Royal tsx review
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Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. This comment has already been saved in your Saved Items Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at ’s discretion. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts.Avoid profanity, slander or personal attacks directed at an author or another user.NOTE: Spam and/or promotional messages and links within a comment will be removed.Include punctuation and upper and lower cases. Even negative opinions can be framed positively and diplomatically. Only post material that’s relevant to the topic being discussed. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. This Article Was First Published on The Motley Fool The Motley Fool has no position in any of the stocks mentioned. The post Royal Bank of Canada (TSX:RY) Stock: A Retiree’s Must-Own appeared first on The Motley Fool Canada.įool contributor Andrew Button owns The Toronto-Dominion Bank. But banks can profit in high rate environments, which makes Royal Bank better positioned for such an environment than a non-bank firm would be - as non-bank firms incur higher costs when rates go up. Louis points out, there have been times when interest rates and loan margins moved in opposite directions. Now, I’m not saying that Royal Bank is guaranteed to make loads of money off interest rate hikes. So, banks like RY can profit from the greater spread between the rate at which they borrow and the rate at which they lend. When the central bank hikes rates, deposit interest goes up, but loan interest goes up even more. Royal Bank doesn’t have the growth potential of something like TD Bank (TSX: TD), but if you’re looking for safety, it’s your bet.Īnother reason why Royal Bank could be a good play for retirees is because the Bank of Canada is set to raise interest rates.īanks are among the few businesses that can profit off interest rate hikes. Canadian banks that do business mostly in Canada largely don’t. banks do face this risk, judging by history. What this means is that Royal Bank is not at grave risk of collapsing amid a banking crisis. Royal Bank does business mostly in Canada, which has a highly regulated and conservative financial services industry. The first thing you need to know about Royal Bank is that it’s a very stable financial institution. But it’s about as safe as you’re going to find in 2021 while maintaining a fighting chance of beating inflation. No, it’s not as safe as a bond fund or a GIC. It’s also a stable and proven financial institution, which helps it to satisfy the “safety” part. Canada’s largest bank, it offers income a plenty, thanks to its 3.71% yield. Offering declining real purchasing power, they are more return-free risk than risk-free return.Įnter Royal Bank of Canada ( TSX:RY)(NYSE:RY). But today, with bond interest failing to even come close to the inflation rate, bonds are probably not the best idea. When safety and income are what the doctor ordered, bonds seem like the right medicine. Very often, these priorities lead retirees to buy bond funds. At the same time, you need steady income, to pay for your living expenses. When you’re retired, you can’t afford to lose it all on high-risk plays. But for the vast majority of retirees, two investment priorities dominate over all others: There may even be some retirees who would be well off investing aggressive growth stocks. Some investors prefer stocks, others bonds. These differences have a major bearing on what a retiree should invest in. Some people retire young with millions in the bank, others retire at 70 scraping by on CPP and OAS. In a way, there’s no right or wrong answer to that question. What kind off stock is best for a retiree? Royal Bank of Canada (TSX:RY) Stock: A Retiree’s Must-Own