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How to buy Solana (SOL) in Canada Sep 25th
As cryptocurrencies become more mainstream, investors are looking beyond bitcoin and ether to get in on the action. These two coins still command the lion’s share of the $2.36-trillion global crypto market (all figures in U.S. dollars), but as they increasingly move in sync with stock markets, som.... More »
Is VFV a good buy? What about other U.S. ETFs with even lower fees? Sep 4th
With an average management expense ratio (MER) of 0.09% and collective assets under management (AUM) approaching $40 billion, exchange-traded funds like the Vanguard S&P 500 Index ETF (VFV), the BMO S&P 500 Index ETF (ZSP) and the iShares Core S&P 500 Index ETF (XUS) are some of the most.... More »
What is a market-linked GIC? Nov 27th
If you’ve been checking out GICs lately, it’s likely because of the record gains from recent interest rate hikes. Interest rates for guaranteed investment certificates have steadily increased as the Bank of Canada (BoC) has raised its benchmark rate over the past year and a half. At some financi.... More »
Royal Bank of Canada Lifts Dividend With Jump in Quarterly Earnings - The Wall Street Journal + MORE Dec 3rd
Royal Bank of Canada Lifts Dividend With Jump in Quarterly Earnings The Wall Street JournalRBC hikes profitability target after posting 29% jump in fourth-quarter earnings The Globe and MailRBC CEO warns of economic uncertainty as bank profit beats expectations Finan.... More »
TD, RBC second-quarter profit bump helped by rising rates, macro environment May 24th
Two of Canada's biggest banks reported second-quarter earnings Thursday that benefited from bigger profit margins on the back of rising interest rates, though the bump could be less pronounced in coming quarters as pressure mounts for banks to raise the interest rates they pay on dep.... More »
Britain to be first in line to shake up financial services with open banking
– theglobeandmail.com
Britain’s Open Banking Standard comes into force on Saturday, imposing sweeping changes to how banks operate and offering new opportunities for non-bank competitors
How Green Card holders can get the most out of TFSAs and RRSPs
– moneysense.ca
Getty Images/Chris CheadleQ. I am a Green Card holder as well as a Canadian resident, and have two questions: No.1. Which are the best securities to invest inside my TFSA to be “friendly” from an Internal Revenue Service and Federal Treasury Board (IRS/FTB) tax point of view? And No. 2. Which are the best securities to invest in an RRSP—again, to be “friendly” from an IRS/FTB tax point of view? Thank you, Mirjana G.
Hi Mirjana. Regarding your RRSP account, you can own any investment you like inside of an RRSP without any issue while you live in Canada. You may even want to hold any dividend-paying U.S .stocks inside your RRSP instead of a non-registered account.
Generally, dividends paid by U.S. companies to Canadians are subject to a tax treaty withholding rate of 15%. The tax treaty waives the withholding on U.S. stocks owned inside of RRSP accounts and is not subject to the passive foreign investment rules (PFICs).
TFSA accounts do not receive any special treatment by the Internal Revenue Service (IRS)…
Three MoneySense stock picking strategies for 2018
– moneysense.ca
Here are two of the three portfolio strategies updated for 2018 by Norm Rothery. All that’s missing is the potato. Source: ShutterstockTo ring in the New Year I’ve updated three of my popular MoneySense investment strategies. Lift the winter chill with a hearty serving of the Hot Potato and a review of the best performing asset classes of 2017. Conservative stock pickers can then cozy up with the latest pack of Safer Dogs while the more adventurous might enjoy the Climbing CATS.
But, before you dig in, I’d like to wish you, your family, and friends a happy, healthy, and prosperous New Year!
The January Hot Potato
Each month the global hot potato looks back over the last 12 months and picks the asset class that has performed the best. The four classes it considers are Canadian bonds, Canadian stocks, U.S. stocks and International stocks.
In 2017 the best performing asset class of the four was international stocks with the EAFE index returning 17.4%. U.S. stocks came in second with the S&P 500 gaining 13…
Herman VanGenderen
AGE: 60
PLACE: Calgary
TFSA TOTAL: $104,565
STRATEGY: Mostly Canadian And U.K. dividend and value stocks held for the long term
Herman VanGenderen, 60, is an agriculturalist who runs a seed business in Calgary, Alta. He has been investing diligently in his TFSA since 2009 and he likes TFSAs for several reasons. For instance, he likes that you can start with small amounts and that small differences compounded over time can make a big difference and when he finds good value stocks that meet his criteria, he buys. “My favourite holding period is forever,” says Herman. “A forever holding period reduces my workload managing the account. And of course, starting to invest early in life, in general, is important, but starting is of utmost importance, and I’ve tried to teach my two 20-something sons that lesson over the years.”
Herman’s TFSA now stands at $104,565 and his criteria for choosing his TFSA investments over the years (like his RRSP and non-registered accounts) is fairly simple…
How to bridge from early retirement to taking a pension
– moneysense.ca
Drawing down savings the smart way involves keeping the right assets in the right accounts and having a plan to manage income streams.Q. I’d like some advice about what is the best way to keep your portfolio at your target allocation when you start to withdraw money when you retire.
My situation is as follows:
I’m a 54-year-old single woman, no kids, retiring next summer and I am debt-free.
I have a small defined benefit pension plan (Quebec government). I could receive money (16% of my annual income) at age 55 but decided to wait until age 60 to avoid the first-five-years penalty (4%/year if the pension is taken before age 60). That way I’ll get $17,000 a year from that pension plan.
I can live on my nest egg for these five years.
My assets are as follows;
House: $150,000
RRSP: $300,000
Non-registered investments: $177,000
TFSA: $61,000
My asset allocation is based on the Couch Potato portfolio and is comprised of:
70% fixed income (25% in exchange-traded fund ZAG…
