Misguided Thinking About Dividend Investing
I’ve received an uptick in emails and comments from investors about dividends and so I thought I’d address some common misconceptions around dividend investing. One reader in particular wanted to know if he should take the commuted value of his pension ($750,000) and put it all in Enbridge stock because it was yielding around 6.5%.…
Read MoreWeekend Reading: Unhealthy Housing Market Edition
Canada’s housing market continues to defy logic as prices have shot-up more than 40% on average across the country. Last spring, then CMHC boss Evan Siddall predicted that home prices would fall between 9-18% due to the economic impact of the pandemic. So, what happened? One reason is that high income earners working from home…
Read MoreCreate Your Own Financial Plan With These Eight Steps
A financial plan is a road map to help guide you to a better future. Not just about budgeting or investing, a good financial plan will help you navigate your way through all of life’s major financial milestones. On one hand, your financial plan acts as a set of rules or principles by which to…
Read MoreWeekend Reading: A Money Grab Edition
Canada’s big banks rollout new fee increases every year or two. These fee hikes may seem innocuous at first – 50 cents here and $1 there – but they collectively (and annoyingly) add up to big bucks over time. My advice for Canadians who want to remain with a big bank but don’t want to…
Read MoreGetting Your Fixed Income Fix With BMO ETFs
This article has been sponsored by BMO Canada. All opinions are my own. Fixed income doesn’t get enough attention on this blog, mostly because I’m still in my accumulation years and invest in 100% equities across all my accounts. But most investors should hold bonds in their portfolio to reduce volatility and so they can…
Read MoreWhat’s In Your Wallet?
I’m a self-proclaimed rewards card junkie and always try to optimize my purchases to get the most points or cash back on regular spending. I watch for juicy credit card welcome bonuses and time my new credit applications around big annual purchases like our home or auto insurance so I can easily meet any minimum…
Read MoreWeekend Reading: Bidding War Insanity Edition
House prices across the country continue to soar. The average price for a home in Canada reached $695,697 in April, up an incredible 41.9% year-over-year. Ontario is driving the majority of those gains, as the province’s average price rose 46% during the same period. Would-be homebuyers are getting into bidding wars and paying several hundred…
Read MoreAccepting Market Returns
A few readers have expressed concern about their recent investment performance. In most cases, these investors are holding a sensible, low cost, globally diversified portfolio of index funds ranging from conservative (40% stocks, 60% bonds) to balanced (60% stocks, 40% bonds). One reader said: “Psychologically, it’s tough to put money in when returns have been…
Read MoreWeekend Reading: Projected Inflation and Investment Returns Edition
FP Canada issues guidelines every year to help financial planners make long-term financial projections for their clients that are objective and unbiased. The guidelines include assumptions to use for projected inflation and investment returns, wage growth, and borrowing rates. It also includes “probability of survival” tables that show the life expectancy at various ages. The…
Read MoreWeekend Reading: Canadian Funds Underperform (Again) Edition
Active investors supposedly thrive during periods of market volatility. If that’s the case, then 2020 should have been a banner year for active funds. The year started off strong, with markets hitting all-time highs in February. Then we saw the largest and fastest market decline in history with a 34% sell-off in March. Markets then…
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