There are plenty of bank savings account options in Canada! Stay on top of the best plans right here.
Latest News
Cheap Whole Foods prices won’t trigger price wars + MORE Aug 31st
TORONTO — Cheaper avocados at Whole Foods might get fans of the organic grocery chain salivating over savings, but retail analysts say it probably won’t launch price wars at Canadian supermarkets.
Amazon took ownership of Whole Foods Monday and immediately decided to cut the cost of some of.... More »
A TFSA plan to help fund retirement—without losing any sleep May 10th
RANDALL BAKER
Age: 65
Location: Winnipeg
Occupation: Worked in manufacturing and safety deficiencies but now retired
TFSA total: $29,632
RANDALL’S TFSA HOLDINGS
iShares Canadian financial monthly ETF (FIE.TO) $29,632
TOTAL: $29,632
Randall Baker .... More »
How should young Canadians invest in bonds? + MORE Apr 9th
For young investors who are building the fixed-income portion of their portfolio, it’s best they keep their approach simple and go for low-cost investment options, experts say.
“If they’re just starting out, they don’t need to maybe source out an individual bond right away. I think .... More »
RESP guide: Making the shift from saving for your child’s post-secondary education, to funding it Jul 18th
A Registered Education Savings Plan is a government-sponsored investment account that’s designed to help adults save towards post-secondary education costs for the children in their lives.
Canadians contributed $5 billion to RESPs in 2019, bringing total assets to $63.7 billion, according to the.... More »
Tax changes you need to know for 2017 + MORE Dec 28th
MONTREAL — Canadians will ring in the new year with a number of tax changes that will affect the bottom line of federal and provincial governments. Here’s a look at some of them:
Nationally:
The federal government is ending four child tax credits this year: arts, fitness, education and text.... More »
New rules of saving
– moneysense.ca
Rainy day savings accounts are a bad idea
In this new age of low interest rates, rainy day savings make a lot less sense. It’s hard to justify keeping six months’ salary in a plain-vanilla account. “If you have a mortgage, money in a savings account is better spent putting it towards the mortgage,” says Dan Bortolotti, MoneySense columnist and certified financial planner with PWL Capital in Toronto. As well, if you have a mortgage, an equity line of credit on your home makes sense. “Just ensure you get the equity line of credit approved while you’re employed,” says Bortolotti. A word of caution—only tap the line of credit in a real emergency. It’s tempting to dip into it for impulse buys like a new car or trip to Vegas. “You have to avoid that,” says Bortolotti. And if you don’t have a mortgage? Then you likely have money sitting in either a TFSA or RRSP. Simply put a portion of the TFSA money in investments you can access quickly in a pinch—say, if the car needs engine repairs or your home needs a new roof…
New rules of investing
– moneysense.ca
Be more aggressive about stocks & risk tolerance
If you’ve been reading MoneySense for any period of time you know how important it is to diversify your portfolio between stocks and fixed income. There is no shortage of rules to help. Your age should match the percentage you allocate to bonds. Or subtract your age from 100 to get your allocation to stocks.
Unfortunately, with yields on bonds near zero, you will have to take on more equities (with added risk) to keep your nest egg growing and not run out of money before you die (remember we’re living longer now). A more general rule for many has been for a 60-40 split between stocks and fixed income as a solid retirement savings strategy. That’s not really true either; at least not the way most of us understand it.
“That’s just the beginning of the conversation,” says Moshe Milevsky, associate professor of finance at the Schulich School of Business and an expert in the nuances of portfolio allocation. It may work for some people, but as Milevsky explains, it’s terribly inappropriate for a large percentage of the population…
New rules of spending
– moneysense.ca
Real estate isn’t just a place to live
A home is now an integral part of your financial plan but it wasn’t always this way. According to the Canadian Real Estate Association data, the average Canadian home cost just $76,534 in 1984. It rose to $226,604 by 2004 and currently sits at $442,264, a stunning 478% increase in just three decades.
“At one point, a home was considered a place to live,” says Talbot Stevens, author of The Smart Debt Coach. “It wasn’t part of the investment decision.” But with rapidly increasing housing prices, our attitude toward real estate has changed.
“Real estate is clearly very important,” says CIBC deputy chief economist Benjamin Tal. “Many people are using the valuation of their house as a forced savings plan, but there are negative implications to this strategy.”
Like most assets, housing is subject to market conditions and investor sentiment. But CFP Vicki Campbell with Ottawa-based financial planning firm Ryan Lamontagne points out: “it’s also not like any other investment…
