Investment Predictions Often Do Not Come True
Using predictions to make investment decisions can lead to disappointing outcomes, writes Peter Watson. Making investment predictions can be dangerous. A rhetorical question. Looking back to last year in March, would an investor liked to have predicted the pandemic was coming? With the knowledge of a pending COVID-19 crises, most investors would have sold all […]
Languishing can be Damaging to Your Personal Finances
Languishing after COVID-19 could be harmful to earning an income. That can be detrimental to your ability to be financially self-sufficient, writes Peter Watson. Your financial success has a new potential obstacle to overcome. This obstacle was discussed in a New York Times article earlier this year on languishing. Early research suggests that languishing could […]
Stocks and Bonds: What to Expect
Let’s talk investments. Specifically, how the volatility of stocks and the returns of stocks are related. Many investors dislike volatility. A stock can be worth $10 a share, increase to $15, decreased to $8, and then back up to $11. Most would prefer a $10 a share price to increase gradually to $11. Perfect. A […]
Monthly Payments can be a Financial Sink Hole
Accumulating too many monthly payment plans can sabotage your financial well-being, writes Peter Wastson. Things you purchase are often priced in a manner that is too good to resist. That is a significant financial risk. Buying a car is a perfect example. Assume you are in the market and find a car you like, and […]
Debt levels are dangerously high and is a risk for us all
Deferred costs, such as mortgage payments and billions of federal support, have camouflaged our financial weakness and the dangers of staggering amounts of debt, writes Peter Watson. Debt is good and debt can be dangerously bad. That is an issue that affects us all. The magic of debt can be every consumers’ dream. Without any […]
Stock Market COVID-19 Volatility
Stock market volatility as measured by the S&P 500 demonstrates the fears and uncertainty of these troubled times, writes Peter Watson. Welcome to the roller coaster world of investing. The stock market volatility has been extreme and set new records. The emotional stress on some investors can be significant. Many will have bailed on their […]
Are you Making an RRSP Mistake?
Many Canadians squander some of the benefits of making an RRSP contribution, writes Peter Watson. Many Canadians fail to take advantage of income tax rebates resulting from RRSP contributions. That rebate could be included in your long-term financial plan and used to finance other investments as opposed to treating it like “free money” and spent […]
Stocks Plunge and Investors Panic
Stock markets are volatile, writes Peter Watson. Speculating and attempting to predict short-term stock price changes historically has not been a successful strategy for investors. As we have recently seen, stock market values can shoot up and plunge down from day to day. These volatile swings also happen within the days that stocks are traded. […]
2020 Tax-free savings account limits established
The federal government has offered Canadians an extremely attractive tax-free investment option. A Tax-Free-Savings Account (TFSA) is a way to grow your savings without paying tax on any contributions, interest earned, dividends, or capital gains. Many don’t take advantage of this opportunity. I suggest you take some time to see if this investment strategy would […]
Reduce debt and accumulate assets
Reduce debt. Debt is a threat to your financial health because it doesn’t let you make the most of your money. That’s why debt reduction is a financial goal for many people. The correct financial strategy for each household can be different, however, there are a few general rules that often apply. Paying down debt […]
