retirement research, Fidelity Investments Canada. “When you consider the relatively short summer Canada enjoys, it seems that retiring Canadians want to take full advantage of the summer months by not spending them at work.”

While the majority find some way of celebrating their newfound freedom, 36% of retirees say they did nothing special to mark the occasion. Given that retirement is becoming more of a process than an event, this seems to make sense. Forty per cent of retirees said they continued to work in some capacity after they officially retired.

This year, only 39% of retirees said they found the transition to retirement easier than they expected, compared to 48% in the 2006/2007 edition of the survey.

“Considering the volatility of the financial markets and other investment issues investors faced in late 2007 and early 2008, many recently retired Canadians might be feeling a little less than secure about their retirement,” said Drake.

One in seven said they marked their retirement with a visit to their financial advisor. Remarkably, the survey found more than a quarter of Canadian pre-retirees had not discussed their retirement funding situation with family members, friends or their financial advisor, while 32% of retirees still hadn’t talked about money with their family.

Of those who plan to fund their retirement from their own savings, 55% said they were more likely to talk about these issues with their financial advisor before their family members or friends.

“Getting Canadians to talk about their retirement savings is the first step; planning for their retirement is the next,” said Drake. “Talking about retirement and what it means to you and your family can be difficult. But not talking or, worse, not planning for retirement can make things even more difficult.”

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Foreign investors pour cash into Canada

(June 17, 2008) Foreign investors piled into Canadian debt instruments in April, with sales reaching a high-water mark not seen since November 2006, according to the latest data from StatsCan.

Non-residents bought up $7.1 billion in debt, favouring provincial and corporate bonds. Government of Canada bonds actually saw a $1.5 billion sell-off, while treasury bills came back in vogue, with foreigners buying $394 million worth after three months of divestment.

Canadian investors returned the favour, scooping up $1.6 billion worth of foreign bonds in April. Interest was concentrated in U.S. government bonds, while American corporate bonds and non-U.S. bonds were sold off. U.S. T-bills were sold off to the tune of $853 million, as the growing short-term rate differential favoured Canadian investments.

Foreign investors also scooped up $2.6 billion worth of Canadian stocks in April, mostly chasing returns in the resource sectors. Canadian investors were even more ambitious, buying up $5.6 billion in foreign stocks, with the majority of acquisitions being made in the U.S. markets.

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BMO opens private bank office in B.C.

(June 17, 2008) BMO Harris Private Banking will officially open its first stand-alone private banking office in the country, in Kelowna, British Columbia, on June 18. The office has actually been open for business since April 21.

“We’re very pleased to bring our integrated approach to wealth management to more clients in B.C.’s Central Okanagan region,” said Diana Reid, senior vice-president and managing director, B.C. region, BMO Harris Private Banking. “Our team of experienced professionals is looking forward to serving the needs of clients in the Kelowna area with the same dedication and commitment with which we serve clients across Canada.”

The office’s 11-person team is led by Tom Klick, director and senior private banker.

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Sun Life exec honoured

(June 17, 2008) Sun Life Financial has announced that senior vice-president Gary Comerford has been honoured by the Indo-Canada Chamber of Commerce.

“Gary’s vision, leadership and commitment over the past decade have been key to the strong Indo-Canadian economic partnership that we enjoy today,” said Sunil Jagasia, president, ICCC. “He worked tirelessly to help establish strong connections to the Indian business community.”

Comerford received the ICCC’s 2008 President’s Award for his role in strengthening trade between Canada and India. He led Sun Life Financial’s re-entry in India after a 40-year absence.

(06/17/08)