Articles

In the first part of this series, we explored existing research which showed how the equity allocation of the average U.S. investor has historically proven to be the single greatest predictor of future U.S. stock market returns (see the March/April 2024 edition of Canadian MoneySaver). We hypothesized that this metric, when applied to Canada instead of the U.S., also could be highly predictive of future Canadian stock market returns.

The decision to start investing in the stock market can trigger many questions and even feelings of fear for prospective investors with minimal experience. Investing in the stock market is important whether it is in the context of saving for a large purchase or general retirement planning and time is one of the biggest factors impacting returns.

The National Institute on Ageing (NIA) released a 2023 report entitled “Where There’s a Will, There’s a Way: Exploring Canadian Perspectives on Estate Planning”. The findings were clear that most Canadians have ignored their estate planning.

Over the past few years, there have been challenging macro issues on many different fronts, from the black swan events of the pandemic to high inflation and large financial market drawdowns that result from rapidly rising interest rates. Canada’s Consumer Price Index (CPI), the key indicator of inflation, showed a meaningful slowdown in recent months in the wake of inflationary pressure. To prevent the risk of over-correcting the economy to moderate inflation, the Bank of Canada has recently begun cutting its key policy rate, and this move will potentially have a positive impact on risky assets.

Recent wildfires in Jasper, Alberta and a new movie, Twisters, about chasing tornadoes both inspired questions from young inquisitors: How much do forest firefighters make, and can you be a professional storm chaser? The queries recalled a column on unusual occupations I wrote about two years ago, which deserves a revisit.

As you prepare for back-to-school season, you’ll likely notice the costs associated with returning to the classroom this year have increased. Until recently, inflation was at a forty-year high in Canada, impacting the costs of consumables like rent, food and books, as well as big-ticket items like tuition. And while the rate at which prices are rising has stabilized, the already-inflated costs are here to stay.

Along with 8.5 million other Windows PC users, I got hit with the Blue Screen of Death after the botched CrowdStrike update on 19 July 2024. I read that the damage from the various outages is measured in the billions of dollars, and I see that CrowdStrike (CRWD) is trading at about US$264 these days, down about 33% from the start of July. It feels like there must be an easy investing angle— any ideas?

If hearing the names Frosted Flakes, PEP, and Almond Joy elicits a glow of nostalgia, congratulations, you’re a Boomer! As the Boomers and Gen Xers shuffle into retirement, they’re not just getting misty-eyed over sugary breakfast cereals, they’re also feeling nostalgia for a bi-weekly paycheque. That’s been replaced by a lump of savings to be chipped away and that’s a whole different ball game.

The Registered Education Savings Plan (RESP) is a long-term savings vehicle offered to Canadians as a way to help save for a child’s continued education after high school. It is a tax shelter for investments for a beneficiary’s post-secondary education costs, and an RESP can be set up by any adult for a child, grandchild, nieces, nephews, themselves, or even family friends. In the following section we will highlight some of the basic rules around an RESP...