The 2020 personal finance columns that generated the most response from readers covered the benefits of delaying the start of CPP benefits as late as age 70. Not far behind was a column on the deplorably long waits for online brokerage clients who want to speak to a live representative by phone.
I’ve had dozens of e-mails from readers complaining about waits of up to two hours, with some calls just cut off. A lot of the frustrated clients are seniors who need to talk to a live rep about their registered retirement income funds.
Via social media, I have seen some investment advisers make the point that a quick response to phone calls is part of the value you get from dealing with full-service firm as opposed to an online broker. This got me wondering – are DIY investors who can’t get through to their broker by phone open to a switch to a human adviser? Help me understand what’s happening by taking this quick poll.
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A few points to consider if you’re angry about bad phone service from online brokers:
Long waits are a result of a surge in demand to invest that was caused by the stock market rally back from the March crash; phone queues will shrink when stocks stop rising.
Full-service firms will answer the phone right away, but will your adviser pick up and give you the attention you want?
Online brokers generally have account minimums or $1,000 or less, whereas advice firms may have six- or seven-figure minimums; smaller accounts are sometimes given lower levels of service at full-service firms.
Depending on the adviser, you might need to earn an extra 1 percentage point in returns to offset the cost of advice; will the adviser bring enough value to justify that?
Online brokers are hurting their brand with bad phone service, but there’s much more to choosing between DIY and full-service advice than phone response times.
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Rob’s personal finance reading list
The list of affordable cities for housing is shrinking
With small cities leading, housing prices are on the boil from coast to coast. Hot housing is no longer a story in Toronto, Vancouver and a few other spots. This is a story I’ll be following closely in 2021.
The 20 most important laws of personal finance
One of my favourite investing bloggers offers a list of personal finance laws to live by. This one get you thinking: “Saving is more important than investing.” Also, this one is key – “Automate everything.” Bonus link: A list of proven ways to save money in the year ahead.
The 0-per-cent mortgage
Negative interest rates in Denmark mean you can get a 20-year mortgage with an interest rate of zero. Negative rates are unlikely in Canada, and we would see them only if the economy was a disaster.
If you have to pay back CERB…
A credit counselling agency’s take on what to do if you have to pay back money received from the Canada Emergency Response Benefit, or CERB.
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Ask Rob
Q: I’m in retirement and feel that I’ve a comfortable nest egg. However, watching all that has happened in long-term care homes and retirement homes, I’m wondering how much is enough to secure a comfortable final phase of my life. I’m hopeful that when the time comes (many years from now), these homes will be better managed and monitored. Those expectations will come with a cost attached. Any rule-of-thumb calculation you would suggest?
A: I recently interviewed Karen Henderson of the Long Term Care Planning Network about the cost of long-term care homes and home care. Details here.
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.
The money-free zone
Have you tried these? My favourite pandemic desk candy. That is, candy you keep on your desk for ready access.
ICYMI
What I’ve been writing about
How much should Lucy and Lance save to live comfortably and pay for care in later life?
Nine resolutions that can make for a better year for your finances in 2021
Pandemic brings lifestyle change for Gatineau man, 28, who earns $38,400 and has a mountain of debt (for Globe Unlimited subscribers)
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
