Podcast
Questions and Answers
What is the primary reason that mutual funds are considered not tax efficient?
What is the primary reason that mutual funds are considered not tax efficient?
Which of the following statements is true about ETFs compared to mutual funds?
Which of the following statements is true about ETFs compared to mutual funds?
Why do mutual funds tend to generate capital gains?
Why do mutual funds tend to generate capital gains?
Which characteristic generally makes ETFs more tax efficient than mutual funds?
Which characteristic generally makes ETFs more tax efficient than mutual funds?
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How do ETFs typically handle buying and selling of shares?
How do ETFs typically handle buying and selling of shares?
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What aspect of mutual funds leads to additional fees for investors?
What aspect of mutual funds leads to additional fees for investors?
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What is a key distinction between an ETF and a mutual fund?
What is a key distinction between an ETF and a mutual fund?
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What describes both ETFs and mutual funds in terms of investment?
What describes both ETFs and mutual funds in terms of investment?
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What is the recommended maximum withdrawal rate if you want to leave your principal intact for heirs?
What is the recommended maximum withdrawal rate if you want to leave your principal intact for heirs?
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If you plan to retire at 65 and are currently 19, how many years do you have left to save?
If you plan to retire at 65 and are currently 19, how many years do you have left to save?
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To be conservative in retirement planning, it may be advisable to assume which of the following?
To be conservative in retirement planning, it may be advisable to assume which of the following?
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Which of the following strategies does NOT contribute to successfully preparing for retirement?
Which of the following strategies does NOT contribute to successfully preparing for retirement?
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What is the trade-off mentioned when deciding on withdrawal rates in retirement?
What is the trade-off mentioned when deciding on withdrawal rates in retirement?
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What is considered the likely maximum safe withdrawal rate to avoid running out of money before death?
What is considered the likely maximum safe withdrawal rate to avoid running out of money before death?
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Which of the following is a common misconception about retirement plans?
Which of the following is a common misconception about retirement plans?
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What amount should you use for your average annual compound rate of return when being conservative?
What amount should you use for your average annual compound rate of return when being conservative?
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What should an individual prioritize in retirement income planning when in the lowest federal tax bracket?
What should an individual prioritize in retirement income planning when in the lowest federal tax bracket?
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At which income level does an individual transition to having the option to choose between TFSA and RRSP?
At which income level does an individual transition to having the option to choose between TFSA and RRSP?
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Which of the following statements is true regarding U.S. investments held in an RRSP?
Which of the following statements is true regarding U.S. investments held in an RRSP?
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What is a key disadvantage of U.S. ETFs when held in a TFSA?
What is a key disadvantage of U.S. ETFs when held in a TFSA?
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What is a benefit of making contributions to an RRSP?
What is a benefit of making contributions to an RRSP?
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What is a significant advantage of buying ETFs in the USA?
What is a significant advantage of buying ETFs in the USA?
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How do the reported returns of ETFs differ when compared to U.S. stocks directly?
How do the reported returns of ETFs differ when compared to U.S. stocks directly?
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What financial strategy should one undertake with the tax refund received from an RRSP contribution?
What financial strategy should one undertake with the tax refund received from an RRSP contribution?
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What is the most effective way to avoid 15% dividend withholding tax on U.S. stocks?
What is the most effective way to avoid 15% dividend withholding tax on U.S. stocks?
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Which type of fund is explicitly mentioned as an option for hedged investments?
Which type of fund is explicitly mentioned as an option for hedged investments?
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What is a disadvantage of investing in US ETFs?
What is a disadvantage of investing in US ETFs?
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When should individuals consider using RRSP before TFSA?
When should individuals consider using RRSP before TFSA?
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What is a notable characteristic of cryptocurrency compared to fiat currency?
What is a notable characteristic of cryptocurrency compared to fiat currency?
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What benefit do U.S. ETFs have over those listed on Canadian exchanges?
What benefit do U.S. ETFs have over those listed on Canadian exchanges?
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What emotional challenge might investors face when dealing with US ETFs?
What emotional challenge might investors face when dealing with US ETFs?
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What is a key difference between fiat currency and cryptocurrency regarding control?
What is a key difference between fiat currency and cryptocurrency regarding control?
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What is the main subscription fee for maintaining a USD dominated account mentioned?
What is the main subscription fee for maintaining a USD dominated account mentioned?
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Which of the following is NOT a reason that people may feel secure having a financial advisor?
Which of the following is NOT a reason that people may feel secure having a financial advisor?
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What is one approach that DIY investors can take to improve their investment outcomes?
What is one approach that DIY investors can take to improve their investment outcomes?
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What type of investments do REITs allow you to access?
What type of investments do REITs allow you to access?
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What is the primary drawback of investing in an individual REIT?
What is the primary drawback of investing in an individual REIT?
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Which of the following is considered a superior investment option compared to mutual funds?
Which of the following is considered a superior investment option compared to mutual funds?
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Which asset allocation is recommended for long-term growth?
Which asset allocation is recommended for long-term growth?
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What is a key aspect of a withdrawal strategy mentioned in the content?
What is a key aspect of a withdrawal strategy mentioned in the content?
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What is the primary goal of active investing?
What is the primary goal of active investing?
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Which of the following best describes passive investing?
Which of the following best describes passive investing?
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Which statement about mutual funds is true in the context of active investing?
Which statement about mutual funds is true in the context of active investing?
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What is a common characteristic of an index fund?
What is a common characteristic of an index fund?
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Why do actively managed funds often charge higher fees?
Why do actively managed funds often charge higher fees?
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What approach do passive investors typically resist?
What approach do passive investors typically resist?
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Which of the following is NOT considered a part of passive investing?
Which of the following is NOT considered a part of passive investing?
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What kind of companies does the S&P 500 index represent?
What kind of companies does the S&P 500 index represent?
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Study Notes
Investing Fundamentals #1
- Top 1% earners globally earn $60,000 USD annually after tax.
- Building a solid financial foundation involves several key strategies:
- Wise investments
- Obtaining wealth
- Helping others
- Achieving financial freedom by investing now for greater future wealth.
Investing Fundamentals #2
- Stock is a claim on a company's assets and earnings.
- Stockholders are entitled to earnings and voting rights.
- Public companies sell stock on exchanges (Toronto or New York).
- Stock prices fluctuate daily based on supply and demand.
Investing Fundamentals #3
- Mutual funds pool investor money for a common goal.
- Mutual fund managers invest in various assets (stocks, bonds).
- Each fund has a stated purpose, e.g., U.S. Large Cap funds, only investing in large U.S. companies.
- Fund performance is measured by net asset value (NAV).
Investing Fundamentals #4
- Buy and sell ETFs/Stocks throughout the day, just like individual stocks.
- ETFs are generally less expensive than mutual funds and have lower "turnovers".
- Use a brokerage account (RRSP, TFSA or taxable) to buy and sell investments.
Investing Fundamentals #5
- Fiat currency is issued by governments, centralized, and has unlimited supply.
- Cryptocurrencies are digital, decentralized, have a limited supply, and aren't restricted by borders.
- Crypto is often associated with tax evasion.
- How much to invest monthly for retirement:
- Set a monthly (post-tax) retirement goal.
- Convert the goal to pre-tax.
- Adjust for inflation, which reduces purchasing power.
- Determine a withdrawal rate.
- Estimate years until retirement.
- Calculate monthly investment needed for goal.
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Description
Test your knowledge on the key concepts of investing with this comprehensive quiz. Covering topics like stocks, mutual funds, and ETFs, this quiz will help you solidify your understanding of building a financial foundation. Prepare to delve into the world of investing and enhance your financial literacy!