How (And When) To Rebalance Your Portfolio
Setting up the initial asset allocation for your investment portfolio is fairly straightforward. The challenge is knowing how and when to rebalance your portfolio. Stock and bond prices move up and down, and you periodically add new money – all of which can throw off your initial targets. Let’s say you’re an index investor like…
Read MoreWeekend Reading: Tighter Mortgage Rules Edition
Canada Mortgage and Housing Corporation (CMHC) made headlines last week when its housing market outlook predicted that national housing prices would fall 9-18% over the coming months due to the coronavirus crisis. This week, Canada’s largest default insurer took significant steps to change its underwriting policies for insured mortgages. The following changes, which take effect…
Read MoreTackling Changes To Your Retirement Income Plan
Spending money is easy. Saving and investing is supposed to be the difficult part. But there’s a reason why Nobel laureate William Sharpe called “decumulation”, or spending down your retirement savings, the nastiest, hardest problem in finance. Indeed, retirement planning would be easy if we knew the following information in advance: Future market returns and…
Read MoreWeekend Reading: Housing Market Crash Edition
Will we see a housing market crash in 2020 and beyond? The Canadian Mortgage and Housing Corporation (CMHC) published its housing market outlook this week and, well, their forecast for home sales and prices look pretty bleak. Housing starts are expected to see a decline of between 51% to 75%, and not begin to recover…
Read MoreWeekend Reading: Stock Market Is Not The Economy Edition
Stock markets around the world continue to climb higher after bottoming out on March 23. In what seems like ages ago, markets fell harder and faster than ever before as the world grappled with a global pandemic and stay-at-home orders. The TSX, as represented by iShares XIU, fell more than 32%, while the S&P 500…
Read MoreWeekend Reading: Big Financial Mistakes Edition
When it comes to money, no one has it completely figured out. We can learn a lot from our own failures and from the mistakes of others. Stories like the one shared by Kind Wealth founder David O’Leary – who filed for bankruptcy at age 25 – highlight the fact that no matter who we…
Read MoreMoney Bag: Bonds Behaving Badly, Investing USD, and More
Welcome to the Money Bag, where I answer questions and address comments from readers on a wide range of money topics, myths, and perceptions about money. No question is off limits, so hit me up in the comments section or send me an email about any money topic that’s on your mind. This edition of the Money Bag…
Read MoreWeekend Reading: Debunking The 4% Rule Edition
The 4% rule is a framework to think about how to safely draw down your retirement savings without fear of outliving your money. It was developed in 1994 by financial advisor William Bengen, who concluded that retirees could safely withdraw 4% annually from their portfolio over a 30 year period without running out of money.…
Read MoreTax Loss Harvesting At Work: A Wealthsimple Case Study
Tax loss harvesting sounds like a magical strategy that is only available to the wealthy. But in reality, it’s a simple tax saving concept that involves selling a security or investment that has experienced a loss, and using that ‘capital loss’ to offset a capital gain in the past, present, or future. Investors should know…
Read MoreRenewing Your Mortgage This Year? What You Need To Know
It’s an interesting time to be shopping for mortgage rates. On the one hand, the Bank of Canada’s emergency rate cuts have slashed its key lending rate to 0.25 percent. The big banks followed suit, dropping their prime lending rates by 1.5 percent. On the other hand, bond yields have dropped to historic lows, which…
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