Archive for February 2020

Is Now the Time to Start Putting Your Money Back into a Savings Account?

Save money

After a steep drop in interest rates following the 2008 financial crisis, Canada?s high-interest savings accounts have finally become a viable option for investors looking to safely store and build their wealth in the short to medium term. Prior to the adoption of more competitive rates, it was next to impossible to find a savings account provider offering interest rates above the measly 0.8% to 1% range. Now, you can rest easy knowing that Canada saving accounts offer 2.3% interest!

While it?s true that a savings account won?t net you the same returns as a well structured investment portfolio, you need to remember that the money you put in your savings account is outperforming inflation at no risk to your capital ? you simply can?t say the same thing about money that?s tied up in volatile equity markets.??

Four Things to Consider Before Putting Your Money in the Market

Projecting and visualizing risk helps you make informed, high-performance financial management decisions. At this point in time, we believe that there are four key market-related risk considerations you need to be aware of if you?re currently trying to decide between putting your money in a savings account or investing in the stock market.??

1. A Tiring Bull Run? 

As it stands, the Canadian bull market, informally represented by the benchmark S&P/TSX Composite Index, is the longest and best performing bull market in the history of Canadian financial markets.?

Nevertheless, no bull market lasts indefinitely and, despite several years of unprecedented stock market returns, there are now well-founded fears that the current bull market is nearing its end. On the domestic front, the factors underpinning a potential pullback in the bull market include:

  • External business and trade reliance: Most of the companies that make up the S&P/TSX Composite Index are heavily dependent on an ostensibly strong but deceptively fragile U.S. economy. 
  • Looming fears of a housing market correction: Despite ongoing affordability concerns, Canada?s real estate market continues to be characterized by low inventory, flagging optimism, and sky-high valuations. 

With such a high level of household debt, even minor shifts in the U.S. trade balance or domestic property market could cause major falls across the broader stock market, potentially triggering widespread capital flight and significant value depreciation in the S&P TSX Composite Index.       

Now, before you jump in and say it, we know that there?s always someone predicting the demise of a bull market. However, in this case, the sheer number of economic slowdown indicators is assuredly more than enough evidence to begin reducing your exposure to volatile asset classes, especially stocks and derivative instruments.?

2. Instability in China and the Lingering Grip of the Coronavirus Saga 

Despite encouraging yet unconfirmed reports of a treatment breakthrough, the novel coronavirus is expected to continue wreaking havoc on global markets. In a business cycle where market sentiment is already tenuous, China?s decision to temporarily shutter key factories has caused turmoil in the global economy, sending shockwaves through European, Indo-Pacific, and North American stock markets.?

In particular, because of the way global production networks are structured, the disruption in China?s manufacturing and global technology supply chains will likely have a lingering impact on the volatility of North American equity markets. As of the time of writing, 28,349 cases of coronavirus have been confirmed, with 5 known cases in Canada.???

3. Trade War Proliferation

Using conservative calculations, the trade war between the U.S. and China has caused tariffs to be placed on a staggering $550 billion in trade, mostly in the manufacturing and agricultural sectors. Despite a promising amelioration in trade war dialogue, investors remain braced against further dips in the U.S.-China trade relationship.?

So far, Canada has escaped the worst of the trade war fallout. Nevertheless, if trade tensions begin to re-escalate, the subsequent uptick in destabilising trade actions, be it U.S. tariff conditions or Chinese currency devaluations, will surely ripple into the Canadian stock market.??

4. A Threatening U.S. Election Outcome? 

President Trump?s impeachment trial may be done and dusted, but the turbulent and seemingly haphazard status of U.S. foreign and trade policy is expected to continue to cast a long shadow over the performance of neighboring equity markets.?

Given the level of political polarization and class division currently plaguing the U.S., some commentators have put forward believable scenarios for an outbreak of widespread political violence during and/or following the 2020 U.S. presidential election. If such a scenario comes to pass, even partially, it will very likely trigger a severe pullback in North American stock markets.?

The Bottom Line 

Unfortunately, the economic issues discussed in this article are not the only potential threats faced by global equity markets. Other pressures on the Canadian stock market include Brexit-induced economic anxiety amongst key EU partners, an all-time-high global debt bubble, and increasingly volatile geopolitical risks in the Middle East and Indo-Pacific.

If you search for a trend amongst this laundry list of market-related risks, what ends up emerging is a veritable powder keg of factors primed to seriously hamstring the Canadian stock market. Given the extent of the underlying risks to your capital, it?s highly advisable to consider reducing your portfolio?s stock exposure and redirecting the funds to a high-interest savings account. In addition to being a risk-free way of storing funds, piling your money into a savings account will also ensure that you have cash on hand to invest in undervalued assets when Canadian stocks eventually enter a bear market. 

How to Start Investing in Real Estate

real estate

Do you wish to invest in real estate but lack the knowledge needed to begin the process? Billionaire Andrew Carnegie is famously quoted as saying that 90 percent of millionaires got their fortunes from investing in real estate. It?s no secret that investing in real estate is a viable way to generate wealth. If you are interested in profiting from real estate investing, the following tips will help you get started.

real estate

Research Your Local Market

The main objective is to locate properties that are priced below the value of the market and are in need of repairs. In the real estate industry, they refer to these properties as ?handyman specials.?

Determine Funding Options

If you are looking to invest, you are unable to get approved for a conventional loan. If you are not going to purchase the property with your own cash, you will have to find what is referred to as a ?hard money lender.? Hard money lenders typically charge higher interest rates and have shorter pay-back terms. Use a mortgage estimator to figure out what your potential monthly payments will be.

In regards to the down payment, ten percent is usually the lowest down payment that you will pay as an investor. There are times when you will find a seller that will allow you to purchase a property with no money down.

Enter Into a Purchase Agreement

Once you figure out your funding solution, you are ready to enter into a purchase agreement for the subject property. Once you and the seller agree upon terms and a sales price, you can execute the sales contract with your signatures. The next phase in the process is the appraisal and title search.

Appraisal and Title Work

The appraisal determines if the property is indeed worth the price it is being sold for?or the after-repair value (ARV). An appraiser is paid to visit the property and conduct a thorough evaluation. The appraisal report is based primarily on the condition of the property, and the comparison of similar properties recently sold in the area.?

A title search is performed by a real estate attorney or a title company (depending on the state). The title search assures that the property is free of encumbrances and solely owned by the seller.


Once the property is appraised and the title work is completed, the attorney or title company will schedule the closing. At the closing, you will sign the closing documentation and receive the keys to your new home. After taking possession of the property, dedicate your nights and weekends to rehabbing the home.


Now that you have a more profound understanding of the real estate investment process, you can proceed with confidence. You now possess the information needed to begin your life as a real estate investor. Once you successfully complete your first deal, you can repeat the process. By multiplying your efforts, you will be able to quickly begin generating wealth as a real estate investor.

7 Common Life Insurance Mistakes People Make

Common Life Insurance Mistakes

An important investment to make once you start making money is life insurance. Your personal finance should include payments that you make for your life insurance so that you are prepared for any possibilities.

A lot of people think that life insurance is something that is too expensive. That?s one of the main reasons why people don?t set up life insurance policies for themselves. Another reason people might not think to have life insurance is that they believe that they?re currently healthy so they don?t have the need for it.

There are many mistakes that people make and assumptions people have about life insurance that aren?t right. Below are seven other life insurance mistakes that people make that you should know about.

1. Not comparing policies

Before you commit to any insurance company you have to make sure that you do your research about the financial strength rating of your chosen insurance provider. Should your family need to file a death claim you want to make sure that they have an easy time and that they aren?t subjected to unnecessary hassle.?

You can check out reviews online to see which insurance companies are the ablest to pay out during a death claim. Sure, your insurance company might be kind now since you?re paying them on a regular basis, but once people you love to file a death claim, it might be a whole different business.

2. Waiting too long to get insured

Life insurance shouldn?t be something that you start right when you feel like you?re getting older and your family might need it. The sooner you have life insurance, the faster you?ll be able to set everything up. Plus, life insurance premiums will be a lot more expensive once you are older in age anyway.

This is because the older you are the likelier you are to get some health issues as well. In some cases, you might not be able to purchase an insurance policy. Thus, it is much more important to get life insurance while you?re younger instead of waiting before getting one.

3. Not considering it as an investment

Life insurance is an investment both monetarily speaking and in general. It?s not some monthly bill that you pay off. You should view it as an investment opportunity as well. Life insurance mainly is used for life insurance protection. However, part of it goes to an account that invests in a variety of mutual funds.

The account?s value differs depending on the performance of the particular investment that your insurance provider has put it into. Therefore, these insurance policies aren?t only something that you get after a death claim. These are also insurance policies that can be a source of cash during your retirement.

4. Choosing the price, not the coverage

People tend to choose the cheapest option when choosing their life insurance, which is definitely not the best choice. When comparing life insurance quotes nz, remember to also look into the coverage. If you pay a suspiciously affordable rate, then it might mean that you aren?t getting the best coverage possible.

When the time comes, you might see that your investments were for nothing once you start filing a claim. Take your time with choosing your coverage. Read through the fine print and figure out which one works best for you. Look into other insurance companies and compare the coverage for the same price range.

5. Being too skeptical

Skepticism is good for some cases but too much of anything is not good for you. One of the many ways that too much skepticism can harm you is if it inhibits you from getting life insurance. Some people think that life insurance is all a scam. They believe that they should have enough assets on-hand when the time comes anyway.

However, what one should consider is that should you pass away, your family will have immediate benefits that they can use during this tough moment in their lives. Aside from that, the benefits that you get should not be subject to any federal income taxes.

6. Failure of reviewing the policy

Once you have life insurance up and running, you should get into the habit of reviewing your policy every once in a while. Perhaps you want to change something in your policy that no longer fulfills your current needs. Reviewing your policy keeps your life insurance fresh in your mind and allows you to figure out whether there is time for key changes.

You might find that your current life insurance policy isn?t enough to answer your needs if you review it. The unspoken rule is that you should be reviewing your insurance policy every year to see if it still works for you or not. You don?t want to pay for things that you don?t need or pay for things that aren?t enough for you after all.

7. Keeping it a secret

Although it?s a societal taboo to talk about personal finances, when it comes to your insurance policy, you have no choice. Someone needs to be your beneficiary so that they can make a claim.

Aside from your beneficiary, you should also talk to your own personal financial advisor as well as an estate-planning attorney of your choice.

Life insurance is an important investment not only for yourself but also for the important people in your life. By avoiding these common life insurance mistakes, you are saving yourself from a whole load of work that you might be dealing with in the future. Thus, make sure that you apply these and protect yourself.

Also Read- 3 Types of Business Insurance that are Essential for SMEs

A New Vision for Business Education [The Complete Guide]

Business Education

If you are curious about knowing the new vision for business education, then you are surely in the right place because today we are going to help you out in knowing all about the new business education tactics and how students can enjoy new business education with the help of practical experience and technology! 

You must know the fact that business education has been bashed in this decade by other departments because of being theoretical and unprofessional, but it is an established fact that business education in a conventional manner was still one of the most professional and life-changing educational programs but as the world is changing and shifting its attention towards the digital technology and modernization of the education system, it was only fair that a new vision was given to the education system in business!

Now before telling you about the different means and features of the new vision of business education, we would like you to know about the all-new significant figures calculator tool. The significant figures calculator is the new online tool that can help you in calculating the significant figures without any manual complications.

A person having zero knowledge about significant figures and the significant figures calculator can still use the SIGFIG calculator online tools or the significant figures calculator application! We will recommend you to use the sig fig calculator if you are weak in math and are still interested in solving problems related to business!

New Technology and The New Vision It Brings!

In business education, you will be very happy to know that the new technology can now help you out in active participation and presentation of your concepts and ideas.

We would like you to know that the new tools by Google and other renowned brands have enlightened the education system and have made the connection between students and the teachers more reliable and secure!

Today you can use the new technology to study or discuss a problem at your home by still staying in touch with your colleagues and can also get help from your instructors!

Not only this but we would also like you to know that the business education system in light of new vision and new technology will simply help you out in preparing new exciting and professional assignments and presentations! You can use the tools to make your ideas portrayed in a very professional manner.

These tools and the new vision of the education system will help students get ready for the practical life and in a very polished way!

Practical Approach Towards Problems!

The new vision of business education states that there is a need for approaching education towards a more practical avenue! Business is all about practical approaches and how to perform in the field on the basis of theory you have studied.

If you are not given the proper exposure before you actually enter the practical life, then there is a lot of chances that you can make some silly mistakes which are not always tolerated by the companies hiring you or even in your own business you can’t afford these kinds of mistakes. So it is important that during your studies in business you get to know about the actual physical problems!

The new vision states that the students are given practical problems and cases and a proper environment and a team that can help them in solving an issue related to the corporate world! In this way, the students will get ready for even the most complicated problem and in the most professional way and with a lot of confidence!

Also Read- 3 Ways Frugality Helps Build Wealth