Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul class="summary-list"><li>Interest in moving to Canada has spiked among Americans after the election.</li><li>Beyond the physical move, there are financial considerations that potential movers should know of.</li></ul>The result of the 2024 elections left about half of the US displeased. As Donald Trump prepared to return to the White House, many Americans began considering a move up north, according to <a target="_blank" href="https://trends.google.com/trends/explore?date=today%201-m&amp;geo=US&amp;q=moving%20to%20canada&amp;hl=en-US">Google search traffic</a> at least.Interest in <a target="_blank" class="" href="https://www.businessinsider.com/we-moved-to-canada-not-perfect-but-prefer-over-us-2024-11">moving to Canada</a> tends to spike after big political events such as the <a target="_blank" href="https://trends.google.com/trends/explore?date=2016-11-01%202016-11-30&amp;geo=US&amp;q=moving%20to%20canada&amp;hl=en-US">2016 election</a> and the <a target="_blank" href="https://trends.google.com/trends/explore?date=2022-06-01%202022-06-30&amp;geo=US&amp;q=moving%20to%20canada&amp;hl=en-US">overturning of the Roe v. Wade</a> Supreme Court ruling.This phenomenon doesn't just live on the internet, either — some US residents are seriously considering the move."Even when Trump was elected last time, a lot of people felt that they weren't as comfortable staying in the States, and so we actually did see an influx of people moving to Canada," said Tiffany Woodfield, a senior financial advisor at SWAN Wealth Management of Raymond James.Moving, especially across borders, is a big decision and shouldn't be taken lightly. While the physical act of moving is complicated enough, Woodfield points out that there are a lot of financial considerations to be aware of."I think sometimes it can be a knee-jerk reaction," Woodfield said of <a target="_blank" class="" href="https://www.businessinsider.com/we-moved-to-canada-not-perfect-but-prefer-over-us-2024-11">moving to Canada</a>. "If they don't plan ahead of time, they can fall into traps that end up costing them money."<h2 id="c4feab40-7084-4563-951b-72a890ad2b58">You need to file US and Canadian taxes</h2>US citizens residing in Canada might not realize that even on the other side of the border, they're still not free from their tax obligations to Uncle Sam.If you are a US citizen, you still need to file federal US taxes and report your worldwide income to the IRS no matter where you live. In Canada, taxes are based on your residency status, so if you spend more than 183 days of the year living in Canada, you owe the Canadian government taxes.To prevent ex-pats from getting taxed twice on their income, the US and Canada have a tax treaty that provides a foreign income tax credit for any income tax paid to the other country, Woodfield explained. That means you can offset your US tax liability with taxes already paid to Canada, but you still need to file two separate tax returns — one to Canada and one to the US — to receive a tax credit.Additionally, the promise of free healthcare in Canada might sound enticing, but that does come at the cost of higher taxes, so be aware that your Canadian tax bill will probably be higher than what you paid in the US. You also don't have the option to file joint income tax returns with your spouse in Canada, Woodfield warned.<h2 id="7d31b42f-84db-43c3-b2f8-4f871c9958bf">Some Canadian investments have complicated tax implications</h2>"As a US person living in Canada, you don't want to invest in Canadian mutual funds or Canadian ETFs," Woodfield said. That's because these investments are considered Passive Foreign Income Corporations (PFIC) by the US government.PFICs are subject to unfavorable tax treatment from the IRS. The associated tax forms are lengthy and complicated, and you may end up paying high tax rates. If you're still a US citizen, investing in a Canadian mutual fund or ETF simply isn't worth the hassle.<h2 id="0333acc5-88aa-436b-bf74-7cb1b79b71b0">Bringing your retirement plan over the border can be tricky.</h2>401(k)s are a popular way to save for retirement here in the US, but Canadian employers offer a different type of retirement plan: the Registered Retirement Savings Plan (RRSP).Once you move to Canada, you won't be able to actively manage the holdings in your 401(k), according to Woodfield. One workaround is to roll your 401(k) to an IRA and have it managed in Canada. US citizens should also be aware that, in most cases, they won't be able to contribute to their IRA once they move to Canada.Another option is to transfer your US retirement account into an RRSP. However, if you choose this step, make sure you're committed to moving to Canada permanently, as you cannot move RRSPs to IRAs, Woodfield said.You may not be able to bring your brokerage accounts over the border, either. Some people don't realize this until they update their address with their US brokerage account after moving and receive a letter informing them that they have to close out their account.<h2 id="2d468c1f-efc0-45a8-9a7c-53c03c550ff1">You'll need a new financial advisor…and a lot of time</h2>US financial advisors are prohibited by law from providing Canadian residents with financial advice, as they aren't licensed in Canada. If you want expert advice, you need to work with a dual Canada / US licensed advisor.The earlier you start preparing for your cross-border move, the better — ideally, one to two tax years before moving, Woodfield said. That way, you can plan certain taxable events ahead of time and realize the greatest amount of savings, such as liquidating mutual funds. It's also easier to sell your home while you're still in the US, Woodfield said.If you've already begun the moving process or you're already in Canada, don't panic. Woodfield has worked with plenty of people after they've already moved, but the more time you give yourself, the better.Moving across the border is no simple feat, so make sure you're confident about your choice."I've had clients that have moved, and then after the fact, they think, 'Oh, I shouldn't have done this,'" Woodfield said."It's very hard to go back, so people need to be aware of that."

Americans moving to Canada should be aware of these 4 tax and investment implications

<ul class="summary-list"><li>Robinhood has added new crypto tokens to its platform, including XRP and memecoin Pepe.</li><li>The brokerage is also re-listing Solana and Cardano, which it removed last year amid an SEC crackdown.</li></ul>Robinhood is beefing up its crypto offerings for its users as enthusiasm for digital assets skyrockets since Donald Trump's election victory. The retail brokerage has added a handful of cryptocurrencies to its platform, including XRP and Pepe, the company announced Wednesday. The brokerage also re-listed Solana and Cardano, which it had removed last year amid a crackdown by the US <a target="_blank" href="https://www.businessinsider.com/personal-finance/investing/securities-and-exchange-commission">Securities and Exchange Commission</a>.Coinbase also added <a target="_blank" class="" href="https://www.businessinsider.com/pepe-frog-meme-hate-symbol-hope-hong-kong-protesters-2019-10">Pepe</a>, a memecoin based on an an illustration of a frog, on Wednesday. The coin surged over 51% to an all-time high of $0.000019 following the news, according to data from CoinMarketCap.The new tokens available to Robinhood users come as the crypto industry cheers Donald Trump's win in the US presidential election.Trump has billed himself as the "crypto president" and frequently voiced his support for the industry throughout his campaign. He delivered a speech at a bitcoin event over the summer, with promises to create a "<a target="_blank" class="" href="https://markets.businessinsider.com/news/currencies/bitcoin-price-crypto-industry-donald-trump-election-reserve-regulation-sec-2024-11">bitcoin national stockpile</a>" and even launched a stablecoin under his crypto company.Trump is expected to support policies easing regulation over the industry during his term, and has vowed to <a target="_blank" class="" href="https://markets.businessinsider.com/news/currencies/gary-gensler-sec-cryptocurrencies-bitcoin-ftx-binance-roundup-views-2023-9">fire SEC chair Gary Gensler</a>, who has taken a hard line on the sector. Part of Gensler's approach has included cracking down on large crypto exchanges like Coinbase and Binance. Last year, the SEC filed lawsuits against the exchanges, arguing that tokens like Solana, Cardano, and Polygon are unregistered securities.<a target="_blank" href="https://markets.businessinsider.com/news/currencies/bitcoin-price-today-btc-90000-donald-trump-election-crypto-policies-2024-11?_gl=1*br2xck*_ga*MTY3OTgyNjg0MS4xNzIxMDE2MDM2*_ga_E21CV80ZCZ*MTczMTUyMTI4Mi40MDAuMC4xNzMxNTIxMjgyLjYwLjAuMA..">Bitcoin</a> has surged to all-time highs since the election, skyrocketing to above $92,000 on Wednesday afternoon. Industry proponents say the election marks a major turning point for the industry.

Robinhood adds tokens to its platform as crypto enthusiasm surges following the election

<ul class="summary-list"><li>Many people who receive an inheritance don't spend it wisely, according to financial planners.</li><li>It's important to come up with a detailed financial plan when you receive an inheritance.</li></ul>Receiving a large amount of money from an <a target="_blank" href="https://www.businessinsider.com/estate-planning-how-to-handle-inheritance-assets-house-401k-ira-2024-10">inheritance</a> can be life-changing — but only if you take the right steps to handle it.It can be difficult to make big financial decisions, especially around an emotionally charged subject. According to financial advisors, many inheritors end up spending the money they receive — usually from a deceased parent or grandparent — in just a few years.Don't worry, though, if you're expecting or recently received an inheritance. You can prevent this situation by avoiding a few simple mistakes, according to Vimala Snow, head of wealth strategy at Cresset Capital, and Dave Jones, director of estate strategy at Bailard.Below are the most common mistakes they see clients make and how to avoid them.<h2 id="b00e9626-47f7-4359-b39e-a059e32d0222">Not having tough conversations early</h2>It's definitely not a comfortable conversation, but discussing estate planning early on will save you a lot of headaches later.Jones recommends starting small by talking about easier topics, such as the location of important documents."Just the location of documents can be a starting conversation. Sometimes parents don't want to talk about the exact plans yet," he said.Asking your parents about their retirement accounts, if they have an estate plan, and what sort of assets they're thinking of passing down are good starting points."Those are just really basic things that can then lead into a larger discussion about the estate plan," Jones added.It's much easier to clarify any confusion surrounding assets when the person passing their assets along is still alive, which is why these conversations are important, according to Snow. Inheritors should make sure they understand the values that parents have regarding money, as well as how certain assets should be managed.<h2 id="14519a89-2828-4b1a-924f-d01da5b20939">Not having a long-term plan</h2>This is a common mistake when it comes to financial planning in general, but it's especially relevant when a large amount of money is on the line, according to Jones."A lot of inheritors will spend the money, and they'll spend it quickly because they may not have had the best financial habits before the inheritance," Jones said.He recommends considering a few basic financial planning questions. Take a look at the type of assets you're inheriting — whether it be brokerage accounts, real estate, or others — and evaluate how these fit into your current financial goals.It depends on your personalized financial needs, but Jones recommends considering the following questions: "Do you need to generate income for yourself? Do you have an emergency fund? Do you have debts that you need to pay off?"Inheritors who establish concrete financial goals will set themselves up for success. "There's a much higher chance that the inheritance will benefit the inheritor for a long time," Jones said.<h2 id="1eee78ff-be04-43de-a777-3edbcdfaf8b3">Expecting to receive assets immediately</h2>When coming up with a financial plan, keep in mind that you won't receive your inheritance immediately, according to Snow.Estate administration can be a long legal process. The larger the estate, the longer the wealth transfer process will take, Snow said. It could take several months, or even years, for asset distribution to be completed.If estate taxes are due, then the tax return will need to be submitted nine months after the date of death, Snow added.The distribution process won't always be smooth. Complications can arise, especially over assets like a house, Jones said. If siblings inherit the family home but can't agree on what to do with the property, it could take a long time to figure out how to pass on the asset in a way that satisfies all the inheritors.<h2 id="a6fd722f-adb9-406d-ab55-78010263bfb4">Not working with an advisor</h2>Don't underestimate how complicated estate planning can be. It's often helpful to use the advice of a professional, especially during an emotionally turbulent time.It might take a team of legal and financial professionals to ensure the best outcome for your inheritance. Financial advisors, tax specialists, and estate planning attorneys can all offer assistance.Experts can help you come up with a long-term strategy for investing an inheritance. In more complicated cases, such as if the person died without a will, you may need to consult a probate lawyer to locate and value the deceased's assets. The laws governing estate taxes can also vary from state to state, so getting an expert opinion can help clarify confusion."Making sure that you're asking lots of questions and relying on your team is a really important part of the process rather than trying to do it yourself because it is pretty complicated," Snow said.

Avoid these 4 mistakes and misconceptions when receiving an inheritance, according to financial planners

<ul class="summary-list"><li>Chinese markets rose after Trump's US election victory, despite tariff threats.</li><li>The markets boost comes as China is reportedly considering a $1.4 trillion debt plan.</li></ul>China's stock markets climbed higher on Thursday following Donald Trump's victory in the US presidential election.The rise comes despite campaign pledges from Trump, a China hawk, to slap <a target="_blank" rel="" class="" href="https://www.businessinsider.com/what-us-economy-would-look-like-with-trump-biden-presidency-2024-5">a 10% blanket tariff</a> on all imported goods. He has threatened tariffs of more than 60% on Chinese goods.On Thursday, China shares rose with the benchmark <a target="_blank" class="" href="https://markets.businessinsider.com/index/csi-300">CSI 300 Index,</a> closing 3% higher. Hong Kong's <a target="_blank" class="" href="https://markets.businessinsider.com/index/hang_seng">Hang Seng Index</a> closed 2% up.Market sentiment was buoyant amid hopes for news of a stimulus plan from the Standing Committee of the National People's Congress' going meeting, which ends on Friday."The odds for a larger policy support package will rise somewhat with a Trump victory," wrote Lynn Song, the chief economist for Greater China at <a target="_blank" class="" href="https://think.ing.com/articles/what-does-trump-mean-for-china-ot/">ING bank,</a> on Wednesday.China's top legislative body is considering a plan to raise $1.4 trillion in extra debt over the next few years to fund a part of an economic rescue package, <a target="_blank" rel=" nofollow" class="" href="https://www.reuters.com/world/china/eyeing-us-election-china-considers-over-14-trillion-extra-debt-over-next-few-2024-10-29/">Reuters</a> reported last week, citing two sources with knowledge of the matter.Thursday's optimism in the Chinese markets contrasted with lackluster performance in Japan and South Korea, where the <a target="_blank" class="" href="https://markets.businessinsider.com/index/nikkei_225">Nikkei 225</a> and the <a target="_blank" class="" href="https://markets.businessinsider.com/index/kospi">Kospi Index</a> ended the day little changed.Analysts are also watching to see if Beijing will devalue the Chinese yuan now that Trump has won."Beijing might look to devalue the yuan as they did in 2018-2019 to counter tariff effects and boost export competitiveness," wrote Dilin Wu, a research strategist at brokerage Pepperstone, on Wednesday.However, this risks inflation and capital outflows in China, she added. The country is facing multiple economic challenges amid a real-estate crisis and high youth unemployment.On Thursday, <a target="_blank" class="" href="http://camlmac.pbc.gov.cn/zhengcehuobisi/125207/125217/125925/5499916/index.html">China</a> lowered its daily reference rate for the yuan to the lowest since late 2023.<h2 id="6256c5a9-f87f-4923-8fc5-278ad2fd51e1">China is preparing for Trump for 2.0 but still lacks leverage</h2>Despite the market optimism in China, analysts say Beijing could face a tough trade landscape."I think the challenge here is that China is still at a structural disadvantage in a trade war because they lack the symmetrical space," said Rick Waters, the managing director of Eurasia Group's China practice, at a press briefing on Thursday about the global implications of the US elections."They lack the ability to put tariffs on the US when the US does that to them," added Waters, who was the US State Department's top China policy official under the Biden administration.In Trump's first term, the US and China slapped retaliatory tariffs on each other. But Beijing is now left with "very little" to work with.However, over the last four years, Waters said Beijing has developed a framework of sanctions for individuals and companies that align with US policies that are anathema to China's interests. The moves include more export controls, including for critical minerals and rare earths."The first trade war was a game changer; many companies were caught off guard, and investors were left scrambling," wrote ING's Song."This time around, Trump's proposed tariffs have been in consideration for some time and should come as no major surprise," he added.

As Trump threatens tariffs on China, the Chinese market pins its hopes on a massive stimulus announcement

<ul class="summary-list"><li>Using a 401(k) can boost investment portfolios by 23%, per Charles Schwab study.</li><li>The study compared 401(k) and taxable accounts over 20 years with an 8% annual return.</li></ul>Nothing is less exciting than thinking about <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/taxes">taxes</a>, especially when the bill is coming due.And once you cross into the first quarter of the year, little can be done to reduce your tax liability, especially if you're a W2 employee.That's why thinking about deferral strategies is a great way to reduce how much you pay in taxes and increase your net worth in the long term. But to maximize your outcome, you have to start with a <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/what-is-401k">401(k)</a> or a <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/what-is-ira">Traditional IRA</a>, according to a recent simulated study by Charles Schwab. The study showed how a 401(k) could increase an investment portfolio's value by 23%.The study, which was backtested over 20 years, compared two investors, one who used a taxable brokerage account versus one who used a 401(k). At an 8% annual return, it found that the latter finished with a value of $177,116 compared to the taxable account at $144,547. Based on this scenario, it assumed that someone allocating funds after tax in a 24% bracket would have a principal investment of $38,000 compared to $50,000. It also assumed taxable events on a turnover rate every five years and on 2% qualified income dividends and 6% long-term capital gains.<div type="image" title="Chart showing increased portfolio value with tax-deferred account." height="1064" width="1846" msid="114955475" hostid="261" sizebytes="34694"></div>In a scenario where an investor uses a taxable account but doesn't turnover or realize gains every five years, meaning taxable events are only placed on the 2% dividends, the outcome would lead to an ending value of $152,392.One caveat is that <a target="_blank" class="" href="https://www.businessinsider.com/tax-loopholes-to-reduce-or-avoid-capital-gains-taxes-2024-10">tax-deferred accounts</a> don't take into account every phase of where taxation can occur along the investment process, says Rob Williams, managing director of financial planning at Charles Schwab. The first point is when money is earned and before it's invested. The second is when income and dividend payments are earned along the way. The third point is once gains are realized. The first two taxation points are covered. The last phase isn't. For this process, other accounts, such as Roth IRAs for after-tax contributions allow gains to grow tax-free.Roth IRAs could come in handy in retirement during years when you have a higher withdrawal rate and, in turn, fund yourself in a higher tax bracket.<h2 id="bd273b03-5ffe-4b6d-8acc-d2373d85fc37">Other tax tips</h2>Another option people don't think about as much is a <a target="_blank" class="" href="https://www.businessinsider.com/how-to-use-health-savings-account-retirement-tool-investing-wealth-2024-10">health savings account</a>, which is unique, Williams noted. You have to qualify for those with an employer that provides it through a health insurance policy with a high deductible plan. But they are a nice additional tool that investors can use to contribute from their paycheck, he added.It's contributed pre-tax. And if the money isn't used for healthcare costs, it can be saved and invested in that health savings account and grow tax-free. It's tax deferral and tax avoidance, he noted."For a health savings account, that's powerful," Williams said. "We call that a triple tax exemption. You get no taxes when you put the money in and no taxes on any growth or capital gains in the fund. And then when you take it out, you don't have any taxes as well."Taxable brokerage or investment accounts are still useful because they allow you to withdraw money before retirement. This is especially great in the event you need to make a big purchase. But when using these accounts, investors should consider the assets they're buying. For example, exchange-traded funds have less tax drag than mutual funds that have higher turnover and, in turn, more taxable events, Williams noted."Any investment or mutual fund that generates a fair amount of investment income, whether it's interest or dividends, do not tend to be very tax efficient," Williams said.This also means considering how funds distribute gains, such as whether they are qualified or ordinary dividends. The latter is taxed at an investor's tax rate and depending on what margin that's in, it may not be as advantageous as a qualified dividend.

How tax-deferred investing can increase a portfolio's value by 23% and the account that provides a triple benefit

George Wilson learned the hard way that there's no such thing as a free lunch — or, in his case, a free dinner that cost him a chunk of his retirement savings.As a retiree, he regularly received postcards in the mail, offering to teach him about finance and how to make money in retirement. They usually involved a presentation at a nice restaurant, and he would go without acting on any of the investment advice.But on one occasion, Wilson did take the bait after a brochure he received in 2010 inviting him to an evening at Ruth's Chris Steak House ended up costing him $158,000."It was a very good restaurant. And so, of course, it caught my attention," Wilson said in an interview.At that fateful dinner, he enjoyed his favorite top sirloin steak, asparagus tips, and a "fabulous" chocolate cake. He also met David Escarcega, one of the hosts and a broker who would eventually advise him to invest in so-called non-correlated, fixed-income alternative products from the <a target="_blank" class="" href="https://www.investmentnews.com/alternatives/gwg-holdings-files-for-bankruptcy/220355">now-bankrupt firm GWG</a>.Years later, Wilson is still fighting to regain what he lost from that investment. An arbitration decision recently awarded him $267,252 in compensation, including emotional distress damages from the last broker who facilitated the transaction. But the respondent only paid approximately $103,363.40 toward sanctions and the award. After costs, Mr. Wilson will end up with almost no payout, according to his attorney.Fancy restaurants with presentations are a common practice in the industry, says financial planner Michael Murray, adding that there are services that provide mailing lists of people with a certain net worth, and retirees are often on them because it's where wealth tends to be concentrated.But those meals aren't really free, Murray said. They're predominantly set up to sell high-commission products. In GWG's case, brokers earned up to 8% in commissions. What advisors can earn from one of these events pays for the meals and more. Picture a scenario where an advisor signs up $500,000 worth of investments with an 8% commission rate; that's a $40,000 payout. The math is very favorable for those who do this regularly, he added.Meanwhile, invitees feel like the hosts have done something nice for them and there's an implication that they should do something back, Murray noted. "So I think certain people will go to these dinner seminars and almost feel an obligation to work with someone."They're referred to as "free lunch seminars," said Adam Gana, a securities attorney who worked on Wilson's case. They're common in the industry. But Gana says that when brokerage firms offer them, he tells clients to run the other way."We see them all the time," Gana said. "I've represented 3,000 investors over the last 15 years, and in so many of those instances when we're dealing with a horrific product, a non-traded product, a product that's just terrible for investors, it usually starts with a free lunch."<h2 id="74285f86-a363-43ff-b132-9ec411f82f14">Risky business</h2>After the dinner, Wilson and his ex-wife Jean followed up with Escarcega at his office to discuss alternative investment options."We sat down with him, and he went through various opportunities that he could present to us, and we asked for several," Wilson said. "And the one that seemed the most attractive and that he extolled the virtues of the most was GWG. And so we thought about it for several weeks and went back and forth and then ultimately decided to do it."The products were non-publicly traded so-called LifeNotes, high-yield debt securities that paid a 9% monthly interest rate by GWG Holdings, according to documents viewed by Insider. They were based on life insurance policies purchased on the secondary market, with the expectation that death benefits would be paid to GWG's bondholders when the insured died. One brochure, viewed by Insider, advertised them as a "secured investment backed by a large portfolio of high-quality life insurance policies""Escarcega had pitched them as a safer alternative to the volatile stock market that could provide steady dividend payouts while preserving the principal investments, Wilson said."Of course, we want to leave our equity to our children but have some kind of income coming from it while we're still here," Wilson said. "And so that was very attractive to us, that we preserve our equity."Wilson initially purchased $180,000 worth of the notes using funds from his IRA, according to documents viewed by Insider. He later reduced his investment to $158,000 and flipped it to GWG preferred stock. For the next few years, things were looking good. Wilson received payouts monthly. In 2017, he decided to renew his investment, according to documents viewed by Insider.What he didn't know was that by then, Escarcega had been barred from selling securities after misrepresenting investment risks, according to FINRA. So Escarcega used his brother Adrian's license to submit the transactions through AGES Financial Services, according to arbitration documents from Wilson's attorneys. The Escarcegas could not be reached for comment.It was one of many details Wilson wasn't aware of. Thus far, the payouts had always been timely, he said. So, there was no reason to suspect there were problems. But there were. GWG's balance sheet wasn't adding up. FINRA had determined that it hadn't been profitable in over a decade. The firm had been selling new bonds to pay dividends to existing bondholders. The underlying collateral wasn't generating an income and multiple accounting firms refused to audit it, according to the amended statement of claim.The doom loop would eventually come to a screeching halt due to GWG's accounting issues, an SEC investigation, and failure to file its annual SEC report. By 2021, it could no longer sell bonds which led to its bankruptcy by 2022 and the halting of dividend payments, according to the amended statement of claim.Craig McCann, a consultant providing expert testimony in investment cases, including this one, said that GWG's insurance contracts were being overvalued on its balance sheet and the firm was assuming that people would die earlier. As a result, they estimated receiving the death benefits sooner. Simply put, there were not enough benefits being paid on the insurance contracts to cover the interest and principal due."There were lots of signals," McCann said. "There were lots of problems with their SEC filings and lots of reasons to believe that it was imminently going to happen, but most investors were very unsophisticated investors."In 2019, <a target="_blank" class="" href="https://www.investmentnews.com/alternatives/clients-win-another-gwg-bond-claim-this-time-against-b-d/245442">AGES had ended its relationship with GWG</a> due to a change in the company's business model, according to the firm. But Wilson says he was not informed by the firm, <a target="_blank" class="" href="https://www.investmentnews.com/fixed-income/investors-claiming-emotional-distress-damages-win-lawsuit-involving-gwg-bonds/257068">preventing him from selling his shares in time</a> (AGES disputes this). An arbitration panel found that the investment scheme was so egregious that they awarded him $267,252.00 in compensation that included emotional distress damages, according to the order. AGES paid $103,000 for all claimants.<h2 id="9e594bc3-8860-404f-8b63-aeb5d0906705">Risk reward</h2>Wilson's situation is a cautionary tale. He used his IRA to make the investment, so he's also faced with a required minimum distribution, which includes the amount invested in GWG even though it's nominal. He told Insider he must withdraw from other investments to meet the minimum.His case isn't an isolated one. There may have been thousands of brokers selling GWG bonds, based on data pulled from ADV filings as reported by McCann. Wilson says he lives with the guilt of advising his ex-wife and a friend who also invested in the bonds and lost their principal.Truth be told, it's difficult for the average retiree who is not financially savvy to understand the mechanics of many of these alternative investments, even when there are red flags, Murray said. Non-publicly traded investments take time to build capital before generating free cash flow. For those with lower cash reserves, they don't make much sense because they lack liquidity, he added.But Murray also emphasized that not all alternative investments are bad. He just thinks that if you're considering them, you must be financially savvy and have the ability to dig into offering statements, look at fee structures, and related party transactions. Even then, investors should resort to a second opinion from a fiduciary advisor, a CPA, or an attorney.Finally, understand that risk and reward are always tied together. Outsized promises of yields that are much higher than, say, the 10-Year Treasury is a red flag and means there's elevated risk, Murray said.

How a free meal cost an investor his retirement savings

<ul class="summary-list"><li>My 9-month, 5.1% interest CD just expired.</li><li>With rates falling and stocks at record highs, I'm conflicted on where to invest now.</li></ul>At the start of 2023, I looked at my uninspiring (fine, depressing) savings account and set a goal to bulk it up a bit more.That can be a difficult thing to do living in New York City, but I came up with a plan to diligently set aside money every month. By the end of the year, I had hit my goal, and in January, I started to think about how I could invest it.While I already had some exposure to stocks via ETFs and mutual funds in my brokerage account and Roth IRA, I was conflicted on where to invest my new cash pile. Stocks had just surged 22% in 2023, and recession fears were still floating around the market. Meanwhile, rates on safe cash equivalents like certificates of deposit, or CDs, were over 5%.Figuring I'd buy myself some time to see how the macroeconomic picture evolved, I opted for the latter, getting into a 9-month CD at a 5.1% annual percentage rate and reinvesting the monthly interest payments.Fast forward to today and I swim in a pool of regret. The economy has largely held up, and the S&amp;P 500 has continued on its tear, rising another 22% so far this year. Sure, 5.1% return hasn't been bad. But who among <a target="_blank" class="" href="https://www.businessinsider.com/millennials-big-money-mistake-holding-cash-not-buying-stocks-investing-2024-10">those of us keeping cash on the sidelines</a> hasn't yearned for a taste of that sweet equity market nectar this year?And yet, not much has changed about my apprehension to get into stocks, even with 9-month rates from my credit union having fallen to a less-attractive 4.65%.The labor market has cooled to an almost-worrying degree, with the Sahm Rule recession indicator being triggered in August and statistics like quits, hires, and the year-over-year change in full-time employees all falling significantly, as they have in prior recessions. Payroll revisions have also been significantly to the downside.All the while, the market has stamped even higher highs, and some measures show market valuations rival the most expensive levels in history. Both Goldman Sachs and Bank of America have warned of a decade of dismal returns ahead, with Goldman saying the S&amp;P 500 is likely to underperform the 4.2% yield on risk-free 10-year Treasurys on an annualized returns basis.Hoping not to lose my money in a potential stock-market reversal, but also hoping to not miss out further on what have been ridiculously good returns (I want it all, what can I say), I called up a few financial advisors and market experts and solicited some free advice under the guise of writing this article.Probably the most important variable of coming up with an investing plan is establishing a timeline. I just turned 30 years old, so I'll probably keep my money invested for a few decades. That is, unless I need it for a down payment or something in five years — like I said, I want it all.Robert Johnson, a professor of finance at Creighton University, was quick to remind me I can't, telling me that my timeline isn't, in fact, decades if I really need the money in a few years.But if I was serious about keeping my money in the market for the long-term, Johnson said, then there's no real bad time to enter the market. In another 30-years' time, the market is very likely to have gone up.With that in mind, he said it's probably a good idea to commit the entire small chunk of change I've saved up to the market right now, let it sit, and continue adding money every month going forward.Still, I wasn't fully convinced. On my beat, I cover the outlooks of well-known market minds like GMO Cofounder Jeremy Grantham, top 1% fund manager Bill Smead, and many more. Some of them lay out bearish arguments, and like Goldman and Bank of America have pointed out, Grantham and Smead have also said that the S&amp;P 500 is set to deliver abysmal returns in the next decade if you were to invest now.That's because starting points matter a lot when it comes to valuations. Bank of America says they determine 80% of the market's return over a decade. If you had bought at the top of the dot-com bubble in 2000, you would have suffered a 28% loss going out exactly a decade to August 2010. And you still would have had the same amount of money you started with all the way in 2013.I want to buy low and sell high, not buy high and eventually sell higher!At the same time, multiple decades down the line, the returns are likely to be good no matter what. Today, the S&amp;P 500 is 285% from the height of the dot-com bubble. But, if you had waited until market lows in 2002 to buy, your position would be up 587% today.Expressing my concerns about valuations and what appears to be a deteriorating labor market, Johnson stopped me and reiterated in a tough-love tone my long-term timeline. He also said there's no way of knowing where the top is, and reminded me of the 22% returns I've missed out on so far this year.Touché."You can play the what-if game all the time," he said. "When you go to cash or you go to less risky assets, your opportunity loss in returns is huge."But there is a way for me to play both sides, according to Ryan Marshall, a financial advisor at Wealth Enhancement Group, which manages upward of $96 billion.I could put a portion of my money into stocks right now, while also laddering the other part in different CD durations. So, for example, I could plug 25% of the money into stocks, 25% of it in a 3-month CD, 25% in a 6-month CD, and 25% in a 9-month CD. As each of those CDs expires, I could then put that money to work in stocks.If the market goes up during that time, oh well — at least I had some exposure, and I was still collecting pretty decent interest in the CDs. If the market goes down, even better — I can buy in at a cheaper entry point, plus I made some interest in the meantime.Jason Browne, the founder of Alexis Investment Partners, went even further. Instead of buying CDs, buy the duration equivalents in Treasury bills. They're more liquid, so I can sell them in the blink of an eye if I need to, while also keeping the interest paid up to that point. With CDs, usually you have to give back the interest if you exit it before the expiration date. Plus, you don't need to pay state tax on interest from Treasurys.A man can have it all.I'm still not entirely decided on my strategy. But Chikako Tyler, the CFO at California Bank &amp; Trust, said that I should probably act quickly if I want to buy bonds or CDs, as the Fed is likely to cut rates further at their November and December meetings."Right now, you have a window of about two weeks before you may start to see banks move," she said about CD rates.So, like in January 2023, it's time to sit down, come up with a plan, and execute it.If you have a personal investing story or dilemma you'd like to share, feel free to reach out to William at <a target="_blank" href="mailto:wedwards@businessinsider.com">wedwards@businessinsider.com</a>.

My high-interest CD just expired and I'm completely torn on where to move my money. Here's what experts recommend.

<ul class="summary-list"><li>Top brokerages had some outages on Monday morning, according to Downdetector.</li><li>Fidelity told Business Insider that the issues had been resolved.</li></ul>Some top brokerage firms were hit by online outages Monday as the global market continued its melt down, according to user reports.<a target="_blank" class="" href="https://downdetector.com/">Downdetector</a>, which tracks user reports of outages across the web, noted spikes in issues with brokerages, including Charles Schwab, Fidelity, Vanguard, TD Ameritrade, E-trade, and Interactive Brokers.Users on social media wrote Monday morning that they weren't able to get into their accounts.Fidelity confirmed to Business Insider that some customers experienced issues Monday morning, but they had since been resolved.But Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers, said the firm didn't know of any "wide outages.""As of 11 a.m. ET we have 5 million trades," he told BI. "Friday we had 5.9 million all day, which was already a busy day."None of the other firms immediately responded to requests for comment from BI. As of 11:30 a.m. ET, many of the reports of outages for the brokerages had died down, according to Downdetector.It's not clear what caused the outages or how widespread they were; Some, like GOP firebrand <a target="_blank" class="" href="https://x.com/RepMTG/status/1820467646426382576">Rep. Marjorie Taylor Green,</a> immediately suggested without evidence that the outages were intentional."Go ahead, call me a conspiracy theorist, I could care less," Green wrote.The Dow <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/nasdaq-crash-tech-recession-global-stock-market-rout-accelerates-japan-2024-8?_gl=1*26jjyd*_ga*NDY1MTcxOTk0LjE3MDc3NTY5ODg.*_ga_E21CV80ZCZ*MTcyMjg2MzM3Mi4xNDYuMS4xNzIyODcxNTY3LjU3LjAuMA..">plunged more than 1,000 points</a> on Monday as fears of a global recession deepened.The decline in markets around the world followed poor earnings reports by major tech players <a target="_blank" class="" href="https://www.businessinsider.com/amazon-prices-rising-shoppers-cautious-economy-outlook-earnings-2024-8">like Amazon</a>, a <a target="_blank" class="" href="https://www.businessinsider.com/unemployment-rate-job-growth-july-labor-market-economic-data-2024-7">weak US jobs report</a>, and the sudden strengthening of the yen in Japan.Traders are now <a target="_blank" class="" href="https://www.businessinsider.com/fed-rate-cuts-recession-outlook-economy-job-market-interest-rates-2024-8">pinning their hopes</a> on an emergency interest rate cut by the Fed, which rarely makes such moves outside scheduled policy meetings.

Some top brokerages reportedly go down as the market tanks

<ul class="summary-list"><li>For Gen Z, retirement is 40 or 50 years away, but now is the perfect time to start saving.</li><li>Investing early and building healthy financial habits is key to a successful retirement.</li></ul>For <a target="_blank" class="" href="https://www.businessinsider.com/top-topics-financial-planner-says-gen-z-clients-ask-2024-10">Gen Zers</a> just entering the workforce, retirement may seem too far away to be a concern.Or, it may seem difficult and anxiety-inducing, especially as Gen Z juggles student loan debt, high costs of living, and a <a target="_blank" class="" href="https://www.businessinsider.com/jobs-recent-college-grads-hiring-slowdown-unemployment-higher-than-population-2024-9">tough job market</a>. And with a rising national debt, many younger workers are increasingly worried that they won't have access to the same resources that boomers have today, such as Social Security and Medicare.Only 15% of Gen Z put a set percentage of their paycheck into a savings account every month. And, only 20% contribute to a 401(k) or retirement account, according to Bank of America.However, when it comes to saving for retirement, there's no such thing as starting too early. In fact, the biggest advantage Gen Z has is time.Business Insider asked four wealth advisors for their best tips and tricks on how Gen Z can maximize their retirement savings, starting now.<h2 id="aa3e47db-cfea-4dbc-85ba-2482e91ab970">Andrew Crowell, vice chairman of wealth management at D.A. Davidson</h2>For Crowell and other experts, the biggest piece of retirement advice is deceptively simple: start early."With even just a modest allocation to investments, your money has the potential to double every 7 to 10 years," Crowell said. That means for a 20-something Gen Zer just starting their career, their money has the potential to double at least four times.Take advantage of your workplace retirement plan, such as a <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/best-retirement-plans">401(k)</a>, where you can contribute a portion of your salary to an account. Employers often match employee contributions up to a certain percentage, typically between 3% and 6%.When investing for the long term, Crowell recommends putting your money into higher-yielding assets such as stocks to ensure that <a target="_blank" class="" href="https://www.businessinsider.com/higher-long-term-inflation-outlook-investing-strategy-attractive-bonds-stocks-2024-10">inflation</a> doesn't erode your savings. The S&amp;P 500 has posted an annualized return of 13% in the last decade, well above inflation.Basic budgeting strategies, such as keeping housing costs at 30% or lower of your total paycheck, can also create a strong foundation for retirement savings, Crowell said. But don't panic if rent takes up a larger proportion of your take-home pay and prevents you from saving as much as you'd like."Their peak earning potential is in the future somewhere years from now, and they're finding just the cost of living to be very expensive," Crowell said of Gen Zers.No amount of savings is too small. "It's less important how much you save out of your paycheck than it is just to get started. You can always dial it up in the future," Crowell added.<h2 id="82328411-a680-4c49-bc2f-60b12971759b">Ayako Yoshioka, senior portfolio manager at Wealth Enhancement Group</h2>There are other ways to save for retirement outside a traditional 401(k), Yoshioka pointed out. Self-employed people can utilize a Simplified Employee Pension (SEP) IRA to save for retirement and enjoy tax-deductible contributions.A <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/what-is-roth-ira">Roth IRA</a>, which allows you to contribute after-tax dollars for retirement, is also a great choice, Yoshioka said. Once placed inside a Roth IRA, contributions and earnings grow tax-free and can typically be withdrawn tax-free in retirement.For those who like to pick individual stocks and funds, opening a brokerage account and building your own portfolio is another way to invest your savings. But for those who do trade stocks, Yoshioka flags that there are capital gains taxes levied on the profits of an investment.When it comes to retirement savings, keeping the big picture in mind is critical. There will undoubtedly be boom and bust cycles in the stock market, but stay invested, Yoshioka said. During the Great Financial Crisis, some people pulled their money out of the market to protect their assets and never put it back in."When you don't get back in, you have your cash, but inflation eats away at it, and you miss out on a lot of growth in equity markets," Yoshioka said.For Gen Zers who haven't lived through many economic cycles, it's important not to panic-sell in the short term. Equity markets typically bounce back within a year, which is simply a blip in a retirement portfolio that could span 50 to 60 years.<h2 id="80eb8c54-d39b-43ed-af26-9be03baffb34">Ashley Weeks, wealth strategist at TD Bank</h2>Now, more than ever, a successful retirement depends heavily on personal savings, Weeks said.Historically, retirement income has come from what has been dubbed the "three-legged stool" of Social Security, pensions, and personal savings. But today, Weeks points out that less than 15% of individuals in the private sector will have access to a pension, and the future of Social Security is looking uncertain — meaning that the burden of adequate retirement is increasingly falling on the individual.According to Weeks, <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/target-date-funds">target-date funds</a> can be a helpful tool for saving for retirement. Many company 401(k) plans offer them, and they automatically rebalance their portfolio composition to minimize risk as you approach retirement. A target date fund typically has a higher allocation to riskier assets such as stocks early on and increases its exposure to less volatile fixed income holdings as time goes on.It's important to approach saving for retirement with the right mindset. "Start saving early and treat the retirement contributions just like a monthly living expense," Weeks said.<h2 id="5cb054ca-2549-482b-adb2-655c3ce12c1d">Alanna Morey, private wealth advisor at Ameriprise</h2>Building basic budgeting habits is key to retirement success, in Morey's view.There's no one-size-fits-all way to budget, but one popular strategy that Morey recommends is the 50/30/20 rule — meaning that 50% of after-tax income goes to essential costs, 30% to discretionary spending, and 20% to savings or other financial goals such as retirement or buying a house.But before saving for retirement, Morey suggests first building up a basic savings fund for emergencies by putting money in the bank or a high-yield savings account. Once you have enough money saved to cover a few months of essential living expenses, then it's time to start thinking about contributing to a 401(k) or another retirement plan.Morey also recommends automating payments as much as possible. Credit card payments, rent payments, savings, and 401(k) contributions can all be automated to reduce extra hassle and promote healthy financial habits.And if possible, avoid credit card debt."If I'm paying 20% interest on my credit card, I'm paying 20% more for everything," Morey said. That can rapidly eat into your ability to save. If you do have credit card debt, make sure you know what interest rates you're paying and have a plan to start paying it down."It's hard to change those habits or create them later on, and it's harder to catch up on savings later on as well," Morey said.

Gen Z, here's how to craft the best retirement plan starting now: 4 financial experts share their best tips and tricks  

<ul class="summary-list"><li>As fears over economic volatility and deficits grow, investors and central banks are buying gold.</li><li>Gold is often seen as a safe-haven asset among investors.</li></ul>Now is looking like a golden opportunity to <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/how-to-invest-in-gold">invest in gold</a>.For decades, the yellow metal has been considered a safe-haven asset, serving as a hedge against high inflation and economic uncertainty due to its low correlation to stocks and bonds.And there's certainly no shortage of economic uncertainty right now. The US presidential election is right around the corner, inflation concerns remain elevated, geopolitical tensions are high, and the US national debt is reaching untenable levels.Investors and central banks alike have been snatching up gold. The asset's price hit another record high earlier this week at $2,739.40 per ounce after rising over 30% this year, and some analysts are setting a price target of $3,000.Investing in gold is slightly different from putting money into stocks or bonds. Below, two gold experts share four ways investors can add gold to their portfolios.<h2 id="f6498d65-9f43-415b-a374-53643e6db3e3">4 ways to invest in gold</h2>For starters, investors can purchase the metal directly.You can buy gold coins online. You can buy gold bars at Costco. Those strip mall stores with a big "We Buy Gold" sign? You can buy gold there, too.Buying the physical commodity is a tangible way to invest in gold, but it does have some drawbacks. Jeff Muhlenkamp, portfolio manager at Muhlenkamp &amp; Company, points out that there are transaction costs when buying directly from a gold dealer. The investor also has to ensure the gold is certified regarding purity and weight. Buyers must also consider secure storage solutions and insurance for their physical assets.In general, physical gold is a less liquid way to own the asset and is quite costly. "Most of the time when people go and buy gold coins, they'll pay a big premium upfront, and they'll probably suffer a discount when they come to sell at the end," George Milling-Stanley, chief gold strategist at State Street Global Advisors, said.Investors can avoid the complications of investing in bars and coins by buying a gold ETF instead.Physical gold ETFs can be bought through a brokerage account and are directly backed by gold bullion held in bank vaults, meaning that investors don't have to worry about storage or liquidity issues. Examples include the iShares Gold Trust fund (<a target="_blank" href="https://markets.businessinsider.com/etfs/ishares-gold-trust-us4642852044?miRedirects=1">IAU</a>) and the SPDR Gold Shares fund (<a target="_blank" href="https://markets.businessinsider.com/etfs/spdr-gold-shares-us78463v1070?miRedirects=1">GLD</a>).Synthetic gold ETFs don't hold physical gold, investing instead in gold derivatives such as futures and options. These ETFs can be cheaper than physically backed ones since they don't need to store the metal, but they have counterparty risk, or the risk of loss from a contract participant not fulfilling their obligation. Examples include the SPDR Gold MiniShares Trust (<a target="_blank" href="https://markets.businessinsider.com/etfs/spdr-gold-minishares-us98149e3036?miRedirects=1">GLDM</a>) and the ProShares Ultra Gold fund (<a target="_blank" href="https://markets.businessinsider.com/etfs/proshares-ultra-gold-us74347w6012?miRedirects=2">UGL</a>).For investors who want to get as close to the real thing without buying bars, physical gold ETFs tend to track changes in the price of gold more accurately than synthetic ones, Muhlenkamp said.Mining companies are another option for more indirect exposure. These can vary wildly in risk, so Milling-Stanley advises that investors approach these stocks with discretion. The multi-billion-dollar market-cap mining companies offer the most liquidity and stable business models. Smaller mining companies, known as junior miners, are in the exploration phase of looking for mineral deposits and might not be generating revenues, Muhlenkamp said.Mining stocks are less directly correlated with the price of gold than ETFs and may lag trends in gold prices by several months, Muhlenkamp said.In Milling-Stanley's opinion, investing in mining stocks instead of directly investing in gold erodes some of the metal's portfolio protection, as mining stocks behave more in line with the general equity market.This area of investment is definitely higher in risk, but if enthusiasm for gold continues to surge, more speculative mining stocks will enjoy the biggest upside, according to Muhlenkamp.Examples of mining stocks include Agnico-Eagle Mines (<a target="_blank" href="https://markets.businessinsider.com/stocks/aem-stock">AEM</a>) and Newmont Mining Corp (<a target="_blank" href="https://markets.businessinsider.com/stocks/nem-stock">NEM</a>).Gold royalty and streaming companies are yet another way to add gold to a portfolio. These companies finance gold mines and receive a percentage of the gold produced.Royalties limit the holder's exposure to the risks associated with directly investing in mines, such as exploration, development, and regulatory compliance. Royalty and streaming companies are a good way to gain exposure to junior mines but still retain liquidity, especially for investors who don't have the ability or resources to conduct due diligence, Muhlenkamp said.Examples of gold royalty companies include Franco-Nevada (<a target="_blank" href="https://markets.businessinsider.com/stocks/fnv-stock">FNV</a>) and Wheaton Precious Metals (<a target="_blank" href="https://markets.businessinsider.com/stocks/wpm-stock">WPM</a>).

4 ways to add gold to your portfolio as investors pile in and send prices to record highs  

<ul class="summary-list"><li>Investors might consider Treasury bills over CDs for better liquidity and tax benefits: Jason Browne</li><li>Treasury bills offer higher yields in some cases and are exempt from state taxes.</li></ul>If you're looking to put money to work in the fixed-income market before short-term interest rates likely come down further, you're probably considering a <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/banking/who-has-the-best-cd-rates-right-now">certificate of deposit</a>, also known as a CD.In many ways, buying a CD is the same as investing in a bond. You hand the money over to your bank or credit union for a set period of time, and they pay you a monthly dividend before returning your money at the maturity date.But there are some advantages to investing in another cash equivalent — 3-month and 6-month Treasury bills — according to Jason Browne, the founder of Alexis Investment Partners.One is that they're more liquid than CDs. You can buy and sell Treasurys through a brokerage account quickly without forfeiting interest already earned. But if you want to exit a CD before its maturity date, you usually must give up prior interest payments.This gives you more control over being able to deploy money into places like the stock market on a moment's notice in case of a correction, he said."T-bills are easy to buy these days at no commission through almost every discount broker," Browne said.Another reason is that Treasurys are exempt from state taxes, which vary, while CDs are not.Perhaps a third reason, depending on where you bank, is that in many cases the shortest duration Treasurys are paying better rates than CDs. Yields on 3-month bills are 4.6%, and while some banks are offering similar or slightly higher rates still, many have much less attractive yields. According to <a target="_blank" class="" href="https://www.depositaccounts.com/cd/3-month-cd-rates.html">DepositAccounts by LendingTree</a>, the average 3-month CD yield is 1.9%.In terms of duration, Browne said that short-end T-bills are better than durations in the middle or long end of the yield curve, at least for the time being, with the Fed only having cut 50 basis points so far."Right now I don't see a lot of benefit of going further than six months," he said. "I just think the further you go, you're getting paid significantly less for something that has duration risk, and it can give you less liquidity, therefore."Over the next year, however, Browne sees short-end yields becoming less attractive as the Fed cuts, and more medium-term yields rising as a soft-landing scenario — his base case — comes more into view for investors.Typically, fears about a recession push down yields on longer-duration bonds as higher investor demand for safe assets raise the price of the securities. Recession concerns are elevated at the moment with the labor market weakening, but Browne believes those clouds will clear in the months ahead, lowering investor demand for longer-duration bonds, causing their yields to rise.So, buying short-duration T-bills in the meantime buys you time while longer yields rise, he said."Our feeling is that we're going toward a more normal yield-curve environment," Browne said. "The transition until we get there is still paying you more for staying liquid, high-quality short duration."

Try this higher-interest, lower-tax alternative to CDs while rates are still high 

<ul class="summary-list"><li>A Canadian trader turned $65,000 into $306 million by betting on Tesla during the pandemic.</li><li>However, a lawsuit shows the trader lost it all in the 2022 bear market.</li></ul>A trader from Vancouver Island, Canada, minted a fortune betting on <a target="_blank" class="" href="https://markets.businessinsider.com/stocks/TSLA-stock">Tesla</a> stock before losing everything, according to <a target="_blank" class="" href="https://www.cbc.ca/news/canada/british-columbia/man-sues-over-tesla-stocks-1.7343048">a lawsuit filed</a> against RBC and tax advisory firm Grant Thornton LLP last week.Christopher DeVocht, a carpenter by day, successfully traded Tesla stock and options during the COVID-19 pandemic, when a record amount of stimulus helped stocks soar and drove a retail-trading boom. At the end of 2019, DeVocht had C$88,000, or about $65,000, with the Royal Bank of Canada's brokerage division. At its peak in November 2021, according to the lawsuit, DeVocht's account grew to C$415 million, or about $306 million.But DeVocht and his professional advisors didn't cash out and instead lost everything as a brutal bear market took hold in 2022, leading to staggering losses for his heavily concentrated portfolio.According to the lawsuit, DeVocht claims the advice he received from RBC and Grant Thornton LLP was negligent and "inadequate," contributing to his account's staggering decline."RBC considered Mr. DeVocht to be a sophisticated investor," the complaint said. "While this was true in respect of his strategies for put and call options in the trading of Tesla shares, RBC failed to appreciate that Mr. DeVocht's knowledge of investing more generally, of financial planning, and of tax was in fact limited."According to the lawsuit, DeVocht was advised by his team of advisors at RBC and Grant Thornton LLP to incorporate a company and roll his securities into it in a bid to lower his tax liabilities from the massive gains he had on paper.He also allegedly received advice to give C$25.5 million in charitable donations to lower his tax liability, which also ended up erasing a big chunk of his wealth, according to the lawsuit.RBC also set up margin loan accounts for DeVocht to borrow against the concentrated Tesla stock position for spending purposes, like moving out of his apartment rental to buy a home, the lawsuit said.But when Tesla stock plunged in 2022, DeVocht was forced to sell Tesla stock at depressed prices to pay back those margin loans.The lawsuit said, "but for the defendants' inadequate advice... the plaintiffs would have preserved a substantial portion of their wealth and implemented financial planning that would not have resulted in the loss of their entire net worth."The lawsuit also said that advisors at RBC failed to understand DeVocht's evolving wishes to "essentially retire" by reducing his exposure to his concentrated Tesla bet.DeVocht's lawsuit filing is an initial notice of claim and didn't include evidence like brokerage account statements to prove his gains or losses.RBC and Grant Thornton LLP told media outlets that they do not comment on active lawsuits before the courts.

You Searched For "brokerages" and got 12 results

Americans moving to Canada should be aware of these 4 tax and investment implications

Christine Ji

Robinhood adds tokens to its platform as crypto enthusiasm surges following the election

Kelly Cloonan

Avoid these 4 mistakes and misconceptions when receiving an inheritance, according to financial planners

Christine Ji

As Trump threatens tariffs on China, the Chinese market pins its hopes on a massive stimulus announcement

Huileng Tan

How tax-deferred investing can increase a portfolio's value by 23% and the account that provides a triple benefit

Laila Maidan

How a free meal cost an investor his retirement savings

Laila Maidan

My high-interest CD just expired and I'm completely torn on where to move my money. Here's what experts recommend.

William Edwards

Some top brokerages reportedly go down as the market tanks

Geoff Weiss

Gen Z, here's how to craft the best retirement plan starting now: 4 financial experts share their best tips and tricks

Christine Ji

4 ways to add gold to your portfolio as investors pile in and send prices to record highs

Christine Ji

Try this higher-interest, lower-tax alternative to CDs while rates are still high

William Edwards

A Tesla trader turned $65,000 into $306 million before losing it all, according to a lawsuit

Matthew Fox

Popular Keywords

Buying Guides