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I s s u e 4 0 – J a n u a r y 2 0 1 7

B Y T H E C O R P O R A T E C O N C E P T G R O U P

F O R E S I G H T

2016 could probably be characterized as the year of Donald Trump

based solely on media coverage. However, there were a number of other

major events. Brexit, Olympics in Brazil, Zika virus, Terrorist attacks in

Brussels (Belgium) and Istanbul (Turkey), Nice (France). Donald Trump as

2016 Year in Review and a Look Ahead at 2017 and Beyond

2

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president of the United States was definitely the biggest surprise of the year.The economic environment improved. The U.S. housing market had another year of growth. Europe had another year of positive economic growth. China slowed down, but still grew at 6.6%. Oil prices rose from the January low of $34/barrel to around $51/barrel by the end of the year.

In 2017, Donald Trump will begin to get some of his economic plans implemented. Tax cuts, infrastructure spending, and reducing regulation are expected to have a positive effect on the U.S. economy.

Although, this may seem a little far-fetched most of the technology referenced exists today. It’s just not a part of everyday life. What I

really wanted to accomplish, was to make you see a little bit of what the future may hold.

1. More protectionist sentiment. Brexit and the Trump presidency highlight the backlash of increased global trade that displaces workers in the developed countries by the workers in the emerging markets. Although, this provides more economic benefit for the global economy over-all, it is sparking increased protectionist feelings. The risk is that it spreads and there become more impediments for trade, whether it comes in the form of tariffs or subsidies.

2. Rising interest rates. With the U.S. economy recovering, and the expected boost from Trump’s policies, interest rates have risen. The 10 year U.S. treasury as of Dec 8th 2016 was yielding 2.47%, up from 2.24% in January 2016.

3. Rising energy prices.

◊ Get up to a radio alarm clock playing Elton John’s “Candle in the Wind”.

◊ Get in your non-hybrid, non-electric car and drive to work on the 401 with no construction.

◊ Get a coffee at a Tim Horton’s drive through, but there is no line up.

◊ Arrive at the office, back into a parking spot, but you have to put your arm over the passenger seat and look backwards to park. No back up camera.

◊ As you walk to the office, you open up your flip phone and make a call.

◊ As you ride up in the elevator, you notice someone has this newfangled device that he is showing his co-worker, you over hear the word Black Berry.

◊ You arrive at the office and enter your cubicle and boot up your desktop computer.

◊ On your way home, you drive to Eaton’s and pick up an anniversary gift.

◊ After dinner you turn on the TV and watch the latest episode of “Home Improvement”.

◊ It's time to go to bed. You brush your teeth and turn out the lights.

◊ You wake up to a sunrise on your bedroom wall display, with one of Shawn Mendes’ golden oldies playing in the background.

◊ As you walk into the kitchen, your google fitbit scans your body and communicates with your smart fridge to create a nutritional shake that addresses your body’s current nutrient deficiencies.

◊ You’re ready to leave for the office and the uber self-driving car is waiting for you outside your door. On the way, you are able to return video-mails and check up on the latest news on the glass display in the car that remotely connected to your google fitbit.

◊ You arrive at the office and your virtual assistant reviews your schedule for the day with you.

◊ On your way home you realize that you forgot to get a present for

your anniversary. You use your google fitbit to complete a rush Amazon order that is customized based on your spouses’ buying patterns and is sent via drone to your home. It arrives just as you get there.

◊ As you walk towards your self-powered smart home, you make a mental note to ask the Tesla solar panel technician to come by to fix one of the solar panels and check on the home battery.

◊ As you enter your home you realize that you forgot to fix the hydroponic vegetable grower, so you ask your 3D printer to create the part that needs to be replaced and your homebot fixes the grower.

◊ You have dinner, watch some holographic TV and go to bed.

Beyond 2017, I wanted to paint a picture of what life may be like in 20 years. By having a paradigm of the future it helps us make good decisions now. With technology changing at what appears

to be an increasing rate, I thought I’d start with a look back 20 years before we look forward.

2016 Year in Review and a Look Ahead at 2017 and Beyond

- Russell Nagano

For 2017 the main risks we see to the global economy are:

A Typical Day 1997

Typical Day in 2037

Sources: Reuters, IMF, U.S. Census Bureau, E.I.A., I.E. A., Bloomberg

3Retirement Readiness

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Many Canadians worry about whether or not their money will last for their lifetime. However, a great many Canadians don’t have any form of written or formal retirement plan. In a recent survey conducted by Innovative Research Group for the Ontario Securities Commission (June 2016), only 10% of those aged 50 and older who have not yet retired have a formal, written retirement plan. A rather shocking number considering what is at stake.

The worry about having a fruitful retirement is more pronounced for people that haven’t yet retired versus those who have already retired. According to an Angus Reid Survey conducted between January 15th and 19th, 2015, nearly half (48%) of already retired Canadians worry about outliving their money and 76% of those not yet retired are worried about outliving their money.

Retiring comfortably is something that can’t be left to chance. A well thought out Financial Plan with proper retirement planning is something that needs to be put in place many years prior to retirement. Even so, things can come up to change our plans, making reviews and contingency plans just as important as a solid initial plan. Almost

half of those polled in the Angus Reid Survey (January 2015) retired earlier than they had planned based on circumstances outside of their control. The amount of investments one needs to accumulate to have a comfortable retirement is difficult to build over a short period of time.

Despite all the worry, and the fact that a great many people retire earlier than anticipated, 38% of those surveyed say they have enough money to do everything they want in retirement and 44% live comfortably but don’t have money for extras.

The primary sources of retirement funding are: government pensions (57%), and work pensions (53%). Retirement savings 30% and investments 13% are relatively lesser sources of retirement funding, pointing to the fact most people are not saving enough to generate the income they require (or desire) in retirement. Those in the most affluent group (i.e., have enough money to do everything they want) are more likely than other retirees to rely on retirement savings (40% do so) or investment income (25%).

I retired earlier due at least partly tocircumstances outside my control

Timing and a�ordability of Canadian retirement

48%

46%

6%

38%

44%

18%

I retired when and as planned

I retired later due at least partly tocircumstances outside my control

I have enough money to doeverything I want

Making ends meet is a struggle

I live comfortably but don’t havemoney for extras

Retirement Readiness

Source: Angus Reid Survey (January 15th and 19th 2015)

Source: Angus Reid Survey (January 15th and 19th 2015)

Helping You Achieve The Future You Deserve

DirectionsLocated in the Morneau Sheppell Centre, Building Two. Turn east onto Green Belt Drive off of Don Mills Road.

It is the first entrance on your right. Follow the signs to the visitors parking.

Financial Planners

Russell Nagano B.Comm, CLU, CFP

r.nagano@ccgpwm.com

Scott Goddard Hons.B.A., CFP

s.goddard@ccgpwm.com

CCG Personal Wealth Management895 Don Mills RoadBuilding Two, Suite 802Toronto, ON M3C 1W3p. 416.498.5550 f. 416.498.5188

www.ccgpwm.com

Mutual Funds Provided Through FundEX Investments Inc.

If you have a well thought out Financial Plan you can put yourself in the enviable position of being one of those who have enough money to do all the things you want in retirement. - Scott Goddard

Source: Angus Reid Survey (January 15th and 19th 2015)

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