Personal Finance Quotes

Choosing cryptos that are listed on many different exchanges is also a good idea. Exchanges choose the cryptocurrencies they carry carefully. Finding your finalists on many different exchanges may be a sign that many exchanges have found that crypto to be valuable enough to carry. Therefore, the demand for it may be higher, and you may be able to do more with your investment. You can discover which exchanges carry your crypto of choice on websites such as coinmarketcap.com (e.g. say you want to know which exchanges carry Ripple’s XRP. After selecting Ripple’s XRP on coinmarketcap.com, go to the tab labeled “Markets”). [2019] - Kiana Danial

You can check and compare cryptocurrency volume on websites such as www.cryptocompare.com and coinmarketcap.com, where they show the number of coins that have been traded in the last 24 hours. You can also examine which exchanges had what volume. Generally, the biggest and most popular coins are traded the most. But if you’re trying to choose a cryptocurrency within a specific category (and not simply going for the celebrity cryptos), trading volume can be a very important indicator in making your decision. [2019] - Kiana Danial

During crypto hype, mining equipment such as ASICs becomes incredibly expensive. At the beginning of 2018, for example, they were priced at over $9,000 due to high demand. That’s why you must consider your return on investment before getting yourself involved in mining; sometimes simply buying cryptocurrencies makes more sense than mining them does. The cost of the electricity used by mining computers far exceeds the cost of heating or cooling the house. [2019] - Kiana Danial

The first blockchain ETFs to hit the markets were BLOK and BLCN, both of which launched on January 17, 2018 (right at the time when Bitcoin was taking a hit). On January 29, 2018, another blockchain ETF, KOIN, showed its face in the competition. [2019] - Kiana Danial

The general path to FIRE is to save 50 to 70 percent of your income, invest those savings in low-fee stock index funds, and retire in roughly ten years. Common FIRE practices include living with roommates or moving to a cheaper area, cooking all meals at home, buying used cars with cash, going to a one- or zero-car household, buying groceries in bulk, embracing budget or "hacked" travel, and giving up luxury purchases. More extreme FIRE practitioners might live out of an RV or trailer home, grow their own food, bike to work in subzero temperatures, or even leave the country in search of a lower-cost lifestyle. [2019] - Scott Rieckens

According to the FIRE formula, once you have saved twenty-five times your annual expenses, you are ready to retire. Let's say you spend $50,000 a year. That means you need to save and invest $1.25 million to retire. You can safely expect a 5 percent return on your investments, which for $1.25 million would be $62,500 a year. However, each year, if you only withdraw 4 percent of the income your investments earn (or $50,000), this means you always have a buffer to make up for inflation and dips in the market. [2019] - Scott Rieckens

Many sales representatives flog offshore pensions from companies like Zurich International, RL 360, Friends Provident, Generali, Aviva, and Royal Skandia (Old Mutual) without realizing their clients are usually charged on three levels: annual management costs, establishment costs, and hidden mutual fund management fees. Sometimes, there are also “mirror fund” charges. Some of the more common brokerages selling offshore pensions include the deVere Group, Montpelier Financial Consultants, Austen Morris Associates, Globaleye Financial Planning, the Henley Group, Gilt Edge International, Warrick Mann International, the Alexander Beard Group, SCI Group Ltd., W1 Investment Group, Holborn Assets, and the Sovereign Group. [2018] - Andrew Hallam

Some people believe if they buy large, established companies they could beat a simple index. Unfortunately, it's easier said than done. The 10 biggest stocks in the United States always looks like a hurricane‐proof list. But the 10 biggest stocks change all the time. And those betting on the biggest firms as a group have always reaped weak returns. [2018] - Andrew Hallam

I follow a simple Couch Potato strategy: maintaining 40 percent bonds and 60 percent stocks. [2018] - Andrew Hallam

Here are four discount brokerages for non‐American expatriates: DBS Vickers Securities, based in Singapore; TD Direct Investing International (now Internaxx), based in Luxembourg; Swissquote, based in Switzerland; and Saxo Capital Markets, located in more than 20 worldwide locations, including Hong Kong, Singapore, Uruguay, and the United Arab Emirates. Interactive Brokers, an American firm, allows Americans and non‐Americans to open accounts from almost every country in the world. If you're a non‐American expat, avoid TD Ameritrade Singapore. Investors pay 30 percent dividend withholding taxes because the brokerage trades solely on the US market. [2018] - Andrew Hallam

Many expatriates (with Americans being an exception) can avoid paying capital gains taxes on investment profits if they invest with firms situated where they won't be charged capital gains taxes and if their resident country won't tax them on foreign earned investment gains. Legal tax havens for investments include locations such as Luxembourg, Singapore, Hong Kong, some of the British Isles, and the Cayman Islands. [2018] - Andrew Hallam

Ongoing fund costs and annual account fees are far more detrimental than commissions and exchange rate fees. [2018] - Andrew Hallam

Global Nomad portfolios (single, globally diversified portfolios that have no home‐country bias) would work well for couples that don't know where they want to retire. They would also suit couples retiring in an emerging‐market country. Emerging‐market countries have small, volatile markets. Retirees who choose to invest with a “home‐country” emerging‐market bias would be taking unnecessary risk. Instead, they could spread their risk across a multitude of global economic regions. [2018] - Andrew Hallam

Some Canadians have opened nonresident accounts with Toronto‐based TD Waterhouse. Investors can open such accounts only in person, and they must provide proof they reside overseas. Many Canadian accountants suggest doing so won't jeopardize nonresidency status. [2018] - Andrew Hallam

Some expatriates fear Canada may change its tax laws, either closing or taxing nonresident investment accounts based in Canada. Such investors prefer keeping their assets offshore. Luxembourg, Singapore, and Hong Kong attract plenty of expatriate clients, based on their low‐cost tax structure. Foreign‐based brokerages tend to cost more than they do in Canada. But for some, it's a small price to pay for a sound night's sleep. Keep in mind, however, that Canadians residing in Europe won't be able to buy Canadian domiciled ETFs from a European-based brokerage. EU regulations, as of 2018, are blocking such purchases. That's why Canadians residing in Europe might consider using the firm, Interactive Brokers. [2018] - Andrew Hallam

The Wealth Formula: Your Future Wealth = (Amount + Time + Rate) - (Fees + Tax + Inflation) [2018] - Larry Bates

TFSAs will generally produce a better ultimate result versus an RRSP if your marginal tax rate at withdrawal is higher than your marginal tax rate when you contribute. TFSAs are almost always a better choice for lower-income investors (below $40,000 in annual income). RRSPs can produce better results for higher-income earners who expect their marginal tax rate at the time of withdrawal to be lower than at the time of contribution. Remember, a dollar in your RRSP is worth less than a dollar in your TFSA. To help 'equalize' the real after-tax value of an RRSP contribution with the value of a TFSA contribution, contribute your tax refund to your RRSP as well. Alternatively, put your tax refund toward your TFSA. [2018] - Larry Bates

Interest earned on bank deposits, GICs, bonds, and other 'fixed income' investments is taxable when earned, at your full marginal tax rate. The same goes for dividends received from non-Canadian stocks. Generally speaking, Canadian stock dividends are taxed less severely than interest income. Dividends are taxed when earned, even if you reinvest those dividends. Capital gains are generally taxable at just half your normal rate. Any capital gains tax is payable only when the investment is actually sold. An investment can increase in market value at a compound rate over time, increasing your wealth along the way, but you trigger no tax until you actually sell. [2018] - Larry Bates

Most online discount brokers don't charge ongoing fees for investment accounts with balances above a given level-usually somewhere between $10,000 and $25,000. Accounts below this level may be hit with an 'administration' fee of $100 annually. Fortunately, there are a number of significant exceptions to this general rule that can allow small investors to avoid these fees. Some major online discount brokers don't charge ongoing administration fees for TFSA accounts of any size, while others will waive fees if you make monthly or quarterly deposits. [2018] - Larry Bates

The 'Rule of 20' (developed by the Canadian office of Russell Investments) is a simplified method that gives you a very rough and rather conservative estimate of the size of nest egg you might require. First, estimate the amount by which your annual retirement costs will exceed your assured source of income like CPP, OAS, employer pensions, annuities, any significant sources of cash such as an inheritance or home downsizing, etc. (your 'Retirement Gap'). Multiplying your Retirement Gap by 20 gives you rough approximation of your required nest egg. [2018] - Larry Bates