The effects of low interest rates
Interest rates in Canada are low. Rock bottom low. You might expect people to be ecstatic at being able to pay such historically low interest rates on household debt. This is not the case. The current day financial environment for Canadians can be summarized in one word. Worry. A September 4, 2019 survey by the […]
When investing, you need to do the math
The first rule of investing is to do the math. Put simply, when you save your money and make investments, what you’re doing is constructing a simple puzzle. Each part of the puzzle fits together. The same is true for your long-term saving and investing efforts. Everything should fit together to achieve your financial objectives. […]
CESG helps with the expense of education
The government of Canada will give parents money that can be used for their children’s or grandchildren’s post-secondary education. The plan is called the Canada Education Savings Grant (CESG) and it works in conjunction with a Registered Education Savings Plan (RESP). The good news is the gift totals $7,200 per child. The bad news is […]
Affordable rental housing shortage in Canada
There is a problem in Canada that can negatively affect us all. The problem is housing. There are not enough affordable rental units available to those who have a lower earning ability. The Canadian economy depends on all segments of the population working in a coordinated effort to supply our high standard of living. From […]
Questions for a potential financial advisor
A financial advisor’s role is to help clients work toward their financial goals. Finding a qualified advisor you feel comfortable with requires careful evaluation. Last week this column discussed hiring a financial advisor based on the services provided, and the cost of those services. Today we will consider some specific questions you might want to […]
Hiring a financial advisor is an important decision
You’ve decided to hire a financial advisor. But who do you choose? Deciding which advisor to work with can be difficult and maybe even a little daunting. Here are a few ideas on how to make that decision. Like most purchasing decisions it comes down to what is being offered and at what cost. I […]
Lower investment risk by diversifying
People have interesting perspectives when it comes to lowering investment risk through diversification. Diversification is one way of saying don’t put all your eggs in one basket. Canadians are often conservative, so risk management comes naturally. We lower the risk of financial loss by buying insurance policies on everything from our automobiles and houses to […]
The Importance of Asset Allocation
One of the most important things about investing is deciding on asset allocation. Asset allocation is the decision of how to diversify your investment portfolio. The main options are stocks and bonds. The importance of asset allocation started back in 1986 with a scholarly article titled Determinants of the Portfolio Performance, published in the Financial […]
Reduce debt and accumulate assets
Reduce debt. Debt is a threat to your financial health because it doesn’t let you make the most of your money. That’s why debt reduction is a financial goal for many people. The correct financial strategy for each household can be different, however, there are a few general rules that often apply. Paying down debt […]
Stop Investing and start planning
Is it time for you to stop just investing? Investing can easily become a way of life. Every year certain investments get made on what seems like an automatic basis. Don’t forget to contribute to your Registered Retirement Savings Plan. And then there is your Tax Free Savings Account. If there is extra cash you can […]