A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments. Financial regulators like Securities and Exchange Board of India (SEBI), Bank of England (BoE) and the U.S. Securities and Exchange Commission (SEC) oversee capital markets to protect investors against fraud, among other duties.
Investment is traditionally defined as the "commitment of resources to achieve later benefits". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broader viewpoint, an investment can be defined as "to tailor the pattern of expenditure and receipt of resources to optimise the desirable patterns of these flows". When expenditures and receipts are defined in terms of money, then the net monetary receipt in a time period is termed cash flow, while money received in a series of several time periods is termed cash flow stream.
Personal finance is the financial management that an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.
A registered retirement savings plan (RRSP), or retirement savings plan (RSP), is a type of financial account in Canada for holding savings and investment assets. RRSPs have various tax advantages compared to investing outside of tax-preferred accounts. They were introduced in 1957 to promote savings for retirement by employees and self-employed people.
The Richest Man in Babylon is a 1926 book by George S. Clason that dispenses financial advice through a collection of parables set 4,097 years earlier, in ancient Babylon. The book remains in print almost a century after the parables were originally published, and is regarded as a classic of personal financial advice.
A personal budget or household budget is a plan for the coordination of the resources (income) and expenses of an individual or a household.
Requires updating to reflect the current Income Tax Act and the growth of MICs that trade on the TSX.
David Chilton is a Canadian born author, investor, and television personality from Waterloo, Ontario. He appeared on television in the Canadian version of Dragons' Den.
Debtors Anonymous (DA) is a twelve-step program for people who want to stop incurring unsecured debt. Collectively they attend more than 500 weekly meetings in fifteen countries, according to data released in 2011. Those who compulsively incur unsecured debt are said to be engaged in compulsive borrowing and are known as compulsive debtors.
Asset location (AL) is a term used in personal finance to refer to how investors distribute their investments across savings vehicles including taxable accounts, tax-exempt accounts, tax-deferred accounts, trust accounts, variable life insurance policies, foundations, and onshore vs. offshore accounts.
Gail Vaz-Oxlade is a Jamaican-Canadian financial writer and television personality. Vaz-Oxlade hosts the Canadian television series Til Debt Do Us Part, Princess and, most recently, Money Moron. Vaz-Oxlade is also a regular columnist for Yahoo! Canada Finance. Previously, she was a regular feature writer for The Globe and Mail, Chatelaine magazine, IE: Money and MoneySense.ca, among others. Gail most recently ventured into the divorce realm by offering financially based divorce services through Common Sense Divorce.
A tax-free savings account is an account available in Canada that provides tax benefits for saving. Investment income, including capital gains and dividends, earned in a TFSA is not taxed in most cases, even when withdrawn. Contributions to a TFSA are not deductible for income tax purposes, unlike contributions to a registered retirement savings plan (RRSP).
Overspending is spending more money than one can afford. It is a common problem when easy credit is available. The term overspending is also used for investment projects when payments exceed actual calculated cost.
The Secret Dreamworld of a Shopaholic (2000) is a chick-lit novel by Sophie Kinsella, the first in the Shopaholic series. It focuses on Becky Bloomwood, a financial journalist who is in serious debt due to her shopping addiction.
A Personal Retirement Savings Account (PRSA) is a type of savings account introduced to the Irish market in 2003. In an attempt to increase pension coverage, the Pensions Board introduced a retirement savings account, that would entice the lower paid and self-employed to start making some pension provision. The intention was for PRSAs to supplement any State Retirement Benefits that would be payable in years to come.
The Saskatchewan Pension Plan (SPP) is a voluntary defined contribution pension plan created by the Government of Saskatchewan. The SPP was created through The Saskatchewan Pension Plan Act. Oversight of the plan rests with the Saskatchewan Pension Plan Board of Trustees. The plan is also open to both residents of Saskatchewan and other provinces. Saskatchewan is the only province in Canada that operates a voluntary pension plan of this nature. The plan has assets of $700 million and over 32,000 members. The maximum annual individual contribution is $7,000, indexed annually according to the change in the Year's Maximum Pensionable Earnings.
At retirement, individuals stop working and no longer get employment earnings, and enter a phase of their lives, where they rely on the assets they have accumulated, to supply money for their spending needs for the rest of their lives. Retirement spend-down, or withdrawal rate, is the strategy a retiree follows to spend, decumulate or withdraw assets during retirement.
Pensions in Canada can be public, private, and collective, or come from individual savings.
Lesley-Anne Scorgie is a Canadian author, speaker and personal finance consultant based in Calgary, Alberta. She published her first book titled Rich by Thirty: A Young Adult’s Guide to Financial Success in 2007 followed by a second book in 2010. Scorgie released her latest book titled Well-Heeled: The Smart Girl’s Guide to Getting Rich in 2014.
A balance sheet recession is a type of economic recession that occurs when high levels of private sector debt cause individuals or companies to collectively focus on saving by paying down debt rather than spending or investing, causing economic growth to slow or decline. The term is attributed to economist Richard Koo and is related to the debt deflation concept described by economist Irving Fisher. Recent examples include Japan's recession that began in 1990 and the U.S. recession of 2007-2009.
