Uncertainty Weighs on Equities (Again): Lessons from Past Market Cycles
Without a doubt, the ongoing conflict involving Israel, the United States and Iran has become a major driver of market sentiment, prompting investors to grow increasingly cautious toward non‑cash assets. Although the conflict appears likely to remain regional, its impact on oil markets has been both global and significant. Crude prices surged 57% in March, […]
FIRE versus YOLO
“Financial independence, retire early” (FIRE) and “you only live once” (YOLO) are essentially opposite approaches, but they share a common goal—to seek happiness and achieve financial freedom. They’re just focused on different stages of life. With FIRE, the point is to live frugally, save aggressively and ideally retire earlier than the traditional retirement age—by a […]
Taking RRIF withdrawals in kind
As a retiree with a Registered Retirement Income Fund (RRIF), you have a minimum amount you must withdraw each year, starting no later than the year after you opened the RRIF. But what if you have one or more years when you don’t need the entire amount, or any of it, to support your retirement […]
How vacation property upgrades save tax
Anyone who owns a vacation property will eventually face a tax bill when the property is sold or transferred, assuming its value has increased. You or your estate will owe tax on 50% of the capital gain, payable in the year of the sale or transfer. However, the taxable amount isn’t simply based on the […]
Safeguarding your financial security
Life sometimes has its uncertainties. Major economic events, such as a deep recession, or personal challenges, such as job loss or divorce, can shake our financial stability. Corporations and governments establish contingency plans to protect against unexpected calamities, but individuals can also put a plan in place. Here are three ways you can help safeguard […]
Should you pay down the mortgage or invest?
It’s an age-old question. If you have surplus cash flow or receive a lump sum, such as a tax refund or annual bonus, are you better off making extra mortgage payments or investing the money? Generally, if you expect your portfolio’s rate of return to be greater than your mortgage’s interest rate, investing may be […]
How falling interest rates affect investments
The Bank of Canada’s interest rate cut in June was slight, yet significant. It was the first rate reduction in more than four years and a signal of cuts to follow, which we’re already seeing. One of the first things that interest rate cuts bring to mind is lowering the cost of borrowing, but they […]
Do You and Your Spouse See Investing The Same Way?
Interestingly, spouses with very different—even opposite—investment personalities may quite easily develop an investment program that’s just right for the couple. Yet, in some cases, partners who view investing the same way may need to proceed with caution. APPROACHES FOR DIFFERING VIEWS Take the case of a conservative investor and an aggressive investor who share a […]
How to Avoid Or Minimize the Oas Clawback
Whether the amount is small or large, whether it applies to a couple of years or many, Canadians don’t like their Old Age Security (OAS) pension clawed back. The clawback is officially known as the OAS pension recovery tax. A taxpayer repays 15% of the amount by which their taxable income exceeds the threshold amount, […]
Profit By Overcoming Investment Biases
Financial behaviourists have identified well over 20 investment biases that can tempt or lead individuals to invest in a particular way. Generally speaking, none of the biases is good news for investors. Fortunately, investors who have an advisor aren’t vulnerable to making poor decisions out of fear, hope or any number of irrational reasons. However, […]