According to Bloomberg, Canada ranks number two on its housing bubble watchlist. This is probably not one of those times where we should be proud of a podium finish.

For a lot of people, real estate is their retirement plan. They build equity in their house over the years and then hope to tap that equity when the time comes to retire. Maybe they add in an income property or two along the way. The problem with that strategy is the same problem you see in any single asset focused strategy: concentration risk. If all your savings are in real estate, and real estate goes through a correction (or even a collapse) you may find yourself behind on your financial goals as you near retirement.

Diversification is the key. Adding in other asset classes to your financial portfolio can help protect against the collapse of any one strategy. We build wealth strategies for our clients that include investments across multiple asset classes. We show you how to diversify your portfolio and ensure that your long-term financial goals are always within reach.

If you have a large portfolio of real estate holdings, or if you feel like you are concentrated in any other asset class, please do not hesitate to reach out to us for a review of your financial plan.

- Andrew