Investing using a Canadian Controlled Private Corporation (CCPC) can come with a number of investing dilemmas. In this episode, we apply some of the knowledge base from the main episodes on corporate investment taxation and investing strategy. We’ve picked three cases highlighting common investing questions that people face trying to mesh their investment strategy within a corporation. Both in terms of how to fit their corporation in with other personal accounts and what strategies to use for balancing tax-efficiency and investment performance. The idea is that you will consider how the situa ..read more

In the last episode, we introduced how investment taxation using a Canadian Controlled Private Corporation (CCPC) works. Today, we start talking about how those tax consideration fit into your investing strategy. Different strategies and products are aimed at different aspects of corporate investing. You want to make sure that you understand them to be the big dog. So that you don’t get wagged by the tax-tail. Learn more about those products and strategies to see if they pass your sniff test. We’ll dig into that today. To get the best results, you must understand this to mesh your long-term p ..read more

You’ll encounter a variety of expensive storytellers on your investing journey. Some get paid to sell you stories. Others use stories to sell you investment products. Nefarious characters may use stories that leverage greed and trust to lure investors into fraudulent scams. Those are all expensive stories for those who buy them. However, the storyteller that you will encounter every minute of every day is yourself. You might tell yourself some of the most expensive stories. Today, I will share some of the common internal dialogues that I have encountered. Not only ones shared with me by others ..read more

In this episode, we cover investing in a Canadian corporation. Investment returns earned in a corporation are generally taxable. However, the way that the taxes work is complicated. There are potential pitfalls if you don’t pay attention. Efficiently flowing investment income from your corporation into your personal hands is the holy grail of investing for incorporated business owners. Join us for this episode to avoid tax booby traps in your corporate investment account. Go To The Money Scope Episode Ten “Basically, a corporation is a separate way of managing the income and expenses for the ..read more

People love stories and the delivery of a good investment narrative by a skilled and charismatic storyteller is powerful. However, listening to and buying the wrong stories can be very expensive. We’ve previously heard from The Narrator who gets paid for their story and The Sales Advisor who uses stories to sell products. This week, we’ll hear from The Charlatan. Their stories can be the most expensive. Beneath the veneer, they are selling a Ponzi scheme or other scam using trust and greed to bypass our defenses. Total loss is the most common outcome. Before you scoff and claim that it would n ..read more

In this episode, we explore some common issues that investors can run into when they are investing in a taxable investment account. Taxable investing has no limits on contributions, so it’s possible to accumulate a lot of taxable wealth, but it’s important to be mindful of tax-hobbits. Learn about some traps we can fall into, to avoid them. There are also ways to improve the tax efficiency of without sacrificing their role as a stabilizer in your portfolio. We also go through a case about using leverage to invest coupled with nuances of the attribution rules. Case 1: Searching for Income Case ..read more

Each account has specific features and rules that dictate how they should be used. Most of the account types – called registered accounts – also have limited contribution room. The one account type that is unconstrained by contribution room is the taxable investment account. Unlimited contribution room might sound great, but unlike a registered account a taxable investment account is fully exposed to taxes on investment returns. In this episode, we dig into the nuances of taxable investing. It is worth your while because they also come with tax benefits and sometimes even government grants. W ..read more

Welcome to the supplemental episode to the main episode about Canadian investment account types. In this episode, we explore some of the dilemmas that people face in deciding which accounts to use for investing. Accounts are just containers to hold investments. Like rooms in the house that is your portfolio. How do you choose which doors to open and put your stuff into? What if you put it in the wrong room or are afraid of making that type of mistake? Case 1: Planning For a Windfall: RRSP, TFSA, or Both? Case 2: Oops! Wrong Room: Escaping a Group RESP Case 3: Incorporated Professional Afraid ..read more

The opposite investment strategy of specialization is diversification. I previously discussed why you should specialize in your business or professional career. Most high-income professionals are intimately familiar with that idea after years of honing their craft. In that context, the hard work usually pays off. Unfortunately, we often then extrapolate that approach to our investment portfolios. That attempt to specialize and outperform at investing in financial markets leads to a wider range of results. Counterintuitively, the most likely outcome is underperformance due to several factors. L ..read more

For most investors, we buy and sell capital assets via publicly traded markets. In the preceding post, I described how asset pricing underpins how much rational investors are willing to pay for an investment. When you bring investors together on the buy and sell sides of trades, that is a market. Markets are information processing machines and price is the product. The efficient market hypothesis is the idea that a market processes all currently known information about an asset’s prospects that the participants bring to the table. That makes it impossible to beat. This is an obvious thorn in t ..read more