Financial Pain is on The Way
Beware, the financial storm clouds are closing in, writes Peter Watson. That was the tone of a recent warning by Finance Minister Chrystia Freeland. Her conclusion was that many households are going to be adversely affected. Interest rates are being aggressively increased to try to control inflation. That will slow the economy, businesses will suffer, […]
Investing – A Time to be Brave
Investing in the current climate can be challenging, writes Peter Watson. The stock market has been volatile with many significant declines and bonds, that are meant to be a safe haven, have done poorly too. Then there is that sacred asset that Canadians are so proud of: Homeownership. Rising home values over a prolonged period […]
Retirement in Canada is Becoming More Risky
Canadians financial risk during retirement is a reason to plan carefully, writes Peter Watson. Canadians underestimate the impact of longevity, inflation and healthcare costs have on retirement savings, and that’s making our country a less secure place to retire. This is according to the Natixis annual ranking as reported by Investment Executive. Greater focus needs […]
Canadians Net Worth Declined Significantly
Canadians’ net worth suffered a significant decline during the three months ending June 30. Both real estate and financial investments fell in value making this the largest drop of household wealth on record. This information was recently released by Statistics Canada. Stock markets performed poorly during the first half of the year. Many investors diversify […]
Bank of Canada Increases Interest Rates Again
Managing personal finances just got more difficult, writes Peter Watson. Another significant interest rate hike was just announced by the Bank of Canada. The most recent rate increase was three quarters of one per cent. The Bank of Canada is determined to reduce the annual inflation rate to the target of two per cent. This […]
Prices Increasing and Spending Decreasing
Prices are increasing so Canadians are reducing their spending, writes Peter Watson. The annual inflation rate as of the end of July decreased slightly to 7.6 per cent. That is good news for the Bank of Canada who are trying to control inflation. The reality is things are significantly more expensive than one year ago […]
Dollar Cost Averaging: A Strategy to Consider
When is the best time to invest? The problem is it is impossible to accurately predict how stock prices will fluctuate during the short term. Dollar cost averaging is a technique where you invest the same amount of money on a regular basis over time. For example, you could invest monthly and the most likely […]
Full-Service Investment Firms Can Be Challenged at Providing Comprehensive Advice
Financial advisors face challenges in delivering the services they offer, writes Peter Watson. Individual financial advisors and the firms where they are employed proudly communicate their service as “holistic advice.” That makes sense because certain things in life, including your personal finances, should be done thoroughly. However, from a theoretical perspective, nothing is always perfect. […]
Personal Finances are Challenged with Continued Increase in Inflation
The world of personal finance for many Canadians is spinning quickly these days, writes Peter Watson. Recently, the Bank of Canada made a significant increase in interest rates. The reason for the increase was its attempt to control inflation. After digesting higher interest rates, the attention shifted to the effect this will have on the […]
Interest Rate Increase Will Hurt Many Canadians
Interest rate hikes will be painful for many Canadians, writes Peter Watson. The Bank of Canada made an aggressive move to increase interest rates. That increase will impact many individuals. The underlying story is just how serious the risk of inflation is to the Canadian economy and that such extreme measures have been taken. Three […]