New Webinar: Demystifying RRSP's and TFSA's
Last year I made my foray into delivering webinars. My first was a primer on RRSP and TFSA's and it turned out pretty good, so much so that I've decided to deliver it again. So if you're not doing anything on the evening of February 8th, drop in for an hour and get in the loop!
YOU DID IT!
After much prodding by your family, friends and colleagues, you finally made a decision to start building your financial nest egg. You went to the bank, investment broker or financial advisor and setup your RRSP account. You put some money into your accounts. You feel you are on the road to financial independence.
Then you stop and ask yourself….now what?
I setup this RRSP. What is it really? What do I do with this? How do I make my money grow with an RRSP?
I setup this TFSA account. What can I invest in? How do I go about investing my savings using a TFSA?
What are the mechanics and limitations of investing using an RRSP and TFSA?
Soon that money will sit there dormant and eroding in value because your money is not growing enough to keep up with rising costs of groceries, rent, and tuition. Your financial freedom looks a little out of reach if you don’t take some action.
I can help you figure this out.
Join me on February 8th for a free webinar where I take some of the mystery out of TFSA’s and RRSP’s
In this free one-hour webinar, you will learn:
- What is an RRSP and a TFSA.
- What’s so great about RRSP’s and TFSA’s.
- What’s not so great about them.
- The mechanics (contribution limits, types of accounts, pitfalls, what types of investments can I hold).
- Which is better…for me?
WHO IS THIS WEBINAR FOR?
- New investors trying to figure out where and how to start investing.
- Existing investors who have RRSP’s and TFSA accounts but they have been gathering dust and are looking to better understand and become more engaged in managing their investments.
“Space” for the webinar is limited to 50 participants. To register, please fill out the online form. I will contact you via email to confirm your registration and send you the login coordinates and instructions for connecting to the webinar.
I hope you can join me.
New Podcast: Stock Talk - Ep 108 - Wake up investors! A call to action
At first I thought this podcast was going to go into a full rant on the investment industry but the more I thought about it, the more my frustration is not with the industry but with individual investors. Some recent surveys about investors engagement have revealed some worrisome trends especially in terms of reading their investment statements. This despite recent changes that have mandated investment firms to be more transparent in how they present financial results to their clients. In this episode (iTunes), I throw down some takes and issue a call to action for investors to get more engaged in their investments.
What I'm Reading
You know your in a bull market when...
Bank of America Merrill Lynch put out a research note that is pretty much pounding the table that the market is completely overbought. It plows a whole bunch of technical indicators which include:
And yet despite this...markets surge higher.
- Record inflow ($33.2 billion into US equity funds
- 98% of global equity markets trading above 50 & 200 day moving averages
- Rotation out of high-yield bonds into equities
- Record inflows into Emerging Market funds
- B of A Bull and Bear indicator flashing 7.9 (Sell) which is highest its been since 2013.
- Their clients are putting more money into equities at the fastest rate in 10 years. Their cash allocation is at 10 percent which is an all-time low.
Libor: Where have you been?
One of the canaries in the coal mine that was flashing trouble in 2007-08 was the London Interbank Offering Rate or LIBOR. LIBOR was negotiated overnight lending rate that was determined by a group of banks and was considered the default lending rate banks charged for parking other banks excess reserves overnight and served as a base line for setting other longer duration lending rates. It was a stodgy benchmark but it also served as an indicator in volatile markets. LIBOR rarely moved significantly except in exceptional circumstances, one of which was 2007-08. Shortly after the Financial Crisis, it came out that their was a fair bit of collusion being done by some of the participants in the process. LIBOR quickly went of favour and has been living in exile ever since. It's not held in the same famous as it used to be, however it's still out there and if you were to punch up a LIBOR chart it would look like below. It's currently at the highest level since December 2008 when all the garbage was playing out.
180 years of stock market losses
Ben Carlson of the Wealth of Common Sense blog recently did a deep dive into some stock market data going back to late 1800's to see if stock market returns were really all they were cracked up to be. The motivation was a piece by quant analyst, Robert Frey who penned a piece, 180 years of stock market losses. There has been some theories that returns in those times were not really as high as presented because costs were much higher.
When you look at chart of stock market returns with a log scale, it turns out the stock prices are much more commonly in a loss position.
"...Stocks don’t make new highs every single day, so most of the time you’re going to be underwater from your portfolio’s high water mark. This means there are plenty of chances to be in a state of regret when investing in stocks.
This makes sense when you consider that stocks are positive just a little over half the time when looking at returns on a daily basis, but it can be difficult to wrap your head around this fact..."
Carlson shows this chart
Source: Ben Carlson-A Wealth of Common Sense Blog
It shows that stock prices are always in contact with losses, even throughout periods where markets were on bull runs.
"...Over the last 90 years or so the market have been in a bear market almost one-quarter of the time. Half the time you’re down 5% or worse. It’s difficult to appreciate this fact when looking at a long-term log scale stock chart that seems to only go up and to the right.
This is why stocks are constantly playing mind games with us. They generally go up but not every day, week, month or year..."
It's interesting as right now the "It" investing strategy is investing in broad market, low cost index funds and it is a successful strategy if you are willing to stomach the incredible up's and downs the market is doing on a day-to-day basis because as Mr. Carlson's and Mr. Frey's analysis shows, stocks are anything but stable, even in today's low volatility world that is ignoring risk completely. Stocks are ALWAYS risky and you have to respect that or it will eat you up. You may not believe right now, but stock prices are always ripe to pull back.