Investing
Disappointing Day For Canadian Investors: No Ban On Embedded Commissions
In what should have been a historic day for Canadian investors, the Canadian Securities Administrators (CSA) instead disappointed with watered down reforms that skirt around the edges of true investor reform. What investor advocates wanted was a ban on embedded commissions charged from mutual fund sales, and for the industry to adopt a best interest…
Read MoreSh*t My Advisor Says
Some investors eventually leave their commission-based advisors and opt to set-up a simple portfolio of index funds or ETFs on their own. There are plenty of compelling reasons to do so; the reduction in fees alone can save investors thousands of dollars a year, and academic research shows that the lower your costs, the greater your share of…
Read MoreStriking A Balance Between Risk And Reward
I read this story about a couple planning their wedding – let’s call them Carl and Vanessa. Vanessa wanted the ceremony to be held in a park next to a lake, but it would be several kilometres from town. The problem, practical Carl said, was there were no buildings in the vicinity should the weather…
Read MoreI Did The Math On Your Investment Fees And The Results Weren’t Pretty
A few weeks ago I invited readers to share their portfolio details with me so I could help ‘do the math’ on their investment fees. Many of you did, and the results weren’t pretty. From accounts loaded with deferred sales charges (DSCs), management expense ratios (MERs) in the high 2 percent range, and funds overlapping…
Read MoreAre ETFs Becoming Too Complex?
Exchange traded funds have surged in popularity as more investors realize the benefits of lower investment costs and broad diversification. They started out as a way for investors to tap into the returns of major stock markets using a nice convenient low-cost package that trades like a stock. With passive investment management, a computer could…
Read MoreThe Misguided Beliefs of Financial Advisors
Critics of the investment industry, me included, often point to conflicts of interest that lead to higher costs and poorer outcomes for investors. Indeed, a 2015 study on mutual fund fees conducted by the Brondesbury Group determined that financial advisors who receive commissions from selling mutual funds are often biased in selecting funds that offer…
Read MoreEngineering A Better Outcome For Investors
When I worked in the hospitality industry our hotel group placed a large emphasis on the profitability of its restaurants and catering departments. Considerable effort was made to drive overall food costs down while at the same time creating a sales culture that pushed the highest margin items to boost revenue. One of the most effective ways…
Read MoreA Robo Investing Solution For Affluent Investors
Robo-advisors have been around for several years now in Canada offering affordable online investing services with a light human touch. You might picture the typical client as a smart young millennial just beginning his or her investing journey. After all, that’s how robo-advisors are often portrayed in the media. But it might surprise you to…
Read MoreIs Fear Keeping You Out Of The Stock Market?
The biggest concern for many investors is the fear of losing their money. The stock markets have shown some volatility the last week or so, and the recent screaming headlines in the financial media do nothing but encourage panic. Some people think the latest bull market has overvalued stocks and a major market meltdown is…
Read MoreWorst Day Ever?
Will Monday February 5th go down as the worst day ever for stocks? On this day the Dow Jones industrial average lost more than 1,175 points – the worst single-day point drop in its history. But was it really the worst day ever? Investors need some context. The 1,175 point drop was indeed the biggest…
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