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My three kids chose different educational paths. How do I withdraw RESP funds in a way that’s fair to them and avoids unnecessary taxes? + MORE Sep 4th
Q. I have a registered education savings plan (RESP) for my three children, the youngest of whom is starting university this fall. We have made some withdrawals for the older two kids but the plan is still well-funded. Our middle child has decided to pursue a co-op university program, which is .... More »
How to save money in Canada: A new way that offers higher interest and more flexibility + MORE Dec 17th
If you’re saving up for a financial goal or large expense—whether it’s a vacation, future vet bills or just your rainy day fund—chances are you’re setting aside money in a regular chequing account, a high-interest savings account (HISA) or a guaranteed investment certificate (GIC). Maybe y.... More »
The Difference Between a Secured and Unsecured Loan Oct 12th
The two most common types of loans are secured and unsecured loans. Whether you’re looking to borrow money for a new car or even a vacation, it’s best to understand your options before applying.
What is a secured loan?
Secured loans are generally more customizable and negotiable. They can have .... More »
How to juggle RRSPs, TFSAs, RESPs and a mortgage + MORE Apr 6th
It’s funny how having a few kids can upend even the best laid financial plans. That’s precisely what Sammu and Mandy Dhaliwall are discovering as they deal with the competing challenges of raising children and still finding a way to pay off the mortgage and save for the future. It’s a juggling.... More »
2023 tax credits, due dates and when you can file: Your 2023 income tax return guide + MORE Mar 19th
You’ll want to bookmark the MoneySense guide for 2023 personal income taxes. We will be updating it frequently, as information becomes available and deadlines approach. Plus, we get answers from the experts you won’t find anywhere else, thanks to our Ask MoneySense and Ask A Planner columns.&nbs.... More »
BMO launches Series D mutual funds
– moneysense.ca
Waking up to the reality that self-directed investors simply want greater access to low-cost funds, BMO Investments Inc. announced that as of April 8 it is now offering a suite of 33 Series D mutual funds exclusively through its BMO InvestorLine.
Investment minimums for the funds, which are designed for those who don’t require an adviser’s services and want to make their own investment decisions, are only $500. The management expense ratio (MER) savings for some of these funds is considerable compared to BMO’s corresponding Series A offerings. For instance, the BMO U.S. Equity ETF Fund Series D has an MER of 0.85%, which is one 1.16 percentage points lower than its Series A counterpart.
BMO Investments Inc. has also reduced management fees across its series of 67 Series F mutual fund lineup, providing investors with increased access to lower cost mutual funds within fee-based accounts.
Below is a list of the new BMO Mutual Fund Series D target MERs and their BMO Mutual Fund Series A MER savings…
Investment minimums for the funds, which are designed for those who don’t require an adviser’s services and want to make their own investment decisions, are only $500. The management expense ratio (MER) savings for some of these funds is considerable compared to BMO’s corresponding Series A offerings. For instance, the BMO U.S. Equity ETF Fund Series D has an MER of 0.85%, which is one 1.16 percentage points lower than its Series A counterpart.
BMO Investments Inc. has also reduced management fees across its series of 67 Series F mutual fund lineup, providing investors with increased access to lower cost mutual funds within fee-based accounts.
Below is a list of the new BMO Mutual Fund Series D target MERs and their BMO Mutual Fund Series A MER savings…
Kids new targets of identity theft
– canoe.ca
In the duplicitous world of fraud, it could be called the “original SIN.” A parent applies for a social insurance number (SIN) for her child in order to open a Registered Retirement Savings Plan, but unless the number is protected, it can be used to create a completely new identity to apply for credit.
Is my pension like a bond?
– moneysense.ca
Q: My wife and I have been using the Couch Potato strategy for a few years now, but something has always nagged me. I am fortunate enough to have a defined benefit pension that will pay me $50,000 a year in retirement. Should I consider this the fixed income portion of my portfolio and put the rest in equities? –Brian F.
A: This a critical financial planning question for anyone with a pension, and yet it’s often framed in an unhelpful way.
A popular school of thought says you should think of a pension as a bond, presumably because both bonds and pensions pay predictable amounts of guaranteed income. The problem is, there is no way to put that idea into practice when managing a portfolio.
In this case, our reader has a pension that will pay him $50,000 a year. What would an equivalent bond holding be? Let’s assume he also has $300,000 in personal savings, and that it’s all equities. What would his overall asset allocation be? Even if he did establish a present value for the pension, how would that be helpful when it was time to rebalance the portfolio to its targets? Clearly this is the wrong way to approach the problem…
A: This a critical financial planning question for anyone with a pension, and yet it’s often framed in an unhelpful way.
A popular school of thought says you should think of a pension as a bond, presumably because both bonds and pensions pay predictable amounts of guaranteed income. The problem is, there is no way to put that idea into practice when managing a portfolio.
In this case, our reader has a pension that will pay him $50,000 a year. What would an equivalent bond holding be? Let’s assume he also has $300,000 in personal savings, and that it’s all equities. What would his overall asset allocation be? Even if he did establish a present value for the pension, how would that be helpful when it was time to rebalance the portfolio to its targets? Clearly this is the wrong way to approach the problem…
