Stock Markets are Shrinking
There are significantly less publicly traded shares available to individual investors, writes Peter Watson. Investors can purchase publicly traded shares of companies they wish to invest. This can be via a direct purchase or by owning a mutual fund that has acquired shares. Most portfolios have a strong allocation to stocks and therefore the declining […]
News can be confusing for investors
News can be very confusing, writes Peter Watson. We live in the modern age of 24 seven news streaming at us from our smart devices. That can cause a problem. The psychology of news or more importantly how people interpret news is based on our desire to hear the bad things of life. News that […]
Investment Diversification Can be Misunderstood
Some investors misunderstand the importance of diversification, writes Peter Watson. The concept of having strong diversification with your investments can be misunderstood. Let’s consider the example of an investor who prides themselves on taking risks. That person is not afraid of risk and sometimes that characteristic can reflect the type of person they are. You […]
How a Flock of Birds Can be Similar to a Group of Investors
The instant changing pattern of a flock of birds can resemble the behaviour of investors, writes Peter Watson. This column is going to call on mother nature to help us understand how investors can react when making investment decisions. Have you ever noticed a flock of birds suddenly change course and amazingly all the birds […]
The Shock of Higher Mortgage Payments Could be Just Around the Corner
Most homeowners face higher mortgage payments in the next two years, writes Peter Watson. Last year many homeowners escaped the burden of rising interest rates pushing their mortgage payments higher. That will soon change. Interest rate increases do not immediately affect all existing mortgages. For example, if you have a five-year mortgage at three per […]
TFSA Contribution Limit Increases to $7,000 in 2024
Tax-Free Savings Account contribution limit increase in 2024, writes Peter Watson. As of 2024 the annual contribution of a Tax-Free Savings Account has increased to $7,000. To be eligible to contribute a person must be 18 or older and have a social insurance number. The TFSA was introduced in 2009 and the maximum contribution limit […]
Your Personal Financial New Year’s Resolution
Find the mistakes you are making with your personal finances, writes Peter Watson. I have a suggestion for your new year’s resolution. But first a story. When my children were young, before they took an examination at school, I would ask them an important question: What are the chances you will get a perfect score? […]
Three Types of Investment Risk
The more you think about investment risk the more you realize the different ways your investment returns might be lower than expected, writes Peter Watson. The problem with risk is it comes in several different forms. The first risk is having poor investment returns. This is the one that gets all the attention. One option […]
Longevity is a Financial Risk
Running out of money during retirement is a possibility, writes Peter Watson. Planning your finances for later years often focuses on reaching retirement: work hard for decades for your golden years. Most attention is on earning an income and paying the bills. Managing ongoing living expenses is important. But it is only a start. Reaching […]
Fewer Investors Use a Financial Advisor
Investors purchasing mutual funds use an investment advisor almost two thirds of the time. When purchasing ETFs, only one third use an investment advisor, writes Peter Watson. This information is from the Investment Funds Institute of Canada’s annual investor survey that was recently released. Why are so few investors using the services of a […]