Nov
26

Why “Invest for the Long Term” is Obsolete Advice

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In the late 1980’s, a number of things happened that changed the economic landscape- a number of mutual fund companies boomed, number of financial planners exploded and demand for shares of stocks skyrocketed. Until then, most Canadians invested in GICs or Canada Savings Bonds. It is a known fact that all mutual funds require fees regardless of whether you earn money or lose money. Moreover, Canadians actually pay much more for the same services than Americans do. Canadian fund profit margins are among the highest in the world. The no load funds simply charge an annual marketing fee which affects and...
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Nov
20

Why “Save Money” is Obsolete Advice

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For years, our parents have repeatedly told us us how we should save money in the bank. We were made to believe that if we had some money saved, we'll be set for life. That may be partially true back in the early days but in the 21st century, you can do way more with that money instead of giving it to the bank for "safekeeping." First off, the saying "a dollar saved is a dollar earned" no longer applies once the US went off the gold standard many many years ago. And because of past financial events such as the...
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Nov
18

Why “Get out of Debt” is Obsolete Advice

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If you have been following our blogs for a while now, you probably know that there are two types of debt: Good debt and Bad debt. Let’s take a refresher on what these two types of debts are. Good debt: Good debt is money leveraged to make more money. This is debt that someone else pays for you. Bad debt: Bad debt is consumer debt and money spent on consumable items. This is debt your pay for. It is a known fact that bankers want smart debtors as customers and not savers. Since a bank can take your dollar and magically...
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Nov
14

Alberta Budget 2019: Job Creation Tax Cut and Enhanced Capital Cost Allowances

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Alberta’s Budget 2019 highlights the measures it will take to give Alberta the most competitive corporate tax system in Canada. These measures include cutting corporate business tax rates from12% to 8% by 2022 and enhancing capital cost allowance rates. The following are the important facts and information you need to know regarding Alberta’s corporate tax measures: • The Job Creation Tax Cut is a legislated plan to reduce Alberta’s general corporate income tax rate from 12% to 8%. Under this plan, the rate was reduced to 11% last July 2019 and will be reduced further by 1% on January of each...
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