Keep in mind that, despite new disclosure rules to increase transparency, the fee shown on your investment report may not be the total fee you paid your adviser
When comparing your investment returns to that of others or those you see published, selection and timing are two critical issues. Make sure you’re comparing apples to apples: that you’re weighing similar investments. Each investor has their own risk tolerance and objectives. What’s right for your friend, neighbour or family member may not be right for…
It depends. As with all financial planning questions, no one answer fits every situation
“Did I need to take the insurance the bank sold me when I got my mortgage? Do I need mortgage insurance at all?” C.P. wrote and asked. I’m often asked this and the answer is usually the same: That depends. As with all financial planning questions, no one answer fits every situation. The simple answer in…
'There is a financial wellness crisis, and it's affecting Canadians of all demographics' -- Manulife
Household debt is growing so large, it may be cracking Canada's financial foundation. A Manulife Financial Corporation survey found that two-in-five Canadians do not expect to escape debt in their lifetime and the spending-to-income ratio is trending negatively in Canada. The Manulife Bank Debt Survey found: 94 per cent of Canadians say the average household…
Many people take a long time to launch on adult life because they've never been taught to spend less than they make
“The first responsibility of adulthood is paying your own bills,” according to Jamaica Finance Minister Peter Phillips. That country has worked hard to wean itself of dependency on the International Monetary Fund (IMF) and is in a position to stand on its own feet economically. Paying your bills is a definition of adulthood that applies…
Can you afford to hold off and increase your payments later? Will you need more CPP and OAS later in life? And how long do you expect to live?
Most people know they can start collecting their Canada Pension Plan (CPP) at age 60, even though they’ll get smaller monthly payments than if they waited until 65. Many people just want the money now and don’t care about any added benefits to delaying CPP and Old Age Security (OAS). The standard CPP and OAS…
When it comes to financial health, Quebec is the healthiest province and Alberta lags behind, said the report.
By Troy Media The TD Financial Health Index finds that four in 10 Canadians are financially struggling, with Albertans lagging when it comes to financial health. The index by the TD Bank Group is a national benchmarking survey providing a portrait of Canadians’ financial well-being and how they’re managing their personal finances. The study, released…
Over the past four decades, average real annual disposable income per capita rose 40% faster in the U.S. than in Canada, says a CIBC report
By Troy Media Real disposable income per capita in Canada is currently $13,000 higher than it was in 1980. But in the United States, it’s US$25,000 higher, says a report released on Monday by CIBC. Over the past four decades, average real annual disposable income per capita in Canada has risen by 1.3 per cent,…
HELOCs often used for home improvement and renovation spending has been on a steep climb for 18 years: Scotiabank report
Total chartered bank household credit growth in Canada accelerated in August, supported by an expansion in residential mortgage credit and non-mortgage credit that was the fastest in about two years, says a new report by Scotiabank. But the report also said that growth in home equity lines of credit (HELOCs) has slowed since its peak…
A financial plan is a six-step financial planning process that starts with having an initial meeting with your prospective planner
Many people don’t understand the difference between a financial plan and an investment plan, and often assume that they’re one and the same. They’re not. An investment plan is focused solely on your investments and the return on those investments, which is important. But that’s only part of the story. What happens to your investment plan…
There’s no hiding from the success tax, but several things can help legally reduce or even eliminate the amount your estate or your heirs pay
There’s no official estate tax in Canada but we do have what I call the success tax. It's what we pay if we’ve been financially successful in a lifetime of investing and asset accumulation. The more successful you’ve been, the greater the tax could be. If you have assets that will be taxable when sold or when deemed to have been…
Seek professional help if your financial plan doesn't protect you from the four Ds: death, divorce, disability and disaster
Your financial plan should provide you with as much protection as possible from the four Ds: death, divorce, disability and disaster. While you can’t totally protect yourself from any of these events, you should at least have a good plan in place in case something does happen. Death is the only D that can’t be avoided,…
Robert McLister, managing editor of Rates.ca, talks about the pitfalls of the government program and why fewer Canadians are likely to take part than anticipated
Robert McLister is managing editor at Rates.ca. What is Rates.ca? McLister: Rates.ca compares insurance, mortgages and credit cards from dozens of companies across Canada. By juxtaposing numerous providers, it's easier for consumers to quickly compare terms and find the best prices. How does the new down payment assistance program for first-time homebuyers work? McLister: The…
Yes, but probably not for at least another 20 to 30 years
Eliminating cash has huge potential benefits including convenience, security, and cost reduction for retailers, banks, and governments. For customers, there is the benefit of flexibility – a priority increasingly driven by younger generations more comfortable with digital technology and the online world. The combination of these forces means the need for cash has reduced significantly.…
Let’s be very careful about electing a government that’s bribing us with our own money
Before we select our next set of national leaders in the Oct. 21 federal election, we should be paying attention to matters that don’t usually concern us day to day, like the treasury. What the treasury does we call fiscal policy, but it’s essentially budgeting: determining levels of revenue (taxes) and expenditure (all the programs…
The "good news" is that debt is growing at a slower pace
Household credit market debt as a proportion of household disposable income fell to 177.1 per cent in the second quarter of this year, the third consecutive quarterly decline, as income grew slightly faster than debt, according to a report released Friday by Statistics Canada. “In other words, there was $1.77 in credit market debt for…
When comparing your investment returns to that of others or those you see published, selection and timing are two critical issues. Make sure you’re comparing apples to apples: that you’re weighing similar investments. Each investor has their own risk tolerance and objectives. What’s right for your friend, neighbour or family member may not be right for…
