Investment Strategy

Adopting an appropriate investment strategy requires an investor to build a systematic plan of action to achieve his or her long term goals. The plan will determine the allocation of investable assets among stocks, bonds, cash and cash equivalents and alternative investments. The plan will consider such macro factors as economic trends, inflation and interest rates. Other factors are more personal–such as the investor’s age and risk tolerance as well as future needs for income and capital expenses. Tactics to achieve these individual strategic investment goals will inevitably involve a trade-off between risk and reward parameters. The expectation of higher returns will almost certainly involve the acceptance of some risk. Investors determined to follow their plan will commit it to writing. Then, when the going gets tough in stressful financial markets, the comfort of re-reading your strategic plan will remind you that you’re on the right path.

Saving for retirement in Canada

RRSPs, RRIFs, TFSAs, PPPs, critical illness insurance, long-term care insurance, high-limit disability insurance, life insurance, joint-and-last-to-die insurance, charitable donations at death—no wonder we get so tired as we get older!   Read More

Emotional vs strategic investing

‘Buy high, sell low, repeat until broke’ is an emotional investment strategy best left to lemmings. The MoneyLetter’s behavioural finance columnist Ken Norquay says feeling emotions is okay: reacting to   Read More

Common investment mistakes

Accountant Mark Goodfield (aka The Blunt Bean Counter) recently warned subscribers to The TaxLetter of some costly common investment mistakes and how to avoid them.
The duplication of investments is one   Read More

Top 10 estate planning tips

The TaxLetter contributing editor Mark Halpern recalls Martin Luther King’s sagacious advice: “If we are to go forward, we must go back.” When it comes to planning your financial future,   Read More

Market outlook: a cautionary tale

The Dow Jones Industrial Index has gone parabolic. (Prices are increasing and the rate of increase is increasing.) This pattern usually occurs in commodities or speculative individual stocks, rarely in   Read More

Best mutual funds to buy now

Recent weakness in the Canadian market leads us to recommend Canadian equity funds for new purchases right now. Higher stock valuations in the US have made international equity funds the   Read More