Quotes of the Day

The value of a bond generally moves in the opposite direction of the change in interest rates. For example, if you're holding a bond issued at 5 percent and rates on similar bonds increase to 7 percent, your 5 percent bond will decrease in value. (Why would anyone want to buy your bond at the price you paid if it yields just 5 percent and 7 percent can be obtained elsewhere?) [2019] - Eric Tyson

Up to 90% of our behavior is habitual. If you repeat a behavior for 13 weeks, it will be yours for life. [2005] - Jack Canfield

The advantage of a living trust is that upon your death, assets can pass directly to your beneficiaries without going through probate. Living trusts are likely to be of greatest value to people who meet one or more of the following criteria (the more that apply, the more value trusts have): 1) Age 60 or older; 2) Single; 3) Assets worth more than $1 million that must pass through probate (including real estate, nonregistered retirement plans and accounts, and small businesses). You can use a software package (e.g. Complete Canadian Wills Kit) to establish a legal and valid living trust. [2019] - Eric Tyson

In the United States, mortgage interest is tax deductible (even on your personal-use home). Canadian tax law doesn't allow for this. However, interest paid on money borrowed to invest can be deducted off your tax bill (interest paid on money borrowed for other reasons cannot). You'll never be able to deduct interest on the portion of the mortgage that is used to purchase your principal residence, but you can borrow additional funds against your home for the purpose of investing, thereby creating a tax-deductible interest expense. [2017] - Calum Ross

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