Summary: Canadian RESP Guide A Registered Education Savings Plan (RESP) is one of the best ways to save for post-secondary education while benefiting from tax advantages and government incentives. Similar to a TFSA, an RESP is more than just a savings account, as an RESP allows contributions to grow tax-free...
VGRO vs XGRO: Key Differences The main difference between VGRO and XGRO is their geographical exposure and bond strategy. VGRO (Vanguard) has a higher “home bias” with roughly 25% Canadian equity, while XGRO (iShares) leans more toward the U.S. market. Additionally, XGRO includes U.S. Treasury bonds, whereas VGRO provides broader...
VCN vs XIC: Which Canadian Index ETF is Better? The main difference between VCN and XIC is their index methodology. iShares XIC tracks the S&P/TSX Capped Composite Index, which includes ~240 holdings and caps any single stock at 10% to reduce concentration risk. Vanguard VCN tracks the FTSE Canada All...
For investors looking for a simple, low-cost way to build a balanced portfolio mix of stocks/equities and fixed income, ZBAL is an attractive offering that can help to minimize investment losses during periods of negative stock market returns. Conversely, this balancing of risk/reward will affect total returns during periods of positive stock market returns. To learn about balanced portfolios and ZBAL, read this full article...
What’s the difference between VFV and VSP? The answer is simple. VFV and VSP are both low-cost Canadian Vanguard ETFs that track the S&P 500, but the difference between the two is that VSP is hedged to the Canadian dollar...
If you want to pay as little tax as possible every year, you need to know the difference between a tax deduction vs tax credit. Both are powerful tools to reduce your taxes payable, but have very different functions!
A simple way to invest in the NASDAQ is by purchasing the Invesco NASDAQ 100 Index ETF (ticker: QQC). QQC is a passively managed equities fund that tracks the performance of the NASDAQ-100 in Canadian dollars. For Canadians looking to grow their wealth over the long term, QQC may be a great option!
Opening a Canadian bank account can be an intimidating process, given that there's so many different options out there!
The Tax Free Savings Account (TFSA) is one of the best ways for Canadians to invest and grow their money. Give this article a read to better understand how they work and how much cash you can "contribute" in 2024!
The Canada Pension Plan is a very important program in Canada that aims to ensure that all eligible Canadians have some level of financial support in their retirement. Learn all about the CPP with Modern Money to understand how this program works!
Every investor seeks to maximize returns, and paying as little tax as possible along the way helps with this. For Canadians wondering why VOO dividends aren't subject to the standard 15% withholding tax, this article will give you the answers you are looking for!
Every investor seeks to maximize returns, and paying as little tax as possible along the way helps with this. For Canadians wondering why VOO dividends aren't subject to the standard 15% withholding tax, this article will give you the answers you are looking for!
For sophisticated investors, hedging can be an important tool, however, for the vast majority, hedging is a complicated and unnecessary strategy. Slow and steady, by investing into a broad market index fund ETF, is how most people should be growing their wealth...
When you're buying a property in Canada, there are numerous costs associated with the transaction that are typically overlooked and forgotten by buyers. A good example of this is land transfer tax. Land transfer tax will vary across Canada both provincially and municipally, but it's typically a significant amount of money (except if you're in Alberta)! Learn everything you need to know about land transfer tax here.
A reverse mortgage is a loan that allows you to take money from the equity that you have in your home without having to sell your home. These are popular for older Canadians who have built up equity in their house, but don't have cash savings, and therefore need to access their home's equity in order to pay the bills, etc. However, buyer beware as always with mortgages. Learn more about reverse mortgages here...
As everyone knows, personal income in Canada is taxed by both the provincial and federal governments. This system of taxation that supports the government structures are based on an incremental basis. This means that as you earn more money, you start to pay different percentages of your income in tax. This type of taxation system is called a progressive tax system and often known as marginal tax rates.
If you are investing in rental properties, you need to understand the concept and principle of depreciation for rental properties. This strategy will save you tens of thousands of dollars in taxes over time, and can help achieve a variety of different outcomes...
In simple terms, capital gains in Canada are the profits you earn when you sell an investment, such as stocks, for a higher price than you paid for it. In this article, we'll break down Canadian capital gains taxation, provide an example of selling stock in a non-registered account, and discuss tax-protected accounts...
The process and habit of calculating your net worth on an ongoing basis is an excellent way to maintain long term discipline and focus in achieving your money goals. Many people shy away from this topic because they might not like the answer, but this is how you confront the reality of your situation and build a plan to change the narrative!
Two government/industry backed organizations are responsible for backstopping Canadians investments and bank deposits in the event of bank failures like we are seeing the US (First Republic, Silicon Valley, etc.). Learn more about how this all works here...
The NASDAQ Stock Market is the second-largest stock market exchange in the world, with more than 3,330 companies listed and it is the world’s second-largest stock exchange by total securities value; its major attraction for listing companies is its significantly lower listing fees, which enable many new high growth and more speculative companies to get listed, while its electronic trading platform allows investors to trade on any major stock-trading platform.
The Standard and Poor's 500 (S&P 500) is s stock market index that tracks the performance of 500 large companies listed on U.S. based stock exchanges. The S&P 500 is considered the best indicator of the American economy and markets.
When it comes to investing, index funds are one of the best tools available to help grow your wealth. Index funds offer exposure, risk diversification and significant growth potential to investors, by tracking benchmark index funds (such as the S&P 500). With index funds, you are investing your money into hundreds, if not thousands of different companies...
A home equity line of credit (or HELOC for short) is a financial tool that allows homeowners to access the equity in their home without needing to sell their house first. A HELOC can be used to draw money to fund repairs, renovations and to make other investments. A HELOC, if used correctly. can be an extremely powerful tool to growth your wealth, but it doesn't come without its risks...
What’s the difference between VFV and VOO? The answer is simple. VFV is the Canadian version of the Vanguard S&P 500 ETF offered by Vanguard U.S. Although they both track the S&P 500, one of the major differences between investing in VFV versus VOO is that dividends paid out by VFV are subject to a 15% foreign withholding tax...
Crypto staking is a way many cryptocurrencies verify their transactions and it allows willing participants to earn rewards for staking their holdings...
In Canada, the current prime rate is 4.45%. Understanding the importance of Canada’s prime rate is an essential component in ensuring that you are getting the best possible interest rate on your credit products through your financial institution....
With the prices of real estate as high as they are, house hacking is a strategy to try to drive down the cost of home ownership. Learn more about what it is and how to do it here...
Brand new and set to launch in 2023, the First Home Savings Account (FHSA) is going to provide another tax-free opportunity for Canadians to save and grow their money to be used on the purchase of their first home. Learn more about how the FHSA is going to work here...
Retirement planning doesn't have to be overly complicated. Pension plans, such as a multi-employer pension plan, are available and accessible tools. If utilized efficiently, pension plans can be a very effective retirement tool...
In Canada, the federal government makes equalization payments to provincial governments to help address fiscal disparities amongst the Canadian provinces based on estimates of the provinces’ fiscal capacity, which means the respective provinces ability to generate tax revenue...
With the TFSA contribution limit announcement of $6,500 for 2023, the total contribution room available in 2023 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $88,000.
National Bank Direct Brokerage has announced zero-commission and fees on online trading of Canadian and U.S. stocks and ETFs...
Over the forthcoming years, target date funds (used as a passive investment strategy) will force investors to sell their stocks to purchase bonds with near all-time low interest rates, drastically hampering the portfolio's future performance. As interest rates fell, bond prices have increased, meaning investors will be paying a premium price for bonds purchased while the interest rates designed to fund a retirement income stream will not deliver the same type of income they once did...
Looking to purchase a home? Effective June 1, 2021, the rules of the mortgage stress test for homebuyers with uninsured mortgages will become more stringent. In its latest financial system review, the Bank of Canada said that many households have taken on large mortgages compared with their income, limiting their flexibility to deal with an unforeseen financial shock like the loss of a job – hence the need for a more stringent stress test...
Since the early 2000s we have seen a substantial uptick in both popularity and value of sports cards. Today, the hobby is thriving and the demand for sports cards is increasing exponentially...
Equifax and TransUnion are the two major players in the Canadian credit score industry (they are often referred to as the credit bureaus). Both of these companies build/develop, maintain and process information relating to the credit profiles and scores (more on the fundamentals of credit scores...
To improve your credit score, you need to take little steps which eventually amount to big results. A strong credit score will assist you in many ways (borrowing, rental applications, mortgage applications, etc.), so get started on these steps today...
The credit score is a basic and very fundamental part of our banking and financial system. In Canada, your credit score generally ranges between 300-900 and your score depicts your creditworthiness...
Wondering what the 2021 TFSA contribution limit will be? Well, the wait is finally over as it has officially been announced. The 2021 limit is $6,000, matching the amount set in 2019 and 2020...
The differences between these two investment vehicles are often overestimated. Ultimately, they are vehicles through which financial companies can deliver portfolios to interested investors...
Home-bias investing is the practice of investing a disproportionate amount of your portfolio in domestic companies, often at the expense of diversification, and capital efficiency...
What is an RRSP? If you don’t know the answer to this question or want to learn more about RRSPs, then this Modern Money slide series edition is for you. This slide series edition breaks down what RRSPs are and how they can be utilized to invest and grow your...
Building your network is more than creating strong professional relationships, it’s also about creating empowering and motivating communities of like-minded and driven individuals...
My Account is a secure online portal that allows you to view your personal income tax and benefits information. Once you have My Account set up, you can manage your tax affairs online. The portal allows you to log in with a sign-in partner, which includes a list of Canadian banks and credit unions (always helps to have one less username and password to remember)...
Unlike the other social networking sites, LinkedIn isn’t about how many connections you have – it’s about the quality of those connections and what those connections offer. In fact, LinkedIn actually doesn’t show the number of connections that you have when you exceed 500, so remember – focus on the quality of those connections...
Nail that next job interview with this instructional slide series on everything you need to know on how to excel in an interview...
Ever wonder why publicly traded companies split their stock? Use this slide deck to understand their rationale for doing so alongside a recent example of Apple’s stock split that most recently occurred on August 31, 2020...
Use this quick slide series guide to learn the basics of how to invest in a TFSA...
The name "Tax Free Savings Account” sort of gives it away, but in reality, a TFSA is so much more than just a regular savings account. In a regular savings account, you are earning interest at the bank rate provided, whereas with a TFSA you can select a basket of financial instruments to generate growth on the money held in your TFSA. For example, your TFSA can hold stocks, exchange traded funds, bonds, guaranteed investment certificates and cash savings...
An RRSP is a tax-advantaged account. This means that it allows you to contribute to it and the amount that you do contribute will be exempt from your total taxable income for the year that you make the contribution. This usually results in you paying less tax...
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