Putting time on your side is one of the best ways to achieve your financial goals. The earlier you start, the better your chances of success in creating wealth for yourself and your family.
One aspect of time’s power is compound interest. Investing and saving at a young age ensures you can maximize the momentum in interest or capital gains that builds exponentially over time. Another important way to benefit from time is to seek the guidance of a Certified Financial Planner early. CFPs tailor portfolios to the needs of each individual, family or business. To determine those needs with precision, a CFP examines a wide range of financial variables, from cash flow and savings to the goals and risk tolerance of each client. Experienced CFPs prescribe an array of investment choices that bring a client’s life goals into sharp focus. A CFP’s guidance can be life-changing. His or her counsel can help send kids to college, ensure a comfortable retirement, put families on a path to prosperity and keep businesses soaring toward success. Over the years a number of studies have attempted to quantify the value of a financial advisor. According to Russell Investments’ 2023 Value of an Advisor report, the value of a professional CFP is significant, and the best outcomes are achieved with financial planners who “help clients save money by keeping them focused on the long term rather than falling prey to emotions when markets get volatile.” The 2023 study highlights four elements that demonstrate the value of financial advisors: A CFP’s guidance in balancing and diversifying portfolios; encouraging consistent investing; customizing financial plans to address each stage of a customer’s life; and devising effective strategies to minimize taxes. “When we launched our Value of an Advisor study [10 years ago], an advisor was essentially a stockbroker,” the report contends. “Now, they can spearhead a network of experts to provide customized wealth planning for entire families. We believe the value of an advisor has increased as the services they offer have broadened and deepened.” The services mentioned are familiar to readers of this blog: family wealth planning, portfolio rebalancing, diversification, insurance, charitable giving, estate planning, trusts, cash management, income and distribution management, asset allocation, wealth education, family relationship management and career considerations. In addition to this wider range of services, clients increasingly seek clear lines of communication and deeper professional relationships with their advisor, along with customized solutions. The report points out the importance of rebalancing a portfolio regularly, benefiting from the insights and guidance of a CFP. It notes that a portfolio that featured a 60-40 equity/fixed income balance in 2009 would have become an 82-18 “growth portfolio” by 2022 if left untouched. “Maintaining the allocation of assets within the original guidelines keeps your portfolio aligned with your stated risk tolerance and your expectations for your money,” reads the report. “When you factor in the reduction in volatility that rebalancing can provide, the potential ‘risk-adjusted’ return is crucial. This is the return you get from your portfolio while still being able to sleep at night.” Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate. Insurance products, including segregated fund policies, are offered through Beyond Business Financial Solutions Inc., and Investment Representative Nathan Garries offers mutual funds and referral arrangements through Quadrus Investment Services Ltd. In today’s economy, the hottest commodity is “value.” Finding a great value is easier said than done, however, partly because many companies have become creative in the ways they disguise the ever-shrinking size and quality of products.
It’s not just your imagination: From cereal boxes to toothpaste tubes, your dollar is buying lots of empty space. Egg McMuffins resemble finger sandwiches, slices of bread disappear into toasters, and candy bars insist they are “fun size.” Fortunately, there are still opportunities to save for the value-conscious consumer. Recently writer Lesley-Anne Scorgie offered up her own list of eleven purchases where finding value is not just important — it’s vital to your long-term financial health and satisfaction. Writing in the Toronto Star, she urged: “My advice if resources are scarce is to prioritize your spending here on these items … and you can still look for good value in the process.” 1. Your mattress: Buying a great mattress improves the quality of your sleep, boosts your productivity, and enhances your overall contentment. You’ll be sleeping on this mattress for a decade or more, so it’s important to make a comfortable choice. 2. Quality paint: This may seem like a quirky priority, but paint can inexpensively transform your living spaces. Paint can brighten a room and shift the mood. It’s a way to make a big change in your interior environment without spending a lot. 3. Safety gear: The columnist cites “helmets, life jackets, car seats, mouth guards, shin pads, baby monitors” and quality tires as items that can help prevent dangerous, and ultimately costly, accidents. 4. “A place to read, relax, recharge.” You don’t need to book a flight to Kawaii — setting the stage for relaxation can be as simple as buying a comfortable sofa or taking a yoga class. Take a stroll at the beach, sit by the pool, play catch with your Golden Retriever. The possibilities are endless, and most are cheap. 5. Good food: By good, the author means nutritious. Ironically, the healthiest items are often the cheapest. You’ll spend a lot more on a highly-processed meal than you will on some greens, carrots and fruit. Not only will you spend less, you’ll feel better; and, in the long run, almost certainly have fewer health issues. 6. Good shoes. Like a good mattress, quality shoes make you feel better. And attractive styles can boost your confidence, as well. 7. Financial advice. This is my personal favourite. As Ms. Scorgie notes: “People with financial plans retire with more money. These are carefully constructed typically with a CFP or qualified money coach and consider what it’s going to take to get you prepared for retirement.” Here, the costs of inaction can turn out to be exorbitant from a long-term perspective: “Another way to think about this investment is if you don’t spend on your financial wellbeing, you may forego hundreds of thousands of dollars of potential interest and returns on your money throughout your working career.” 8. Insurance. This purchase is “the exact thing that can save yourself and family from financial ruin,” advises the columnist. “Focus on working with qualified professionals for life, critical illness and disability insurance and for home and auto insurance.” 9. “The guts of your home.” This includes plumbing, wires and exterior surfaces. Just as regular maintenance goes a long way to extending the life of your vehicle, updating these aspects of your home can head off much more costly renovations down the line. 10. Appliances and electronics. Ovens that don’t quit on Thanksgiving and TVs that don’t go blank during the big game will enhance your quality of life, and satisfaction. 11. Eye care: Your eyesight is precious, and cutting corners with lenses and exams is a risk you shouldn’t take. Some dangerous eye conditions have zero symptoms in the early stages, and can only be diagnosed by a professional. Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate. Insurance products, including segregated fund policies, are offered through Beyond Business Financial Solutions Inc., and Investment Representative Nathan Garries offers mutual funds and referral arrangements through Quadrus Investment Services Ltd. “Fish where the fish are” is an aphorism that can be applied to an array of endeavors, from advertising to politics to business. In the realm of wealth management, this pithy, proven concept often leads financial advisors to focus on the unique needs of affluent clients.
Last month Oechsli, a marketing firm offering consulting services to financial advisors, released a survey that examined this market, including what affluent investors want in a wealth management team. They distilled the data into “5 Marketing Trends for Financial Advisors”: The affluent are generally happy with their advisors. Some professions view upscale customers as a high-maintenance demographic, a group with an exacting attention to detail. But according to Oechsli’s survey, the affluent tend to have easy-going relationships with their financial advisors. In fact, 80 percent indicated their financial advisor is a friend. An even higher 85 percent rated their advisor as “very good” or “excellent.” There are specific reasons why the affluent refer. These strong relationships pay dividends down the line for financial advisors. More than 58 percent of affluent clients have referred others to their financial advisor three or more times over the past year. In the survey, 31 percent said they made a referral to help the financial advisor grow his or her business; and 36 percent did it to help a friend or family member. Wealthy prospects look for well-connected teams. In this category, Oechsli used $2 million as the dividing line between two groups that were more closely analyzed. In the above-$2 million group, 62 percent indicated they preferred a team handling their investments; this was important to just 49 percent in the under-$2 million category. Oechsli noted: “Those with more wealth also have more desire to be connected with experts outside the team. A staggering 92 percent of those with $2 million or more want an advisor with a strong network of outside professionals to whom they can be referred.” More affluent consumers are going online to begin their advisor search. When the affluent go fishing for financial advisors, they start with friends, family and professional recommendations. But 24 percent start their search online, up from 13 percent last year. With online searches, 95 percent of affluent investors are seeking a local advisor. A financial advisor’s website is key for this group: a low-quality site is a red flag for 90 percent of affluent clients. Thought-leadership efforts shape affluent perceptions. The affluent are looking for financial advisors who are plugged in to the latest trends and technologies, thought leaders in the profession. “Your social posts, videos, and podcasts are having an impact on affluent perceptions, especially with younger generations, Oechsli found. “An overwhelming majority of respondents find short videos of you explaining your background, differentiators, and process helpful.” Winning topics tend to be practical pieces that offer detailed advice on personal finance, rather than broad market commentaries. Among the most popular topics in the over-$2 million segment were estate planning, financial planning and creating and preserving generational wealth. Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate. Insurance products, including segregated fund policies, are offered through Beyond Business Financial Solutions Inc., and Investment Representative Nathan Garries offers mutual funds and referral arrangements through Quadrus Investment Services Ltd. At first glance, being named as an executor by a parent or other relative seems like a great honor. It sends a message that you are responsible and trustworthy, someone likely to carry out your loved one’s final wishes.
But when the time comes to fill the role, many executors discover the responsibilities are heavy, and that significant amounts of time and energy are required. At the end of the day, you may wish you had been the black sheep of the family. As an executor, you have many obligations. You feel an obligation to your loved one, to handle all affairs in accordance with both the letter and spirit of his or her wishes. And you also realize that you have a weighty obligation to others — including heirs mentioned in a will or trust document. You must deal with legal details, and sometimes family drama. There can be resentments centered on the fact that you were chosen for the role, or that property and heirlooms are being divided in a certain way. Sometimes these emotional issues spill into the courts, and you can find yourself as a defendant in a civil action. Details, documents and paperwork you must manage can include death certificates, funeral arrangements, locating financial accounts and other information, reviewing the will, settling loans and finding lost assets. If there is no legal trust, your responsibility will likely include probate, a lengthy, protracted and costly process. If there is a trust, there are related duties to ensure assets are identified and divided appropriately. In cases such as this, you need an experienced advisor guiding you through the process. Fortunately, Canada Life has created a program that offers solid guidance for executors and others involved in the process of probate, trust management and other aspects of inheritance. I am proud to offer this new program to my clients who are taking on executor responsibilities. It’s known as Estate at Ease™, and it provides not just the advice you want, but every single document you will need. The process begins with a simple, half-hour phone call with a Canada Life representative, who will review your situation, collect information and provide practical solutions to the tasks that have been entrusted to you. The review includes: • Government letters, applications and notifications • Memberships and licenses • Pensions, benefits and life insurance policies • Loyalty programs and subscriptions • Dormant bank account search • Charities • Health professionals • Internet, phone and cable • Utilities • Property taxes Based on this discussion, Canada Life prepares all the paperwork you will need, and sends it to you for your signature. You sign and return in a pre-paid envelope. The process not only saves time, energy and expense, it also gives you peace of mind. Extra benefits, such as identity theft protection to shield the estate, add to your feeling of confidence and relief. Canada Life also ensures that you will maximize any benefits that may be due the estate. The entire process takes less than two weeks. Beyond the initial service, you also receive a full year of guidance. Estate at Ease is a trusted, proven resource that will allow you to focus on the priceless memories of your loved one, rather than the pressures of managing the estate. Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate. Insurance products, including segregated fund policies, are offered through Beyond Business Financial Solutions Inc., and Investment Representative Nathan Garries offers mutual funds and referral arrangements through Quadrus Investment Services Ltd. Canada’s system of universal healthcare is known and admired throughout the world. As Canadians, we are justifiably proud of this accomplishment, and the health outcomes it is able to achieve. But we are also aware that it is not as comprehensive as some observers believe. It is universal in the sense that everyone is covered, but not for every medical condition and procedure.
That is where supplementary health insurance comes in. Most Canadians carry these policies to bridge the gaps in the national healthcare system, which is of course administered at the provincial and territorial level. This is especially true of dental and eye coverage, where conditions such as periodontal disease and myopia are not considered to endanger a patient’s health, and are therefore not covered by the universal health insurance program. According to Canada Life, the Canadian system will typically cover these services:
These items are often not covered:
Sometimes particular groups receive additional coverage, such as children, seniors and lower-income patients. There are many ways Canadians fill these gaps in coverage. Individual supplementary plans are available, and many employees receive workplace benefits. These employer-provided plans often cover:
Individual health plans may be the right choice if any of these apply:
You may be able to get some help covering the costs of supplementary coverage. According to Canada Life, health insurance premiums are tax deductible: “Eligible medical expenses can be claimed on Lines 33099 and 33199 of your tax return. The Medical expense tax credit is a non-refundable credit you might be able to claim to reduce the money you’ve paid in healthcare expenses. You may also be able to claim eligible expenses for your spouse or common-law partner.” When navigating this array of options, a trusted financial advisor is an invaluable part of the process. Policies, rules, regulations and the insurance market are constantly changing, as are the health needs of you and your family. Working together, you can find the insurance product that will provide you with optimal coverage — and the confidence of knowing that you have planned for every situation. Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate. Insurance products, including segregated fund policies, are offered through Beyond Business Financial Solutions Inc., and Investment Representative Nathan Garries offers mutual funds and referral arrangements through Quadrus Investment Services Ltd. Most Canadians know that decisions made by the prime minister and parliament can have dramatic effects on their lives.
But this year some of the most critical decisions will be made by an unelected agency, the Bank of Canada. Like its counterpart in the United States, the Federal Reserve, leaders of this group decide whether to raise interest rates, and by how much. Their decision is an example of monetary policy, and the effects immediately ripple throughout the economy. When the Bank of Canada raises its key interest rate, known as the prime rate, loans offered by every financial institution in the country rise. That means that when consumers take out an auto loan, they must pay more for a car. When a family wants to buy a house, they must pay more for a mortgage. Credit card interest rates soar, making it painful to carry a large balance. Because consumers pay more for cars, houses and other items, this has the effect of changing their purchasing decisions. People buy less, and as a result manufacturers produce fewer goods and service industries such as restaurants employ fewer workers. Soon, every Canadian begins to feel the effects of the Bank of Canada’s monetary policy. Historically, the key interest rate set by the Bank of Canada was much higher in the 1980s. Even in the early part of last century it was about 10 times higher than the current rate. Of course, many Canadians remember the economic dislocations of 1980 to 1982, when the combination of stratospheric interest rates and deep economic recession made it extremely difficult to buy a house, or even find steady employment. For many potential homebuyers, higher mortgage rates come at a particularly bad time. That is because limited supply has dramatically raised home prices in many areas of Canada, especially in red-hot urban markets such as the GTA and Vancouver. With these sky-high prices, even a minor uptick in mortgage rates represents hundreds of dollars a month. For homeowners who hold “open” mortgages, the cost can be even higher. Unlike “closed” mortgages, the interest rate for open mortgages rises or falls with the prime rate. Some of the effects of rising interest rates are less commonly understood. For example, many prospective college students and their families believe that student loans are insulated from Bank of Canada rate hikes. In reality, most student loans are linked to the Canadian central bank’s prime rate. In the case of variable loans, a student typically pays 2.5 percent over the prime rate; in the case of a fixed-rate loan, lenders add 5 percent to that key rate. There are specific cases in which particular groups may benefit from higher interest rates. Savers who prefer to keep their money in cash will see higher returns in bank savings accounts, money market accounts, guaranteed investment certificates, guaranteed interest options, and similar investment vehicles. It can be argued that all savers, homebuyers and consumers will benefit from higher interest rates in the long-run. That is because the purpose of higher rates is to get inflation under control; and inflation is the most costly part of every family’s budget. Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate. Insurance products, including segregated fund policies, are offered through Beyond Business Financial Solutions Inc., and Investment Representative Nathan Garries offers mutual funds and referral arrangements through Quadrus Investment Services Ltd. While few people want to dwell on taxes, it does no good to do a rush job, either. According to Mawer Investment Management, people should really get started early with tax preparation for a number of reasons. First, it is important to not overlook claims that could lower your taxes. Second, tracking down receipts and slips could take time. Third, if you owe money from taxes and miss the deadline, you will be charged compound daily interest on the balance, in addition to a 5% late-filing penalty.
Here are ways to streamline tax preparation to meet the filing deadline without abundant stress: Reference last year’s tax return Start with reviewing 2020 tax paperwork, including the return, slips, receipts and notice of assessment. This part of the process will help you remember what you will need to file this year’s return. From there, create a list. Take note of any personal changes One of the constants of life is change, so be sure to address any things that have altered from the previous year, including marital status, legal name, address, etc. It is also important to note a change in circumstances, like having a baby, starting a business or new job, moving, buying or selling a house, retiring, acquiring foreign property worth more than $100,000, or any new investment accounts. These changes could require receipts and new slips like the T4E or T4A. Add these changes to your list and make sure to notify your tax preparer. Look for new or hidden credits or deductions There is a chance there were previously overlooked deductions and credits that could have been claimed. Things like medical expenses, professional or union dues and political as well as charitable donations can be deducted. Check out “10 Things You’re Forgetting to Claim on Your Taxes” for a list of things that might be missed. Also, check the CRA’s website, especially as it pertains to changes due to the COVID-19 pandemic. Find missing documents Paper or digital copies of deducted items are needed for your files, especially since the CRA can request you provide them, and can deny a claim if you do not. It is also important to keep those documents for seven years, just in case there is an audit. CRA’s My Account online is a good place to start, since there might be some digital copies of slips that can be downloaded. Employers and issuers must be followed-up with individually, otherwise. Strategic thinking is essential to preparation “Unused portions of some non-refundable tax credits can be transferred to a spouse (or parent, as is the case with the tuition amount), including the disability amount, age amount, and pension income amount, so be sure to see if any of these apply to you,” according to Mawer. Further, splitting pension income with a spouse might be able to place you in a lower tax bracket and lower your tax bill. Utilise online software Online software for tax filing can link directly to your CRA account, where you can view previous tax information. It is helpful and time-saving that these programs can auto-populate parts of tax documents by referring back to last year’s information, like basic information. The software is also helpful in that it will let you know about common deductions that should not be missed. If your taxes weigh-in on the less complicated side, then the entire process could take around 20 minutes to complete. Additionally, looking at MyCRA will also be helpful for tracking important information. Even if certain of a tax refund, what good does it do to wait? Afterall, “the sooner you get your taxes in order and file, the sooner you’ll get your refund,” according to Mawer. Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate. Insurance products, including segregated fund policies, are offered through Beyond Business Financial Solutions Inc., and Investment Representative Nathan Garries offers mutual funds and referral arrangements through Quadrus Investment Services Ltd. Of the few certainties of life, death is something that comes for us all. As responsibilities stack and families grow, many people begin considering options if the inevitable should occur sooner rather than later. Life insurance is a safety net, something meant to financially support your family and pay for funeral costs when you depart this world. Some people may want to steer clear of regular forms of life insurance like term and whole life or may be excluded from such options for health reasons.
As outlined in this recent The Times Money Mentor article, there are a number of other options to help protect the financial stability of your family, including help with paying a mortgage, general living costs or funeral expenses. All of the available options have pros and cons. Income protection insurance is one option, it pays a tax-free income that is a percentage of a person’s regular income should they be off work because of injury or illness, however it does not pay out upon death. There are other stipulations with it, but it is typically a good option for people who would like financial safety if they are unable to work, according to the article. Critical illness cover pays out a tax-free lump sum when a person is diagnosed with a potentially life-threatening illness, but it also does not pay out upon death. Also, not as many illnesses are covered as with income protection insurance. “Policies can last as long as you want, although many people choose to have cover until their mortgage has been paid off or children have left home,” per the article It provides a single payout, and then the policy ends. Mortgage protection insurance functions as a form of life insurance, but payout is only for use with paying off a mortgage. Other household costs will not be covered. According to The Times Money Mentor, perks of this policy include that it clears mortgage debt if you die during the term, the money is usually paid in a lump sum, and payments are not impacted by an inheritance tax if the policy is placed in trust. Employer–offered life insurance is also known as a “death-in-service” benefit that is a perk of working with some companies. Should you die while employed with the company, your beneficiaries will receive a lump sum that should be protected from inheritance tax if it is placed in a trust. “The payout is typically two to four times your annual salary, although some employers offer more than this,” according to the article. “Be aware that the death-in-service payout may be lower than your family would require, so it can still be worth taking out a life insurance policy in addition.” A prepaid funeral plan is also an option, and ideal for those over 50 years old who do not want their families burdened with funeral expenses. Payments are protected from inflation, although there are currently some regulation questions as mentioned in the article. Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate. Insurance products, including segregated fund policies, are offered through Beyond Business Financial Solutions Inc., and Investment Representative Nathan Garries offers mutual funds and referral arrangements through Quadrus Investment Services Ltd. There are opportunities afoot even during a pandemic, they simply have to be properly vetted. Any investment should always be well researched and advice or tips should only be heeded if they come from credible sources. The investment world has always been a shifting landscape, it is simply important to be mindful – and educated – about the shifts. In light of the pandemic, the pharmaceutical industry is experiencing changes just like every other industry; with that said, the industry has never been one that is easily predicted, like so many blue-chip companies. By nature, pharmaceutical companies are prone to volatility, however pharma functions quite differently than other industries. As new treatments make it into the production pipeline some are big winners while others are losers, which means that investors can also lose or win big. Pharma companies are almost in a different world than other investments and not really impacted by the economic cycle – a point that makes them critical to portfolio diversification. The best way to understand the industry’s opportunities, trends and challenges is via information from equity experts. Mawer Investment Management Ltd. was founded in 1974 and is a private investment firm that now manages nearly $82 billion in assets for individuals and institutions. With the slogan of “Be Boring. Make Money,” the firm has a podcast called, “The Art of Boring.” Episode 85 features a deep dive into the pharmaceutical industry. During the episode, Institutional Portfolio Manager Rob Campbell speaks with Amit Shah, who has a PhD in neuroscience and is a member of the Mawer U.S. equity team as well as Mawer International equity team member Siying Li, who has a background in engineering. As Li points-out: the pharma industry is not typical and has a learning curve, but approaching it with a generalist’s perspective has its benefits when studying for investment. There is a wealth of information, so this will likely be split into two or three posts. Here are some big take-aways from the episode: The rise in personalized medicine and shift in how companies profit Shah notes that one multi-decade theme that the team has noticed is a trend towards more personalized medicine. “And the end stage of this would be something like, we have a full understanding of [an] individual's biological makeup and we can perfectly customize a therapeutic regime for you, specifically,” he says. While the industry is not there yet and not likely to be anytime soon, he is seeing a broadening of therapies for certain diseases like cancer. Now, there are more therapeutics available for various types and subtypes of cancer, depending on whether an individual expresses “a specific type of protein.” Another example is gene therapies for patients that have a gene that is “malfunctioning or missing.” “I think it's good for patients, but it's also separately perhaps beneficial for pharma companies that see a higher economic return for some of these targeted therapeutics relative to small molecule drugs,” he says. Large conglomerates that once housed the pharma business, a business focused on medical devices, and separate animal and consumer health businesses have now “divested some of these non-core assets” to become more focused on pharma. “And I think what we've seen is some of these divestitures have done pretty well on an individual basis once they've been separated from the conglomerate,” he says. Li points out that research and development return on investment is declining for pharma. “So, they've actually coined it a term. It's called the “Eroom's Law,” and what it is, it's really the opposite of Moore's Law,” she explains. “Moore's Law is this law that's widely known; it’s applicable to semiconductors—so, the cost of making a semiconductor actually got exponentially lower year after year of making them. But Eroom's Law is the opposite. The cost of making a drug has actually become exponentially higher to bring a drug to market over time.” The fact that drugs are now targeting small audiences and specific diseases means that they do not have widespread blanket application as medications that address things like hypertension and can be used by billions of patients. “Now, when you come up with a very specific biologic cancer drug that targets a specific type of protein or mutation, the group of people that could use that drug is smaller,” she explains. “And also the other factor is that there's just more negotiation power from the government, because they're spending so much money on health care.” “I mean, we've all heard about the health care cost trend increasing for government because of [an] aging population, because of more medical therapies coming to market...so they're spending a lot of money on drugs and different types of healthcare treatment, [and] they're negotiating harder as well for these therapies. Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate. Insurance products, including segregated fund policies, are offered through Beyond Business Financial Solutions Inc., and Investment Representative Nathan Garries offers mutual funds and referral arrangements through Quadrus Investment Services Ltd. |
AuthorNathan Garries is a Certified Financial Planner who has been involved in financial advising, financial planning and wealth management for over two decades, carrying on a family tradition of three generations. Archives
October 2022
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