Gold: How does a falling price impact you?
When gold prices fall like they have, it doesn’t matter whether you have invested in gold or not. Price changes will have an impact on all of us – on the Canadian economy, our governments, and on us as individuals. How much of an impact will depend on your own personal relationship to gold: Read more…
What to do … contribute to your RRSP or pay down your mortgage: what the last 15 years tell us
The average Canadian has always had limited savings and every year they wrestle with the same nagging question: Should we contribute to our RRSP or pay down the mortgage? Read more…
Where's the best place for my savings – an RRSP or a TFSA?
That depends. Are you an average Canadian in need of some friendly wise investing reminders or an above-average Canadian who actually knows how to save their hard-earned money more wisely? If you’re an average Canadian the answer is easy: get yourself a Tax-Free Savings Account (TFSA) and just ignore the Registered Retirement Savings Plan (RRSP) because that’s what the math says. But first you need to figure out which type of investor you are. Read more…
Should I be worried about rising taxation?
Not yet, but it is an interesting question as raising income tax rates is now hotly discussed as one method to reduce persistent government deficits and their rising debt burdens. Another reason people worry about rising taxation is because of the negative impact this would have on Canadians, that is, their savings and investments. For the past 40 years, the majority of Canadians have accumulated their savings nest eggs inside tax-deferred savings plans like Registered Retirement Savings Plans (RRSPs). Read more…
Finding Tax Losses Can Feel a Lot Like Finding Waldo
Sometimes unfortunately hunting for income tax losses can feel more like a round of Finding Waldo and just as much fun where you’re never quite sure what exactly you’re looking for and where you should be looking. So, let’s try to simplify the game and figure out what you need to look for. Read more…
Good news: new numbers for retirement planning
I know. I know. We’re all stressing about it. Are you saving enough? Are your investments helping or hindering? Are you always anxiously rechecking your savings numbers for your retirement plan and wondering – Where did I go wrong? Read more…
What rate of return will your investments earn in the future – 12%, 8%, 4%?
It’s a simple question, but your answer makes a huge difference in terms of hard cold cash for your financial future, and your investing success (or failure!) all depends on the number you pick. (Just try designing a financial plan or a retirement plan without an estimate of your future investment returns. It can’t be done!) Read more…
Gold: Should You or Shouldn’t You?
I must confess. I’ve never been much of a gold bug so my answer to that question might not be the more common response. And I admit I’ve never understood how the market values gold or the reasoning behind holding gold. Read more…
The Toronto Composite Index: a "closet" mutual fund?
How often do you look at the Toronto Composite Index? Once a day? Twice? Three times? More than that? Let’s face it. A lot of us closely monitor the Index’s ups and downs using it as a quick proxy for our own investments. But should we? Is the Toronto Composite Index still relevant to investors today? Read more…
The natural flow of money: don't be fooled
Most things in life have a natural structure, cycle, or flow. Our societal structures, our human likes and dislikes, our fears and desires directly influence many of these natural states. The natural flow of money is no different. Read more…
This is a credit cycle, not a manufacturing cycle! Part II - Evidence supporting this view.
As we discussed in our previous commentary ("This is a credit cycle, not a manufacturing cycle!"), the 2008 - 2009 financial crisis was the culmination of a decades-long credit expansion. The crisis was not a result of a manufacturing slowdown, it was the result of assets prices declining, where borrowers were no longer able to support the Ponzi borrowing that financed those assets. Read more…
This is a credit cycle, not a manufacturing cycle!
Most of us are familiar with the economic boom and bust cycles that result from a manufacturing cycle, but not so familiar with the booms and busts from a credit cycle. Read more…
Is history really the best teacher this time?
Often in our effort to understand unfolding world events, we look to the past for clues of what to expect and how we should react. Such was the case during the recent 2008 - 2009 financial crisis where financial experts also turned to the history books in an effort to understand what was happening and develop an appropriate policy response. Read more…