Nov 10, 2017 – Today’s Questrade Offer Code / Promo Code

$50 FREE REBATE @ Questrade

It’s and we have for you today the active Questrade Offer Code (Promotional Code)! Use the following promotional coupon offer code at Questrade to claim your FREE $50.

$50 Questrade Offer Code (Promo Code):

Canada

OR Click Here to Use this Offer Code at Questrade

Note: Input the above promotional offer code (colored in red) into the “Offer Code” input box when signing up for a new account at Questrade.com. Enjoy your FREE $50!

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Investment Tip of the Day

Dollar Cost Averaging

Dollar Cost AveragingOne of the most powerful and underused investment strategy that can be deployed is dollar cost averaging (DCA). This technique is designed to reduce market risk by making consistent security purchases at predetermined amounts over the course of a period.

Many investors like to make lump sum investment purchases but because market conditions are unpredictable it’s possible that making such a large one-time purchase can result in a lower return than if you were to work into a position by slowly buying small amounts over a long period of time. By persuing this latter course of action it spreads the cost and potential risk over many years, thus padding against market price fluctuations. In other words, it lowers the total average cost/share. This approach also has the benefit of giving one the chance to purchase shares when prices are low and take on fewer shares when they are high-priced.

Dollar Cost Averaging is primarily for long-term investors. And many discount brokers, such as Questrade, offer automatic withdrawal plans for such a strategy.

Index funds are the ideal types of securities for the dollar cost averaging plan because they help diversify your portfolio and keep the cost more stable as you execute your dollar cost approach.

This approach is not without its critics. Because you are only investing a small amount each month, for example, its going to take a long while before a descent amount of shares is held. Also DCA will likely increase transaction costs. Each time you invest a bit more into your portfolio there will be a fee by the discount broker to do so.

Interestingly, if the stock price continues to rise over the period then the DCA plan will result in a higher average stock price than say if you had invested in one lump sum.

When all is said and done the greatest benefit DCA brings is the sense of discipline. Because the investment amount is so small it makes it easier for people to save for the future.

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Nov 10, 2017 – News Today

Freedom Mobile network will soon work with iPhones, other LTE devices, Shaw confirms

Freedom Mobile, the wireless brand that Shaw Communications bought last year, says it has struck a deal with Apple that will allow its customers to use iPhones on its network, along with a much wider variety of other LTE devices. Read More

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Nov 9, 2017 – Today’s Questrade Offer Code / Promo Code

$50 FREE REBATE @ Questrade

It’s and we have for you today the active Questrade Offer Code (Promotional Code)! Use the following promotional coupon offer code at Questrade to claim your FREE $50.

$50 Questrade Offer Code (Promo Code):

Canada

OR Click Here to Use this Offer Code at Questrade

Note: Input the above promotional offer code (colored in red) into the “Offer Code” input box when signing up for a new account at Questrade.com. Enjoy your FREE $50!

Check out this detailed Questrade Review

Investment Tip of the Day

Tax-Free Savings Accounts

TFSABack in 2008 the Ministry of Finance introduced the Tax-Free Savings measure as an investment option for Canadians to save for the future. It is a type of savings account whereby any investment income earned inside the account (including compounding interest) will not be taxed, even when withdrawn.

For Canadian residents of 18 years of age or older with a Tax-Free Savings Accounts (TFSA) one can withdraw money at any time. However, contributions made to it are not tax deductible.

There is a $5,000 annual contribution limit. And any unused TFSA contribution is carried forward and accumulates for the following years. Withdraws cannot be re-contributed without risking over-contribution for that year — one must wait until the following year before the room is made available again (it is reallocated in the tax year following the withdrawal). So, for example, if you’ve contributed $5,000 for the present year into your TFSA and then go about withdrawing the full $5,000 then you cannot re-contribute any more money into this account until the following year.

TFSAs come in a variety of investment flavors including as GICs, bonds, public/private traded shares investment accounts, mutual funds, and many more. The structure of TFSAs are very generous in what it can be used towards in earning tax-free income. And one extra benefit is that income earned doesn’t affect federal credits and benefits like Canada Child Tax Benefit and Old Age Security.

TFSA also allows limited income splitting by allowing higher-earning individuals to contribute to a lower-earning spouses TFSA.

Some may confuse TFSAs with RRSPs. However, in many respects TFSA is the direct opposite of RRSPs. RRSPs are for retirement and TFSA is to be used for everything else. Contributions to RRSPs are tax-deductible and withdraws and investment income are all taxable. Contributions into a TFSA are not tax-deductible but there is no tax on withdraws of investment income earned or contributions to a TFSA. RRSPs also must be withdrawn before the account holder turns 71 in age. TFSAs on the other hand do not expire. Another notable distinction between the two is that any withdraw space made within a TFSA is automatically made available as contribution space again in the following year. Contribution space is permanently lost on RRSPs once a contribution was made and a withdrawn is taken.

TFSAs are similar to Roth IRAs of the United States.

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