All credit to the 20- and 30-somethings who have started investing and either own a home now or will soon. Achieving financial goals at a young age tells people you have drive, a keen understanding of money and, sometimes, well-off parents.
Just as impressive, and maybe more, are the people who start investing and buy homes in their 40s. Whatever the reason for their delayed start, they are an inspiring example of how to roll with life’s challenges and end up doing just fine, financially speaking.
In an upcoming episode of our Stress Test personal finance podcast for millennials and Gen Z, we want to talk with people who bought their first home or started investing in their early 40s. If this sounds like you, e-mail producer Zara Khozema at zahrakhozema95@gmail.com.
Our goal in this episode is to send a positive message to people who for whatever reason feel like financial security is beyond their reach because they didn’t land a great job at 23 and buy a house at 30. A late start can be a great start. We’ll show you the way.
Callout
The Globe is looking to speak to retired employees of Canada’s big banks (RBC, TD, BMO, CIBC, Scotiabank and National Bank) and their spouses who currently receive a defined-benefit pension. Have you received any cost-of-living adjustments since 2021?
E-mail Globe reporter Erica Alini.
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Rob’s personal finance reading list
No-spend January, big spend February?A look at the no-spend January trend, which reminds me of Dry January. People are looking for a reset in the new year, which is great. But any reset needs sustainability to be successful. That’s something to remember in February.
The bitcoin ETF price warInterest in crypto investing has picked up since the U.S. election victory of Donald Trump, who seems poised to give this asset more prominence in his country’s finances. Here’s a story about how exchange-traded fund companies are competing with lower fees to attract business to crypto ETFs. These ETFs are an excellent way to get exposure to crypto. I own one myself.
Bonds in retirement? Maybe notA personal finance blogger asks the question of whether retirees need bonds in their portfolio, and then says the answer for him is no. Bonds disappointed investors when they lost money in 2021 and then again in 2022. Bonds have bounced back some, but their benchmark index is still down a cumulative 1.8 per cent over the past three years.
That sinking feeling when your pet is sickCBC Marketplace digs into corporatized veterinary care, which has driven up costs for people seeking help for their pets. One pet owner was hit with a $1,100 bill for tests and treatment after bringing in a sick cat.
From readers
Ask Rob
Question
Given the size and strength of the big Canadian banks and their related brokerage operations, does it make any sense to spread my investments/savings across different institutions? If I have a large portfolio, say $4-million, does spreading my portfolio across different institutions reduce my risk exposure to institution failure/insolvency? It adds quite a bit of extra work and attention to deal with different software, platforms, accounts. Is it worth it?
Rob says
The
Canadian Investor Protection Fund offers coverage of up to $1-million if cash or securities in your account go missing as a result of the failure of your investment company. If you have a seven-figure account and want 100 per cent certainty that you would not lose money if your bank-owned brokerage failed, then spreading your money around to various banks makes sense. Me, I would not do that. I just don’t see enough risk to merit the work involved.
Do you have a question for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Tools and guides
A cheat sheet listing of tax breaks for seniors.
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