Investment Wisdom
The Lowest Taxed Type of Investment Income – 6 Ways to Invest for Deferred Capital Gains
Of all types of investment income, you pay the lowest tax on deferred capital gains. Paying tax 20 years from now on a capital gain is much better than paying tax on a dividend or capital gain this year. How do you invest for deferred capital gains? In recent years, many investors have been…
Read More“Your Home is the Best Investment” – True or False?
Many people believe that growth of the value of their home has been phenomenal over the last few decades. The common belief is that growth is similar to the stock market and much less risky. Is this actually true? This is important, because believing a home is the best investment leads you to: Feel you…
Read MoreThe One Gigantic Mistake You (and Your Advisor) Keep Making
You review your investments and notice that one is not doing well. You sell and buy a different investment that has been doing well for a few years. You heard favourable news in the media, internet or from your advisor related to the new investment. That’s it! That is the gigantic mistake you keep…
Read MoreHow Come I’m Not Rich?
“90% of putts that are short don’t go in.” – Yogi Berra Why are some people able to become wealthy relatively easily, when most people struggle with their finances? In Canada, about 1 person in 50 is a millionaire and in the US about 1 person in 13 is millionaire* – which is probably a…
Read MoreAre you too focused on Risk Reduction vs. Growth?
A few years ago, we held a client event that highlighted the difference between how different types of investors think. I had invited my favourite Hedge Fund Manager and my favourite Growth Fund Manager. It was the contrast in their thinking that I found fascinating. Read more…
Read MoreHow to Read and Understand Business News
Do you ever read the business news and find yourself wondering exactly what you should or shouldn’t believe? Do you find yourself thinking there is a “big picture” behind the story and you just don’t know what it is?
Read MoreCapital Gains Refund Mechanism – Why Mutual Fund and ETF Investors Potentially Pay Less Tax
When I see tax returns for do-it-yourself investors, I am often struck by how much tax they pay on their investments. Many high net worth investors also pay a lot of tax on their investments. However, when I see tax returns for mutual fund investors, most of the time they pay very little tax on their investment…
Read MoreAre you “Smart Money” or “Dumb Money”?
Amateur investors often look down on professional fund managers thinking they are not worth their fees. Meanwhile, professional fund managers tend to think of amateur investors as “dumb money”. What is “dumb money”? It is investors that invest when the markets are high and then sell when the markets are low.
Read MoreTiming the Market vs. Buy and Hold
After the recent strong stock market gains, I have been asked a few times lately: “What should we do to protect against a possible market downturn? Should we become defensive?” If you could move in and out of the market at the right time, you would obviously increase your returns and avoid some losses. On…
Read MoreLosing Money by Chasing Yield
The classic truism by Raymond DeVoe Jr. is particularly appropriate today: “More money has been lost reaching for yield than at the point of a gun.” Searching for investments with higher yields has often led to bubbles and has often lost money for investors. For example: The sub-prime mortgage-backed securities that collapsed in 2008 were…
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