Better Investment Fees Disclosure is Proposed
Investors can look forward to enhanced disclosure of investment fees and costs on the mutual funds and ETFs they own, writes Peter Watson. This is a good thing, and it is a follow-up to cost disclosure requirements that were implemented in 2016. The new standard of disclosure is at the proposal stage and the objective […]
Significant Interest Rate Increases will be Painful
Last week the Bank of Canada increased interest rates by half a per cent. This is the largest interest rate hike in two decades, writes Peter Watson. Plus, there were warnings additional rate increases will be announced. The BOC also announced it will stop buying federal government bonds which it has been doing to keep […]
Financial Stress for First Time Homeowners
Two financial concerns for first-time homeowners are rising interest rates and declining house prices, writes Peter Watson. We can learn a lot about the possible negative emotional side effects of the real estate market by connecting the dots between real estate and personal finances. Many are new to homeownership. The same way some investors are […]
Investors Will Benefit from New Investment Industry Rules
New legislation regulating the use of financial titles will reduce confusion in selecting an advisor, writes Peter Watson. Investor confusion on selecting a person to help you with your finances should be greatly reduced. Ontario will start to regulate who can use standard industry titles. The titles “Financial Planner” and “Financial Advisor” will now be […]
Over managing your investments could cost you money
There are two ways to manage your portfolio. You can take a consistent approach with little change in the allocation to stocks and maintaining that balance over time. Alternatively, you can make periodic shifts in the weighting of stocks and bonds. These shifts can be based on a specific criterion, or just your gut feeling […]
Mutual fund past performance data can be misleading
There is a bias in mutual fund past performance than can overstate past results, writes Peter Watson. Since mutual funds are the investment vehicle of choice for most Canadians, it is helpful to understand how to interpret information that is publicly available. We will follow the path of a very astute investor who wants to […]
Interest Rate Increases will be Painful
The Bank of Canada has warned us of pending interest rate increases for a long time. Last week interest rates were increased by one quarter of one per cent. Many are anticipating six interest rate increases over a relatively short period of time. These increases are necessary to slow down economic activity in order to […]
Normal economic cycles can hurt the individual
Economic activity in Canada ebbs and flows, writes Peter Watson. We have prosperity, then things slow down and we can have a recession. Then a recovery. The goal of the Bank of Canada is to manage our economy, provide slow and steady growth and hopefully allow us all to prosper. That’s good for the country, […]
Rising Interest Rates Ahead
The Bank of Canada continues to sound the alarm that higher interest rates are just around the corner. There are two significant reasons why. One. Inflation, as measured by the consumer price index had an annual increase of 4.8 per cent in December. This is the highest level in three decades. The target inflation rate […]
Why You Need a Tax-Free Savings Account
Canadians are required to pay income tax on income earned. This includes salary, interest income, dividend income and capital gains. If funds are invested in a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund, investment income earned within the plan is not taxed. However, all funds withdrawn from either plan are added […]