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).

Federal Budget 2016: don’t expect much relief for personal finances or retirement

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Federal finance minister Bill Morneau selects Canadian-designed shoes for upcoming federal budget

Here’s my latest column in the Financial Post, which provides a look ahead to the federal budget, which will go live at 4 pm Tuesday afternoon.

You can find the column here by clicking on this headline: Why Tuesday’s budget may not hold much good news for your personal finances. It’s also in the print edition of today’s paper.

Here is info on the media lockup, which starts at 9:30 am.

Once the floodgates open on or shortly after 4 pm Tuesday, you should be able to get access to the budget by clicking on the Department of Finance website here. We will update this site as necessary and also watch my Twitter feed @JonChevreau, as we disseminate coverage once available. This feed also shows up on the right side of the Hub’s main page.

A walk along Risk Road, Part 2: Investing in a Slow-Growth world

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Mawer’s CIO, Jim Hall

By Cameron Webster, CFA
Institutional Portfolio Manager, Mawer Investment Management Ltd.

Special to the Financial Independence Hub

A few weeks ago in Part 1 of this series, we ran an interview featuring Mawer’s chief investment officer, Jim Hall (pictured, left) about current interest-rate trends and deflation.

This is the follow-up interview, where we look in more depth at the problem of investing in a low-growth world.

As noted earlier, we at  Mawer spend a great deal of time asking and answering the question: So What? A company’s share price is down 6%…so what? A central bank moved interest rates up…so what? Google re-named itself Alphabet…so what?

It’s not always an easy question to answer and often leads us to ask even more questions in an effort to develop key investment insights. “So what?” is one of the questions that can lead us to investment action (or inaction) in our process of building well-diversified, resilient portfolios.

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Cameron Webster

Cameron Webster: Jim, last time we discussed how Mawer’s quarterly risk review ranks macro risks on both probability of occurrence and degree of severity. Remind us why this is part of the investment process.

Jim Hall: It is not enough to just look at potential risks. We need to ask ourselves is it something we need to do something about? Is this something upon which we need to act? Is it important? That’s the value in evaluating these risks on both probability of occurrence and severity of consequence. Continue Reading…

2016 planning priorities for business owners

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AdrianBy Adrian Mastracci, KCM Wealth

Special to the Financial Independence Hub

Today’s business owners are preoccupied with the day-to-day operations for 2016. They need plenty of encouragement in planning their tomorrows.

Owners know that curve balls can suddenly appear practically every day. A continuous challenge for many is trying to improve their business prospects.

Business plans can easily veer off course, often beyond one’s control. A refresh of your business elements is good value.

First, mull over what you would like to achieve with your business.
Then brainstorm with some solid ideas.

Assess, Analyze & Adopt

Continue Reading…

Closure of Hulbert Financial Digest a loss for all investors

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Mark_J._Hulbert_cropHere’s my latest Financial Post blog, which puts a Canadian spin on the announcement late last week that after 36 years, the influential investment newsletter ranking service is shutting down. Click on this headline: ‘A loss for all investors’: The Hulbert Financial Digest says goodbye.

As the blog notes, there aren’t too many Canadian investment newsletters but two of the majors had one or two newsletters that often did well in the Digest.

Here is Hulbert’s Wikipedia entry.

The good news is that Hulbert continues to be a columnist at MarketWatch.com. Check out his recent opinion piece, entitled Don’t be fooled by a bear-market rally in stocks.

Paper-heavy financial industry will go from 10 to 50% digital in 3 or 4 years

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Financial Independence Hub.photoBy Anthony Boright

Special to the Financial Independence Hub

We live at a time when electronic communications is making rapid advances in many walks of life, but surprisingly, the financial-services industry still has a long way to go.

Incredible as it may sound, less than 10 per cent of documents in the industry are delivered electronically today. I refer to client statements, trade confirmations, bills, and a variety of other disclosure documents needed for regulatory requirements. Indeed, the industry and those who work in it are drowning in paper.

From my vantage point, three prominent trends in the industry right now are:

  • The migration from paper to electronic communications
  • An ever-increasing environment of regulation
  • A growing need for technology innovation and the cost savings that brings.

I have worked in the technology side of financial services for 20 years and been involved in lots of innovations. This includes providing Internet and custom web solutions for the industry, developing products that address what were then new Point of Sale (POS) regulations, and in the late 1990s creating the Fund Library, which was Canada’s online mutual fund resource centre, and also f/A Connect,  the Internet workplace for financial advisors.

The benefits of digital

Continue Reading…