There are more investment options in Canada than you can shake a stick at! Stay on top of the best returns right here.
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White House attacks on Fed chair fuel fears of market turmoil in 2019 - The Guardian Dec 23rd
White House attacks on Fed chair fuel fears of market turmoil in 2019 The GuardianAs stock markets plunge, Trump considers firing Federal Reserve chairman Global NewsTrump has discussed firing Fed Chairman Powell: sources Reuters CanadaFed Chairman Powell deserves ou.... More »
Ford's $19.5 billion EV writedown signals tough road ahead for legacy carmakers - Reuters Dec 16th
Ford's $19.5 billion EV writedown signals tough road ahead for legacy carmakers ReutersFord retreats from EVs and takes big financial hit as Trump policies grip industry CBCAnalysis-Ford’s EV retreat highlights industry dilemma: Build for the US or the world? Yahoo.... More »
What happens when your landlord misses mortgage payments? Jun 11th
You held up your end of the bargain and paid your rent on time—only to learn your landlord failed to keep up with mortgage payments and the home may need to be sold. Panic sets in, as you don’t know if you can continue to call this place your home. Experts say there are a number of ways thi.... More »
Why it’s time to raise the TFSA limit to $8,500 + MORE Feb 25th
If the government won’t increase RRSP contribution room for high earners, a reasonable alternative might be to modestly increase TFSA contribution room for everyone.
Canadians are notoriously nice consensus seekers. The old joke might be that they tend to never cross the road becau.... More »
Home Capital postpones earnings release date amid bid to restore confidence + MORE May 3rd
Mortgage lender says it will delay its first-quarter earnings disclosure until May 11 to include new updates
.... More »
Do you need more stocks?
– moneysense.ca
(Illustration by Jing Wei)The 60/40 asset allocation is a well-recognized benchmark for splitting stocks and fixed income in a portfolio. Investing 60% in equities and 40% in bonds has a “rightful place as the centre of gravity of asset allocation for long-term investors,” wrote investment guru Peter Bernstein back in 2002.
But is that still an ideal split in today’s ultra-low interest rate environment? Historically the 60/40 allocation married high-return high-risk stocks with stable, moderate-return bonds to provide decent and resilient returns over-all. While bonds still provide stabilizing power, they can’t be expected to provide much return with interest rates so low. Bonds are also at risk if interest rates rise gradually and cause modest capital losses. It might make sense to rethink your asset allocation in light of current circumstances.
Yielding to a dilemma: No question low bond yields create a dilemma. With yields so low, it becomes harder to meet your return objectives, which might force you to save more, work longer or spend less in retirement…
How to switch out of high-fee funds
– moneysense.ca
Q: I’ve been investing for years with a financial advisor I really like. I have about $200,000 in high-fee A-series mutual funds and I would like to switch into low-fee ETFs, but my advisor doesn’t deal with ETF portfolios. How can I change my investment strategy without causing any hard feelings?
— Worried investor in B.C.
A: Whenever you consider two investment options, it’s important to make a fair comparison. ETFs have low costs because all of the management fee goes to the fund provider. On the other hand, the management expense ratio (MER) of an A-series mutual fund includes the fund manager’s fee plus a trailing commission that goes to your advisor. This usually adds an additional 1%.
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While it’s reasonable to pay an advisor 1% for excellent service, fund MERs often charge an additional 1…
