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 […]
2024 Stock Market Could be Volatile
US political uncertainty plus two wars could result in a volatile stock market this year, writes Peter Watson. There are many reasons why 2024 could have a very volatile stock market. Stock market volatility can be caused because investors are nervous. And there are several things this year that can make us nervous. The wildcard […]
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 […]
The Worst Financial Event of 2023
It’s time to consider how the Bank of Canada (BOC) accomplishes its mandate, writes Peter Watson. According to its website, its main role is “to promote the economic and financial welfare of Canada.” That is a very important task and I strongly agree with its mandate. The problem is the way this policy is implemented. […]
Does food bank usage mean that our financial system is broken?
The demand for food banks has increased sharply and that underlies the significant financial challenges many Canadians face, writes Peter Watson. More families find it difficult to make ends meet. It seems everything is more expensive. Homeownership costs have risen largely because of the increase in the cost of borrowing and therefore mortgage payments are […]
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 […]
Avoid Investing in Stocks Based on Short Term Success
Beware of the “shiny object” syndrome, writes Peter Watson. One of the most difficult challenges of investors is to ignore the “noise” that often surrounds investing. Much of that noise is based on short-term results. Investing is done for long periods of time. Short term approaches to investing in my opinion are just speculation. Guessing […]
Mortgage Payments Are Becoming Challenging
The most significant challenge for some over the next few years is making their mortgage payments, writes Peter Watson. Many have already experienced the effect of higher interest rates. The lucky ones have locked in a specific mortgage rate that has not come due, but that day is coming. There are several realities to homeownership. […]
