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Online Broker Advertising

It seems the frequency of online broker advertising on TV or the internet has increased dramatically. There are two distinct, separate messages. The message is either lower your cost or the superiority of trading tools. The first message is that you can lower your cost factor by investing through their firm. The online brokers that deliver this message are largely promoting their proprietary Robo-advisor. My thoughts on a Robo-advisor are that even though they provide a better (lower cost) financial planning solution than the traditional method of investing through a financial advisor, why not cut the cord completely and Be Your Own Financial Advisor. The BYOFA investor has significantl

Readers' question: In terms of investing for retirement, is TFSA a better option than RRSP

Thanks for the question. It has been asked for years. I’ll answer by comparing a standard situation and determine which is better. But, before that, it is important to note that TFSA contributions have greater contribution limitations than RRSP contributions. If a TFSA is up to date, the contribution limit is only $5,500 per year. If you have more to save the choice is between the RRSP or the non-registered account. There is no debate the RRSP is the better option than the non-registered account for savings earmarked for retirement. Here is the scenario I’ll work through. Two people earn $100,000 and both save $5,000 per year and earn 6% per year on their savings. Mr. RRSP contribute