Determining Adjusted Cost Base

CalculatorAdjusted Cost Base is the term that is used to describe the average cost of shares that an investor has bought. This is necessary so that you (and the government!) know how much tax you owe when you sell your shares.  If you bought all of your shares at one time, there is nothing to it. If, however, you accumulated your shares through several separate purchases, you have some math in your future, in the form of the average cost method.

Doing the math

If you’re not thusly inclined, the mathematics of investing can quickly get ahead of you. While you (might!) argue that some calculations that investors routinely do are not absolutely necessary to tracking your investing progress, determining your adjusted cost base is not one of them; there is nothing the bit least optional about being able to determine how much you paid for your stocks. You need to know so you can calculate your taxes. Fortunately, it’s not that difficult. (The math part, not the paying taxes part; sorry, no help there.)

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Where to Go for a Sure Investment?

Used to be a sure investment
Soon to be a thing of the past?

That little wiggle you felt a few weeks ago wasn’t a result of overeating the day before. It was the world shifting. In a meaningful way.

As you may have heard by now, in May, Barclays downgraded Electric Utility bonds across the United States.

For the past several decades, utility companies of all stripes have been one of the best places to park money for safety and income. After all, turning off your power, water, or gas was the last thing you would do if you were in a period of financial difficulty. You might cut back on luxuries, wear your clothes another season, put off retirement savings(!), or even sell you car. By the time you get to the point of not paying your utility bills, you are in pretty dire straits; it’s one of the last places people cut expenses. Add to this the fact that if a utility get into financial trouble (whether of its own making or not) they have a great deal of power to raise their rates. The realpolitik of the situation is that the electric company has you over a barrel, and they know it. When you flip the switch, you want the lights to go on; it’s that simple. Most people will complain about price increases, but they will complain as they are paying the bill. Cutting out water, electricity and natural gas delivery to your home really isn’t something anybody ever wants to do. This is one reason that utility stocks are known as “widow and orphan” stocks; they’re as reliable as anything can possibly be.

Until now.

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Should You Try to Influence Your Child’s Interests?

inflence your child's interests
Is 7 years old a bit too soon to start envisioning sending my daughter off to university… and then a career? The future comes quickly!

Rather like last week, this post is about a personal situation in which I currently find myself. It has to do with whether or not, and if so, then how much, you should try to influence your child’s interests. That’s the macro. Here’s the micro:

As the summer approaches, many a parents’ fancies turn to thoughts of daycamps. As I live in a major urban centre, there is no limit to the choice of daycamps my wife and I can send our daughter to.

As a child, my parents sent me to a few daycamps in the summer  months, and I never thought too much about it. I honestly can’t say how much they thought about which daycamp to send me to, but I’d be surprised if their deliberations were more involved than confirming that  the cost, hours, and location were all suitable. I doubt they spent much time considering the theme or purpose of the daycamp, let alone whether it would help me in my career. Then again, they have surprized me before, so who knows.

What I do know for sure is this: Continue reading Should You Try to Influence Your Child’s Interests?