Budget

Budget 2019: New Housing Affordability and Retirement Planning Initiatives

In late March, the Federal Government tabled their final budget prior to October’s federal election. The Budget holds key initiatives aimed at helping young people with housing affordability, and to help seniors with retirement planning. Here are some notable changes that may impact you or your loved ones, specifically targeting the young and the old:
The Young: Housing Affordability
While many children may be hoping for support from the bank of mom and dad to purchase a home, if this isn’t […]

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New Retirement Investment Vehicle coming in 2020

The federal budget has introduced a possible solution to help Canadians highly concerned about out-living their money. A recent CBC news article refers to a new type of retirement savings product — ALDAs, or Advanced Life Deferred Annuity, and VPLAs, or Variable Payment Life Annuities — that may be hitting the product shelves of financial institutions in 2020. 
The plan will allow retirees to keep more savings tax-free until later in retirement. The rules are being amended to permit seniors to purchase […]

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Keeping the Elderly Safe

Are you concerned about elderly parents or relatives? A recent CBC news report provided a disturbing account of an elderly man who fell prey to an online dating scam. Over an eight-month period, he communicated with someone posing as his girlfriend and lost over $700,000 by wiring funds overseas.1
As it turns out, stories of financial abuse of the elderly aren’t as uncommon as we think. It doesn’t always happen from afar and can occur at home to acquaintances or […]

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Federal Budget 2019 Summary

Here are highlights from the 2019 Federal Budget, which seeks to close tax loop holes to make a fairer tax system, and offers incentives for first time home buyers, training credits for eligible workers, and improvements to the Registered Disability Savings Plan:
Modernizing the Home Buyers’ Plan
Currently, the Home Buyers’ Plan (HBP) allows first-time home owners to withdraw up to $25,000 from their Registered Retirement Savings Plan (RRSP) to purchase or build a home, without paying withdrawal tax. The amount […]

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New Year’s Resolutions for Investing in 2019

The year 2018 will be remembered as a difficult one for the Canadian equity markets. Trade tensions and tariffs imposed by the U.S. created ongoing volatility at home and abroad. Concerns over Canada’s competitiveness have been put under the spotlight—the result of falling foreign direct investment, slowing gross domestic product growth and problems in getting our deeply discounted oil to broader markets. While the federal government acknowledged the need to support business competitiveness in its late November fiscal update, […]

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Checking Investment Statements Frequently can be Misleading

Media coverage of short-term market volatility is prompting
people to worry about their investments. Market analysis of past, rolling
return holding periods helps to shed some light on these fluctuations, and how
we should respond. And our response is typically to do nothing.

Do Nothing? Data Analysis Tells the Story

Here below shows data representing rolling return holding
periods from Bloomberg LP for the S&P 500 from January 1, 1928 to June 30,
2018 (the past 90 years). The idea behind using rolling returns is […]

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Reflecting on a Turbulent Year: Diversify, Stay Disciplined

This past year the markets fluctuated again and again. After years of low volatility, this year saw lots of volatility, especially towards the end. We’ve written about this recently, and believe it’s important to go back to our core thesis: Markets work.
Markets are Unpredictable Short-Term
The uneasy part of the market is that no one knows where it will go short term. There are many articles in the media telling you which way it’s going to go and when. That […]

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Rise Above Advertisements with Misleading Claims

I’m sure many of you have seen the Questrade TV advertisements that steadily feature a blasé or disinterested Investment Advisor sitting with his informed client. The premise is that the Advisor is indifferent and charges exorbitant fees for investments. The client is there to inform the Advisor that they are moving their account, and tell them they can get their services cheaper—up to 30%—with Questrade.
On so many levels, this series of ads make me uneasy. Here are my viewpoints:

There […]

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Maintain Optimism during Economic Headwinds

It is interesting how quickly the primary focus of many market commentators can shift as they look for things to worry about, perpetuating a pessimistic narrative about market fluctuations.
Today’s Economic Headwinds
A major change in global trade continues to dominate the news as the U.S. imposes tariffs globally. At home, Canada remained side-lined in NAFTA negotiations throughout the summer and the Trans Mountain pipeline project continued to experience setbacks. Italy’s ongoing debt issues, complicated by new political changes, as well […]

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Looking Beyond ‘Problem Ahead’ Market Headlines

We have now entered the final quarter of 2018 and the somewhat typical, late year market volatility is upon us. More specifically, the types of market fluctuations that are often associated with October are occurring—not that I feel this will be an October like 2008.
Finding a Balanced View
Much is debated recently in financial media about the lateness of the business cycle, and the high valuations of the stock market generally, not to mention the daily published barrage of ‘end […]

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