Index Asymmetry? Canada & U.S. Index Performance

Throughout 2017, while it seemed as though record highs were being reported by the media in the U.S. every few weeks, the comparatively sluggish movements of the TSX left much to be desired. This had some investors asking: why is the equity market performance of Canada and the U.S. so different?
The composition of Canada’s benchmark stock index is quite different from the U.S. major indices. The Canadian market is predominantly resource-based, with over 65 percent of the S&P/TSX Composite […]

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Rising Rates and Your Portfolio

Interest rates have been held at historically low levels for many years, helping to support economic growth and propping up the housing market, much to the chagrin of retirees who would like to depend on interest for income. But what is in store as rates continue their gradual rise?
Many investors understand the inverse relationship between interest rates and bond values. As interest rates rise, the capital value of existing bonds goes down. Here’s why: Consider an investment of $100 […]

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RRSP or TFSA Contribution, What’s Best?

Is an RRSP or TFSA Contribution Better?
The answer to the question lies in the status of your personal tax situation, and the amount of disposable income you have.
Quite simply, if you have more than $38,000 per year in earned income and are under age 71, then a RRSP contribution still makes sense from a tax deduction point of view. Your strategy in a RRSP should be to make contributions at a tax rate of at least 10% higher than […]

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Thinking About Downsizing Your Home?

This may sound familiar: your first home started out small, but as your family grew you needed more bedrooms and a backyard. Now the children have left the house and the bedrooms are empty – but over the years, with the rise in housing prices, you have built up significant equity through your home’s value. Perhaps you may be asking: is there an opportunity to downsize?
Releasing some home equity has the potential to provide financial benefits such as better […]

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