DRIP-ping Your Way to Wealth(?)

One of the reasons why people love dividends, especially in the accumulation stage, is that they like the idea of being paid from their investments and using those investments to buy more of the same securities. This can be done in an automated matter by...

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Financial Planning Issues for Common-Law Partners

It may be an obvious thing to say, but common-law partnerships are increasingly “common” in Canadian society. While common-law couples may not have solemnized their relationship through marriage, that does not mean that they do not need to consider each other when developing a financial...

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Understanding the Time Value of Money

Managing our personal finances involves a few mathematical calculations. When we buy a Guaranteed Investment Certificate (GIC), we are told, for example, that we will receive 5% per year, compounded over five years. If we deposit $5,000 into that GIC, how much will we receive?...

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How Does My Pension Fit Into My Retirement Plan?

If you have worked in Canada, you will have contributed to the Canada (or Quebec) Pension Plan (CPP/QPP) and will be eligible to receive regular monthly payments from the plan as early as age 60. If you have been a resident of Canada for at...

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Managing Your Spending During the Christmas Holidays

In the wake of the re-opening of the economy following the COVID-19 lockdown, inflation was inevitable. Despite the low levels of unemployment, many Canadians are finding that their income is not keeping up with their expenses. Nevertheless, the desire to engage in gift-giving during this...

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Are You Financially Literate?

Each year the month of November is designated as Financial Literacy Month. I like to think that each blog post that I write adds to the financial literacy of my readers, but there is something to be said for a special focus on bringing up...

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Retirement is Coming and We Don’t Have Any Savings

Many Canadians have a reasonable degree of net worth. Millionaire households are not that unusual if you consider the value of housing, especially if you have been a homeowner for 20 years or more, which would be the case for many who are approaching retirement....

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