Archive for June 2014
Net Worth Update: 2014 Midyear Review
This year has been heavy on spending with not much focus on saving. The spending is purposeful, though, as we borrowed $35,000 on a line of credit to develop our basement, which will increase the value of our home. The interest rate on the line of credit is 3.5 percent, so using it to pay…
Read MoreWeekend Reading: Messy Aeroplan Transition Edition
Part of the new Aeroplan credit card agreement meant that some CIBC Aerogold accounts were sold to TD. Those affected by the move were to receive a letter from TD, along with a new Aeroplan credit card, prior to June 16th when their CIBC Aerogold account would be deactivated. Related: Three Rewards Credit Cards Worth…
Read MoreEscape To The Countryside
I regularly watch a program on BBC-Canada called “Escape to the Country.” The show features couples and/or families that want to leave the grind of big city life to live in the country. Although the show is based in England, I find myself fascinated by the idea of country living. I have lived in the city all my life…
Read MoreManaging The Gap Between Wage Growth And Inflation
The gap between wage growth and cost of living continues to be an issue as inflation reached 2.3 percent in May, led by higher gas and energy prices. The latest Stats Canada data revealed that wages grew 1.4 percent year-over-year. That means there’s a decline in real wages when you adjust for inflation. How have…
Read MoreWhatever You Do, Don’t Retire Alone (And Other Helpful Advice)
Let me introduce you to my three imaginary friends: Rory, Amy, and Rose. Earning only $35,000 a year at most, each has managed to sock away 5% of that income every year, and by age 67 have each accumulated $210,000 in savings. At retirement, all three will have the same income: $6,624 in Old Age…
Read MoreHow Risky Should You Get With Your TFSA?
I read an interesting article titled, “Do Risky Assets Belong in a TFSA?” (Canadian MoneySaver – March/April 2014). The author compares purchasing a GIC paying a guaranteed 2% a year with a risky ETF tracking the TSX with an expected average return of 6%, but which could result in returns ranging from a gain of…
Read More5 Lessons Learned About Investing
Five years ago I opened a discount brokerage account – transferring $25,000 from my HSBC mutual fund account to TD Waterhouse – to start investing in individual stocks. Here are 5 lessons learned about investing over the last five years: A rising tide lifts all boats I’ve learned to recognize the difference between skill and…
Read MoreWater Heater Rentals: Do Ontario Residents Get Hosed?
As an Albertan who writes a column for an Ontario-based newspaper, I’m often reminded of the many differences between our two provinces. Health care premiums, HST, and land transfer taxes aren’t part of the Alberta landscape. Another difference I’ve observed is that many Ontario residents rent a water heater for their home, but in Alberta…
Read More5 Financial Tips For High School Graduates
Congratulations! You’ve finally made it! Another graduation season is wrapping up. You’ve listened to an inspiring valedictorian speech, the caps have been tossed, and you’ve partied all night at prom. Perhaps you’ve lined up a lucrative summer job and have been accepted at your chosen post-secondary educational institution. There are exciting days ahead. Related: The…
Read MoreWeekend Reading: Working On The CFP Edition
I’ve spent the last few months completing the first of four online courses for the CFP certification program. The four courses include retirement planning, risk management and estate planning, strategic investment planning, and income tax planning. The retirement planning course offers a comprehensive look at topics such as: government-sponsored retirement income programs employer-sponsored pension plans…
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