Why the volatility index’s rock-bottom levels signal real peril for investors + MORE May 9th

Royal Bank of Canada currently collects 3.5 per cent of fees paid to investment banks for U.S. activities, and is looking to expand

If indeed there’s not much to worry about in today’s elevated stock prices, as the VIX suggests, consider what that means for future returns

Creative Commons/Quinn Dombrowski
Q: A friend of mine has inherited $50,000 and wants to invest it. This person will need $10,000 by next year, $20,000 in 5 years, but the remaining $20,000 has no near future need, so she plans to hold it for greater than 15 years. How would you invest this money? What kind of asset allocation would you use? Can you please together a simple and fundamental financial plan on how to allocate this $50,000?
—Bertram
A: At first glance, this looks like a simple question, but it’s actually quite complex. To start, the $10,000 that will be needed over the next year should go into an investment that’s very safe, such as a GIC or other deposit that has a certainty of maturity value.

The safe, unloved, amazing GIC » 

But the answer to the two $20,000 amounts depends entirely on the tradeoff you are willing to make regarding risk and return. This information, in my experience, can only be gained through discussion in person with someone who can help you look at the entire picture as well as help you evaluate all your options…

Valeant Pharmaceuticals stock jumped Tuesday after the Quebec-based drugmaker reported its first net profit in six quarters, raised its 2017 adjusted earnings forecast and said it made further progress in paying down debt.

Q: I would be interested in understanding the $500,000 lifetime capital gains exemption and what it can be used for.
Can I chip away at it by applying annual small investment capital gains?
—Greg
A: Canada has had different capital gains exemptions over the years. Until 1972, capital gains were completely exempt from tax.
There was a broad $500,000 lifetime capital gains exemption that was introduced in 1985 that applied to any asset. It was subsequently reduced to $100,000 in 1988, Greg. It was wiped out in 1994, but taxpayers were allowed to bump up the cost of capital assets at that time without selling if they filed the appropriate election.
An enhanced lifetime capital gains exemption limit was introduced in 1994 for $500,000, but it only applied to qualified small business corporation (QSBC) shares and qualified farm properties. In 2006, qualified fishing properties became eligible for the exemption. In 2008, it was increased to $750,000 and in 2014, it was set at $800,000 – to be indexed every year thereafter with CPI inflation…