TSX getting you down? There are always sound investment alternatives.
Latest News
Calgary Is Converting Abandoned Offices Into Housing Oct 16th
When Maxim Olshevsky stepped inside 909 5th Ave. SW, a 10-storey building in downtown Calgary, he could have sworn he was looking at the aftermath of a zombie apocalypse. Frayed cubicle walls loomed over piles of expired contracts; name tags lay abandoned on dust-blanketed desks. To most, this would.... More »
The best student credit cards in Canada for 2024 + MORE Oct 7th
When you’re at a new restaurant, do you have to see the menu before you order? Or do you eat what your foodie friend says is good, knowing it’ll be amazing? The answer can help you decide how to pick a new credit card. Some people want the ability to compare their options side-by-side; others wa.... More »
TFSA confusion: The myths that just won’t die Jun 25th
After 15 years of conversations with blog readers and financial planning clients, I’m still amazed at how often the same myths about tax-free savings accounts (TFSAs) pop up.
I’ve had clients ask if a dividend paid inside their TFSA counts as a contribution. Others think they lose contribut.... More »
A parents’ guide to home down payment gifts and loans + MORE Aug 20th
It used to be that parents budgeted for post-secondary education or contributing to the costs of a child’s wedding. But now, I am increasingly finding parents planning for home down payment gifts.
The statistics support this and show an increase in down payment help in recent years. A CIBC stud.... More »
Do inflation-linked bonds make sense in an era of rising interest rates? + MORE Feb 24th
For a long time, inflation-linked bonds like TIPs (Treasury Inflation-Protected Securities) in the U.S. or Government of Canada Real Return Bonds (RRBs) seemed like valid alternatives to nominal bonds for inflationary environments. If inflation ticks above certain levels, such bonds—or exchange-tr.... More »
Money Matters: What advice would you give someone who wants to start building wealth?
– moneysense.ca
In our 12-part video series, Money Matters, we interviewed the top voices in Canadian personal finance about money issues that affect all Canadians. For our seventh video of the series, we asked: What advice would you give someone who wants to start building wealth? Listen to what some of our partners have to say.
Watch: Money Matters Question 07—What advice would you give someone who wants to start building wealth?
Follow us on YouTube to catch all 12 videos in this series. We’d love to hear your feedback in the comments.
The post Money Matters: What advice would you give someone who wants to start building wealth? appeared first on MoneySense.
Asset location: Everything in its place
– moneysense.ca
If you’ve ever put together an investment plan, you’re familiar with asset allocation. That’s the mix of stocks, bonds, real estate and other investments driving the expected risk and return of your portfolio. But you may have given less thought to asset location, or how those assets are distributed among your registered and non-registered investment accounts. As any home buyer will tell you, though, location means a lot.
Here’s why. Investment returns—bond interest, Canadian and foreign stock dividends, capital gains—are taxed in different ways, says personal financial planner Chris Markou of Alithea Financial Wellness in Hamilton. And each of your accounts—such as RRSPs, TFSAs and taxable accounts—is governed by different tax rules. Savvy investors know if they hold assets in the wrong account type they’ll pay much more tax than necessary.
How much more? That depends on your portfolio size and tax rates, but smart asset location decisions can easily save you tens of thousands of dollars over an investing lifetime—and that number could easily top $100,000 for wealthier investors…
Here’s why. Investment returns—bond interest, Canadian and foreign stock dividends, capital gains—are taxed in different ways, says personal financial planner Chris Markou of Alithea Financial Wellness in Hamilton. And each of your accounts—such as RRSPs, TFSAs and taxable accounts—is governed by different tax rules. Savvy investors know if they hold assets in the wrong account type they’ll pay much more tax than necessary.
How much more? That depends on your portfolio size and tax rates, but smart asset location decisions can easily save you tens of thousands of dollars over an investing lifetime—and that number could easily top $100,000 for wealthier investors…
