How to go about securing the best Retirement Plan in Canada.
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This 30-year-old freelancer makes $125,000 a year and pays modest rent living with his parents. Should he invest in retirement or buy a home? + MORE Feb 3rd
Jeremy says his main goal is to save for retirement, but after looking at condos online, he’s trying to decide if that will be a worthy investment..... More »
What to expect when receiving OAS at 65 + MORE Jun 10th
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Right after tax season I received in the mail one of those little brown envelopes from the federal government. No, they weren’t after me for more tax money but the opposite: it was from Service Canada and they were proposing to send ME money as of my next birthday. The letter inform.... More »
UFC Notebook: Cormier undecided on retirement after loss - TSN Aug 18th
UFC Notebook: Cormier undecided on retirement after loss TSNLeading up to UFC 231, Daniel Cormier acknowledged that facing Stipe Miocic in a rematch for the UFC heavyweight title was a high risk proposition. With the ...View full coverage on Google News.... More »
Sean Wilson, financial advisor Feb 21st
Meet Sean Wilson
Sean Wilson is a Certified Financial Planner and founder of Moraine Wealth Advisory, a boutique financial planning firm specializing in helping Canadian physicians and business owners achieve their financial and life goals. With many years of experience in financial services, he.... More »
When are TFSAs and RRSPs actually taxable? + MORE Feb 29th
Ask MoneySense
I saw your blog online; thank you so much for the wonderful job that you are doing—it was very informative! That motivated me to start investing too, but now I have a couple of questions. I understand that there is tax on U.S. dividends in TFSA. Do we pay tax as well when we sell:
.... More »
Bad behaviour or bad math?
– moneysense.ca
Wade D. Pfau, the professor of retirement income at The American College, recently fired a broadside at DALBAR’s annual research study on the “Quantitative Analysis of Investor Behavior”. The professor claims the study is deeply flawed.
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Safer Canadian Dogs
That’s a problem because the research is regularly highlighted by advisors and the media. Pfau says that, “The study is meant to educate investors about how the returns they earn generally lag behind the returns for market indices widely reported in the media. The study analyzes the sources of poor investor performance, finding that the bad timing behaviour of buying high and selling low is the main culprit, along with fund expenses, the need for cash and a lack of cash to invest.”
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You may be familiar with the flavour of the findings. For instance, DALBAR found that the average equity fund investor gained an average of 4.7% annually over the 20 years through to the end of 2015…
The numbers don’t appear to add up for this couple’s retirement goals
– theglobeandmail.com
While the couple’s affairs seem complicated, their concerns are shared by many Canadians: How to help their children pay for postsecondary education, pay off the mortgage on their house and save for retirement
Should I rely on REITs for better investment returns?
– moneysense.ca
Q: As a retiree, I need to maximize my return on investments. I notice there are a number of income trusts that have significant yields and I was wondering if there is an ETF made up of income trusts. While I know this income is fully taxed my plan was to keep such an ETF in a TFSA. I have a REIT ETF in my TFSA now, but was looking for greater diversification. Can you help? — GloriaA: Income is indeed important in retirement. Retirement could be seen as income that starts once your work income stops. However, focusing on income-generating investments is an oversimplification that is pandered to (and at times exploited by) the financial services industry.
For your portfolio, it’s real returns that matter (returns after tax, fees and inflation). Real returns determine your retirement account’s vitality as you get older, ability to keep up with inflation, and success in meeting your spending expectations during retirement. Income within a portfolio is only one part of returns. Yes, there are tax differences between interest income, dividends, and capital gains (there are use-of-accounts strategies to handle these differences), but a myopic focus on income is unlikely to maximize overall real returns…
