http://www.moneysense.ca Canada's Personal Finance Website Thu, 23 May 2013 17:02:21 +0000 en hourly 1 http://wordpress.org/?v=3.0.5 http://www.moneysense.ca/2013/05/23/sell-in-may/ http://www.moneysense.ca/2013/05/23/sell-in-may/#comments Thu, 23 May 2013 17:02:21 +0000 MoneySense staff http://www.moneysense.ca/?p=45494

Experts at BMO put the old adage “Sell in May, and go away” to the test and found that while there’s some truth to it, average investors are better off sticking with the stock market all year long rather than taking a seasonal approach. The bank studied how USD $1,000 invested in the Dow Jones Industrial Average back in the 1900s would have fared if invested only during the months of April to November, switching to non-interest bearing cash for the remainder of the year, and the opposite strategy for the May to October time period. Money invested exclusively from May through October grew to USD $2,167 (excluding dividends) as of October 2012, an annualized price-only gain of 0.7% whereas the November through April portfolio would have grown to USD $122,606 as of April 30, 2012, an annualized 4.3% gain. But here’s the kicker: The same USD $1,000 investment held the Dow year round would have returned an annualized 4.7%. Which begs the question, should we rewrite the old saying? How about, “Come when you may and stay, stay, stay.” Not as catchy huh?

Homes became slightly more affordable in B.C. in the first quarter while homes in Ontario became less so, RBC reported Thursday. Nationwide, housing affordability isn’t off the charts but “we’d be humming a very different tune if interest rates were to suddenly rise substantially,” RBC’s Craig Wright said in a release. Fortunately, the bank doesn’t see rates rising until mid-2014 which means Canadian homeowners have ample time to pay down their mortgage faster. For tips on how to crush your mortgage, pick up the June issue of MoneySense.

The first wave of American Baby Boomers is retiring quicker than some had expected. More than half (52%) of Boomers born in 1946 now fully retired, U.S.-based MetLife Mature Market Institute has found. The top reason for retiring early was health (32%). Twenty-one per cent of Boomers aged 67 remain employed full-time and 14% are working part-time; of those, most plan to retire fully by age 71, up from 69 in 2011.

]]> http://www.moneysense.ca/2013/05/23/sell-in-may/feed/ 0 http://www.moneysense.ca/2013/05/22/45427/ http://www.moneysense.ca/2013/05/22/45427/#comments Wed, 22 May 2013 16:00:03 +0000 MoneySense staff http://www.moneysense.ca/?p=45427

Nearly one-third of Canadian households report never or rarely ever having any money left to save after paying the bills, according to a new study by the Certified General Accountants Association of Canada. This group tended to be working, middle-aged Canadians. Salaries not keeping up with the cost of living is only part of the problem, the study authors said. The other part is consumption. Borrowing habits in particular are wreaking havoc on people’s ability to save. Overall, the household savings rate in this country plummeted to 3.8% at the end of 2012 from its peak of about 20%  in the early 1980s. Still, the majority of Canadians reported accumulating at least some wealth.

A new BMO report suggests nearly half of Canadian homeowners intend to buy a property in the next five years despite a softening market. Ten per cent of plan to buy a recreational property, down two points from last fall. The June issue of MoneySense on newsstands now lists the best deals in vacation homes for any budget.

]]> http://www.moneysense.ca/2013/05/22/45427/feed/ 0 http://www.moneysense.ca/2013/05/21/reno-vision/ http://www.moneysense.ca/2013/05/21/reno-vision/#comments Tue, 21 May 2013 17:00:38 +0000 MoneySense staff http://www.moneysense.ca/?p=45399

Four in 10 Canadian homeowners are planning major home renovations in the next two years, according to a new poll for Scotiabank. A full one-third said they’ll redo their kitchen while 16% will renovate a bathroom. The majority plan to save up the cash to get the job done while others will use a line of credit. Read the “Home renovation reality check” from the February/March issue of MoneySense for tips on how to plan a smooth reno. While you’re at it, try the bank’s Home Energy Savings Calculator. It’ll suggest money-saving, eco-friendly upgrades and calculate the break-even point for you.

The average wedding and honeymoon in Canada costs $32,358, according to Wedding Bells magazine. Some 38% of newly engaged couples are willing to go into debt to finance the big day, according to TD. The bank has some ideas on where and how to save in this infographic.

Check out Golden Girl Finance’s 5 things you’re paying too much for—and one you probably aren’t.

]]> http://www.moneysense.ca/2013/05/21/reno-vision/feed/ 0 http://www.moneysense.ca/2013/05/17/rich-but-not-feeling-it/ http://www.moneysense.ca/2013/05/17/rich-but-not-feeling-it/#comments Fri, 17 May 2013 18:05:39 +0000 MoneySense staff http://www.moneysense.ca/?p=45319

The Billfold talks to a man who makes more than $500,000 a year but doesn’t feel rich. What gives? Turns out his medical student loans, three kids, investment decisions and affluent neighbours are causing him to worry.

The cost of living in Canada rose 0.4% in April compared to the same month last year held down the price drops at gas stations, Statistics Canada said Monday. Two provinces actually saw deflation. Prices fell 0.8%  and 0.2% in British Columbia and New Brunswick respectively.

Counterfeit polymer bills have been discovered in B.C. As a result, the RCMP is reminding Canadians to check the security features on the new plastic bills such as the raised printing.

]]> http://www.moneysense.ca/2013/05/17/rich-but-not-feeling-it/feed/ 0 http://www.moneysense.ca/2013/05/16/budgeting-for-food/ http://www.moneysense.ca/2013/05/16/budgeting-for-food/#comments Thu, 16 May 2013 16:00:21 +0000 MoneySense staff http://www.moneysense.ca/?p=45237

The vast majority of Canadians polled for an RBC  report (91%) say they’ll tighten their belts and make smarter decisions at the grocery store to deal with rising food costs. Food inflation rose 2.4%  last year, after increases of 3.8% and 1.4% in 2011 and 2010, respectively. Prices are poised for bigger jumps in 2013, the bank says. The average Canadians spends $411 per month on groceries, the poll found. Fifty-seven per cent are comparison shopping more  these days and 43% have cut back other expenses to make up the difference.

This Victoria Day long weekend marks the unofficial start to summer for many Canadians. In fact, some 83% of us are planning to take vacation between May and September spending $3,073 on average, according to BMO estimates. Top destinations include the U.S., Europe and Central and South America. The bank also found that only half of Canadians always buy travel insurance. “While it’s great news that so many Canadians will be taking advantage of the great weather to hit the road and get some rest and relaxation this summer, it’s a concern that so few will be protecting themselves against the unexpected by purchasing travel medical insurance,” said BMO Insurance’s Julie Barker-Merz. A broken leg in the U.S. can cost up to US$20,000 while treatment for decompression sickness in Thailand up to US$40,000. For travel insurance tips on what to buy and how to save, read, “Are you really covered?” from the April 2013 issue of MoneySense.

]]> http://www.moneysense.ca/2013/05/16/budgeting-for-food/feed/ 4 http://www.moneysense.ca/2013/05/15/are-annuities-the-new-rrifs/ http://www.moneysense.ca/2013/05/15/are-annuities-the-new-rrifs/#comments Wed, 15 May 2013 18:00:38 +0000 MoneySense staff http://www.moneysense.ca/?p=45206

Fred Vettese ran the numbers and found annuities are a better retirement income option than RRIFs.

The Blunt Bean Counter explains when and when not to discuss your salary with friends, co-workers and family.

]]> http://www.moneysense.ca/2013/05/15/are-annuities-the-new-rrifs/feed/ 0 http://www.moneysense.ca/2013/05/14/home-prices-cool/ http://www.moneysense.ca/2013/05/14/home-prices-cool/#comments Tue, 14 May 2013 17:32:35 +0000 MoneySense staff http://www.moneysense.ca/?p=45133

Average resale house prices in major Canadian cities rose just 2% year-over-year in April, dragged down by real price drops in Vancouver (-2.9%), according to the Teranet-National Bank Composite House Price Index.

Money is all you need to start investing, right? Wrong! Check out Boomer & Echo’s The Beginner’s Guide On How to NOT start Investing.

]]> http://www.moneysense.ca/2013/05/14/home-prices-cool/feed/ 0 http://www.moneysense.ca/2013/05/13/online-investing-surge/ http://www.moneysense.ca/2013/05/13/online-investing-surge/#comments Mon, 13 May 2013 16:26:18 +0000 MoneySense staff http://www.moneysense.ca/?p=45086

A recent BMO InvestorLine poll suggests the percentage of online investors could triple in the next decade. Nearly 20% of survey respondents already invest online while 65% said they are likely to start in the next five years, that number jumps to 81% among 18 to 34-year-olds. The bank recommends researching online brokerages before signing up to learn more about the range of services available to you as a client such as resources, tools, the user interface and stock screener. MoneySense ranks Canada’s Best Discount Brokerages in the June issue on newsstands now.

Check out Canadian Business’ 50th annual Investor 500. It’s Canada’s premier stock market guide with analyst tips, stock rankings, Canada’s most profitable companies and more.

Congratulations to Preet Banerjee! He picked up first prize at the Portfolio Management Association of Canada (PMAC) second annual Awards for Excellence in Investment Journalism for his June 2012 MoneySense article entitled, “How you doin?“

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