Several factors suggest that housing demand will weaken noticeably according to this research.
Monthly Archives: April 2010
Several factors indicate that the demand for housing will weaken noticeably. Read the report here.
Early last week, investors had several reasons to celebrate as the S&P 500 crossed the 1200 point mark (up almost 50% from this time last year), the Canadian dollar reached parity with the American dollar, and the start of the first quarter reporting season had several companies reporting better-than-expected earnings.
However on Friday, American markets experienced their biggest drops in two months, when the Securities Exchange Commission (SEC) announced civil fraud charges against Goldman Sachs Group Inc. The SEC alleges that a hedge fund manager associated with the financial firm helped created a mortgaged-backed investment for clients, and then bet against the investment.
Markets opened lower Monday on morning as investors are concerned about potential long-term ramifications of this story, and whether the SEC might investigate other banks that traded similar securities. However by Monday’s close, markets had recovered the early morning losses and finished moderately higher.
For all the young readers out there, I spotted an article titled “The Case for Investing in your 20’s”, in the “Wealthy Boomer” blog of the Financial Post. Being in this age bracket myself, it’s good to be reminded of the advantages of investing at a young age.
For the average person in their 20’s, putting away money for retirement is not high on their priority list. Only 29% of people between18-34 put money towards their RRSP, compared to the national average of 36%. Although it’s understandable for someone who’s 30-40 years away from retirement to value a car purchase or that next trip to Europe over their savings plan, he/she should consider the following scenario:
Between the ages of 21-29, if you invest $2,000 a year (for a total of $18,000), assuming a pre-tax return of 8%, you would have $430,711 in savings by age 65. If you were to start putting away $2,000 a year at age 30, you would need to invest nearly four times as much ($70,000) to reach the same figure by 65.
It’s a simple time value of money calculation, but it highlights how much easier it is to start investing for retirement at an early age.
- RRSP receipts for 1st 60 days 2010 MUST be entered on 2009 tax return. Don’t keep receipts for next spring but they may be deducted in future years.
- If you owe money to Canada Revenue don’t ignore the notices. Send them something. Contact them to work out an arrangement if you can’t pay the full amount now.
- Don’t forget to include the portion of last year tax preparation fee for the reporting of gains & losses in carrying charges of your 2009 return.
1/5 of Canadians struggle to afford their homes. I see this too often in my practice. Why do that to yourself? read article here
Inflation is hard to gauge, but here’s an argument for why it will come read article here
Mortgage rates on the rise. Locking in may or may not be best for you. Read article here
Save money with these tax tips: read article here
Save money on travel read article here
Save money in retirement read article here
Investors worry after accused swindler kills himself. When it sounds too good to be true, it usually is. read article here