There are more investment options in Canada than you can shake a stick at! Stay on top of the best returns right here.
Latest News
More than 100 First Nations could purchase the Trans Mountain expansion pipeline Jan 15th
Indigenous leaders will debate this week which financial model is ideal if they are able to purchase the Trans Mountain expansion pipeline project..... More »
Metro Vancouver home sales fall to lowest total since 2000 Jan 3rd
The sales total for 2018 was a quarter below the region’s 10-year sales average, according to the Real Estate Board of Greater Vancouver..... More »
How mutual funds grew to be a $1.5-trillion industry in Canada Oct 2nd
Don’t buy into deferred sales charges funds, you have the right to pay upfront commissions instead, writes Ellen Roseman..... More »
Should you get a 30-year mortgage? + MORE Feb 25th
Signing a 30-year mortgage in Canada can be an attractive option for some home buyers in the face of relentless real estate prices.
In the city of Toronto, the average selling price for all home types reached $1.07 million in January 2022, according to figures from the Toronto Regional Real Estat.... More »
Markets welcome G20’s currency stance, but appear wary on trade split + MORE Mar 19th
Failure to agree on a commitment to keep global trade free and open will have negative consequences for financial markets, even if it’s not immediately apparent
.... 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…
