Hub Blogs

Hub Blogs contains fresh contributions written by Financial Independence Hub staff or contributors that have not appeared elsewhere first, or have been modified or customized for the Hub by the original blogger. In contrast, Top Blogs shows links to the best external financial blogs around the world.

Do global bond yields matter any more?

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U.S. 10-Year vs. 10-Year German Bund

By Kevin Flanagan, WisdomTree Investments

Special to the Financial Independence Hub

Do global bond yields matter anymore? Following the results of Election Day and the subsequent response in the U.S. bond market, this was certainly a valid question. Indeed, with U.S. Treasury (UST) yields ascending rather visibly, a key investment force (relative yield advantage vs. the rest of the G7 universe) that had helped keep UST yields in check, if not push them even lower, seemed to fall off the fixed-income radar.

With the first quarter of 2017 now in the books, and the markets almost five months removed from the U.S. election, we thought it would be useful to provide some insight as to where the UST 10-Year yield resides now, and consider whether the relative yield advantage still exists.

While it has not always been a one-way street to the upside, G7 10-year yields have all risen to varying degrees, with the one notable exception being the UK, where gilts have actually seen a decline of 6 basis points (bps) since November 7. Italian 10-year yields fall on the other end of the spectrum, as the 10-year has experienced an increase of 61 bps, while the gain in France has been pegged at 50 bps. To put this in some additional perspective, the rise in the UST 10-Year was +56 bps. Rounding out the 10-year yield tallies: Canada +41 bps; Germany +18 bps and Japan +12 bps.

It should also be noted that the experience thus far in 2017 seems to have been a bit more country/region specific and not just the kind of broader move in global rates that investors have witnessed before. To be sure, here in the U.S., Treasury yields have been responding to developments in Washington D.C., such as the Fed pushing up its first rate hike three months earlier than expected and continued political headlines in the first few months of the Trump administration.

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8 Diet Changes to lower your risk of Cancer

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Photo Credit: Carnivore Style

Ask anyone what are the best things you can do for maintaining a healthy lifestyle, most often the answer (besides more exercise) is to start with managing trans fats and junk food in your diet.

No arguing with that advice. But what continues to be overlooked is our dependence on sugar, particularly when made in the form of a sweetener called fructose. In its worst form known as high fructose corn syrup, evidence continues to mount that its over-consumption is a red flag for encouraging cancer development.

The recommended daily limits for sugar are 35 grams for men and 23 grams for women. Yet many people blow away a day’s limit every day with one 50g soda. So how does one get to healthy levels without falling into depression at having to reduce your life-long allegiance to soda, juices, certain yogurts and salad dressings, not to mention candy, certain breads, granola and energy bars? (Go to Dr Mercola’s web-site for an exhaustive list of such foods.)

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The stress of moving sideways in high-priced housing markets

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By Penelope Graham, Zoocasa

Special to the Financial Independence Hub

Think breaking into the Toronto real estate market is tough? Try making a lateral move; there’s a whole new crop of challenges facing those looking to cash in on their home’s equity, according to a recent bank report.

While much has been made over the plight of first-time buyers, they’re not the only ones feeling the pinch. Home owners with a long-term position in the market and who have become considerably house-rich — namely baby boomers — are also put off by the market’s challenges.

And while this generation has received criticism for hunkering down in their family homes rather than adding them back to the supply of low-rise, detached housing, the fact is many would love to cash out: but they face the same hurdles as their millennial counterparts.

According to a recent poll conducted by CIBC, two in five Canadian homeowners planning to sell their homes are poised to profit on their home sale — but 62% are reluctant to put it on the market due to the high cost of buying another home.

“In today’s market, homeowners are facing a conundrum as to whether to buy, sell or stay put,” says David Nicholson, vice-president of CIBC Imperial Service. “Buying or selling your home is one of the biggest decisions you’ll make. That’s why it’s important to make the decision for the right personal and financial reasons and see past the noise in the marketplace. Evaluating the pros and cons as part of an overall financial plan can help you decide what’s best for you.”

Sixty-seven per cent of boomers (aged 55 and up) indicated they wished to downsize to a smaller home, condo or nursing / retirement home.

The search for affordable options

Most downsizing boomers aren’t looking to acquire another million-dollar detached property, but recent price surges within the condo market may leave them feeling as though their options are limited. The Greater Toronto Area market has infamously experienced a 33% year-over-year price increase, and much of that double-digit growth has spilled over into the condo segment.

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How to profit from the Domain Name business

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By Katrina Manning

Special to the Financial Independence Hub

We’ve all heard of domain names purchased 10 years ago for $10 dollars and selling for $20 million today — or some other story of similar nature.  As a result, you might be interested in buying and selling domain names either full-or-part-time for profit. It seems so easy and simple: just pick the right domain name, hold on to it for a while then sell for profit.

But is it really that simple? Well, since everyone is online –you can imagine that the ocean is wide. And you don’t want to start with a bit of research. You need a map, and we’ve created one for you here.

Stay focused

There are millions of domains already registered, especially the easiest ones that consist of one word such as apple.com, Facebook.com and so on. On the other hand, there are countless combinations of available domain names to register, especially if you consider the thousands of new domain name extensions such as .ng domain or .eu domain names.

As you can see, it is critical to keep your focus narrow. What subjects are you already familiar with, which can make the process much simpler? Do you have experience with animals or tech? Have you worked in the entertainment or service industry? Think about the industries you are most familiar with first, and start with that. Why is this important? Well, you don’t want to target prospective buyers based on their potential for sales if you don’t have insight into the industry you are aiming at.

In other words, don’t just rush to buy multiple domain names you think would appeal to health care clinics you’ve identified as potential buyers. You might not be aware of any industry-specific rules that govern facets of legal advertising. You won’t make much of a profit, if any, if you buy domain names your target audience can’t use. This is where it pays off to take the time to understand your audience.

Take the time needed to learn

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How to create a winning retirement income strategy

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A successful retirement begins with a successful retirement income strategy.

One of the things that investors of all ages fear is that they won’t have a good financial plan in place so that they have enough retirement income to live on once they’ve stopped working.

Here are some ways to ease that anxiety:

In retirement, try to even out (equalize) your income with your spouse’s income, to lower overall taxes. Here’s how:

1.) Have the higher income spouse pay the household bills

The easiest way to even out income between two spouses is to have the higher-income spouse pay the mortgage, grocery bills, medical costs, insurance and other non-deductible costs of family life.

2.) Set up a spousal RRSP

Registered retirement savings plans, or RRSPs, are a form of tax-deferred savings plan designed to help investors save for retirement. RRSP contributions are tax deductible, and the investments grow tax-free.

3.) Pay interest on your spouse’s investment loans

If the lower-income spouse takes out an investment loan from a third party, such as a bank, the higher-income spouse can pay the interest on that loan.

RRIFs are a great long-term retirement income strategy

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