The Tax Free Savings Account, TFSA, was introduced in 2009. The current contribution limit for both 2009 and 2010 is $5,000. If you don’t use it, you don’t lose it i.e. the limits are cumulative. Therefore, if you are age 18 or over in 2009, you now have $10,000 of TFSA room. The question becomes, what’s the best strategy to use going forward? Should you put money in an RRSP or a TFSA or both? Continue reading »
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04Feb
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06Oct
In a recent publication in the Globe and Mail, Scotia Capital’s portfolio strategist Vincent Delisle stated that Canada represents 3.7% of the MSCI World Index (source: Globe and Mail Tuesday, September 8, 2009 02:10 PM, “Buy Canada, says Scotia”).
While Canada is undoubtedly a great place to invest, to achieve broad portfolio diversification it is generally recommended to have exposure in both the US and internationally. However, when we invest outside of Canada we face what is known as “exchange rate risk”. Specifically this is the currency exchange rate between Canada and other countries. In my opinion, it’s an important consideration for your portfolio. Continue reading »
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28Aug
I am pleased to announce the opening of a new office located at 344 Front Street in downtown Belleville.
This office is being shared with my colleague, Mr. Garry Quinn, PFPC, Financial Planner who is also an Armstrong and Quaile advisor. Garry and I continue to operate as separate entities and he has no access to any of your client information.
This office is open by appointment only. There are two buildings that make up McNabb Towers. The office is located in the lower level of the McNabb Tower that is furthest off the road. There is free parking in the area designated between the two buildings.
There is no change of email address or phone numbers.
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20Aug
While markets have rallied off their March 2009 lows, investors face uncertainty when investing solely in equity markets especially when it comes to their retirement portfolios. This article addresses the issue of stress testing your retirement income plan. I’ve written about this numerous times but it bears repeating especially in this environment. It’s time to take a serious look at the big picture.
Fewer and fewer Canadians have defined-benefit pension plans at work. Companies have opted to go to defined-contribution pension plans to remove their liability for pensioners in the future. Now it’s your responsibility to look after the money and make the best decision for yourself. Do you have a plan? If yes, does it answer the following questions?
• Do I have enough money to retire?
• How long will my money last?
• When can I retire?
• How much do I need to save for my retirement?
• Do I need a life annuity?
• What is my optimum asset mix? Continue reading » -
21May
Over the past year I have spent time reviewing the history of the markets. While it does not predict the future, there are some interesting observations that you may be unaware of which could make a significant impact on how you view the markets and how you invest going forward.
Over the longer term (75 to 100 years) markets go up. However, most investors do not invest over that time-frame. Generally, an investor’s long-term time horizon is in the neighbourhood of 20 or so years and would be defined as an intermediate timeframe. The trends for “secular” markets generally last longer than market or business cycles. During these intermediate timeframes, markets are either in “secular bulls” (going up) or “secular bears” (going sideways or down). Below I have labelled the “secular bear” markets for the Dow Jones Industrial Average since 1898.
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21MayHave We Bottomed?
This is the question on everyone’s mind. Unfortunately no one knows for sure!
Leading economic indicators change before the economy changes
You may have noticed that the equity markets have risen of late even though the economic news continues to be bad. Company earnings are down but in many cases are beating expectations and their stock price rises. Stock market returns are a leading indicator, as the stock market usually begins to decline before the economy declines and improve before the economy begins to pull out of a recession. Leading economic indicators are important because they help predict what the economy will be like in the future. Continue reading »
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21May
Do You Know Your Number?
While extreme market volatility continues and the length of the recession remains uncertain, investors are understandably scared about their investments and their ability to retire comfortably. Whether you invest on your own or use an advisor, my recommendation is that you should review your retirement plan to determine where you stand personally.
One of the best methods to model your retirement plan is using the Otar Retirement Calculator (ORC). It is straightforward to use and answers the following questions.
• Do I have enough money to retire?
• How long will my money last?
• When can I retire?
• How much do I need to save for my retirement?
• Do I need a life annuity?
• What is my optimum asset mix? Continue reading »
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17Mar
Click on this link for rates as of march-12-2009
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21Jan
If you have children finishing up high school (or a year or two still to go) and trying to figure out where they are going for post-secondary education this is a great site by the Globe and Mail. Lots of hints and tips worth reviewing.
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12Jan
- Market Data December 31, 2008
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