Tax-Efficient Investing Strategies – Canada

Tax-Efficient Investing Strategies – Canada

You can increase your savings through tax-efficient investing. Tax-efficient investing is the process of maximizing your after-tax investment returns by buying your invested assets in the “best” account from a tax perspective. You may have savings in a taxable account and/or in one or more 

Tax-Efficient Investing Strategies – USA

Tax-Efficient Investing Strategies – USA

You can increase your savings through tax-efficient investing.  Tax-efficient investing is the process of maximizing your after-tax investment returns by buying your invested assets in the “best” account from a tax perspective.  You may have savings in a taxable account and/or in one or more 

Should Chris Pay off his Mortgage?

Should Chris Pay off his Mortgage?

Chris @Money$tir asked other financial literacy and financial independence (FI) bloggers, in a post on March 9, 2019, whether he should pre-pay his mortgage or invest the money. He provided his thought process and calculations. In this post, I will review his calculations and then 

Investing in Bonds

Investing in Bonds

Bonds are a common investment for people targeting a low-risk investment portfolio. One of the pieces of advice I gave my kids (see others in this post) is to never buy anything you don’t understand. In this post, I’ll tell you what you need to know 

Investment Diversification Reduces Risk

Investment Diversification Reduces Risk

Investment diversification is an important tool that many investors used to reduce risk. Last week, I explained diversification and how it is related to correlation.   In this post, I’ll illustrate different ways you can use investment diversification and provide illustrations of its benefits. Investment Diversification: 

What is Diversification and How Does it Work?

What is Diversification and How Does it Work?

One of the key concepts used by many successful investors is diversification.  In this post, I’ll define diversification and explain how it works conceptually.  I explain different ways you can diversify your investments and provide illustrations of its benefits in this post. What is Diversification? 

Financial Decisions – Risk and Reward

Financial Decisions – Risk and Reward

Almost every financial decision is a trade-off between reward and risk.  In this post, I’ll use three examples to illustrate how financial decisions can be made in a risk-reward framework.  The examples are: Deciding what to buy with some extra money. Selecting a deductible for 

Financial Risk: An Introduction

Financial Risk: An Introduction

Understanding financial risk is key to making sound decisions.  Many people don’t have a good grasp on what risk means, particularly in a financial context, so I will focus this post on financial risk.  While I don’t provide any specific practical suggestions in this post, 

5 Steps to Begin Your Investing Journey

5 Steps to Begin Your Investing Journey

The oldest rule in investing is also the simplest: “Buy low, sell high.”  While it seems blindingly obvious and begs the question of why anyone would want to do anything else when investing, you might be surprised how hard it is to put into practice.  

Retirement Savings/Saving for Large Purchases

Retirement Savings/Saving for Large Purchases

Case Study To help set the stage, I created a fictitious person, Mary, whose finances I use for illustration. Mary is single with no dependents. She lives alone in an apartment she rents. She makes $62,000 per year. Mary has $25,000 in a savings account