What to do when ‘asset allocation,’ ‘diversification,’ and ‘correlation’ sound like nothing but gibberish Q - I’ve been told that in my portfolio, I should allocate my investment assets to meet my risk-tolerance level, but that I should also diversify my security...
How to stop the bad guys from robbing you blind Q – A friend recently asked me whether I’d be interested in a private investment that he said returns over 12% a month. He explained that an advisor he knows had told him it was some sort of syndicated offshore real...
But the search for tax efficiency can get complicated High net worth investors are keen on tax efficiency in their investments. Understandably so, since taxes have a huge impact on investment returns. Mutual funds are sometimes seen as least tax efficient, because...
Remember, good advice doesn’t cost, it pays Many people seeking financial advice are not sure what a good financial plan should do or how to determine whether an advisor is bringing value for the money she’s charging. Why not just go to the bank and have a free...
Why you might need both on the road to recovery Many people often confuse disability insurance and long-term care insurance. In fact, these are not the same thing, and you should not assume that if you have a disability plan through your employer, you are also...
But beware! Real estate comes with real risks With Canadian interest rates once again at rock bottom, income investors are hard-pressed to find any good income-producing assets without incurring a high degree of extra risk. Some advisors like to tout investment...
To contribute or not to contribute? That’s the question Registered Retirement Savings Plans (RRSPs) are effective investment vehicles for deferring tax. But should you contribute to a Tax-Free Savings Account (TFSA) instead because of the completely tax-free growth...
Yes, there’s still time to make an RRSP contribution Every year around this time, I’m asked what the deadline for RRSP contributions is and what would be the best investment for that contribution by people who have left their RRSP contribution to the last minute or...
All about loads, fees, commissions, and MERs When it comes to investment funds, fees and costs can be both complicated and contentious. What’s the difference between an MER and a front-end load? Are fund commissions deductible? What are trailer fees? To help clear...
Or should you be even more cautious? Canadian bonds have been on a tear these past few weeks. Yes, bond prices climb as yields fall, and the Bank of Canada’s surprise interest rate cut on Jan. 14 helped goose Canadian bond prices. In fact, a good proxy for the...
How to resist the urge to splurge Do you spend every single last dime of what you make – and then some? Don’t know? You’re not alone. In these days of easy credit, it’s all too easy to blur that line between your income and your expenses. This becomes a real...
Practical strategies for debt relief If there’s any one item that will suck the life right out of your bank account, shred your budget, and seriously damage your long-term savings goals, it’s debt. And the worst kind of debt is credit card debt. With annual rates...