Community & Giving

Those who are not yet retired can only imagine what life will be like after work. The vision of carefree days, with no boss or alarm clock, is very clear for some—they see themselves traveling around the world, writing the great American novel, or relaxing with family.

Others just hold a vague notion that life will somehow be better than it is now. Yet it seems that however clear or cloudy their notions about retirement are, folks universally hope that the money will take care of itself. That’s what “retirement” is, after all—shifting to a phase of life when something other than daily work becomes the primary source of income.

But of course, for that shift to go smoothly, planning has to happen. And a big part of the planning is figuring out what life in retirement will actually be like.

In our July blog we discussed various considerations important for the decision of where to retire. Today we wish to examine additional aspects.

Here are some key questions to ask yourself.

Where will you live?

The answer to this question affects not only housing costs but other living costs as well. Consider:

Proximity to children and grandchildren. If you want to live near your children then you might have to build travel costs into your budgets and/or have extra space in your homes for when the family comes to visit. Far from downsizing into condos, some retirees actually move into larger homes to accommodate family gatherings.

Travel plans. If travel is expected to play a big part in your retirement plans, you might opt for an inexpensive condo near the airport (with no plants or pets), at least until the wanderlust subsides. If and when it does, then you can reconsider the housing question again.

Affordability. The ideal way to plan for retirement is to envision the perfect life and work toward it. But many people—especially those in their 60s—don’t have that option. If you would rather retire sooner on less income rather than work extra years, the where-will-you-live question might better be phrased “Where can you afford to live?”

Key factors in assessing your living costs are the price of housing as well as the cost of food, utilities, and transportation.

What will you do?

Employment and business opportunities. Many retirees plan to work during retirement. If so, you should consider the job market for the type of work you now want to do, or the business climate if you plan on starting a new business. Obviously, working during retirement generates income— But at the very least, working—even volunteer work—keeps retirees occupied so they are less inclined to fill their days with activities that impact their expenses.

Expense-generating activities. Even classic low-cost activities such as gardening require trips to the nursery. This is not to say you shouldn’t indulge in your favorite hobbies during retirement—just that these expenses will have to be factored in to the budget.

How will you live?

The rule of thumb that says clients will need 80% of their pre-retirement income in retirement does not take into account the fact that most retired people these days have not only the time, but also the energy, to live it up!

So you have to ask yourself how simple or extravagant a lifestyle you expect to lead:

The simple life. A modest home. Most meals at home. Inexpensive vacations like road trips and low cost excursions. Mid-priced car. No lavish spending on entertainment, clothes, or other items. Inexpensive or free hobbies.

The high life. One or more well-appointed homes. Lots of meals out. Extensive, high-end vacations. Luxury car. Expensive cultural activities like theater, concerts, or season tickets to sporting events. Expensive hobbies like golf, wine, or photography.

How will your health hold up?

Health status impacts the retirement budget in two ways: it determines whether or not you will be able to work (and for how long). It also impacts life expectancy (see next question), which ultimately determines how long the retirement nest egg will need to last. Ironically, the healthier you are, the more attention you must pay to long term care: It is usually the oldest who need in-home or nursing homes care which is expensive.

To answer the health question, you should check your family history to see what health issues you may likely face. Also take into account lifestyle factors such as exercise, and nutrition. Regular physical checkups will also help keep tabs on your health status.

How long do you expect to live?

This is the million-dollar question. No amount of charts and graphs will accurately establish an individual’s true life expectancy. The safe route is to plan for your retirement income to last to age 90.

You might be a person who has already thought through your vision for retirement and then you may find these questions easy to answer. Others may need help getting a fix on what life in retirement will bring.

Wealth Advisors at Rothenberg Wealth Management – Harbourfront Wealth Managment are carefully trained to help clients approach such issues, which may be daunting to face alone.

Your savings, possessions and property form your estate. Estate planning allows you to decide in advance who receives what, and to establish a financial plan to minimize taxes upon your death. An important part of estate planning includes funeral and burial instructions and your wishes regarding medical interventions.

Estate planning is the best strategy to ensure your wishes are followed at the time of your death. Having an estate plan will streamline the process, possibly reduce legal costs, and ease the burden on your survivors.

In Canada there are no “estate taxes” – taxes owed on the entire value of an estate. However, your estate may be subject to probate and income taxes. Taxes and other expenses are paid out of your estate, reducing the amount available to pay to your heirs. All expenses must be paid prior to disbursing to the heirs.

Wills

A Will is a formal legal document detailing how you wish your assets and possessions to be distributed upon your death. It legally guarantees that your savings, individual items and property are given to people and organizations of your choosing. It also allows you to choose the person(s) who will care for your dependents and pets.

In preparing a Will you will decide who will act as executor of your estate. This can be one or more relatives or friends. Who you choose is important as he/she will be responsible for settling the estate and, once all expenses and taxes have been paid, distributing the balance of the estate to the beneficiaries in accordance with your wishes as outlined in the Will. It is sometimes wise to choose at least one younger person to act as executor of your estate to ensure that he/she will be alive when you pass away. Also, choose a person or people who live in Canada, because having a non-resident executor can create problems and additional tax burdens.

You can modify your Will at any time should circumstances change for you or for those mentioned in your will. A change in marital status, grown children, or death of a beneficiary or executor are good reasons to review and update your Will.

Dying without a Will leaves your possessions to be divided according to a pre-set formula according to province. Without a Will, your estate will be automatically transferred to your closest relatives, while friends, charities, and organizations will be excluded.

Having your Will prepared by a notary or lawyer is recommended. Once completed the document will be registered with the Chambre des Notaires and Barreau du Quebec or the law society of your province and becomes an official legal document. This ensures the document is indeed the last official Will and mistake-free and helps avoid delays and procedural costs – not to mention stress – that would be imposed on the executor(so) of your estate. It is important to provide details of your wishes when preparing your will. However, do not put in the specifics of your funeral or burial in the Will because in most cases, the Will is opened and read only after the funeral. Keep those instructions in a safe place and be sure to let the executor(s) know the location.

Keep all information regarding organ donation separate and make sure your close family and friends are aware of your wishes. Some detailed instructions regarding specific furniture or jewellery etc. can be written separately to the official will in what is known as a memorandum or codicil.

Probate

A Will is validated through a process called probate. The goal of submitting a Will to probate court is to ensure that the document is indeed the true Last Will and Testament and to confirm the executer and their ability to perform their duties.

The courts can resolve possible confusion between multiple documents and respond to any concerns regarding the legitimacy of a document (during Probate a Will can be challenged).

In Quebec, a notarial Will does not require probate.

Once the courts have accepted the Will and the appointment of the Executor, they will issue a document that officially appoints the executor as the estate administrator. It is important to be aware that once a Will has been probated it becomes a public legal document and can be viewed by anyone who applies for it at the probate courts.

What property can be transferred without probate?

In all provinces except Quebec, probate fees (sometimes called administration tax or probate tax) vary from province to province but are mostly calculated based on the total value of the “estate”. Consequently, it is important to understand what is considered part of your estate, and what is not.

Joint accounts with a right of survivorship, and financial accounts that already include beneficiary designations are not part of your estate (e.g. life insurance policies, registered savings accounts like RRSP’s or TFSA with named beneficiaries). Planning ahead can reduce probate fees.

Power of Attorney (POA)

A Power of Attorney document grants one or more people with the authority to make decisions for you regarding your bank accounts, payment of bills and other finances, property and other responsibilities in the event you are not available because of travel, hospitalization or other reasons. The terms of a Power of Attorney document are flexible. You set the conditions under which it begins and ends, and you can limit its authority to a specific asset or account.

A Power of Attorney will be completed by a lawyer or notary. Once completed, the document will be registered with the Chambre des Notaires/Barreau du Quebec or the law society of your province and becomes an official legal document. The Power of Attorney will provide you with peace of mind in the event of accident or other emergency where you are not able to take care of your day to day obligations.

Living Will (Mandate in Quebec)

A Living Will (in Quebec known as a Mandate) is a set of instructions that define your medical wishes should you become physically or mentally incapacitated. In Quebec, it also replaces the Power of Attorney, which loses its legal power. The document guides how medical professionals respond in the event you require medical interventions like life-support, tube feeding, or resuscitation. It can also include instructions regarding organ donation. You will designate a person(s) to ensure your wishes are followed or to make last minute decisions on your behalf.

This person can be one or more of the executors of your Will or other people that you choose. When possible, it is wise to choose a person or people who live nearby and would be close at hand. A Living Will (Mandate) will be completed by a lawyer or notary.   Once completed, the document will be registered with the Chambre des Notaires/Barreau du Quebec or the law society of your province and becomes an official legal document.

Private markets are often misunderstood—especially when it comes to how they are valued and how they behave during periods of market stress.

A common misconception is that private investments appear more stable simply because they aren’t priced daily. In reality, they are valued differently—not less rigorously.

How Private Market Valuations Work

Unlike public securities that fluctuate minute by minute, private investments are typically valued quarterly using disciplined, institutional processes. These valuations rely on:

• Discounted cash flow analysis
• Comparable public market data
• Third-party appraisals
• Real transaction activity and market inputs

Importantly, these methodologies are governed by global accounting standards and reviewed by auditors and independent valuation experts. The goal is to reflect fair value based on fundamentals, not short-term market sentiment.

Why Private Markets Behave Differently

The key difference between public and private investments lies not just in pricing frequency, but in structure and underlying drivers.

Private market investments are typically:

• Long-term in nature, reducing the pressure to react to short-term volatility
• Less exposed to market sentiment, such as panic selling or momentum trading
• Driven by fundamentals, including cash flow, asset quality, and operational performance

As a result, private investments often experience less frequent and less severe price swings, particularly during periods of market stress.

Resilience Through Market Cycles

History shows that private markets have held up differently during major downturns:

• During the 2008 financial crisis, public equities experienced significant declines, while diversified private investments generally saw more moderate drawdowns.
• In periods of rapid market stress, such as the 2020 COVID selloff or 2022 rate-driven downturn, private assets were impacted—but often less dramatically and with a steadier recovery path.

This resilience is not due to “hidden risk,” but rather to the structure and underlying characteristics of the investments themselves.

The Role of Private Markets in a Portfolio

Private investments can complement traditional equities and bonds by introducing:

• Diversified return sources, including income-generating assets and long-term growth opportunities
• Lower correlation to public markets
• Potential downside protection, particularly in private credit and real assets
• More consistent income streams in certain strategies

They can also help investors stay disciplined. Because private investments are not priced daily, they may reduce the temptation to react emotionally during market volatility—an often overlooked driver of long-term outcomes.

How Much Should You Allocate?

There is no one-size-fits-all answer, but many portfolios benefit from a measured allocation to private markets.

A practical framework may look like:

• Conservative investors: 5–15%
• Balanced investors: 15–25%
• Growth-oriented investors: 20–35%

Diversifying across private credit, private equity, and real assets can further enhance outcomes.

Key Takeaways for Investors

• Private markets are not “less volatile” because they hide risk—they reflect risk differently
• Valuations are grounded in disciplined, audited, and globally regulated processes
• Historically, private investments have shown less severe drawdowns and strong recovery characteristics
• They can play a valuable role in building more resilient, diversified portfolios

Our Approach

Through our partnership with Harbourfront Wealth, Rothenberg provides clients with access to institutional-quality private market investments—opportunities that have historically been less accessible to individual investors.

For a more in-depth perspective, we encourage you to read the full article by David Ferreira, CFA, Portfolio Manager, on the Harbourfront Wealth website: How Private Markets Really Work: Valuations, Volatility, and the Case for Resilience – Harbourfront Wealth Group

The traditional 60/40 portfolio—60% equities and 40% fixed income—served as the foundation of balanced investing for decades. It offered a simple and effective way to capture growth while managing risk, supported by the historically reliable relationship between stocks and bonds.

Today, that foundation is being tested.

The environment that supported the success of the 60/40 portfolio—declining interest rates, stable inflation, and consistent diversification benefits—has shifted. In recent years, investors have experienced periods where equities and bonds declined simultaneously, reducing the diversification benefits that portfolios once relied on.

At the same time, structural changes in the global economy—higher inflation, elevated interest rates, and increased market concentration—have introduced new challenges for traditional asset allocations. As a result, many investors are reevaluating whether a portfolio built solely on public markets is sufficient to meet long-term objectives.

Why Look Beyond 60/40?

One of the most notable shifts is the growing importance of private markets—including private equity, private credit, real estate, and infrastructure. These assets are a significant and expanding portion of the global investment universe, yet remain underrepresented in many portfolios. Incorporating private investments allows investors to access a broader opportunity set, including companies and assets that are not available in public markets.

The Case for Private Markets

For long-term investors, private markets can offer several compelling advantages when thoughtfully integrated into a diversified portfolio:

• Diversification beyond public markets
  • Private markets broaden the range of options available to investors, since they represent nearly 90% of investments globally. This can help reduce overall portfolio volatility and improve resilience, particularly during periods when public markets move in tandem.

• Potential for enhanced returns
  • Private markets investors are compensated for holding assets that are not immediately tradable. This “illiquidity premium” provides a unique advantage that can result in higher long-term returns compared to public markets. Additionally, active management in private markets, such as hands-on operational improvements in private equity or underwriting in private credit, may offer additional opportunity to increase returns.

• Lower volatility
  • Private markets are not subject to day-to-day price fluctuations of public markets, which can mean lower overall portfolio volatility and potentially more stable performance in volatile markets.  Moreover, the highly customized nature of private market investments often results in more beneficial investment terms to protect capital, leading to greater downside protection. Finally, they have low correlation to traditional asset classes such as public equities and bonds, adding potential portfolio stability in fluctuating markets.

The Bottom Line

The traditional balanced portfolio isn’t obsolete, but it may no longer be enough on its own. Incorporating private markets can help investors build portfolios that are more resilient, more diversified, and better aligned with today’s market realities.

Our Approach

Through our partnership with Harbourfront Wealth, Rothenberg provides clients with access to institutional-quality private market investments—opportunities that have historically been less accessible to individual investors.

For a more in-depth perspective, we encourage you to read the full article by David Ferreira, CFA, Portfolio Manager, on the Harbourfront Wealth website: Beyond 60/40: The Case for Private Market Investments in the Modern Balanced Portfolio – Harbourfront Wealth Group