With the recently proposed tax reforms, more doors continue to close on
opportunities for income-splitting between spouses. However, there is still
one key strategy – the inter-spousal loan – that can minimize tax where one
person in the couple earns significantly more than the other.
When interest rates rise, investors often look to short-term bond funds as
a way to protect their fixed-income assets. Because these funds only invest
in securities with maturities of five years or less, they are generally not
as susceptible to interest rate movements as longer duration funds. But
that doesn’t mean they can’t lose money, as one reader has discovered.
November is Financial Literacy Month in Canada. And this year’s theme is
“Take charge of your finances: It pays to know.” That little slogan was
never more true than when dealing with personal debt, especially credit
card debt. According to the Canadian Bankers Association, as of December
2016, credit card debt made up about 5% of total household debt. And about
40% of those with credit cards carry a monthly balance. According to a
survey last year by TransUnion, the average credit card debt in the third
quarter of 2016 was $3,954.
With more than 500 exchange-traded funds (ETFs) listed in Canada, how do
you pick the right one for your portfolio? That’s where it all starts. I
suggest there are four key criteria for selecting an ETF that can help
achieve your investment goals. Your financial advisor can work with you to
assess the four criteria during your search.