Comments on: The greatest risk

By: dosouth

dosouth — Thu, 27 Aug 2009 19:03:45 +0000

Well here we go again…. you tell me Garth?

http://www.financialpost.com/story.html?id=1936066

By: nonplused

nonplused — Thu, 27 Aug 2009 03:12:47 +0000

Men mature! I complain about aches and pains as much as anybody these days!

By: taxpayer like you

taxpayer like you — Wed, 26 Aug 2009 23:57:59 +0000

Peter/dd/Live..means

Good blog today……

A few weeks back, dd brought up an excellent question – Are we all not speculating in real estate regardless of the time at which you buy or the reason?

To give that point some validity, you just have to ask yourself would you buy it today if you thought it would be cheaper tomorrow? Of course not! Even if you buy at the
percieved lowpoint of the market and intend to house your family, you are still assuming you are better off long-term than renting, especially with what can be a highly leveraged purchase.

I admit building my family home was very much an emotional decision, but I did ask myself the question whether I could handle a 20% drop in its value (short to mid-term anyways). My DP was about 35% and the 5 year rate I got was 5.5% amortization 15 years. Payment was slightly higher than rent for a house half the size. No problemo. Life is good, and now its paid for.
Lucky? Certainly to some extent. But also prepared.

By: Henry

Henry — Wed, 26 Aug 2009 23:26:21 +0000

moneymen: According to http://claymoreinvestments.ca/etf/fund/cpd/distributions , its distribution consists of eligible dividends and return of capital.

According to taxtips.ca , return of capital is not taxable, but reduces the adjusted cost base of shares. There is no interest income from CPD.

I think CPD is a good starting point to learn about preferred shares. Its MER is much lower than broker mutual funds that have MER of 1.5% to 2.5%.