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Monthly Archives: May 2014

Odette Morin

The easy way to live on less so you can live on more.

retirement paycheque

Previous blogs addressed the fact that pension plans are underfunded and our Old Age Security is in jeopardy. Worse still, chances of winning a lottery are 1 in 13.9 million. So much for that back-up plan!

But there’s good news.

Most Canadians already make annual contributions to RRSPs. Plus, we earn a sufficient enough income to make those contributions while still maintaining a good lifestyle.

We’re accustomed to putting away money for food and shelter. So my suggestion is to add a bit more to that routine. It isn’t a dramatic shift. Yet, ultimately, you can end up with an impressive retirement paycheque.

Generally, you need about 70% to 85% of your current income to enjoy a comfortable future (conditional on life expectancy and whether your mortgage and debts are paid off). So, depending how far you are from retirement, saving just 10% – 15% of your income could help you reach your goals in time.

According to Stats Canada, the average Canadian household spends nearly $4,000 on recreation, not to mention about $1,500 on tobacco and alcohol. Let’s be honest, cutting back here and there is very doable.

Besides, imagine all the recreation you can enjoy when you have free time and big, fat retirement paycheque. Come in for a consultation and we’ll help you get there.

See Stats Canada details here

Odette Morin

How are you feeling about your finances?

dreams and hopes
Do you feel in control?
Are you prepared for an emergency?
Will you be able to retire in the lifestyle you want?
Will you be able to send your children to post-secondary education?
Will you be mortgage free by retirement?
Do you have financial peace of mind?
If you answered yes to all the above, BRAVO! If you are not sure where you stand financially, seek our help. We will figure things out for you and put you back in control.

Financial Planning works!!  If you want a sound sleep, get a sound financial plan.  81% of Canadians with a comprehensive financial plan feel on track with their financial affairs, compared to 44% with no plans.

Results are from The Value of Financial Planning, a 3 year study conducted by FPSC and the Financial Planning Foundation to measure the impact of financial planning on Canadians’ emotional and financial well-being.
Terry Broaders

Weekly Update May 27 2014

“The More Laws, The Less Justice” – Marcus Tullius Cicero

 

TSX Higher On The Week

The Toronto stock market was slightly higher Friday at the end of a positive week. The S&P/TSX composite index gained 5.81 points to 14,708. For the week the index is up 1.33%.The Canadian dollar erased early gains to move up 0.17 of a cent to 91.97 cents US while the latest inflation data showed rising price pressures. Statistics Canada reported that the consumer price index for April rose at an annualized rate of 2%, in line with expectations and up from 1.5% the previous month. On a monthly basis, the CPI was up 0.3%, lower than the 0.4% reading that had been forecast.

Positive housing data helped send U.S. indexes higher heading into the Memorial Day long weekend with the Dow Jones industrials ahead 63.19 points to 16,606, the Nasdaq was 31.47 points higher to 4,185 and the S&P 500 index climbed 8.04 points to 1,900; a record high. The annual rate for new home sales in April rose to 433,000, up from a revised 407,000 in March and better than the 429,000 reading that economists expected. But that is still below levels of 446,000 a year ago.

The TSX registered a solid weekly gain in  the wake of quarterly earnings results from Royal Bank and TD Bank that blew past analyst expectations. The rest of the big banks report next week. The earnings helped push the TSX financial sector up 1.33% this week.

 

Deutsche Bank Fed Up With Foul-Mouthed Traders

Foul-mouthed traders are on notice at Deutsche Bank. A leaked video shows Colin Fan, a Canadian senior executive at the London-based bank, warning traders that he’s had enough of their “vulgar” and “indiscreet” language.  Mr. Fan warns in the video that all e-mails and conversations are open to scrutiny when regulators are investigating a case of suspected wrongdoing and said “communications that run even a small risk of being seen as unprofessional” must stop “right now. Some of you are falling way short of our established standards,” Mr. Fan says in the video. “Let’s be clear: Our reputation is everything. Being boastful, indiscreet and vulgar is not okay. It will have serious consequences for your career, and I have lost patience on this issue.”

Mr. Fan, 41, is co-head of Deutsche Bank’s corporate banking and securities operation.  He was born in Canada, and educated at Harvard, where he focused on science and history.

 

BLOG LINKS

The ABCs of Tracking Your Investment Gains & Losses 

2014 Q1 Market Commentary

 

Market Update as of May 23 2014

The TSX closed at 14708, up 193 points or 1.33% over the past week. YTD the TSX is up 7.97%.

The DOW closed at 16606, up 115 points or 0.70% over the past week. YTD the DOW is up 0.17%.

The S&P closed at 1900, up 22 points or 1.17% over the past week. YTD the S&P is up 2.81%.

The Nasdaq closed at 4185, up 94 points or 2.30% over the past week. YTD the Nasdaq is up 0.19%.

Gold closed at 1292, down -1.00 points or -0.08% over the past week. YTD gold is up 7.31%.

Oil closed at 104.38, up 2.33 points or 2.28% over the past week. YTD oil is up 5.85%.

The USD/CAD closed at 1.086377, up 0.0004 points or 0.04% over the past week. YTD the USD/CAD is up 2.18%.

Sources: Bloomberg; Investment Executive; advisor.ca

Terry Broaders

Weekly Update May 20 2014

“We Attract What We Are Prepared To Receive” – Charles F. Glassman

Markets Mixed

The Toronto stock market was lower on a fresh reading on American consumer confidence.  The S&P/TSX composite index dropped 48.58 points to 14,540.31. The Canadian dollar was down 0.02 of a cent at 91.92 cents US.

New York’s U.S. indexes were mainly higher as the Dow Jones industrials rose 8.57 points to 16,455.38.The Nasdaq fell 7.66 points to 4,061.63 while the S&P 500 index added 0.74 of a point to 1,871.59. Markets headed for a negative week after data showed the economic recovery in Europe is slower than thought while retail giant and economic barometer Wal-Mart Stores delivered a disappointing outlook for the second quarter. The University of Michigan’s latest consumer sentiment index also offered a glum reading. The index registered 81.8 for this month, well below the 85 level that was expected and lower than the 84.1 reading in April. Wes Mills, chief investment officer Scotia Private Client Group says “ you add into that it’s been a long great recovery, and so you hit a key level like 1,900 on the S&P, and some asset allocation models kick in and people start buying bonds and selling equities.” Mills thinks this situation portends a market that is likely in for a good deal of sideways action along with a fair bit of volatility as traders look for direction.

 

Canadian Banks Are Safe Havens

New reports suggest the stability of the Canadian banking sector is paying off in a variety of ways for clients, investors, the Canadian economy as a whole. A Bank of Canada report released this week proves what many have known for some time: When it comes to surviving global economic volatility, there is no safer place to be than the Canadian big banks. “After the financial crisis the world realized that not all large financial institutions are created equal. The collapse, or near collapse, of some of the biggest names in finance made investors taker a deeper look at the institution where their wealth was held,” says Adam Doering, vice president, Waterfront Group, CIBC Wood Gundy

The latest Bank of Canada Review contains a report suggesting Canadian dollar-denominated bonds are being bought up by foreign central bank reserves in greater amounts than ever. That is, central banks around the world are recognizing the stability of the Canadian financial system and investing assets in Canadian dollar-denominated assets. According to the Bank of Canada, foreign central banks now hold about US$200 billion worth of Canadian dollar debt; this amount represents 1.8 per cent of official foreign reserves.

 

Market Update as of May 16 2014

The TSX closed at 14515, down -19.060 points or -0.13% over the past week. YTD the TSX is up 6.56%.

The DOW closed at 16491, down -92.34 points or -0.56% over the past week. YTD the DOW is down -0.52%.

The S&P closed at 1878, down -0.48 points or -0.03% over the past week. YTD the S&P is up 1.62%.

The Nasdaq closed at 4091, up 19.13 points or 0.47% over the past week. YTD the Nasdaq is down -2.06%.

Gold closed at 1293, up 3.10 points or 0.24% over the past week. YTD gold is up 7.39%.

Oil closed at 102.05, up 2.02 points or 2.02% over the past week. YTD oil is up 3.49%.

The USD/CAD closed at 1.085927, down -0.0043 points or -0.40% over the past week. YTD the USD/CAD is up 2.14%.

 

Sources: Bloomberg;  advisor.ca; Investment Executive