Archive for July 2010
Should University Students Contribute to an RRSP?
Linda, a University student, is on the financial ball and considering starting her RRSP contributions but is wondering if it’s the best choice. Here is the question: I am going into my 3rd year of university and just started a well paying summer job. I have been hearing about RRSPs since high school and the…
Read MoreA Primer on Bonds – II (Investing in Bonds)
This is a column by regular contributor Clark If you had read Part 1 of the primer, you would have learned about the basics of bonds and their different types. Bonds offer a reasonable rate of return, though lesser than stocks, and provide protection against volatility. So, is an investor, willing to settle for lesser…
Read MoreA Primer on Bonds – I (The Types of Bonds)
This is a column by regular contributor Clark. Stocks and bonds (individual or ETF) are two asset classes that form part of many portfolios. The split depends on a person’s risk tolerance but one cannot deny that both are essential components for decent long-term returns with bonds providing some hedge during market downturns through capital…
Read MoreDeciphering the Insurance Puzzle – II (Universal Life, Disability, Critical Illness)
In the last article, I briefly went over CMHC, mortgage life and term life insurance, lets continue with other insurance options that are out there. Universal/Whole Life Insurance This insurance option, I’ll admit, I’m not a fan of. Although I don’t have direct experience with Universal or Whole Life insurance, I know that they are…
Read MoreDeciphering the Insurance Puzzle – I (CMHC, Mortgage Life, and Term Life)
One aspect of personal finance that is often overlooked is insurance. It’s often viewed as a product that is not needed, confusing, and/or simply expensive. My view is that there are some insurances that are essential to have, and perhaps even a foundation of personal fiscal health. This post originated from an email received by…
Read MoreCloset Indexers vs. Stock Pickers – Truly Active Managers Outperform
This is the final installment of Ed Rempel’s series on active investing. “If you can’t imitate him, don’t copy him.” – Yogi Berra In the last article, we introduced the concept of “Active Share” – the degree to which the holdings in a fund differ from the index – based on a study by 2…
Read MoreAn Investment Loan and Excess Cash
Back in March 2009, I posted about what happens to the Smith Manoeuvre strategy once the mortgage is paid off. From that post, I listed 3 solutions: Keep the investment loan forever Pay off the investment loan over time Pay off a portion of the investment loan For us, it will probably be a combination…
Read MoreLearning the Hard Way and Being Ready to Learn
This is a column by regular contributor Clark. I’ve read that unless a person is ready to learn something, any advice offered is virtually useless. I say virtually because the advice makes the receiver aware that there is a different way to their present path (for better or worse – not all advice is good!).…
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