Personal Finance Quotes

Americans should have a nice chunk of money in a US index; Canadians should have a good-sized chunk in a Canadian index. After all, it makes sense to keep much of your money in the currency with which you pay your bills. Investors can increase their diversification by building a portfolio with global exposure. A total international stock market index would fit the bill. To keep it simple, you could split your stock market money between your home country index and an international index. [2017] - Andrew Hallam

If you're making monthly investment purchases, you need to look at your home country stock index and your international stock index and determine which one has done better over the previous month. You need to add newly invested money to the index that hasn't done as well. That should keep our account close to your desired allocation. [2017] - Andrew Hallam

You take a large risk buying an index focusing on a single foreign country. It's better to diversify and go with the total international stock market index. Within it, you'll have exposure to older world economies such as England, France, and Germany, as well as the younger, fast-growing economies of China, India, Brazil, and Thailand. Just remember to rebalance. If the international stock market goes on a tear, don't chase it with fresh money. If your domestic stock index and the international stock index both shoot skyward, add fresh money to your bond index. [2017] - Andrew Hallam

MoneySense magazine's founding editor, Ian MaGugan, won a Canadian National Magazine Award for an article adapting the couch potato strategy for Canadians. His method was simple. An investor splits money evenly between a US stock market index, a Canadian stock market index, and a bond market index. At the end of the calendar year, the investor simply rebalance the portfolio back to the original allocation. If the US stock market index did better than the Canadian index, then the investor would sell some of the US index to even things out with the Canadian index. If the bond index beat both stock indexes, then some of the bond index would be sold to buy some of the Canadian and US stock market indexes. Of course, if you're making monthly contributions to the account, you could rebalance monthly by simply buying the laggard--to keep your allocation evenly split three ways. [2017] - Andrew Hallam

Smart investors add money to their investments every month. They rebalance once a year. [2017] - Andrew Hallam

Pension fund managers are more likely to know oodles more about making money in the markets than financial advisers or brokers. Most pension funds have their money in a 60/40 split: 60 percent stocks and 40 percent bonds. [2017] - Andrew Hallam

When selecting a financial planner, you want someone with at least seven years of experience. If they've been in the business for at least seven years, it means they've likely seen at least one full market cycle. [2017] - Calum Ross

Never select a financial planner who is paid by commission for anything to do with stocks, bonds, or mutual funds. Great financial planners only charge their clients a fee for money management. If their clients earn a strong return after paying their fees and they keep coming back, it means they're happy. In today's age, there is nothing in the client's best interest that comes out of commissions. Every stock, bond, or mutual fund product available only by commission has an alternative that a fee-based financial planner would have access to. It's only difficult to avoid commission-based sales on insurance and private real estate purchases. [2017] - Calum Ross

It doesn't make sense to go to one person for tax preparation, another for investment management, and another for estate planning. It should all be handled in-house. [2017] - Calum Ross

If your interest rate is... (1) Less than 3%, pay if off slowly and route the money to your investments instead. (2) Between 3-5%, do whatever feels most comfortable: Either put the money to debt payment or investments. (3) More than 5%, pay it off ASAP. [2016] - J L Collins

Even slightly beating the index year after year is incredibly difficult. Only a handful of investors have been able to modestly beat it over time. Doing so makes them superstars. That's why Warren Buffett, Michael Price and Peter Lynch are household names. [2016] - J L Collins

When you buy stock you are buying a part ownership in a company. When you buy bonds you are loaning money to a company or government agency. If you are going to hold bonds, holding them in an index fund is the way to go. Very few individual investors opt to buy individual bonds, with U.S. treasuries being the main exception, along with bank CDs witch act like bonds. [2016] - J L Collins

There are studies that indicate holding a 10-25% position in bonds with 75-90% stocks will actually very slightly outperform a position holding 100% stocks. Adding much beyond 25% bonds begins to hurt results. A portfolio comprised of 100% stocks--even in the broadly diversified VTSAX--is considered very aggressive. High short-term risk rewarded with top long-term results. Perfect for those who can handle the ride, are adding new money to their investments and who take the long view. [2016] - J L Collins

I recommend two specific mutual funds: (1) VTSAX (Vanguard Total Stock Market Index Fund). (2) VBTLX (Vanguard Total Bond Market Index Fund). They have rock bottom expense ratios, but also require a minimum investment of $10,000. Vanguard is growing rapidly and is now available in many countries outside the U.S. You can check out the list at www.global.vanguard.com. I tend to avoid ETFs (exchange traded funds) because of the possibility of sales commissions and/or spreads. [2016] - J L Collins

The advisor is paid each time you buy or sell an investment. These commissions in the investment world are called "loads". There is no "load" charged to buy a Vanguard Fund. But American Funds, among others, charge a princely load. Typically it is around 5.75% and it goes directly into the pocket of the advisor. Some funds offer a 1% recurring management fee to the advisors who sell them. that means you get to pay a commission not only once, but every year for as long as you hold the fund. Insurance investments are some of the highest commission payers. Annuities and whole/universal life insurance carry commissions as high as 10%. [2016] - J L Collins

If the math doesn't' seem to work on a certain type of investment in your area, perhaps it's time to consider what is working. Would wholesaling commercial properties be a better use of your time? What about multifamily properties? How about condo conversions? What about fast food triple-net leases? Have you considered subsidized low-income housing? To find what is working in your town, simply connect with investors who are actively engaged in your market. What are they investing in? How are they making a profit? Discover the secret to their success, and you'll find the path to yours. [2015] - Brandon Turner

Ways to Generate Passive Income: Vending businesses, Online marketing, Rental property, Stock dividends, Mutual funds, Royalties from mineral rights, Royalties from copyrights, Laundry mats, Car washes, Private investing (angel investors) [2014] - Michael Munsey

Condo rules tend to be severely restrictive in comparison with living in a traditional home. For example: 1) No pets and even no children. 2) The number of occupants residing in an individual unit may be capped. 3) Operating a home business may be forbidden. 4) Playing loud music or otherwise making loud noises is likely to be prohibited. Other restrictions may forbid walking in heavy shoes on bare parquet or uncarpeted flooring, storing bicycles on balconies, barbecuing on balconies, decorating or changing the exterior of a unit to the extent that it may not conform to the overall architectural design of the complex, and making interior structural changes. In many cases, renting the unit to others may also be subject to restrictions.  [2013] - Dan S. Barnabic

If you have hit your 50s, you should have a net worth about eight times your salary accumulated. If you don't, you'll have to up your savings rate to as much as 25% or 30%, delay your retirement, or reconcile yourself to a much simpler lifestyle when you do retire. You should aim to have 11 times your salary socked away by the time you hit age 60. [2013] - Gail Vaz-Oxlade

If you're earning income that has you paying tax at 35% or less, maximize your TFSA first and then put any additional savings in your RRSP. If you're over 50 and have never used an RRSP, you won't have as much time to put the tax deferred compounding of RRSP on your side. Unless you're in the very top two tax brackets and will get a whack of cash back from the Tax Man now, stick with a TFSA. [2013] - Gail Vaz-Oxlade