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 assetsThe value of things the company owns and amounts it is owed More in the “best” account from a tax perspective. You 

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 assetsThe value of things the company owns and amounts it is owed More in the “best” account from a tax perspective.  You 

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 portfolioA group of financial instruments. More. 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 

Investment Diversification Reduces Risk

Investment Diversification Reduces Risk

Investment diversificationThe reduction in volatility created by combining two or more processes (such as the prices of financial instruments) that do not have 100% correlation. More is an important tool that many investors used to reduce riskThe possibility that something bad will happen. More. Last 

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 diversificationThe reduction in volatility created by combining two or more processes (such as the prices of financial instruments) that do not have 100% correlation. More.  In this post, I’ll define diversificationThe reduction in volatility 

Financial Decisions – Risk and Reward

Financial Decisions – Risk and Reward

Almost every financial decision is a trade-off between reward and riskThe possibility that something bad will happen. More.  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 

Financial Risk: An Introduction

Financial Risk: An Introduction

Understanding financial riskThe possibility that something bad will happen. More is key to making sound decisions.  Many people don’t have a good grasp on what riskThe possibility that something bad will happen. More means, particularly in a financial context, so I will focus 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