Insights: Options for cash, kids and their money, stock splits + Scotland's national animal
Good reads:
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·??????? Weekly Investment Strategy
·??????? 10 Money Revelations in my 40s
·??????? Here’s how to pass on that unusual asset to your next of kin – and what to do if you receive it
·??????? Family law trumps succession law in case of man who tried to cut children's mother out of properties
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Best quote of the week:
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“Too many people spend money they haven’t earned to buy things they don’t want, to impress people that they don’t like.” ?Will Rogers
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Best visuals of the week:
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For this week’s visuals, I’ll focus on cash and what to do about falling rates.
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For investors with GICs that are nearing maturity, they will find that rates are not quite as attractive as they once were. As the visual from RBC Global Asset Management shows, falling rates present a potential opportunity for fixed income and an argument against reinvestment in GICs, depending on your needs and risk tolerance.
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And with regards to cash, there is a heck of a lot of it out there right now. Based on a research note from Purpose Investments, there is an estimated $65 billion in parking in the 30 largest cash vehicles in Canada. With rates falling (and therefore yields on that cash), this begs the question: at what point do investors look for better opportunities outside of cash? If they look to either the bond or equity markets, that could be supportive.
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Best soundbites of the week
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With September being back-to-school month, The Globe and Mail ran a great article where they interviewed an expert about children’s financial behavior. Here is an excerpt highlighting what is different about kids’ relationships with money today vs. the past:
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These days, [tweens and teens] pay by using their debit card or on their phone with Google Wallet or Apple Pay. The challenge for them is keeping on top of the money. They start tapping their card everywhere, and a week goes by and [their] monthly allowance is gone.
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Between TikTok, Instagram, YouTube, and TV, kids are just bombarded with more consumer goods than ever before. The biggest challenge most parents have, and this is irrespective of a kid’s money personality, is separating the difference between a want and a need. In most kids’ minds, everything is a need when, in reality, 90 per cent of the items where they’re looking to spend money [are] a want. As parents, we already look after our kids’ needs.
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ChartMasters:
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There has been an increase in the amount of Google searches for stock splits, yet they are actually less common now than they used to be. In my latest Asset TV Canada ChartMasters segment, I share how they have historically impacted the performance of a stock, which companies usually do stock splits, and more. Watch it here:
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Beyond the markets:
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Here are some fun random facts to take you into the weekend:
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·??????? In 1953, Swanson had 260 tons of frozen turkey leftover after Thanksgiving, so they packaged them into trays with peas and potatoes, and the TV Dinner was born.
·??????? Johnny Cash's "A Boy Named Sue" was penned by beloved children's author Shel Silverstein.
·??????? John Quincy Adams was an avid skinny-dipper. His regular exercise regimen included dips in the Potomac River.
·??????? According to a 19th-century custom, the first unmarried person of the opposite sex that you meet on Valentine’s Day morning would become your future spouse. A writer in Punch suggested a workaround: “Remain indoors till the expiration of the spell at 12 p.m.”
·??????? A newborn blue whale gains about 200 pounds a day during its first year of life.
·??????? Between 1912 and 1948, art competitions were part of the Olympics. Medals were awarded for architecture, music, painting, and sculpture.
·??????? Hippopotomonstrosesquippedaliophobia is the fear of long words.
·??????? You cannot name your baby ‘IKEA’ in Sweden.
·??????? The national animal of Scotland is the unicorn.
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Thanks for reading, and I wish everyone a wonderful weekend!
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Cheers,
Kim
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Kim Inglis, BCom, CIM, PFP, FCSI, RIAC
Senior Portfolio Manager
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T: 416.777.6417 (Toronto)
T: 604.654.1160 (Vancouver)
T: 250.979.1803 (Kelowna)
TF: 1.877.363.1024
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