To start, let me simply state that if you are Canadian and you have a goal to buy your first home, you should use an FHSA as the best way to save for your down payment. Also, if you are a parent with a goal of contributing to your child’s first house down payment, then helping them with an FHSA contribution is a great idea too. Now that I have your attention, let’s first dive into the details and facts surrounding the First Home Savings Account. Then, we’ll talk about some strategies and recommendations to squeeze maximum advantage from this program. What is the FHSA? The FHSA is a new tax advantaged registered account meant to help Canadians save for and purchase their first home. Like an RRSP or a TFSA, the FHSA is something you must register for by opening a specific FHSA account and then deposit savings into that account. The key advantage of an FHSA is that it provides direct tax savings in three ways: First, when you put money i...
I've been asked a few times quite recently some variation of the following question: "Given the recent political turmoil, especially with Canada and the US, what should I do with my portfolio? Should I have more/less US dollars? More (or less) US equities? What about Canadian stocks?" The short answer is I have no idea nor does anyone else and so staying the course is usually your best option. That is, one of your most important investing skills is the ability to do nothing. At first glance, this might not seem like a skill at all. Isn't investing about making timely decisions, identifying opportunities, and reacting to market movements? For a select few maybe, but successful retail investors, especially when facing unsteady or volatile markets, practice the fine art of doing nothing. Why Do Nothing? The Nature of Markets: Markets are inherently cyclical. They experience periods of growth followed by inevi...