Tag Archive for “investments”

Spring is in the air, and Mother Nature isn't the only one showing signs of recovery after a long winter. Many sectors of the U.S. economy, most notably its housing market, have begun to blossom and grow. But what does this mean for Canadian investors?

As home prices south of the border stabilize, the 16 percent of Canadians who recently told BMO Financial Group they would consider buying a property in America might want to accelerate their search. While prices are still low across the United States, BMO, in its new survey, suggests prices will begin to climb starting in 2013. For now, sales of single-family homes are still 8 percent below their 20-year average, but would-be buyers should note that prices did rise 6 percent over 2011 during the first quarter of this year.

"While there's little urgency, now is likely a good time to buy U.S. real estate in regions with relatively low foreclosure rates, as conditions should improve enough to put a floor under prices this year," said Sal Guatieri, senior economist with BMO Capital Markets. "The inventory overhang has ebbed, prices are low, and some pent-up demand exists. However, patience is a virtue for bargain hunters in areas saddled with distressed properties." Continue reading »

With tax day around the corner, many Canadians are thinking about ways to save money on their yearly filings. While interest payments on home loans aren't exactly tax deductible, there are a couple ways to potentially turn a mortgage into a tax-saving tool.

For Canadians with sizeable investments, one way to use a mortgage for a tax advantage is through an asset swap. With this technique, a homeowner can essentially trade home mortgage debt, which isn't tax deductible, for investment debt, which is. Homeowners can execute a full or partial swap.

Full swap: Under this scenario, a homeowner has, say,  $200,000 worth of investments in stocks, bonds or other fluid assets. He or she also has a $200,000 mortgage. The homeowner would first sell the investments and use the money to pay off the mortgage. Once the transaction is complete, the homeowner would then take out a $200,000 home equity mortgage and buy back investments. Because the loan is now being used to fund investments, rather than a home purchase, the interest payments are tax deductible. Continue reading »

Amid global financial turmoil, many Canadians are seeking the calm certainty of conservative long-term investments, a new survey reveals.

Canadians are still investing despite the tumult in places like the United States, Greece, Spain or Italy, and they're doing it at twice the rate of a year ago, according to a review from Royal Bank of Canada Branch Investments. But rather than seeking more bang for their buck, Canadians are diversifying into longer term mutual funds, guaranteed investment certificates and investment savings accounts.

Tax free savings accounts and registered retirement savings plans are getting more attention from Canadians as they return to investing basics, according to RBC. Traditionally, Canadians have poured money into their RRSPs during a seasonal two-month period, but lately they have been making regular contributions throughout the year, notes Michael Walker, vice-president and head of Branch Investments.
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As global economic uncertainty, unstable stock markets and a potential housing slowdown continue to make headlines, many Canadians are unsure if they are financially prepared for retirement.

According to a recent CIBC study, 44 percent of all Canadians believe they don't have adequate retirement funds, while nearly one-third of baby boomers share that view.

"Planning for retirement is something almost every Canadian thinks about at this time of year, and our poll results show that many would like to be further ahead when it comes to their retirement plans," said Christina Kramer of CIBC. "Regardless of what stage of life you're currently in, you can benefit from having a discussion with a financial advisor." Continue reading »

Perhaps jumping into the stock market has turned out to be more of a chore than you and your child anticipated. If savings bonds and GICs are not offering the rates of return you and your child would like to see their savings yielding, mutual funds are a promising alternative.

At current Canadians have well over 1,200 different mutual funds to select from. How do you know which is right for you? Here is some general information on the various types of mutual funds available in Canada.

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How to Pick your Stocks

Now that your child is proficiently handling their chequing account, making debits and deposits responsibly, and has assessed their risk tolerance, it is time to locate an investment vehicle that will see their savings dollars grow.

While an allowance and monetary birthday/holiday gifts might line the accounts, authoress Katherine R. Bateman, in her book The Young Investor, suggests that your child make a list of the things he or she is good at, or likes doing, and from that list derive ways in which they can earn money from those activities themselves. Continue reading »

Helping Your Kids Get into Investing Early

In this Internet-dominated, economy-fearing age it may be possible that your kids will out-know you in terms of stocks and trading before they finish grade school. American author Katherine R. Bateman suggests in her book, The Young Investor: Projects and Activities for Making Your Money Grow that no age is too young to get kids making sense of their dollars.

She suggests that even in delivery babies are buying currency – that is, the effort they exert coming into the world is generally awarded with monetary gifts. Bateman says that rather than encouraging your children to begin saving in piggy banks, go one step further and have them deposit into real bank accounts as soon as they can, or open an account for them as soon as they are born. Continue reading »

How will the Canada Tax Free Savings Account Guard your Retirement Funds?

Registered or unregistered – that seems to be the question as Canadians plan and gear their savings and investment accounts toward retirement. Most experts advise that your investments gain a return in excess of two per cent in order to beat annual inflation. In addition, there are several tax strategies you should keep in mind as you allocate your investment dollars to specific accounts.

The Canadian Tax Free Savings Account (TFSA) allows for tax-free earnings off investments with aggressive return potential, yet only half of Canadians are utilizing this account – why is that? H&R Block suggests there are several myths acting as hurdles on the path to earning tax-free investment income. Continue reading »

As many university students prepare to move back into their residences for the next year of classes, some parents are choosing to purchase a condo for their children to live in during the year instead of paying for rental accommodations.

While the decision can be a good investment, financial advisors told the National Post parents must ask themselves some difficult questions before making such a commitment.

"'What are we going to do with this property if our child doesn't go to school or drops out?' Down the road if the child decides they want to stay in the place, 'What kind of arrangement with the child are we going to have?'" Carol Bezaire, vice president, tax and estate planning at MacKenzie Financial in Toronto, told the paper. Continue reading »

According to a recent report from Rukeyser.com, Canada is still a safe place to invest, despite stocks losing ground and a rising fear regarding its economy.

The report reveals that Canadian stocks have lost a significant amount of ground since they peaked in May. This slippage can be attributed to an increasing amount of skepticism among investors regarding the country's economy, causing many to pullback. Continue reading »