Diversification is Key
As with many retirement savers, it took two stock market crashes (2001, 2008) and a global financial crisis to convince Adam and Sonya that trying to ‘time the market’ or pick specific sectors was a costly exercise in futility. But, with the value of their RRSPs nearly halved in the 2008 crash, they also recognized […]
Will I Need Long Term Care?
In the aftermath of the US housing market bust and the ensuing financial meltdown that led to global stock market declines of 2008, people are getting back to the basics as far as their retirement planning goes. Although the stock market has recovered, many pre-retirees have lost a lot of ground in their retirement accounts […]
Volatile Economy = Investor Fatigue
Investors are becoming increasingly exhausted trying to follow the seemingly never-ending bad global economic news. Overseas markets have put a strain on Canada even though we are more stable, economically, than most other countries in the world. Crystal balls are in short supply resulting in increased skepticism and general feeling of Is this downturn ever […]
Financial Resolutions for 2013
Give your finances a boost this new year. Here is a list of financial resolutions to help you become better off at the end of the coming twelve months: Eliminate personal debt. – Brad and Angie had fallen into the very common habit of buying lots of ‘stuff’ with their credit cards and soon were […]
Financial Plans & Divorce
History tells us about half of marriages in Canada end in divorce. Andrew and Sara are about to end theirs and are concerned about the changes that will have to be made to their financial and estate plans. Some financial and estate issues they need to consider are: Life Insurance – The first thing that […]
I Want it All and I Want it Now
The neighbors have a shiny new sport utility vehicle to tow their travel trailer. They take a two week tropical vacation every winter. Their family room is equipped with the latest large screen TV and surround sound stereo system. Many people believe this is a sign of wealth. In fact, this is usually a sign […]
Home Ownership Can Be Less Taxing Than You Think
Front lawns across Canada are sprouting For Sale signs. That this annual phenomena occurs at about the same time as the tax refund season may be purely coincidental. Understanding the financial incentives for home ownership available in the Income Tax Act may save you thousands when buying a home. Home Buyer’s Tax Credit: First introduced […]
RRSPs & TFSAs – What’s the Difference?
Tax Free Savings Accounts (TFSAs) were introduced in 2009 and they seem to be struggling to catch on. Registered Retirement Savings Plans (RRSPs), however, have been around for over fifty years and attract billions of dollars of deposits each year. If you are serious about saving for your future, it is important to know the […]
An Ideal Opportunity to Improve Your Cash Flow
With so many doom & gloom news headlines, it is refreshing to know Canadians can still get very low fixed rate mortgages. A recent Financial Post article (March 9, 2012) explains that with big banks competing strongly for new mortgage business, now is a great time for Canadians to refinance their mortgages to improve personal […]
These Financial Mistakes Can Cost You
Some financial decisions get made without enough thought given to the long term consequences. Here are some financial mistakes you can avoid: Mortgage amortized too long: With lenders offering 30 year amortization periods, it may look attractive to go with a smaller monthly payment to get into a larger house, but the extra interest charges […]