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We mentioned this was coming in the FP early in June but it’s now official: the first batch of WisdomTree ETFs are now available in Canada.
While WisdomTree Canada opened its office earlier this year, the first six products started trading on the Toronto Stock Exchange Thursday (July 14).
The US parent company is best known for its dividend-weighted ETFs and currency-hedged equity strategies. The initial lineup is focused on the U.S., European and broad international equities. The Head of WisdomTree Canada is Raj Lala, pictured below.
Here’s what he said in a press release today:
Raj Lala
“By combining the best elements of active and passive investing, WisdomTree’s Smart Beta ETFs give Canadians the opportunity to participate in effective, risk-managed investments. We look forward to growing our business in Canada through a commitment to anticipating and addressing key investor needs.”
We all know that in the year you turn 71 you will have until December 31 to convert your RRSP into a RRIF or an annuity. Which do you choose?
First, let’s recap the basics.
RRIF option
The year after you set up your RRIF you will have to start withdrawing a mandatory minimum amount. At age 71 the minimum is 5.28% of your balance on January 1. That percentage increases as you get older. Of course, you can withdraw more than the minimum and there is no maximum withdrawal amount for a regular RRIF. For this comparison we’ll use the minimum amount.
You will continue to decide where to invest your RRIF assets and your investments will continue to grow on a tax-sheltered basis, but the amount you withdraw is taxed at your marginal tax rate.
On your death, the remaining assets are generally transferred to the surviving spouse, tax free, or goes to your estate and is taxed.
Annuity option
An annuity is a specialized financial product provided by an insurance company. In exchange for a lump sum investment from your RRSP you receive regular retirement income for the rest of your life.
Once you choose to purchase an annuity there is no access to your capital. You basically are giving it up for a guaranteed income that never decreases. It creates a personal pension plan for those without pension plans.
A survey released today by Justwealth Financial Inc. finds a knowledge gap about how much Canadian investors are being charged on their investments: almost two thirds of those surveyed didn’t know exactly how much they paid in annual investment fees.
The survey of Canadians across Canada aged 25 or more was conducted via Google Consumer Surveys, and also uncovered a lack of awareness around upcoming regulatory changes to investment reporting requirements.
The changes surrounding the Client Relationship Model – Phase 2 or CRM2 — will take effect this Friday (July 15, 2016). They are the third annual list of amendments to promote increased disclosure regarding fees and investment performance. According to the Justwealth survey, 65.1 per cent are not aware of the upcoming changes. {See also Graham Bodel’s recent Hub blog on these changes: Big changes for mutual fund investors and Anthony Boright’s Hub blog entitled Get ready for POS3 and CRM2 deadlines.)
Author and US-based gold guru Peter Schiff is teaming up with a Canadian gold fin-tech company — Goldmoney Inc. — in a deal both parties expect will accelerate the firm’s growth into “millions” of users seeking a “real-money” alternative to the “fiat” currencies of the world’s central banks.
Initial details were revealed on Friday, when Toronto-based Goldmoney Inc. (trading as XAU on the TSX), announced its plan to acquire Schiff Gold Inc. (SGI) and form a marketing and service agreement with Schiff (pictured left).
And we looked at a couple of recent books on the soaring gold price in a Hub post in June. You can find the review, which includes Schiff’s The Real Crash, in this Hub review titled The New Case for Gold. The link also contains my blog on this for Motley Fool Canada.
The Goldmoney release describes Schiff Gold Inc. (“SGI”) as a “private, US-based dealer in precious metals” that was launched in 2010 under the name Euro Pacific Precious Metals. It in turn was described as “one of the largest and fastest growing retail gold dealers” that services a large client base with buy and sell orders for precious metals, storage and vaulting arrangements and gold & silver IRA arrangement services.”
As a young, not-yet-rich millennial who has no immediate plans to get into the housing market, I was intrigued. The article is written by 31-year-old Tony; a pharmacist who lives with his parents and eschews the traditional rites of passage of his peers, like home ownership.
Before I actually read the article, I was sure I wouldn’t like Tony, wouldn’t relate to him. Growing up in Toronto I’ve seen his type countless times. Money is no object, and he’s not shy to show it. A common defence from this kind of person is that ‘normal’ or ‘rational’ people who are judging him are jealous or boring (or both).
What I found interesting about this piece is that Tony seems very self-aware about his spending and lifestyle choices. He’s accepting of his friends who do choose to be “shackled to a monstrous mortgage for the next 30 years,” and he understands that sometimes it just isn’t possible to have it all.
Though much of what Tony talks about in this article is out of reach for most normal millennials (last minute trips to Asia, $200 bottles of wine), I appreciate the sentiment. Continue Reading…
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We mentioned this was coming in the FP early in June but it’s now official: the first batch of WisdomTree ETFs are now available in Canada.
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