Monthly Archives: December 2015

Must-See Places in Mexico

Posted By Financial Independence Hub | December 5, 2015

By Billy and Akaisha Kaderli

Special to the Financial Independence Hub

Mexico is a huge country and it’s hard to know where to go if you only have a limited time to visit this nation. Some people prefer the beaches, some might want to take advantage of the culture, history and international restaurants, and others could consider emigrating to spend their retirement years there. Below are must-see towns and cities along with useful notes to help you get an idea of what Mexico offers.

Chapala, Mexico , located in central Mexico, has the largest expat community in the world and offers lots of activities to keep one busy. If you like to play tennis, golf, bridge or get involved in garden clubs, animal rescue or theater, this lovely town with year-round spring climate is a good bet. Chapala’s location, just 20 minutes from Guadalajara’s international airport and an hour from the capitol city itself, is a good home base to travel to the beach, to the mountains, or to the States or Canada. Continue Reading…

David Trahair’s contrarian stance: Be a loaner, not an owner

Posted By Jonathan Chevreau | December 4, 2015

By Jonathan Chevreau

Financial Independence Hub

In this summer’s series on the 7 eternal truths of personal finance, one of the articles was entitled Be an Owner, Not a Loaner, which reflects the usual financial industry advice that stocks are more likely to generate long-term investment returns than cash or bonds.

There is of course a contrary view to this eternal truth and it’s best contained in the new second edition of David Trahair’s book, Enough Bull, originally published early in 2009, right at the bottom of the financial crisis..

Trahair, a chartered accountant and author, could as easily have titled his book Be a Loaner, Not an Owner, because he’s adamant that stocks (i.e. equities), whether individual or pooled through mutual funds or ETFs, are just too risky for the average person.

The book cover includes a small image of a bull (as in a steer), so clearly the title Enough Bull is a double entendre: as in no more bullish prognostications on the stock market, as well as no more bovine excrement, whether dispensed by the animals or financial advisors.

Skeptical about the financial industry and its central belief in stocks Continue Reading…

What’s your car buying strategy?

Posted By Robb Engen | December 3, 2015

By Robb Engen, Boomer & Echo

Special the Financial Independence Hub

When it comes to buying a car, most of us generally fall into two camps: those who buy new for the latest technology and safety features, and those who buy used because they believe that buying new is a waste of money.

We know cars are depreciating assets and lose the most value in the first year or two of ownership – hence the old saying that a car loses 20 to 30 per cent of its value the minute you drive it off the lot. That’s why, historically, the best deals can be found on used cars that are one or two years old.

The problem is that both car sellers and buyers have figured this out and so supply and demand have caused the prices of used cars to rise accordingly.

New cars, on the other hand, have become increasingly more affordable as car dealer incentives, creative financing, and low interest rates drive prices down. It’s common to see loans at seven or even eight years today to help buyers take home a new car.

I bought a new car in late 2012. Being acutely aware of the pitfalls of buying new, I made a few rules before taking the plunge. Continue Reading…

Expect low interest rates for several more years, Vanguard chief economist says

Posted By Jonathan Chevreau | December 2, 2015

Davis_Joe_10_a — Joe Davis, Vanguard’s global chief economist

Low interest rates are a secular rather than cynical phenomenon, and can be expected to stay with us for the rest of the decade, according to Vanguard global chief economist Joe Davis.

Speaking on a conference call to journalists Wednesday, David said that while the U.S. federal reserve will soon initiate “Lift-off” on interest rates, this will be followed “by a potential pause around 1%.” He termed this a “dovish tightening” that will remove some of unprecedented accommodation that’s occurred since the global financial crisis.

“In our view, there is a high likelihood of an extended as in interest rates at, say, 1%, that opens the door for balance-sheet normalization and leaves the inflation-adjusted federal funds rate negative through 2017.”

As a result, Vanguard’s outlook for fixed income “remains positive, yet muted … our ‘fair value’ estimate for the benchmark 10-year US Treasury yield still resides at about 2.5%, even with a Fed lift.”

US equity bull market likely to persist for some time

Wealthsimple to acquire ShareOwner

Posted By Jonathan Chevreau | December 2, 2015

As my article in this morning’s Financial Post reports, one-year-old automated investment service Wealthsimple is acquiring 28-year old Canadian Shareowner, which was the first robo adviser to set up shop in the Canadian market.