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The exchange traded fund (ETF) has emerged in recent years to compete with the mutual fund as the most popular investment vehicles. ETFs are based upon the performance of an underlying index and they attempt to mimic the movement of stock markets or derivatives thereof.  They provide a level of diversification within a general or…

T’was a time when you needed to go looking to build a credit rating. Today, they’ve likely found, reviewed and approved you without you ever asking. Your friendly financier is a cunning fox with the aim of a long-term relationship with you. Show a little promise early on (like making payments on time) and they…

2017 will see a new class of wide-eyed students embarking on a post-secondary education.  For the savvy parent this was years in the planning saving money in RESPs and discussing and evaluating alternatives with counsellors long in advance. Some will opt for the increasing options for trades and apprenticeships and partnerships with industry. For others,…

When I first entered the business diversification was primarily the tool an advisor used to ensure that all of a client’s invested monies didn’t move in the same direction at the same time.  In the simplest sense it was described as, “not keeping all your eggs in the same basket.” Being diversified with your investments…

What is a fair rate of return?  It seems such a simple question but is not so easily answered. We often refer to the “risk-free” rate of return which could mean a GIC or term deposit where there is little risk to capital.  The caveat being that purchasing power is lost over the long-term given…

I received mine today in the mail. Term is still the best and most affordable option to gain the highest coverage where a loss of income would have significant impact on dependants. Term refers to the length of time that premiums remain constant.  Standard terms are 10, 20 and more recently, 30 years.  The longer…

For some, the financial obligations of a credit-fueled December can bring forth a very sober reality of the year ahead.  For a few, it is unfortunately the continuation of a downward spiral. Credit comes in many forms but was introduced primarily as a way to purchase something today and pay for it later.  It still…

CRM 2 is the client relationship model initiated by the Canadian Securities Administrators that comes into effect January 1, 2017.  It’s been a long time coming and a true win for investors, advocacy groups and investment professionals who have fought for increased transparency. In essence, all investors will now receive mandated annual reports on the…

Despondent they sat across my office desk.  Eyes focused down.  They had just returned from a company-sponsored retirement planning workshop. The “expert” had informed the group that they each needed 1.5 million dollars to replace their income in retirement.  It’s a little bit like a MD starting the conversation with “YOU HAVE CANCER.”   Whatever information…

Federal Finance Minister Bill Morneau largely gathered national support for a plan to expand current CPP beginning in 2019. Manitoba hasn’t signed on yet, business organizations are screaming about the additional burden on employers and the investment industry no doubt will claim that there were enough avenues already available. This won’t affect today’s recipients and…

Given that it is one of the newer vehicles available to investors it probably shouldn’t be surprizing that it is one of the most misunderstood. To understand why the confusion exists one must go back to overzealous banks, their promotion of a vehicle aimed at the masses and some understanding of how this impacts their…

Principles over Predictions Navigating the 21 st Century They say the 4 most dangerous words in investing are “this time it’s different.”  Maybe it truly is although I’ve yet to find any evidence of that after 15 plus years of searching.  Most of what one requires to be financially self-sufficient is a combination of good…

A test.  Did you predict the price of crude oil would plunge below $50 U.S. or that the Canadian dollar would make you reconsider your next travel destination?   Don’t beat yourself up-the “experts” didn’t get it right either. In the business of securities the more you know the more trouble you can find yourself in…

We are all targets of scams and the most vulnerable are likely those least in a position to afford it.  Factor in the dramatic increase in new technologies and it’s easy to take an off-ramp towards the wrong part of town. Quantity-wise, most approaches are likely to come through a telephone or via your computer. …

In the movie Robocop, a left-for-dead police officer undergoes an experimental procedure that leaves him part man but mostly machine.  With his new-found armour he goes on to be a one man wrecking crew fighting evil.  Enter, “Roboadvisors,” a catchy description for those firms offering investment services at a distance. The target market is stated…

Ten years ago it was a pretty simple answer.  Yes, absolutely.  Today, probably-but it’s more complicated.   A changing tax code, the introduction of the Tax Free Savings Account and the insatiable appetite of Canadian’s to borrow means it may not be your first priority. That sage of the Canadian investment industry Stephen Jarislowsky caused a…

If you run a household you should have a budget.  To prepare a budget you need to know what your expenses are.  Retrieving, estimating and analyzing that information can be a fair bit of work. Paper billing is going the way of the Dodo bird so get used to the electronic transaction.  There are some…

As one year ends and another begins it allows time for reflection.  There are those things that we did well.  They often bring a smile.  The things we did not do so well or could have done better.  And of course, the things we wished we had done but didn’t.  The latter brings the most…

Each Christmas I try and select one meaningful message to share.  For those who haven’t seen the following, I hope you enjoy. A professor stood before his philosophy class and had some items in front of him. When the class began, wordlessly he picked up a very large and empty pickle jar and proceeded to…

One of the most memorable retirement campaigns of the late 80’s was Freedom 55.  Today, a handful of entrepreneurs, savers extraordinaire or those on the receiving end of a large inheritance might manage it.  However, for the vast majority this has been out-of-reach for some time. Why?  Contributing factors include longevity, the evolving workforce, the…