By Fund Library News Wire | Friday, December 19, 2014
After tumbling through the first couple of weeks of December, the big North American stock market indexes staged a Santa Claus rally this past week, as investors took comfort from the U.S. Federal Reserve Board’s announcement on Wednesday that it’s in no hurry to tighten monetary policy by raising rates anytime soon. The S&P/TSX Composite Index rebounded over 5% on the week, while the S&P 500 Composite rallied 3.4%.
Q – Around this time of year, I always start to feel that my budget is spinning out of control. The temptation is always to spend way too much, and I know I’ll be getting those huge credit card bills in January. Do you have any advice on how to curb holiday excess? – Jill T., Barrie, Ontario
Aston Hill Growth & Income Fund is a global balanced fund with an income-focused, go-anywhere mandate. It pays investors a monthly distribution of $0.03 per unit, which works out to an annualized yield of 4.75% at current prices. The fund has a nearly $30 million in tax-loss carryforwards, which mean that any income paid out to investors is likely to be treated as return of capital for tax-loss purposes. This makes it very tax efficient in a non-registered account.
I am very discouraged by what I see happening with older financial advisors in Canada who refuse to downsize their business and prepare their clients for life without them. This is sad, because if they pass away suddenly, typically their clients will be in disarray and likely be dispersed among other advisors at the same firm – a “solution” that has not been given much thought or planning. I’d like to propose a two-stage alternative plan that can assist both clients and their advisors who really should retire but refuse to do so.
I receive a lot of questions from readers, so every few weeks I’ll answer some of them in this space. Here is the latest batch, including questions about debt vs. RRSPs and whether it’s wise to renew GICs now.