Jul 25, 2019
On the show today we are going back to basics, just Cameron and Benjamin going through some useful topics for your financial benefit! We start talking about GIC's and the article on MoneySense that led to this conversation. GIC's have a somewhat mix and match reputation, one which we believe has been often misunderstood and misrepresented. We try to show in which ways people have been misled into thinking that GIC's are the best option when, we believe, they are not. From there we turn to more general portfolio ideas, comparing the performance of the S&P 500 over time and drawing on a very useful study that illuminates the index's limitations. Our last topic for today is around saving for college and RESP's or registered education saving plans. We talk about asset allocation, how to think about starting and best practices when drawing on these funds. We finish off the show with some bad advice regarding dividend investing that actually referenced a video we made! So for all and a bunch more great stuff, be sure to tune in today!
Key Points From This Episode:
- Our recent summer travels and getting away from it all! [0:03:02.4]
- The article by Jonathan Chevreau that sparked part of today's discussion. [0:05:46]
- GIC's, long term returns and the financial implications of your choices now. [0:07:15.2]
- Reasons why returns on GIC's can be misleading in the short term. [0:11:02.7]
- The S&P 500's performance against other portfolio options. [0:13:56.3]
- Market drops and risk appetites during panic periods. [0:19:15.2]
- Saving and drawing on college funds and education plans. [0:22:40.2]
- Asset allocation and the best way to think about covering costs. [0:27:41.1]
- Withdrawing funds and making the most of unused college savings. [0:31:21.3]
- This week's bad advice! An argument about dividend investing. [0:33:30.8]
- And much more!