Building Wealth

For the first 30 or so years of working, saving and investing, you’ll be first in the mode of getting out of the hole (paying down debt), and then building your net worth (that’s wealth accumulation.). But don’t forget, wealth accumulation isn’t the ultimate goal. Decumulation is! (a separate category here at the Hub).

Two thirds of investors don’t know how much they pay in fees: survey

Posted By Jonathan Chevreau | July 12, 2016

JustWealth’s Andrew Kirkland

A survey released today by Justwealth Financial Inc. finds a knowledge gap about how much Canadian investors are being charged on their investments: almost two thirds of those surveyed didn’t know exactly how much they paid in annual investment fees.

The survey of Canadians across Canada aged 25 or more was conducted via Google Consumer Surveys, and also uncovered a lack of awareness around upcoming regulatory changes to investment reporting requirements.

The changes surrounding the Client Relationship Model – Phase 2 or CRM2 — will take effect this Friday (July 15, 2016). They are the third annual list of amendments to promote increased disclosure regarding fees and investment performance. According to the Justwealth survey, 65.1 per cent are not aware of the upcoming changes. {See also Graham Bodel’s recent Hub blog on these changes: Big changes for mutual fund investors and Anthony Boright’s Hub blog entitled Get ready for POS3 and CRM2 deadlines.)

Conflicts keep investors in the dark

Gold guru Peter Schiff says Goldmoney deal will draw millions to BitGold

Posted By Jonathan Chevreau | July 11, 2016

Author and US-based gold guru Peter Schiff is teaming up with a Canadian gold fin-tech company — Goldmoney Inc. — in a deal both parties expect will accelerate the firm’s growth into “millions” of users seeking a “real-money” alternative to the “fiat” currencies of the world’s central banks.

Initial details were revealed on Friday, when Toronto-based Goldmoney Inc. (trading as XAU on the TSX), announced its plan to acquire Schiff Gold Inc. (SGI) and form a marketing and service agreement with Schiff (pictured left).

The Hub last looked at Goldmoney and its Bitgold in this post in March: BitGold: a cure for savers frustrated with low or negative interest rates? The link also contains my blog on this for the Financial Post.

And we looked at a couple of recent books on the soaring gold price in a Hub post in June. You can find the review, which includes Schiff’s The Real Crash, in this Hub review titled The New Case for Gold. The link also contains my blog on this for Motley Fool Canada.

The Goldmoney release describes Schiff Gold Inc. (“SGI”) as a “private, US-based dealer in precious metals” that was launched in 2010 under the name Euro Pacific Precious Metals. It in turn was described as “one of the largest and fastest growing retail gold dealers” that services a large client base with buy and sell orders for precious metals, storage and vaulting arrangements and gold & silver IRA arrangement services.”

Schiff is the “LeBron James of the gold market”

Young, saving, and hopefully one day buying a house

Posted By Financial Independence Hub | July 9, 2016

By Helen Chevreau

Hub Staff

The cover story of this month’s Toronto Life magazine caught my eye straight away. “Young, Rich, and Totally Not Buying a House” it boldly claims.

As a young, not-yet-rich millennial who has no immediate plans to get into the housing market, I was intrigued. The article is written by 31-year-old Tony; a pharmacist who lives with his parents and eschews the traditional rites of passage of his peers, like home ownership.

Before I actually read the article, I was sure I wouldn’t like Tony, wouldn’t relate to him. Growing up in Toronto I’ve seen his type countless times. Money is no object, and he’s not shy to show it. A common defence from this kind of person is that ‘normal’ or ‘rational’ people who are judging him are jealous or boring (or both).

What I found interesting about this piece is that Tony seems very self-aware about his spending and lifestyle choices. He’s accepting of his friends who do choose to be “shackled to a monstrous mortgage for the next 30 years,” and he understands that sometimes it just isn’t possible to have it all.

Though much of what Tony talks about in this article is out of reach for most normal millennials (last minute trips to Asia, $200 bottles of wine), I appreciate the sentiment. Continue Reading…

Big changes for mutual fund investors

Posted By Financial Independence Hub | July 7, 2016

By Graham Bodel, CFA, Chalten Advisors

Special to the Financial Independence Hub

Transparency, education and competition should drive better outcomes for investors.

Recent enhancements put in place by the Canadian Securities Administrators (CSA) have sought to better align the interests of investors and the investment industry that serves them.

Initiatives like the Customer Relationship Model (CRM) are designed to increase transparency and help investors make more informed decisions about the kind of advisor with whom they work and the type of products in which they invest. The idea is that with full disclosure, investors will be armed with the right information to make better decisions and protect themselves from bad products and sales practices.

Banning fund trailer commissions

So, we were somewhat surprised by last week’s announcement by the CSA that indicates they will be moving ahead, subject to consultation with investors and the industry, with banning embedded trailing commissions on mutual fund sales. It seems even the regulators have lost faith in transparency to properly do the job of protecting investors. This represents a significant next step in a progression of possible measures, one that regulators in countries like the UK and Australia have already taken. Continue Reading…

7 ways to cushion volatility in second half

Posted By Financial Independence Hub | July 6, 2016

By Adrian Mastracci, KCM Wealth

Special to the Financial Independence Hub

“Behold the turtle. He makes progress only when he sticks his neck out.” — James Bryant Conant, (1893 – 1978), American chemist.

Investors are on edge about the prognosis for the second half of 2016. Plenty of disarray, uncertainty and chaos is gripping stock and bond markets.

Companies will soon be reporting second-quarter earnings and future prospects. Revenue growth is the biggest challenge for companies in this environment.

The remaining central banks tools are losing effectiveness. Best to assume the second half 2016 is not a cakewalk, so be well prepared.

Some currencies have developed their own wall of worries. A sense of unease prevails as bond yields get even slimmer.

Investors may also be sticking their necks out like the turtle. Some of the risks present opportunities for the strong willed.

Consider these three pointers Continue Reading…