When shopping for financial products, be your own advocate
The results of mystery shoppers provided Canada’s banks with mixed messages, according to Investment Executive. However, three out of every four shoppers had a positive experience. But shoppers had a negative experience with inappropriate product recommendations, confusing and misleading disclosures, sales pressure, and a lack of knowledge of the employee. Inappropriate product recommendations were experienced […]
Seniors Face Many Financial Challenges
Financial challenges facing seniors include inflation, increasing medical costs and longevity, writes Peter Watson. Interest rates have been extremely low for years and that has hurt investment returns from Income bearing investments like Guaranteed Investment Certificates. Many seniors rely on this type of investment. The result of this extended period of low investment returns means […]
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 […]
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 […]
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, […]
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 However, all funds withdrawn from either plan are added […]
Tax Avoidance Hurts Us All
It is unfair that most Canadians pay their fair share of taxes while some of the rich and famous do not, writes Peter Watson. The world has just had another glimpse of how the privileged have avoided taxes. This round of tax avoidance has been named the Pandora Papers. The International Consortium of Investigative Journalists […]
Banks Push Back on Investor Protection Reform
Banks and regulators at odds on proposed reforms aimed at protecting investors, writes Peter Watson. New reforms designed to provide better protection of individual investors has hit a major speedbump. Starting at the end of 2021, financial advisors are required to have a better understanding of the investment products they sell. This includes understanding alternative […]
Financial Planning More Difficult for Women
Financial planning for women must account for gender inequality, writes Peter Watson. Women face financial obstacles to being financially secure. In a perfect world there would be no difference to the financial challenge between men and women. That is not the case. Women are more often underpaid when compared to equally qualified men. Earning less […]
Successful Investing Requires a Long-Term Approach
Investors are advised to take a long-term approach to investing writes Peter Watson. Patience, patience, patience. That is a key to successful investing. Over the years I have heard many stories of people making investment decisions that ended up to be very damaging to their investment returns. In hindsight, their decision to buy or sell […]
