Archive for September 2019
No, Passive Investing Is Not In A Bubble
There have been many ridiculous statements made about passive investing over the years. None have garnered as much media attention as hedge-fund manager Michael Burry’s claim that passive investments such as index funds and ETFs are the next bubble. He said these index-tracking investments are “inflating stock and bond prices in a similar way that…
Read MoreWeekend Reading: Ask Me Anything About Money Edition
It seemed like I was everywhere but here this week. The Canadian Financial Summit launched on Thursday and my 30-minute retirement readiness interview with host Kyle Prevost was included in Friday’s line-up. There’s still time to catch Saturday’s sessions and/or get the All Access Pass for instant lifetime access to all three days (25+ sessions)…
Read MoreWeekend Reading: Investor Bias Edition
Home country bias is when investors overweight domestic stocks relative to their weight in the global market. Canadian investors tend to suffer from home bias, but this is also true of investors in most countries. It’s particularly troubling in Canada where our stock market is highly concentrated in the financial and energy sectors. A related…
Read MoreHow Index Funds Compare To Equity Mutual Funds
This article was originally published more than seven years ago and remains of the most widely read investing pieces on Boomer & Echo. I’ve updated the 10-year returns of the funds listed below. Not surprisingly, the returns of low cost index funds still beat the more expensive equity funds. Despite numerous studies showing that Canadian…
Read MoreWeekend Reading: Retirement Income For Life Edition
I’m on record saying that every Canadian retiree and soon-to-be retiree should read Retirement Income For Life by Fred Vettese. It offers five clear strategies for making the most of your accumulated savings and turning it into predictable, sustainable retirement income. In the book, Mr. Vettese refers to an online calculator to help Canadians take…
Read MoreSave More Tomorrow: The Procrastinator’s Guide To Saving Money
I should’ve written this article on Sunday. Instead, my lizard brain decided to spend four hours watching football (and being disappointed by the Browns, yet again). Humans are natural procrastinators. We want to feel as good as possible all the time. That’s why we spend now and save later, eat now and diet later, binge-watch…
Read MoreWeekend Reading: Canadian Financial Summit Edition
For the past two years, hundreds of you signed up to watch me and dozens of personal finance and investing experts speak at the Canadian Financial Summit. Well, we’re back again with a fresh new line-up of information designed to make you better savers, investors, and take control of your financial future. Get your free…
Read MoreUsing a Robo-Advisor in Retirement: A Wealthsimple Case Study
Readers often ask how an index investing approach can work for retirees or soon-to-be retirees. A low cost, globally diversified portfolio of ETFs is great for those in the accumulation stage, but retirees need income. How do they get it? When asked this question I often point to this excellent piece in MoneySense written by…
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