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Glossary of
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Portfolios of great funds that automatically rebalance.... Are they an investment solution?
The prolonged negative returns of much of the mutual fund market over the past few years has led many investors to take a sober look at what type of funds they have been putting their money into and whether or not their holdings actually suit their risk profile. If the previous investment approach was ad hoc, flavour of the moment or somehow managed to end up overweight in categories that are now incompatible with the volatility they are prepared to live with, some restructuring is in order.


Segregated Funds: What are they and are they right for your portfolio?
They are both pools of financial assets managed by investment professionals, they cover all of the different asset categories which are designed to fit a wide variety of Investment objectives. Flip the coin over and you will find a number of differences which are worth noting. Segregated Funds, which are available only from Life Insurance Companies, provide investors with a number of benefits which are simply not available from mutual funds.


MBSs: Look before you leap
Before jumping into a Mortgage Backed Security (MBS) there are a few details that should be understood so that an informed decision can be made on what is being purchased.


Systematic Withdrawal Plans
When people retire, they are frequently advised to put their money into a Term deposit or a GIC and live off the interest. At first glance, this may seem to be a wise decision because the income from the interest initially appears to be sufficient to meet their needs. But a few details that should be understood so that an informed decision can be made on what is being purchased. Over the years, however, the income received decreases in real value because of the effects of Inflation and the taxes paid on interest income.


Mortgage Backed Securities
Mortgage Backed Securities (MBS) fulfill two important investment objectives. First, MBS are completely guaranteed by the federal government through the auspices of the National Housing Act. In fact, these securities are backed by the Canada Mortgage and Housing Corporation (CMHC). Secondly, the yields are often better for these securities than for comparable Government of Canada securities.


Reverse mortgages
Reverse mortgages are a relatively new phenomenon in Canada but are destined to become more popular. The concept is simple enough. A lender applies a mortgage against the borrower's Principal residence and purchases an annuity for an equivalent amount.


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Choosing
Financial Services
Portfolios of great funds that automatically rebalance... Are they an investment solution?

Segregated Funds; What are they and are they right for your portfolio?

MBSs: Look before you leap

Systematic Withdrawal Plans

Mortgage Backed Securities

Reverse mortgages