Overview of Derivatives

  Derivatives are another major type of financial instrument.  We introduced two other major types in our earlier articles on fixed income and equities.  As the name implies, the value of a derivative is derived from something else, whether an index, interest rate, debt, or physical asset.  In terms of size, derivatives dwarf equities and Read more about Overview of Derivatives[…]

Overview of Fixed Income

Introduction This post will present a general overview of fixed income investments.  For some more specific examples, take a look at our previous post on the subject.  A fixed income product is an investment that makes regular interest payments over a length of time.  The interest payment amounts are typically determined at the time the investment Read more about Overview of Fixed Income[…]

Life Expectancy

Life expectancy is an important topic for retirement planning.  To make sure you can live comfortably throughout your entire life, you need to know how long you will need to support yourself.  To get an idea of life expectancy, we can consult the information provided by the government.  Since we are based in Canada, we will Read more about Life Expectancy[…]

Real oil prices

Real vs. Nominal Values

It is useful to make the distinction between real and nominal values as these concepts are intrinsically related to inflation and used in the financial plans that we build at Exponeta Financial. In addition, these concepts are frequently encountered in economic and financial data sets. At a high level, nominal values include inflation, and real Read more about Real vs. Nominal Values[…]

Fixed Income Options

In most investing literature, the fixed income component of a portfolio is assumed to take the form of bonds. For accounts that do not possess a sufficient net worth (for example more than $500,000), it is usually difficult to sufficiently diversify across various issuers of bonds, so many investors have turned bond funds for convenience. Read more about Fixed Income Options[…]

Are There Enough Investments for Everyone?

This post is of a more theoretical nature, rather than practical advice. Let us know in the comments or via e-mail if you would like more posts like this in the future. As the public becomes more financially educated, there is bound to be a greater amount of individual investment in the stock market. After Read more about Are There Enough Investments for Everyone?[…]

Indices vs. Index Funds vs. Exchange Traded Funds (ETFs)

One question that we get asked a lot is, “What is the difference between an index, an index fund, and an exchange traded fund (ETF)?” The short answer is that you cannot buy an index (it is a formula to value a market) but you can buy an index fund (which typically trades like a Read more about Indices vs. Index Funds vs. Exchange Traded Funds (ETFs)[…]