Mutual Fund and RRSP Advice - EMC

Efficient Market Canada is an independent investment magazine for Canadian mutual fund, exchange traded fund (ETF), and self-directed RRSP investors. We translate investment research into practical advice for ordinary self-directed RRSP investing, with focus on low-cost exchange traded funds and mutual funds.

Never Sell: Buy and Hold Forever - (Found August 15, 2008 )

When should you sell a stock The answer may surprise you.If you browse the investment literature you are sure to find a lot of advice on when to sell. The news wires buzz with analysts recommendations to buy, hold, or sell an investment, or to underweight or overweight it. Or you'll hear that you should periodically rebalance your portfolio--exchanging growth stocks for values, or blue chips for bonds when the market is up or down, or depending on where interest rates are said to be going, or.
http://www.efficientmarket.ca/article/Buy-And-Hold

How much US dollar investment in your RRSP is too much - (Found August 15, 2008 )

A reader recently wrote asking whether the allocation of ETF's I recommended in RRSP Foreign Content Rules Scrapped overweightedinvestment in the United States--wondering in particular if perhaps there is risk that the US dollar might be devalued soon. How much foreign content should you hold in a self-directed RRSP
http://www.efficientmarket.ca/article/Foreign_Currency_Investment

Form T1213: Reduce Tax Deducted From Your Pay When You Contribute to an RRSP - (Found August 15, 2008 )

Did your RRSP contributions win you a nice tax refund this year If so you goofed. It's wiser not to overpay your taxes. If you make regular RRSP contributions you can ask to have less tax money deducted from your paycheque each month. Simply file a request to reduce tax deductions at source (T1213) and see a fatter paycheque all year long. The best part is that extra cash will make it easier to hit your 18% RRSP contribution target throughout the year, rather than having to scramble at the last.
http://www.efficientmarket.ca/article/Reduce-Tax-Withheld

Canadian RRSP Investors: Demand Passage of RRSPRRIF Legislation - (Found August 15, 2008 )

The recent budget proposal to eliminate the RRSP foreign content limit is in trouble: Bill C-43 may die on the order paper. Bill C-43 is the enabling legislation that implements the key budget proposals that every party in the Commons had previously agreed to. This includes the removal of the foreign content restriction on RRSPRRIFs, as well as the increases in the amount you can contribute tax-free. If the Opposition defeats the Liberal minority government before Bill C-43 becomes law it will..
http://www.efficientmarket.ca/article/BillC43

Exchange Traded Funds: Recommendations - (Found August 15, 2008 )

Now that you can own whatever you like in your RRSP the question on everyone's mind is, what In this article I've briefly summarized the exchange traded funds that I recommend you use to build the foreign portion of your portfolio. The majority of these funds trade on the American stock exchanges.
http://www.efficientmarket.ca/article/Exchange_Traded_Funds

RRSP Foreign Content Rules Scrapped! - (Found August 15, 2008 )

Suddenly I love our Finance Minister. Effective immediately the foreign content restrictions on RRSP's have been eliminated. This is a huge and wondeful change: You can now own as much United States, European, and overseas content as you like in your RRSP. So how much should you buy This article will take a look at how you should structure your investments under the new rules.
http://www.efficientmarket.ca/article/RRSP_Foreign_Content

Your RRSP and your Mortgage: Is it a good idea - (Found August 15, 2008 )

Many of you are interested in using your RRSP savings to finance the purchase of your home, either through the Home Buyer's Plan, or by holding the mortgage of your home in your RRSP. This may be a bad idea from an asset allocation standpoint. In this article we'll consider the risks associated with owning a home, and how best to mitigate them.
http://www.efficientmarket.ca/article/RRSP_Mortgage_2

Your RRSP and Your Mortgage: The Home Buyer's Plan - (Found August 15, 2008 )

Should you borrow from your RRSP to buy a home There are several ways to do this. The simplest is to take advantage of the Home Buyers Plan. In this article we'll look at the mechanics of doing this: Is it a good idea to use RRSP money to finance the purchase of a home
http://www.efficientmarket.ca/article/RRSP_Mortgage_1

How Mutual Funds Work: Exchange Traded Funds - (Found August 15, 2008 )

This article will explain what an Exchange Traded Fund is, how to use them to manage your own RRSP, and what choices are available. We'll also have a look at the way mutual fund companies get paid so that you can avoid paying too much.Canadian mutual funds are in general a lot more expensive than American funds, and there aren't a lot of different asset classes to choose from. Fortunately there are two points of light: First, American Exchange Traded Funds (ETFs) can be purchased by Canadian...
http://www.efficientmarket.ca/article/ETF_Investing

Efficient Asset Allocation: Stocks or Bonds - (Found August 15, 2008 )

One tough nut in investing is the question of asset allocation:how much money should you invest in short-term bonds How much instocks There's much debate over this point, but I will do my best togive you some sound advice. You do need to heed this warning, though:there are no guarantees: For every possible investment strategy thereis a future in which it was the wrong choice. First, we will cover the basics and work out the absolute minimum amount you should have in bonds. What's left can go...
http://www.efficientmarket.ca/article/Stocks-Or-Bonds