The type of investment for an FHSA depends on a person’s timeline for buying a home – and whether they plan to buy a home at all.Sundaemorning/iStockPhoto / Getty Images
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Ryan Ferguson took to social media to deliver a message in late 2023: Canadians who are eligible to open a tax-free first home savings account (FHSA) before the end of the year should do so.
Mr. Ferguson, a financial advisor and insurance broker with World Financial Group Inc. in Toronto, says those who are only opening their FHSAs this year have already missed out on $8,000 of contribution room from 2023.
FHSAs, which became available on April 1 last year, allow Canadians who don’t yet own a home to contribute up to $8,000 a year to a lifetime maximum of $40,000.
A report from Investor Economics, an ISS Market Intelligence business, found that FHSA uptake was slow, with Canadians contributing about $4.4-billion to the accounts as of December 2023. Clients of financial advisors and full-service brokerages accounted for only about 5 per cent of FHSA assets.
Mr. Ferguson calls the figures disappointing. “My opinion around the FHSA is anyone who is not a homeowner in Canada should be opening one – whether they intend to buy a home or not,” he says.
But which investments are best suited for holding in an FHSA? Here’s what advisors are taking into account.
What’s the timeline?
Most advisors agree that a client’s timeline for purchasing a home is the biggest factor when determining what to hold in an FHSA.
Gesi Commisso, partner, certified financial planner and insurance representative with Vancea Financial Group at Investia Financial Services Inc. in Woodstock, Ont., says clients who plan to purchase a home in less than two years should keep their money in low-risk investments such as a money market mutual fund.
“With that timeline, we want to keep that money extremely safe,” he says.
These clients typically have most of their down payment saved, Mr. Commisso says, and the FHSA acts as a vehicle to save the money tax-free for a couple of years and potentially make some gains.
Some clients may prefer to deposit money in the account and reap some tax-return benefits, but he warns about the effect of inflation and diminishing purchasing power.
Mr. Ferguson prefers clients with short timelines use high-interest savings accounts (HISA), in which he says clients can still get liquidity and yields above 4 per cent. However, as interest rates come down, so will returns on HISAs, money market funds and guaranteed investment certificates (GICs).
According to Investor Economics, more than half of total funds in FHSAs were in deposit accounts last year, with about one-fifth (19.4 per cent) in exchange-traded funds (ETFs), 10.5 per cent in equities, 7.8 per cent in GICs and 5.1 per cent in mutual funds (although the ETFs and mutual funds could have included cash-like funds).
More aggressive options
Clients who can put off purchasing a home for three to five years can benefit from more aggressive investments, says Guillaume Girard, a financial advisor and investment coach with Millen Wealth Advisors in Victoria.
On a five-year time horizon, Mr. Girard recommends an asset allocation of 20 per cent cash or high-interest savings, 40 per cent fixed income and 40 per cent equities.
“The biggest missed opportunity for people is a portfolio that’s not aligned with their time horizon,” he says.
Mr. Girard says some clients may be wary of a portfolio that allocates 40 per cent of assets to stocks, but he says they can generally weather the risk when their purchase date is further out.
As for fixed-income products, Mr. Girard recommends government- and investment-grade bonds.
“By adding the term and credit risk, you can improve your returns conservatively … for your down payment, assuming that you have a time horizon that allows you to weather those fluctuations,” he says.
As his clients get within one to two years of purchasing a home, he recommends moving to cash.
“We gave the portfolio time to grow, and in those last two years, we’re going to save what will eventually become their down payment,” he says.
FHSAs for non-homebuyers
Clients who don’t purchase a home can transfer their unused FHSA contributions to their registered retirement savings plan or registered retirement income fund after 15 years. That means some who aren’t likely to become homebuyers may make use of FHSAs for the tax advantages.
If the client knows they won’t purchase a home and the goal is to roll the FHSA into an RRSP in 15 years and then continue investing for another five years to retirement, Mr. Girard says, that 20-year time horizon means a globally diversified portfolio of equities based on risk tolerance may be appropriate.
He recommends investing 100 per cent of the portfolio in funds such as Dimensional Fund Advisors Global Equity Portfolio or Vanguard All-Equity ETF Portfolio VEQT-T, which have shown steady annual returns of more than 8 per cent.
“People are usually afraid of market drawdowns, and I remind them that the U.S. stock market, represented by the S&P 500 index, was never negative over a 20-year period between 1919 and 2022,” Mr. Girard says.
“That means if you had invested in an S&P 500 index fund at any point and held it for 20 years, you would have made money no matter how volatile the market was.”
With increased adoption of cryptocurrencies and proliferation in the online gaming industry, Bitcoin casinos are becoming increasingly common. Bitcoin, being one of the alternative currencies, may offer immense advantages in security, anonymity, and speed of every transaction, from appealing to new and seasoned players. The following article will outline the main benefits of using Bitcoin for online casino betting and will describe in detail how this cryptocurrency enhances gaming.
For those interested in exploring the benefits of Bitcoin gaming, theonlinecasinos offers a carefully curated list of reliable Bitcoin casinos. Their guide helps players find the best options available, ensuring a seamless, secure, and rewarding gaming experience.
1. Speed of Transaction
The main benefit linked to the use of Bitcoin in online casino betting is that it possesses high transaction speed. Unlike the bank transfers and card payments, which take several hours or even days, Bitcoin transactions take just minutes.
Why does this matter?
Fast transactions equal the ability for players to fund their accounts straight away with no need for confirmation. Since some gamers just want to get started immediately, or just simply cash out and go, this can come pretty in handy. While most bank transfers involve verification by means of a financial intermediary that is likely to be slow, Bitcoin involves a decentralized network of computers handling processing without any interference from an intermediary.
2. Savings on Fees
Deposits and withdrawals have made it possible for players to cut down or totally eliminate fees imposed by financial institutions through Bitcoin. Banks, credit organizations, and networks of all kinds impose a fee on any transaction, but especially international ones. Due to the fact that this is a network where users make transactions directly, the network fees for Bitcoin are minimal.
How Does This Affect Players?
The lower fees translate to savings that the player will make every time a transfer is made. There are some online casinos that absorb even this negligible Bitcoin network fee; thus, this makes deposits and withdrawals absolutely free for players. To players usually performing lots of transactions or large quantities, this difference in fees may prove critical.
3. Improved Security and Data Protection
Bitcoin uses blockchain technology, one of the most secure and transparent systems in the world. All the transactions involved in blockchain are encrypted; hence, fraud and hacking have almost nil chances of being performed. Furthermore, there is no necessity for sharing personal data while using Bitcoin for online betting as your card number or bank details will not come into play.
Anonymity and Privacy Protection
In the case of Bitcoin, players can preserve anonymity, since for a transaction, one needs only a Bitcoin address. Hence, Bitcoin casinos are true Catch-22 for those who value privacy in financial operations and want to avoid unnecessary checks from banks and other institutions.
4. Fewer Restrictions and Regulations
A lot of countries ban gambling or strictly regulate any operations including online casino transactions. This may raise serious barriers for players to access their favorite platforms or even to get accounts suspended. Bitcoin transactions do not go through the banking system and therefore are not regulated like traditional money. This means greater freedom for users.
Benefits to International Players
For players whose countries have restricted gambling, Bitcoin is an easy way around any legal restrictions. For people in countries with unfinished developed banking or those, due to which one can’t access every type of payment, Bitcoin casinos are a great way to access different kinds of bets.
5. Bonuses and Special Offers for Bitcoin Users
Most online casinos welcome the use of Bitcoin by giving bonuses for cryptocurrency choices. In many cases, higher welcome bonuses, cashback on deposits, free spins within the slot machines, and others are common.
How Does This Benefit Players?
The Bitcoin bonus can increase the player’s budget very much and bring extra value to players. Online casinos are happy to see this cryptocurrency, as it cuts some transaction processing costs for them, either. Because of that, promotion activities targeting depositors and withdrawers of Bitcoins can be regularly found.
6. Bitcoin for Gaming Bankroll Management
Being a cryptocurrency, Bitcoin allows players to have flexible banking of their bankroll. Many users keep their winnings in the form of Bitcoins, since it can surge in price. This adds the opportunity to earn extra income from its volatility when Bitcoin prices surge upwards.
Example of Bankroll Management
Using Bitcoin Many players keep their winnings in Bitcoin, due to the fact that its price might go up. In this case, casino winnings create passive income. But one should keep in mind that Bitcoin’s price also goes down, so this strategy is to be used with care.
Financial independence is an important component of success. To avoid wasting everything, you need to be able to save and invest. Thanks to this, it will be possible to create a financial cushion. You can get additional income with the help of brokers. Every adult can register on the Trade-X website and start trading activity. The latter is based on the conclusion of transactions for the purchase and sale of material values, currency, contacts and shares of well-known companies. As reviews show, the broker sets a minimum commission and charges the trader a certain amount after a successful profit. With the right approach and the ability to analyze data, the trader receives a tangible profit from his deals.
Let’s consider what the trader’s work is and read the real comments of Trade-X clients.
Recommendations and reviews about Trade-X
Choosing a source of income, many people monitor websites and look for what they write about the broker in reviews. After all, safety on the Internet, especially when entering your personal data and bank cards is very important. Newcomers who are just entering the market are especially concerned. It is known that the Trade-X company is officially registered in London and acts according to the legislation. It carries out work with an exchange expert and a hedge fund, has more than 200 assets. Trading conditions, including commissions and spreads, are transparent, which does not allow the broker to change them in its favor.
Participants of Medium, Linkedin, Reddit platforms often write good reviews that no fraudulent schemes were observed on the sites, and the support service always responded quickly to questions and any difficulties, if they arose. The broker company has an arsenal of trading tools, signals and training materials, where everyone can understand the nuances of the profession for free. The reviews also say that the terminals work well without delays, price movements are displayed on the charts. By the way, you can monitor the status of the launched order both from your computer and from your phone by installing the Trade-X broker application.
Features of cooperation with the provider of trading platforms
The provider offers trading platforms with access to many financial instruments. It is a kind of analytical center with access points to currencies.
The following are the features of operations:
Ease of management of the personal account and the site as a whole for novice depositors and professionals.
Analysis tools: different timeframes, indicators and analytical tools, which simplifies predicting and planning transactions.
Minimal costs. Trade-X brokers provide competitive spreads on major assets, as well as no commissions for certain types of accounts, which can be beneficial for traders with frequent trades.
24/7 market access: support for 24/7 trading, especially for cryptocurrencies and some international markets.
Margin trading and leverage: Trade-X offers leverage to help increase trade volume, although it also increases risk.
Automation and trading robots: integration with trading robots and algorithmic systems is supported, allowing for automated trades.
Security: state-of-the-art technology to protect funds and data, such as encryption and two-factor authentication.
Training and support: video tutorials, personalized mentoring, group webinars, literature.
Access to the platforms is open to adults who have completed the registration and document verification process. The minimum deposit is 500 dollars. After depositing this amount, you can start investing in any asset. You can follow the course of events by connecting to mobile Internet from anywhere in the city and even in the country. They write in the reviews that it is very convenient. The international resource Trade-X operates in 197 countries, so entry is free for those wishing to invest in the most popular resources. In case of difficulties with authorization, you can use the site mirror or connect VPN services.
What to trade on Trade-X site
More than 200 assets are presented on the site. It is easy to get confused when choosing from such an arsenal. However, experienced participants of the investment market recommend choosing currency pairs. In any case, it is necessary to be aware of possible rate drops or growth. You can learn this from the news, the current chart and your observations.
The most common trading options on the Trade-X website:
Currency pairs, which are the ratio of the prices of two currencies.
Resources: gas, oil, ores, metals.
Stocks: a share of ownership in a company.
Futures: a contract on future purchase.
Trading on the stock exchange for beginners most often starts with currency pairs – they seem more familiar, clear and predictable. It is not difficult to calculate the dynamics of quotations with the large availability of tools and comprehensive assistance from the administration. Visual representation of price movements is significant for a trader, and the latest news in the world economy provides an additional stimulus for correct calculation of ask and bid.
Trade-X services have long been considered the gold standard of the industry. Since its foundation, the online broker has not stopped its development even for a day or an hour. Its services are becoming more and more technological and interesting for users. This allows to get a significant increase in the client base. Positive reviews allowed the company to stand out among other trading platforms, and assigning a personal manager to you will allow you to feel more confident if you are just at the start of trading.
NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.
Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.
Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.
Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.
Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.
In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.
The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.
And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.
