The average investor underperforms virtually all other traditional asset classes, even when inflation increases are included. J.P. Morgan, comparing 20-year annualized returns by asset class, found the average investor rings in at 2.1% compared to the S&P 500 Index at 8.2%. This [Read more]
Cash reserves held by Canadians have risen significantly since the global financial crisis. Earlier this year, CIBC World Markets reported that Canadians currently hold $75 billion in cash. That’s almost 10 per cent of the total value of overall personal liquid assets in Canada. CIBC also [Read more]
The independent research and consultancy firm ETFGI confirms 2015 was another banner year for the global ETFs/ETPs industry, with US$372.0 billion in net new assets – a 10% increase over the 2014 record of US$338.3 billion. Global assets under management grew from US$2.784 trillion to US$2.992 [Read more]
According to Investor Economics, one million U.S. citizens living in Canada have $30 billion invested in mutual fund industry assets. Meanwhile, TD Economics reports that over 500,000 Canadians spend significant periods of time in the United States. While the former likely know their U.S. tax [Read more]
For many Canadians, tax-free savings accounts (TFSAs) may be the most advantageous change made to the tax code since RRSPs were launched in 1957. Many professionals even contend that the popularity of TFSAs will ultimately surpass that of RRSPs. However, despite countless clarifications by [Read more]
The Moment of Tooth: How the Tooth Fairy can teach your kids about money Losing a first tooth followed by a visit from the Tooth Fairy is a huge milestone in a child’s life. With piggy banks poising to chow down, how can parents determine the appropriate amount to give? Baby teeth are [Read more]
Every year many Canadian families are face with paying for a large portion of their child’s post-graduate education. A study conducted by BMO Global Asset Management found that 70% of parents are worried their children will not be able to afford university or college. As a result, they are [Read more]
Investors pay fees for portfolio management, as they do for any professional service, but many are unaware of the variety of options regarding fee structure. One of the most popular is the fee-based pricing model. According to PriceMetrix, fee-based structures are the preferred method of [Read more]
As one year passes and another unfolds, it’s time to make Tax Free Savings Account (TFSA) contributions. They’ve been around since 2009 and yet Canadians still largely misunderstand them. The annual BMO TFSA Report says 66 per cent claim to be knowledgeable about TFSAs, but only 22 percent [Read more]
A BMO Psychology of Investing report revealed some worrisome data on investor emotions that included; two-thirds of those polled have not been in total control of their emotions when investing and; a majority of Canadians have invested on impulse at least once. That’s bad news for portfolios [Read more]
Independent research and consultancy firm ETFGI reports there are 5,410 exchange-traded products (ETPs) globally, with 10,477 listings from 222 providers listed on 60 exchanges. These ETPs represent US$2.62 trillion as at the end of July. The most popular ETP is the Exchange Traded Fund (ETF). [Read more]
TD Economics reports that more than 500,000 Canadians spend significant periods of time in the United States. These individuals may be unaware that a Canadian can be deemed a U.S. person and subject to U.S. tax filing requirements if holding certain investment vehicles. The definition of a U.S. [Read more]
As Benjamin Franklin said, “in this world nothing can be said to be certain, except death and taxes.” Fortunately for some Canadian investors, the latter can be controlled. For those investing outside their registered plans, corporate class funds offer a tax efficient means of [Read more]
Recent data indicate that Canadians are saving more. Statistics Canada reports that the Household Savings Rate is currently 5.4%, a 0.4% increase from the previous year. Likewise, a recent BMO Bank of Montreal study found that 48% of Canadians are now investing in Tax-Free Savings Accounts [Read more]
Good investors understand the concept of diversification and its benefits in managing risk. However, although many do diversify with individual holdings, the majority fall short when diversifying from a global standpoint. That’s understandable as it’s natural to invest in what one [Read more]
