We all wish the stock market would move only one way….up. Unfortunately, history has shown us that every bull market is followed by an equally aggressive bear market. Sometimes the market falls hard and fast, but that doesn’t have to mean catastrophe. Being smart when times are tough can be just as lucrative as being smart when the going is good. After all, the smartest investors don’t fear a downturn, they take advantage of it by making sure they are in a good place when it corrects itself.
Investments can represent a major source of income for some individuals and with that income comes a wide variety of tax implications. The good news is that some types of investment incomes are subject to special tax treatment. Understanding how your investments are taxed is an important part of your financial plan. The most common types of investment income most investors will have to deal with are interest, dividends, and capital gains.
The question of reducing debt or contributing to savings will continue to be debated for as long as people plan to retire in Canada.
Of course opting for both: reducing debt and increasing savings is the ideal. As for which is better, however, really depends on the individuals involved, their goals and feelings and their unique financial situations.
t’s a question we hear often – can I guarantee my investment? Well, in a sense, yes – the product you’re talking about is called a Segregated Fund.
Segregated funds, usually referred to as “Seg Funds”, are individual insurance contracts that invest in one or more asset, much like a mutual fund. Unlike mutual funds, Seg Funds provide a death and/or maturity guarantee that protects a portion of invested capital (usually between 75% to 100%).