Time-Weighted vs. Money-Weighted Returns

For a number of years we at Polson Bourbonniere have been providing our clients with rates of return on their investment accounts. Utilizing an industry standard methodology used for years by money managers known as “Time-Weighted Rate of Return”, we’ve been able to compare returns with appropriate benchmarks.  This has been an excellent way for an investor to gauge how their money manager(s) and portfolios have been performing for various time periods such as 1, 3, 5 and 10 years. Starting with investors’ December 31, 2016 year-end statements a “personalized” rate of return will now be included as part of an initiative mandated by regulators known as CRM2.  The purpose of this initiative is well thought out – make both fees and performance transparent to all investors.  We applaud the objective. As […]

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On the Move in Retirement – Downsizing the Family Home

Downsizing, moving down, realizing assets 1

If we had to guess, we’d say that probably close to one-half of our clients have moved to a new “home” of some kind after retirement. For some it was an easy decision, a financial one. They wanted to realize some of the equity in their city home. They may have purchased their home in the city 30 years ago and watched their property value increase many times over.  Downsizing to a smaller home outside of the city, perhaps a cottage, or to a lower maintenance home like a condo, has enabled them to have extra capital available to produce extra income and improve their standard of living. For others, selling the family home in retirement is more of a lifestyle decision. Perhaps they are interested in less maintenance and […]

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