When Is The Best Time To Invest?
It’s not surprising that investors (especially first-time investors) often worry about the timing of their stock purchases. They believe they can accurately predict when it will rise and fall. The financial media is obsessed with market timing. Market timing doesn’t work for the average investor – or even most professionals – so don’t listen to…
Read MoreBan On Embedded Commissions Coming, Despite Industry Objection
In 1996, following one of the worst mass killings in history, the Australian government made sweeping reform to its gun control laws, banning semi-automatic rifles and shotguns, and limiting ownership to an extremely narrow range of purposes. As a result, the government bought back nearly 650,000 of these weapons and now just 5 percent of…
Read MoreWeekend Reading: Au Revoir, Toronto Star Edition
Monday marked the end of my bi-weekly column in the Toronto Star. The most widely read newspaper in Canada has decided to scale back its personal finance section to focus more on consumer awareness and advocacy stories (okay, more Rob Ford coverage). I want to thank The Star, and my editor Adam Mayers, for the opportunity…
Read MoreCan I Afford To Retire?
Marcus says: “I’m 54 years old and I have a total of $1.8 million dollars in both registered and non-registered accounts. My house is mortgage free and worth about $650,000 and I own a rental property worth about $400,000. Can I afford to retire?” Well…yeah! Many people spend their whole lives diligently saving and working…
Read MoreMortgage Free At 31: Worth The Sacrifices
The following article is a guest post by Sean Cooper who blogs about personal finance at Sean Cooper Writer. According to a poll by CIBC, the average homeowner won’t pay off their mortgage until right before retirement – age 58. I plan to do it a lot sooner – by age 31. I bought my…
Read MoreWeekend Reading: Big Merger Edition
Earlier this week, two iconic fast-food chains decided to join forces when Burger King and Tim Hortons merged in a $12.5 billion deal. The news caused an uproar on both sides of the border, with Burger King facing criticism for moving its headquarters up north to reduce its corporate tax rate, and Tim Hortons “selling out”…
Read MoreDefined Contribution Plans: Why Opting Out Shouldn’t Be An Option
Many employers who provide pension plans have shifted from the traditional defined benefit (DB) plan, where the employer takes on most of the risk of providing fixed retirement benefits, to defined contribution (DC) plans, where the employee bears all of the risks. Related: Have we seen the last of the gold-plated pension? Although employers commonly…
Read MoreMore Ways The Investment Industry Is Screwing Canadians
A client reached out to me for advice after her financial advisor at BMO Nesbitt Burns dumped her earlier this summer. The advisor was looking to scale back his practice and she was one of the unfortunate investors he was “letting go”. The client, let’s call her Jane, shared the “transition” letter with me and…
Read MoreEnough With The Emergency Fund, Sort Of
The entire financial world wants you to believe that success with money is just math. It’s not. Well, it is, but – for most average, everyday people, anyway – it’s only about math eventually. First, it’s about behaviour. The idea that you can transition seamlessly from someone spending more than she makes to someone who…
Read MoreInvestor Home Country Bias
Many DIY investors have been accused of having home country bias when choosing their investments, especially those who are dividend-growth investors. What is home country bias? According to Investopedia, it is the tendency to overweight domestic holdings at the expense of foreign securities. These investors do not diversify their portfolios, which could have a negative…
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