Archive for May 2012
What Are Segregated Funds?
Segregated funds – or seg funds – consist of a pool of investments in securities such as bonds and stocks, similar to mutual funds, but sold by life insurance companies. Segregated funds are owned by the life insurance company – not the investor – and must be kept separate (segregated) from the company’s other assets. Related:…
Read MoreHome Equity Line Of Credit: Friend Or Foe?
Last month, the Bank of Canada issued a report highlighting the explosive growth of home equity line of credit use and mortgage refinancing in the past decade, which have surged from $8 billion in 2001 to $64 billion in 2010. Canadians appear to be using these loans for two main reasons. They are either paying…
Read MoreHow To Boost Your Credit Card Rewards
I use a cash back credit card to earn credit card rewards on my everyday purchases and monthly bill payments. Since I spend the money anyway, I like to use the method of payment that gives me the best return. You need to look at your overall spending habits to figure out the best credit…
Read MoreFinancial Literacy Is A Lifelong Pursuit
Last year the results from a Task Force on Financial Literacy were published and the findings were totally not surprising to me. The Task Force defines financial literacy as “the knowledge, skills and confidence to make responsible financial decisions” that are applicable to the many decisions that people make on a daily basis – comparing…
Read MoreWill A Pension Plan Handcuff You To Your Job?
It’s getting harder to find a job with a good pension plan these days. The average employee with a defined benefit plan will typically spend three decades working for the same organization and can be set for life in retirement. I consider myself lucky to have a pension plan, but ask me again in ten…
Read MoreHow To Pay Off Your Mortgage Faster
Owning a home is one of the cornerstones of building financial assets for most Canadians. However, making mortgage payments for 20 to 35 years can take quite a bite out of your budget, even with low interest rates. It’s surprisingly easy to reduce the amortization – and the amount of interest paid. When you pay…
Read MoreHow Young Adults Can Still Thrive Financially
Much has been written recently about the financial state of young Canadians. The Globe and Mail’s Rob Carrick thinks today’s young adults have it tougher than ever, and financial expert Kurt Rosentreter thinks Canadian 30 year olds are screwed because we spend too much time on the internet. I get it. We’ve just experience a…
Read MoreTurning 60: Some Things To Consider
If you’re still working at age 60 you may be thinking of retirement now, or in the near future. Life as you know it will be over, but that doesn’t mean you’ll be trudging up to the Shady Rest Retirement Home. Retirement isn’t about wearing elastic-waist pants and knee socks with sandals and taking in…
Read MorePitfalls Of Chasing The Highest Dividend Yield
Back in early 2009 I sold my mutual funds and opened a discount brokerage account with TD Waterhouse. I had about $30,000 to invest, and after doing some research on individual stocks I was drawn towards investing in companies that pay regular dividends. Related: Mutual Fund Fees – The High Cost Of Canadian Funds At…
Read MoreStudent Loan Repayment: How Quickly Should You Pay It Off?
Not many students can afford to pay for their entire post secondary education without some form of education financing. The average student loan debt for graduating students in Canada is over $20,000, seriously harming their financial position as they enter the workforce. But should you be focused on student loan repayment as soon as you’re done…
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