For years, interest rates were low, inflation was steady and both financial markets and economic conditions were relatively stable.
Then the Covid-19 pandemic turned everything on its head.
Inflation began to soar and central banks around the world hiked interest rates in an effort to halt rising prices.
Now, inflation is falling – but interest rates remain high, and it’s unclear when they might start to come back down.
This makes things tricky for investors. Is short-term saving or long-term investing more lucrative right now? Which should be prioritized, and is there a way to use the current economic climate to create more wealth?
Saving vs. investing
Higher interest rates should mean greater returns on savings, but there are several things to consider, according to the experts.
“We’re now in a position where you can earn decent returns on cash, and actually, now inflation is falling you can earn higher-than-inflation on cash,” Laura Suter, head of personal finance at AJ Bell, told CNBC’s “Squawk Box Europe” recently.
But she said one thing that is often overlooked is that people will likely have to move bank accounts to get the highest rates of interest, although this process is now relatively easy.
Suter also acknowledged that the market has created a “very tricky conundrum for some investors when they’re thinking about investing for the long terms vs. how much they should have saved in cash.”
For Emma Wall, head of investment analysis and research at Hargreaves Lansdown, investing may be more lucrative in the long term.
“Investing always outperforms cash over the longer timeframes,” she told CNBC. “Over a 30-year time horizon, history suggests that investing can be twice as powerful than leaving your money in cash.”
On the flipside, savings can be useful for short-term financial goals, Claire Exley, head of wealth services at Nutmeg, told CNBC. Setting up a regular direct debit into a savings account can be one way to accumulate savings almost without realizing, she suggested.
Investing — a risky business?
For those who do decide to invest, a whole additional series of questions arise, especially around risk.
These concerns have grown since the pandemic when social-media-fueled meme-stock and cryptocurrency investing led many young investors to lose most — if not all — of their funds.
But higher risk is, in fact, more suited to younger investors, Wall said. “You can take on more risk when you have a longer-term outlook and can top up your investments regularly,” she explained.
Overall, the trend has moved away from high-risk investing, according to Exley.
“We’ve seen that investors of all ages have taken slightly less risk since the pandemic,” she said. Young investors now often show what she calls “good investor behaviors,” such as thinking long-term and accepting short-term volatility.
Ultimately, Suter says, it’s important to remember what’s at the core of investing: diversification, spreading assets, and making sure you are comfortable with the level of risk you have taken.
Finding the right priorities
To balance all of these, the experts said it is important to figure out your priorities.
For young people in particular, it can often feel overwhelming to try to follow all traditional money advice. Paying off debt, saving for a property, paying into a pension, and having a chunk of money to fall back on in emergencies can be costly — and often impossible.
“It’s quite hard to see how their budget can stretch in all of those directions without people either having very high-earning careers or ending up having to live a very frugal lifestyle,” Suter said.
Figuring out what to prioritize and making decisions about how to save and invest based on that is key, Exley pointed out. “Knowing what your goals are is an excellent first step,” she said. Saving may be best for short-term goals, then investing is an option for the long term.
“When it comes to your pension, make the most of your company pension scheme, particularly if they offer generous contribution matching,” she recommends.
She also advised researching government schemes, like the U.K.’s Lifetime ISA which sees the government top up investments that go towards owning a property for saving for later life.
And not all money decisions need to be about traditional goals either. “More fun things like going on a really nice holiday in a couple of years’ time or celebrating a big birthday with friends” also count, Suter said.
“Investing doesn’t always have to be about those things that are super far in the future like retirement, they can actually be for slightly more shorter term wins and that can help motivate you towards saving and investing.”
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
