Start planning now so you don’t outlive your nest egg The retirement planning conundrum never seems to change. It just gets more complicated. Ensuring sufficient income for retirement is now on the radar for every so-called Gen-Xer, and increasingly for Millennials...
The market will fluctuate – get used to it! Stock markets seem to be reaching record highs every day. Toronto’s S&P/TSX Composite Index is the top-performing market in the world so far this year. Yet endless storm clouds seem to be gathering permanently on the...
The lure of low rates can lead to a risk trap With interest rates so low, and stock markets hovering around all-time highs, many investors are looking to borrow for investment purposes, especially since the interest on an investment loan is tax deductible. While...
How to avoid the market timing trap In a post-Brexit bounce over the past few weeks, the major North American stock markets have touched record highs. That blindsided many small investors who had bought in to the end-of-the-world style of media hype right after the...
Beware capital gains tax on non-principal residences With real estate prices going through the roof across the country, you may seriously be considering selling the family cottage to capitalize on the investment your great grandparents made 50 years ago – or that...
A generous bequest can be a wealth-planning opportunity A recent report by CIBC economist Benjamin Tal looks at the implications of the huge impending transfer of wealth to Canadians between 50 and 75 years old. He points out that over the past decade, just over...
The choice between bond ETFs and mutual funds Bond yields have dropped recently, and as a result, bond values have risen significantly. For example, the passive iShares Canadian Universe Bond Index ETF has risen 3.3% since the beginning of the year, and is up 4.9%...
Why geographic diversification still matters Given all the volatility that’s been occurring in world markets after the Brexit vote, I’ve been asked whether it would be better to stick to Canadian stocks? After all, Canada is economically and politically stable, and...
A short grad course in investing for the future New grads fresh out of university may have received some cash gifts from proud parents and relatives. Some may be tempted to blow it on partying and living the high life. Others may seek the excitement and potential...
Acting on the media frenzy is a big mistake Should I sell my stocks and ETFs now? Is a major financial crash (like 2008) in the works? Not necessarily. First of all, don’t panic! Remember that markets are creatures of herd mentality, and are driven largely by...
The many benefits of employer-sponsored Group RRSPs If you’re a recent graduate and you’ve landed a job, your employer may offer you a Group RRSP as one of the employment benefits. Should you sign up? It’s a good question, since you are probably still far away from...
Beware the fees and penalties! Sometimes it makes sense to refinance a mortgage – and it’s tempting if your rate is higher than prevailing rates – but mostly it doesn’t. It would make sense only if you have a longer-term mortgage at an interest rate considerably...