Every time you buy or sell a stock, you face three costs that increase your portfolio turnover rater
Investors often wonder how often they should sell investments they own and buy new ones. Our answer: as rarely as possible. That’s because a high portfolio turnover rate cuts into your profit.
Every time you buy and sell a stock you face …read more »
With the market rebounding while interest rates remain near historic lows, borrowing money to invest still looks attractive. That’s especially true if you borrow to buy some of the best Canadian dividend stocks, or funds that invest in these stocks.
These include the exchange-traded funds (ETFs) we recommend in Canadian Wealth Advisor. These investments will give you regular dividend income …read more »
Tax-loss selling (or tax-loss harvesting) occurs when you deliberately sell a security at a loss in order to offset capital gains in Canada. You can then use these losses to offset your taxable capital gains.
For example, the 2014 deadline for tax-loss selling on the Toronto Stock Exchange was December 24, 2014. If you sold at a loss on or before …read more »
Investors sometimes ask us whether they should hold certain investments inside or outside an RRSP to get the most tax benefits. And there are certain investments that could ultimately increase your capital gains tax if you hold them in your RRSP.
Holding speculative stocks in your RRSP can increase your capital gains tax
One key rule is that it’s best to hold …read more »
Members of Pat McKeough’s Inner Circle enjoy a double benefit when it comes to taking advantage of our investment research. They get to address investment questions directly to Pat and his research associates about investing in stocks. AND they get to see all other members’ questions, and our answers (of course, we eliminate any personal information). Members usually ask about …read more »
Investors sometimes ask us how to select the best investments for young children. If children are under the age of 18, they cannot yet invest as adults. However, there are a couple of savings and investment options available.
The first option is for you (or the child) to open a bank account in the child’s name. Interest paid on small balances …read more »
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a beginning or experienced investor, these weekly updates are designed to give you specific investment tips and stock market advice. Each Investor Toolkit update gives you a fundamental piece of investment advice, and shows you how you can put it into practice right away.
Investment tip: “Stock …read more »
Canadian index funds are among the better financial innovations to come along in the past few decades. These are specialized mutual funds that aim to equal the performance of a market index, such as the S&P/TSX 60.
Index funds do show better long-run performance than more than half of actively managed mutual funds with long-term track records. That’s partly because index-fund …read more »
Exchange-traded funds (ETFs) may have a place in your portfolio. That’s because, unlike many other financial innovations, they don’t load you up with heavy management fees, or tie you down with high redemption charges if you decide to get out of them. Instead, they give you a low-cost, flexible, convenient alternative to mutual funds.
ETFs trade on stock exchanges, just like …read more »
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a beginning or experienced investor, these weekly updates are designed to give you specific advice for investing in the stock market. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away.
Today’s tip: “Why …read more »