Personal Finance Quotes

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

The answer to the question of whether to contribute to our RRSP or pay down a mortgage does not have to be either/or. While the math shows a considerable interest savings by applying money to your mortgage principal, the growth of an RRSP contribution is also impressive. So here's a sensible compromise. Make the maximum RRSP contribution you can afford from your cash flow and then use the proceeds from your tax refund or the savings in taxes you achieved by filling a Form T1213 to pay down your mortgage. [2013] - Gail Vaz-Oxlade

According to the 4% Rule, if you have a $200,000 portfolio and were retiring today, you could safely withdraw (200,000 x 4% = ) $8,000 in year one. You could then increase that amount every year with inflation and there's a 90% probability that you won't outlive your money over a 25-year retirement. [2013] - Gail Vaz-Oxlade

The only savings vehicle that has absolutely no tax liability is a TFSA. Your government pension--OAS or CPP--will be taxed. So, too, will your company pension plan. When you take money out of your RRSP or your RRIF, you will have to pay tax on that money. And even your unregistered assets will incur a tax liability on the return they earn or on their sale if you make a profit. [2013] - Gail Vaz-Oxlade

In Canada, the first $2,000 of eligible pension income comes into your hands tax-free, which can save you anywhere from about $400 to about $700 depending on where you live. Qualifying pension income does NOT include CPP, OAS, or GIS payments. Make sure you take advantage of the pension income tax credit to get that $2,000 in tax-free income once you're 65 by creating pension income. Buy an annuity that gives you $2,000 of interest income annually or use funds in your RRSP to buy an RRIF and make sure you pull at least $2,000 of annual pension income. When you buy a GIC (technically a GIO) through a life insurance company, the interest earned is considered eligible pension income. [2013] - Gail Vaz-Oxlade

If you convert to a RRIF, you have to manage your own portfolio of investments. If you're sick and tired of thinking about money and all you want is a regular stream of income you don't have to worry about, then you may want to buy an annuity. The really big thing to know about an annuity is that the payout is based on where interest rates are where you purchase the annuity. During periods of high interest rates an annuity can really make your hard-earned money sing since you're locking in that high rate for the life of the plan. When rates are low, not so much. [2013] - Gail Vaz-Oxlade