The best high-interest savings accounts in Canada for 2024 + MORE Jan 2nd
Using a HELOC as an investment strategy: not as taboo as you might think + MORE Feb 27th
Eight solid alternatives to the Capital One Costco Mastercard for Canadians + MORE Jun 6th
Can you use the Home Buyers’ Plan to buy a foreign property? Mar 20th
The Perfect Pro: Your Guide to Working with Mortgage Professionals + MORE May 17th
How to make a spousal RRSP work for you
– moneysense.ca
THE PROBLEM
James and Claudia Williams are in an envious position. The’ve paid off their home, they’re debt free and they have healthy savings in RRSPs, TFSAs, and other accounts. They’ve also just welcomed their first child and are already talking about having another sometime in the next few years. But as well as they’ve managed their money they know having kids will put pressure on their savings and they want to be prepared.
Claudia, a 29-year old office worker, and James, a 34-year-old environmental field worker in the energy sector, both have group RRSPs through their employers that gives them access to low cost mutual funds. “We’ve have been happy with our annual returns of 5% net over the past few years,” says James.
Now James wonders if this is a good time to do a little tax planning. “I’m in the top tax bracket and Claudia earns much less,” he says. That higher income has allowed him to amass more than $60,000 in his savings account…
Torstar CEO: Cost cutting has preserved cash needed for business transformation
– canadianbusiness.com
But they also said cost reduction will remain a important area of focus with no end in sight for a years-long decline in print advertising revenue at Torstar’s flagship Toronto Star newspaper and its Metroland Media Group.
Torstar chief executive John Boynton told analysts on a conference call that he sees cost-cutting as essential to preserving cash flow that’s required to fuel a transformation of the company’s core business.
“In the balance of 2017, we expect to benefit from $3 million in cost-savings related to restructuring and outsourcing initiatives, already undertaken to date, and we expect these cost reductions to offset print ad revenue trends which we expect (will) continue to be challenging,” Boynton said…
Why too much cash hurts investors
– moneysense.ca
Sure, there is a role for some cash. You’ll want to keep some accessible for household emergencies. And, in your portfolio, you might want some to use to take advantage of investment opportunities that pop up. But excessive amounts, sitting for long periods of time without a purpose, can cost you big time.
It is called a “cash drag.” Cash earns virtually nothing these days, so it drags down the performance of your portfolio. Let’s say you hold $50,000 in cash in your investment account, over and above what you have in your savings account for emergencies. If, instead, you had invested that money and earned a 5% return for 30 years you’d have $220,000 in your account. That’s $170,000 more, just by avoiding a lazy mistake.
Why this happens
There are three main reasons why some investors hold too much cash…