How to EASILY Outperform Robo-Advisors
Ed Rempel
by Ed Rempel
1w ago
It is EASY to outperform robo-advisors? Why? They don’t even try to outperform. They try for: “Reasonable return with less risk”.  You would think robo-advisors would just invest in a few broad indexes, but often they don’t. And they require you to invest in bonds no matter how high your risk tolerance. Robo-advisors are big investment companies, not financial planners. They are more likely to lose a client because of a 30% 1-year market decline than 10 years of lagging the index. So, they focus on market fluctuations, not your life goals. This makes them use “performance drags” that ty ..read more
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5-Year Fixed Mortgage Trap
Ed Rempel
by Ed Rempel
1w ago
The average Canadian wastes $22,000 after tax during their life for every $100,000 of their mortgage and takes 38 months longer to pay it off, according to a study by Moshe Milevsky. This is because of taking 5-year fixed mortgages instead of variable. They are marketed as being safe and a good protection against a sharp rise in interest rates.  The reality, though, is that they are nearly always a huge waste of money, because the interest rate is nearly always higher and you lose your negotiating power for five long years. From 1975-2019, 1-year fixed mortgages saved money 100% of the ..read more
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Financial Post Article: Married couple need roadmap to ensure their comfortable lifestyle continues in retirement
Ed Rempel
by Ed Rempel
2w ago
PHOTO BY ILLUSTRATION BY CHLOE CUSHMAN/NATIONAL POST The Financial Post asked me to review the finances of a married couple in their 60s who are winding down their successful Ottawa-based consulting business and operating company. They want to shift to a two or three-day workweek and take summers off, and they are trying to determine where to invest their money, so they can keep their comfortable lifestyle during retirement. In the article you’ll learn: How should they set up their retirement income? How much should they pay themselves in dividends from their corporation? Why Clarissa should ..read more
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Asset Allocation Loss Ratio (AALR) – What Is It & How Does It Help You?
Ed Rempel
by Ed Rempel
3w ago
When you go to any investment firm, they require you to fill out & sign a Risk Tolerance Questionnaire of some kind. The purpose is to prevent you from investing too aggressively. This can be important, because you might sell a more aggressive investment when it is down and lose money. However, there are 2 important questions: –          What prevents you from investing too conservatively? –          Can you achieve your life goals with the more conservative investments? These are critical questions, since almost nobody can retire comfor ..read more
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Financial Post Article: This 70-year-old with some risky investments wants to know where to put his money
Ed Rempel
by Ed Rempel
1M ago
PHOTO BY GETTY IMAGES/ISTOCKPHOTO The Financial Post asked me to review the finances of a 70-year-old retired man who is expected to inherit $200,000.  He has been focusing on growing a modest, self-directed investment portfolio using a mix of somewhat risky stocks and funds. What should he do now for the next chapter in his life? How much does he need to retire, what should he do with his inheritance, should he buy or rent his next home, and how should he invest? Can he afford to move to another province, start traveling, pay off his mortgage, cancel his life insurance policy? In the art ..read more
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Rempel Maximum – 5 Steps to Becoming a Multi-Millionaire
Ed Rempel
by Ed Rempel
1M ago
Remember the show “Who wants to be a millionaire?” Are you the kind of person that wants to build some serious wealth? Live an exceptional life? Be financially free? I don’t mean just a comfortable amount. I mean a lot – like being a multi-millionaire. The truth is, average people can become very wealthy just by managing their money for maximum growth. Prefer an overview? Like videos? Check out our whiteboard video, podcast episode, or read the full post below! The chart is based on “The Story of Joe & Rich”. This story is an extreme version of the life of an ordinary person managin ..read more
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How to EASILY Outperform Index Investors
Ed Rempel
by Ed Rempel
1M ago
It is EASY to outperform index investors? Why? They don’t really try to get index returns. They try for: “Reasonable return with less risk”. This makes them use “performance drags” that typically reduce their returns by at least 1-3%/year: 1/ Bonds – They usually invest partly in bonds, even though studies show that over 20-year periods, equities (stocks) are more reliable. Equities have a lower 20-year standard deviation after inflation than bonds. 2/ Home country bias – They invest in Canada because it sounds safer, even though returns have been 1-3%/year lower than global stocks. Canada ..read more
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How to Easily Outperform Financial Advisors, Robo-Advisors & Index Investors
Ed Rempel
by Ed Rempel
1M ago
Financial freedom is what we all want. We talk to people about their finances all the time and most people just want to know that their money is there, and they can live their life the way they want, but very few Canadians actually get there. Why? Most Canadians are not financially secure because of sub-optimal investments and focusing on the wrong risk. In my latest blog post, YouTube video, and podcast episode I’m going to show you how to outperform all these methods: How to easily outperform financial advisors, robo-advisors, and index investors. Why is good performance important for you ..read more
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Money123 Article: Using a Credit Line as Your Emergency Fund
Ed Rempel
by Ed Rempel
1M ago
Do you have a credit line? It may be a great way to provide for emergencies, instead of having cash lying around. As a financial planner for Global News’ Money123 online email newsletter, I answer reader questions about investing, managing your finances, and planning for your future. In the latest email that went out to subscribers, I answered a question about whether a credit union would decrease equity access as retirement nears. By the way, my answer is at the bottom of the email newsletter. Here’s a link to the Global News Money 123 email newsletter with what I recommend: globalnews ..read more
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Financial Post Article: Retired multi-millionaire wants to know pros and cons of LIFs vs. RRIFs, but he has a bigger issue
Ed Rempel
by Ed Rempel
1M ago
PHOTO BY BRENT LEWIN/BLOOMBERG The Financial Post asked me to review the finances of a retired multi-millionaire who needs to prioritize tax efficiency, as well as the pros and cons of LIFS vs. RRIFs. In the article you’ll learn why it’s so important for someone with this amount of wealth to create a financial and retirement plan. CLICK THE LINK BELOW TO READ THE ARTICLE BY MARY TERESA BITTI: Retired multi-millionaire wants to know pros and cons of LIFs vs. RRIFs, but he has a bigger issue Ed’s Financial Planning Advice Financial Plan What does he plan to do with his money? He has $4.4 millio ..read more
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