Archive for April 2020
The Pitfalls Of Commission-Free Trading
The evolution of self-directed investing through discount brokerage platforms has driven the cost per trade down from $29 a decade ago to $9.99 at big bank brokerages today. Some discount brokers (like Questrade) offer free ETF purchases, and one platform – Wealthsimple Trade – even offers commission-free trading of stocks and ETFs with no account…
Read MoreMonday Reading: Lump Sum Payment Edition
Last month I wrestled with my pension decision and opted to take the lump sum (commuted value) rather than a deferred pension at age 65. That decision meant forgoing a ~$15,000 per year pension in retirement. Instead, I would receive a $290,000 lump sum – $134,000 in a locked-in retirement account and the remaining $156,000…
Read MoreChanging Investment Strategies After A Market Crash
Investors should take great care to choose an investment strategy they can stick with for the long term – in both good times and bad. The problem is we make our decisions about risk tolerance and asset allocation in a vacuum. Our retirement portfolio isn’t at stake when we fill out a questionnaire. Then markets…
Read MoreWeekend Reading: Chasing Yield Edition
The recent stock market crash and plunging interest rates may have some investors scrambling for safe havens. Stocks fell by as much as 35 percent (before recovering about half of those losses), while the interest rate on GICs and savings accounts in particular have dropped in lock-step with the Bank of Canada’s emergency rate cuts.…
Read MoreMoney Bag: Moving to Questrade, Investing in Energy Stocks, and More
Welcome to the Money Bag, where I answer questions and address comments from readers on a wide range of money topics, myths, and perceptions about money. No question is off limits, so hit me up in the comments section or send me an email about any money topic that’s on your mind. This edition of the…
Read MoreWeekend Reading: Investing In A Market Crash Edition
One knock against passive investing is that while it’s great to match the market’s performance in good times, it’s not as fun to watch your portfolio drop when the outlook turns bearish. Indeed, index investors like me have seen their portfolios take a 20-25 percent hit in a relatively short period during the COVID-19 crisis.…
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