An ETF is a low-cost mutual-like fund that trades on the stock market, with a significantly different fee structure
Exchange-traded funds (ETFs) seem to be all the rage. There are more than 600 ETFs traded on the Toronto Stock Exchange and it seems like new ones are being created almost every day. An ETF is basically a diversified investment pool that’s very similar to a mutual fund, with the exception that they’re sold or…
Each investor is unique in their goals and personal risk tolerance, so their investment portfolio should be customized to their situation
You worked hard for your money and, in turn, your money should be working hard for you. However, when comparing returns, you need to be sure you’re making a fair comparison. Investors often compare their returns to that of a published benchmark such as the Toronto Stock Exchange (TSX), or to the returns their friends…
Investors often purchase investments that don’t suit their intended time frame. Do your homework, know your risk tolerance and be clear on your expectations
When it comes to comparing your investment returns to others, make sure you’re comparing the exact period and investment transactions. Published returns for any investment are based on a single investment over a given period. This isn't the way most people invest, so their returns are often much different than the published numbers. The timing…
When it comes to owning a home versus renting, you can’t just compare the amount of rent you would pay to the amount of a mortgage payment
Should I buy a home or rent? It’s a common question but the answer isn’t as simple you may think – it totally depends on your situation, since there are advantages and disadvantages to both. It’s usually better to own an asset that’s likely to go up in value than to rent an asset that’s…
Be smart, shop around and make sure you’re aware of the total fees you pay and what you're getting for them
Some fees for investments are hidden, some are visible. But there’s always some type of fee or cost involved in investing. Some people will disagree with my broad use of the word fee, but I believe that any money paid out, regardless of how it’s paid, is a fee. Every business sets out to make…
Welcome to the predatory online scamming world. Fraudulent emails, often containing links or attachments, are dangerous. If it seems too good to be true, it is
Beware the phishing hook. Phishing describes an attempt to get you to unknowingly disclose personal information such as credit card details, banking information, usernames and passwords. The party trying to gather your information will try to hook you by sending you an email and asking you to click on a link. The email will look…
Using debt in your financial planning is a good strategy, but exercise caution and discuss all the risks and rewards with your accountant and planner first
Debt is often a four-letter word – but, when used correctly, it can be a real benefit to your financial planning. Most of us use debt when we buy a home, a second property, automobiles and other large purchases. We simply don’t have enough cash available to do otherwise. Many people are very comfortable using…
If you build up the money in your TFSA while you’re working, you can draw from it tax-free any time
K.M. wrote to ask if she should stop making registered retirement savings plan (RRSP) contributions and instead focus on her tax-free savings account (TFSA). With a little personal information from K.M., we decided it would be best for her to focus on her TFSA. Here’s why: K.M. works in a job she’s likely to leave…
Keep in mind that, despite new disclosure rules to increase transparency, the fee shown on your investment report may not be the total fee you paid your adviser
When comparing your investment returns to that of others or those you see published, selection and timing are two critical issues. Make sure you’re comparing apples to apples: that you’re weighing similar investments. Each investor has their own risk tolerance and objectives. What’s right for your friend, neighbour or family member may not be right for…
It depends. As with all financial planning questions, no one answer fits every situation
“Did I need to take the insurance the bank sold me when I got my mortgage? Do I need mortgage insurance at all?” C.P. wrote and asked. I’m often asked this and the answer is usually the same: That depends. As with all financial planning questions, no one answer fits every situation. The simple answer in…