Building Wealth

For the first 30 or so years of working, saving and investing, you’ll be first in the mode of getting out of the hole (paying down debt), and then building your net worth (that’s wealth accumulation.). But don’t forget, wealth accumulation isn’t the ultimate goal. Decumulation is! (a separate category here at the Hub).

Only two resolutions for Canadian investors in 2016

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Graham Bodel, CFA

By Graham Bodel, CFA

Special to the Financial Independence Hub

We have heard so many suggested new years resolutions over the last couple of weeks but believe it’s worth piling on two more for Canadian investors.  We hope not but suspect we’ll be highlighting the same resolutions for years to come.

Chalten has been open for business for less than a year but already we have seen some very concerning consistencies in the portfolios that we have reviewed, the two biggest and most concerning being high fees and lack of diversification.  For 2016 we recommend Canadian investors address both issues.

Slumping loonie boosted foreign equity funds

Depositphotos_6814598_s-2015On Tuesday,  Morningstar Canada released preliminary data for 2015 on the performance of its 42 Canada Fund Indices which measure aggregate returns of funds for various standard categories.   Continue Reading…

Happy volatile New Year! How to cope with turbulent markets

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Stock and fear concept on grunge backgroundAs I observe in my latest Financial Post blog, it’s not been the happiest of new years for investors heavily invested in equities. See How to play the market’s ugly start to the New Year: Top up your tax-free savings with ‘Bargains for the Brave.’ It ran on Wednesday.

Coincidentally, earlier that day the Hub ran the latest FWB TV video, on the timely topic of the difficulty of timing the markets, even if you’re a major economist like John Maynard Keynes.

See No one can time the market consistently.

That said, global shares have now been falling for six days as of Thursday and futures looked bleak for US markets, as Shanghai shares fell 7% and Chinese stock trading was suspended in less than a half hour after the market open: the second suspension in a week. European shares were down too. It certainly looks “ugly,” as one hedge fund manager told Reuters.

Watch my Twitter feed over the day for market updates. You can also see my latest tweets off to the right side of the Hub’s main page.

In the meantime, it may time to take a deep breath and put things into a long-term perspective. Here’s what regular Hub contributor Adrian Mastracci has to say on the current volatility.

Reduce effects of market jitters

“Pick battles big enough to matter, small enough to win.”
— Jonathan Kozel, writer and educator.

 Continue Reading…

FWB TV Video: No one can time the market consistently

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David Chambers

The latest FWB TV investing video is now available by clicking on the linked title here: No one can time the market consistently. It’s also housed, as usual, at Findependence.TV.

The three-and-a-half minute video covers what may be familiar ground to seasoned investors: timing the market and trying to get in or out of stocks in an attempt to avoid the next crash is usually a futile activity.

Even Keynes found it hard to time the market Continue Reading…

16 Financial Habits for a Prosperous New Year

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MarieEngen
Marie Engen

By Marie Engen, Boomer & Echo

Special to the Financial Independence Hub

A Fidelity Investments study discovered that setting specific financial goals does help get your fiscal house in order. 56% of those surveyed said their finances had improved, a much better result than most New Year’s resolutions.

Give yourself a financial checkup and see where you can improve your savings and spending habits.

  1. Increase your savings. Save 16% more than you would normally on all your savings, including your employee pension if you are not contributing the maximum amount already. By making modest adjustments, you won’t miss the money as much.
  1. Automate your savings. One of the easiest and most effective ways to save is to automate the process, and yet less than 40% use this technique. Set up regular transfers with your bank. Some employers will take money directly of your paycheque to invest in RRSPs, Canada Savings Bonds and other savings vehicles. Set up savings for specific expenses such as a new car, home renovations and vacations, as well as children’s education and retirement savings.

Continue Reading…

Time to top up your TFSA by another $5,500

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Canadian Tax-Free Savings Account concept with a piggy bank against black backgroundHere’s my first FP blog of 2016: How to find the money to max out your TFSA in January to make the most of your tax-free savings.

As intimated in the Hub’s New Year’s Day post on Friday, it’s about the first major investing action you can take in 2016: topping up your Tax-free Savings Accounts (TFSAs) by an additional $5,500 (down from $10,000 in 2015.)

On a personal note, since we eat our own cooking here at the Hub, I made contributions for myself and my wife on Friday. Depending on how you execute the transfers, this may or may not be an instantaneous process.

Transfers may not be instantaneous

Continue Reading…