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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Even Ford Motor Co. is concerned about Canadians’ car loan debt + MORE Mar 31st
F-150 pickup trucks on the lot at a Ford dealership. (David Zalubowski/AP/CP)
Ford Motor Co. has joined financial regulators in raising concerns over Canadians’ appetites for longer-term loans to finance the purchase of new vehicles.
Regulators have warned in recent years about debt-burdened consu.... More »
800-pound gorilla thwarted by Bombardier's savvy move: Don Pittis + MORE Oct 18th
Giving away its prize asset, the CSeries aircraft, is Bombardier's smartest investment in years..... More »
How the Canada GST/HST tax credit works + MORE Aug 5th
For many working-class Canadians, rising costs make every dollar count. That’s where the GST/HST credit comes in. This credit is meant to support individuals and families with lower or modest incomes. If you qualify, you’ll receive payments from the Canada Revenue Agency (CRA) every three months.... More »
Carney going to New York this week to meet with business leaders, court investment - CTV News May 24th
Carney going to New York this week to meet with business leaders, court investment CTV NewsSee more headlines & perspectives on Google News.... More »
Wall St loses ground as bond yields rise; McDonald's, Coca-Cola slip - Reuters + MORE Oct 23rd
Wall St loses ground as bond yields rise; McDonald's, Coca-Cola slip ReutersStock market today: Dow leads stocks lower as Treasury yields tick up Yahoo FinanceNasdaq Futures Fall On Higher Bond Yields Ahead Of Tesla Earnings BarchartStock Market News Today, 10/23/24 .... 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…
