Some concerning stuff is happening in personal finance as we come to the midpoint of 2024, notably mounting financial stress caused by high interest rates and inflation. But let’s put this aside for the moment and focus on something positive.
The investing outlook appears to be favourable right now. The Bank of Canada is expected to start lowering its benchmark overnight rate starting either on Wednesday or on July 24. Lower rates would be helpful for stocks, bonds and real estate.
So many economic and geopolitical uncertainties weigh on the investing outlook right now. But if we can unwind some of the interest rate hikes of the past two years in an orderly way that avoids a recession, then we have a firm foundation for investment gains. All of this makes me wonder what your go-to investments are right now. Here is a quick survey – I’ll report back on the results in the weeks ahead.
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Rob’s personal finance reading list
A look at what’s happened with home prices across the country since interest rates took off in 2022. Some cities have done just fine. Now, for a look at the cost of owning a home in Toronto.
An honest account of how much it costs to own a home in Toronto – monthly mortgage, plus property taxes, home insurance, utilities and funding maintenance/emergency costs. It’s a lot.
Debt consolidation: Pros and cons
Consolidating various debts into your mortgage can help you save on interest and bring added structure to your repayments. Thoughts from a debt counsellor on whether it might work for you.
Decluttering: The master class
All about the “take away 10″ method – walk around the house and find 10 things to get rid of.
Five things you should never pour down your drain because of the clogging risk. Also, get yourself one of these.
Ask Rob
Q: Where can I find a table that shows the present yield of high interest savings accounts, plus money market and T-bill exchange-traded funds?
A: Here’s a listing of returns on HISAs, which are savings products packaged in a way that allows them to be used in investment accounts. ETF company product profiles for money market and T-bill ETFs will show the yield. Just google the name of the fund.
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
Ten best apps for people looking for a home.
In the social sphere
Social Media: Ten money rules from U.S. personal finance guy Ramit Sethi – plenty of contrarian thinking here.
Watch: The latest video from David Chilton, this one making the point that cutting even small expenses can have a big financial payoff.
Money-Free Zone: The funk-rock fusion of Lenny Kravitz makes a comeback in a new album that kicks off with a song called It’s Just Another Fine Day (In This Universe). Blissed me right out.
More PF from The Globe
– Making housing more affordable means your home’s value is going to have to come down
– New target-maturity bond ETFs speak to investor demand for stability amid uncertain rate outlook
– Longevity products have role for aging Canadians, but adoption has been slow
More Rob Carrick and money coverage
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