Investing

Exchange traded funds have become more popular as investors realize the benefits of lower investment costs and diversification.  Most ETFs track a specific index, like the S&P TSX 60, or the S&P 500, and they are traded on stock exchanges – just like individual stocks. Unlike with mutual funds, which can be traded for free,…

Just as nature abhors a vacuum, people hate randomness … I call this tendency the predication addiction.  Jason Zweig “Your Money and Your Brain” We all know about the economic cycle, the natural fluctuation of the economy going from growth, peak, contraction and trough.  It looks like the bell curve you’re familiar with from school.…

Passive investors have been allowed to define active investing for active investors.  I want to even out the discussion from an active investor’s perspective. How Passive are Passive Investments? Let’s first call into question whether passive investing is really passive investing.  We’ll start with the American S&P 500 index. Unbeknownst to many investors, the S&P500…

I recently read an article about a man who liquidated his entire investment portfolio in 2008, just after Lehman Brothers collapsed.  He was convinced this was the end of capitalism and that currency would be worthless.  To protect himself he converted everything into gold. While I can understand the fear that drives someone to sell…

Segregated funds – or seg funds – consist of a pool of investments in securities such as bonds and stocks, similar to mutual funds, but sold by life insurance companies. Segregated funds are owned by the life insurance company – not the investor – and must be kept separate (segregated) from the company’s other assets. Related:…

Back in early 2009 I sold my mutual funds and opened a discount brokerage account with TD Waterhouse. I had about $30,000 to invest, and after doing some research on individual stocks I was drawn towards investing in companies that pay regular dividends. Related: Mutual Fund Fees – The High Cost Of Canadian Funds At…

One investment that is eligible to be held in your RRSP is your mortgage.  You need to have enough cash, or assets that can be converted to cash, and hold your mortgage in a self-directed RRSP.  You then make your mortgage payments to the RRSP instead of a financial institution. You can fund your own…

We strive to provide you with useful information on how to be a savvy investor.  When it comes to investment fraud, the more you know about what to look for and be wary of, the better prepared you will be if you get approached with an investment opportunity. BlueHedge: Online Fraud Campaign The Canadian Securities…

The Canadian Securities Administrators now (as of July 2011) require all Mutual Fund companies to provide a new disclosure document for mutual fund investors. These documents are called Fund Facts and they replace the simplified prospectus (although these are still available upon request if you want additional information). Investors were previously provided with a simplified…