Interest Rates and the Economy

Bob Baldwin's Reflections on DB and Pension Design

Bob Baldwin, a former director of PSP Investments who runs Baldwin Consulting and is a director at Addenda Capital, sent me an important paper, DB and Pension Design: Reflections on Risks and Reporting:Over the forty years that I have served as a pension specialist inside the trade union movement a ...

Revisiting the DB Pension Plan Model Failure

While in Mont-Tremblant covering the CAIP Quebec & Atlantic conference, I had a fat finger incident and inadvertently deleted a very important post on corporate DB plans which I was able to recover and bolster with some additional comments from senior pension fund managers and expert actuaries (see ...

Canada’s Best No Fee Credit Cards 2019

If you’re looking for a card that delivers top rewards cards without annual fees, look no further. In exchange for slightly lower earn rates, these no-annual-fee products still get you a slew of rewards—everything from limitless cash back, to no restrictions on travel. So whether it’s cash ba ...

3 ways to set your kids up for financial success

The kids are back in the classroom and leaves are starting to turn — change is in the air. Now is the perfect time to start a new season of planning for your kids’ financial future.These three essential steps will help you set your child up for success in their financial lives and beyond. Maxim ...

When You Might Need an Alternative Lender Mortgage

The majority of homeowners are blissfully unaware of alternative mortgages. They presume everyone is entitled to sub-3% mortgage interest rates, with no fees of any kind. But there is a growing, significant percentage of borrowers who need a different type of mortgage financing solution. Sometimes t ...

Revisiting the DB Pension Plan Model Failure

Last week, I critically reviewed an op-ed in the Globe and Mail written by Brent Simmons, Senior Managing Director & Head, Defined Benefit Solutions at Sun Life on why the DB pension plan business model has failed.Following that comment, I received some feedback from senior pension fund managers an ...

Understanding the chatter around negative interest rates

What’s old is new again, at least when it comes to negative interest rates. It was just five years ago that everyone was talking about negative rates after the European Central Bank became the first central bank in history to take their overnight lending rate below zero, to -0.1%. In 2016, Japan ...

Fed cut meets market expectations, but future cuts are in doubt

The U.S. Federal Reserve (Fed) cut interest rates by 25 basis points Wednesday to a range between 1.75% and 2%, as widely expected by markets. However, the Fed’s economic projections showed that the median Federal Open Market Committee (FOMC) member does not expect to cut rates again this year, m ...

Meeting with a financial planner for the first time? Here’s how to prepare

Q. My wife, Gina, just got a new job and her employer provides both a pension plan and free meetings with financial planners. We’re both 31 and have never gone to a planner before, so I was wondering how we should prepare for our meeting next month. Our combined income is about $100,000 gross, an ...

Lower Gasoline Prices Continue to Weigh on Inflation

Ottawa, September 18, 2019—The Conference Board of Canada’s Principal Economist Alicia Macdonald offers the following insights on today's Consumer Price Index data: “The Consumer Price Index was up 1.9 per cent on a year-over-year basis in August, down slightly from 2.0 per cent in July. The ...