The “Big Five” Canadian banks offer investment funds and include Royal Bank of Canada, Toronto Dominion Bank (TD Canada Trust), Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce (CIBC). Let’s explore the best place for you to invest.
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A bubble in pot stocks, David Rosenberg's warning to bulls, and why yield chasers need to be wary + MORE Dec 9th
A roundup of investment ideas for active investors
.... More »
Complacency, competition, and Canada’s productivity crisis + MORE Oct 10th
A senior official at the Bank of Canada is calling for more competition in the banking sector to better serve Canadians and the economy. Senior deputy governor Carolyn Rogers laid out her case for a more competitive Canada in a speech at the Canadian Club in Toronto on Thursday morning. Rogers sound.... More »
Are you receiving the child benefits you’re entitled to? + MORE Jun 13th
No surprise, but raising kids is expensive. Statistics Canada calculates that each child costs a two-parent household an average of $17,235 a year.
To help parents make ends meet, the federal government offers the Canada Child Benefit (CCB). If you have children under 18 and file a tax return, yo.... More »
Business Highlights + MORE Jul 1st
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As desire to acquire mounts, so does risk of losses
NEW YORK (AP) — Goodwill — mankind needs more of it, but there may be far too much in the financial world.
Goodwill is the accounting term for the premium that companies pay when they buy each other, over the value of the actual assets bein.... More »
CIBC, National Bank ask employees to work remotely as Omicron worries grow - CTV News + MORE Dec 15th
CIBC, National Bank ask employees to work remotely as Omicron worries grow CTV NewsNational Bank latest financial institution to delay return to office plans Yahoo Canada FinanceCity of Ottawa pauses return-to-office plan for employees CTV News OttawaCOVID-19 variant.... More »
Hydro One reinstates power to board of directors as Ontario plans IPO
– theglobeandmail.com
Groups’ oversight powers were removed by the province as the government announced plans to sell off 60 per cent of the electricity company
Lacking consensus on retirement withdrawal strategies
– myownadvisor.ca
Learn, save, invest and prosper by subscribing to My Own Advisor.
If you think you’re confused about how best to accumulate assets for your financial future you haven’t seen anything yet. This is my takeaway from reading a recent Globe and Mail article about “decumulating” wealth.
Academic research seems to show that withdrawing 4% of your portfolio every year, and increasing your withdrawals with the rate of inflation, will ensure you not only have enough income to cover expenses but you likely won’t outlive your money either over a 30-year retirement span. This of course assumes you’ve saved “enough money” for retirement in the first place to cover expenses. I’ve estimated what our retirement number might be and here it is.
William Bengen, a financial planner with a background in aeronautical engineering, was the father of the 4% rule – stress-testing over decades what a safe withdrawal rate might be. His conclusion:
to weather any sort of market storm that includes a Great Depression or a Great Recession retirees should withdraw no more than 4% of their portfolio in any given year…
If you think you’re confused about how best to accumulate assets for your financial future you haven’t seen anything yet. This is my takeaway from reading a recent Globe and Mail article about “decumulating” wealth.
Academic research seems to show that withdrawing 4% of your portfolio every year, and increasing your withdrawals with the rate of inflation, will ensure you not only have enough income to cover expenses but you likely won’t outlive your money either over a 30-year retirement span. This of course assumes you’ve saved “enough money” for retirement in the first place to cover expenses. I’ve estimated what our retirement number might be and here it is.
William Bengen, a financial planner with a background in aeronautical engineering, was the father of the 4% rule – stress-testing over decades what a safe withdrawal rate might be. His conclusion:
to weather any sort of market storm that includes a Great Depression or a Great Recession retirees should withdraw no more than 4% of their portfolio in any given year…
When ETFs wind down
– moneysense.ca
Q: I received a notice that an ETF I own will be closed within the next few months. Is it better to sell it now or wait until the termination date?
–S.H.
A: ETFs are now available for just about every niche sector and exotic asset class, so it shouldn’t be surprising when some of these fail to attract investor dollars. If an ETF cannot attract enough assets to be sustainable within a couple of years, the provider may decide to shut down the fund.
ETF closures have been relatively uncommon in Canada, but this year has seen several death sentences. In June, BlackRock announced it will be shuttering six products, including the iShares Broad Commodity (CBR), the iShares China All-Cap (CHI), iShares Oil Sands (CLO) and the iShares S&P/TSX Venture (XVX). Earlier in the year Horizons also terminated its broad commodity ETF as well as couple of its leveraged ETFs.
What should you do if you learn that an ETF you own will soon be shut down? To help answer this question, I reached out to Mark Noble, head of sales strategy, communications and public relations at Horizons ETFs…
–S.H.
A: ETFs are now available for just about every niche sector and exotic asset class, so it shouldn’t be surprising when some of these fail to attract investor dollars. If an ETF cannot attract enough assets to be sustainable within a couple of years, the provider may decide to shut down the fund.
ETF closures have been relatively uncommon in Canada, but this year has seen several death sentences. In June, BlackRock announced it will be shuttering six products, including the iShares Broad Commodity (CBR), the iShares China All-Cap (CHI), iShares Oil Sands (CLO) and the iShares S&P/TSX Venture (XVX). Earlier in the year Horizons also terminated its broad commodity ETF as well as couple of its leveraged ETFs.
What should you do if you learn that an ETF you own will soon be shut down? To help answer this question, I reached out to Mark Noble, head of sales strategy, communications and public relations at Horizons ETFs…
Buying U.S. stocks with a weak Canadian dollar
– moneysense.ca
Q: I wonder what you think of buying U.S. stocks? “Top Picks” usually names several stocks traded on the NYSE or NASDAQ as good investment buys. Using a discount brokerage, you have a choice of “settlement funds” in Canadian dollars or U.S. dollars. Is there an advantage one way or the other and similarly if I sold a U.S. stock? Or with the Canadian dollar as bad as it is, is it still worth even considering the purchase of U.S. stocks?
—Phil
A: I think that the most important decision in building a portfolio is asset allocation, Phil. Fees and taxes are also important, but a portfolio built of top picks that are all from the same sector is risky and unlikely to generate the same risk-adjusted returns as a well balanced portfolio.
On that basis, I would caution a do-it-yourself investor from building a portfolio of top picks. I’d be more inclined to build a portfolio based on what pieces are missing and fill them in with the best options.
Assuming that you are doing that, Phil, a well-diversified portfolio should ideally include U…
—Phil
A: I think that the most important decision in building a portfolio is asset allocation, Phil. Fees and taxes are also important, but a portfolio built of top picks that are all from the same sector is risky and unlikely to generate the same risk-adjusted returns as a well balanced portfolio.
On that basis, I would caution a do-it-yourself investor from building a portfolio of top picks. I’d be more inclined to build a portfolio based on what pieces are missing and fill them in with the best options.
Assuming that you are doing that, Phil, a well-diversified portfolio should ideally include U…
Setting a slightly better tone for Q2 oilpatch earnings season, Husky Energy reported a second-quarter profit of $120 million, down 81 per cent from the same quarter a year earlier, but with improved cash flow.
