Seven Steps to Building an Evidence Based Investment Strategy
Use what is known about investing to your benefit, writes Peter Watson Evidence-based investing uses research and what is known about investing to the benefit of individual investors. The evidence applies to solid investment principals and human behaviour that greatly impacts individuals decision-making ability. This column will provide seven solid principles of how to best […]
Understanding the Stock Market will Lead to Success
Investor patience and courage is needed, writes Peter Watson. Stock market investing success comes from investing long-term, ignoring the temptation of selling during volatile times and not missing significant stock value gain best days. This leads to higher investment returns and lower anxiety during times of volatility. Investment risk is measured by volatility. The value […]
Stocks Plunge and Investors Panic
Stock markets are volatile, writes Peter Watson. Speculating and attempting to predict short-term stock price changes historically has not been a successful strategy for investors. As we have recently seen, stock market values can shoot up and plunge down from day to day. These volatile swings also happen within the days that stocks are traded. […]
Buy and Hold Stock Advice Could Backfire
The best financial planning advice might just prove to be your worst nightmare, writes Peter Watson Investors without adequate diversification are at risk under the current stock market volatility. Concentrated positions in companies that do not recover will cause financial harm. Evidence-based investing proves diversification is essential protection for your investment portfolio. The traditional advice? […]
Flexibility Should be Built into Your Retirement Planning
Retirement is not always the way you imagine. Ipsos conducted a poll on behalf of RBC. The 1,800 Canadians surveyed were 55 years and older and had retirement assets of at least $100,000. Over half of people surveyed anticipated knowing their retirement date one year in advance. The reality was just under 40 per cent […]
Climate Change Risk to Ontario Homeowners
Flooding Could be Expensive Insurance could be too expensive or not available if your house in is a risky flood zone area. Climate change is a significant risk. For many of us our largest asset is our house. To protect ourselves we simply buy insurance. But all that is changing. As a result of climate […]
What is the future for Robo Advisors?
Canada’s best known Robo Advisor’s founder was full of enthusiasm in 2017 at the opportunity to disrupt the mutual fund distribution business. This included financial advisors and the big five banks that distribute funds through their branch network. Disruption then, and now, is the dream of many entrepreneurs who try and take innovative technology methods […]
10 tips for a better retirement
Sunset on Lake Today I’m going to share a list of 10 things you can do to prepare for a fulfilling retirement. 1. Housing. The aging process can result in less mobility. Consider a house with no stairs and an easy way to access the garage. 2. Car. Some cars are either too high off […]
2020 Tax-free savings account limits established
The federal government has offered Canadians an extremely attractive tax-free investment option. A Tax-Free-Savings Account (TFSA) is a way to grow your savings without paying tax on any contributions, interest earned, dividends, or capital gains. Many don’t take advantage of this opportunity. I suggest you take some time to see if this investment strategy would […]
Tax-saving benefits of asset location
Asset location is a tax minimizing strategy that involves finding the most tax-effective accounts for your investments. Unfortunately, too many investors fail to tax plan. In my experience, the number of people who pay more income tax than they have to is as high as 90 per cent. Many of those same people wish there […]