When it comes to owning a home versus renting, you can’t just compare the amount of rent you would pay to the amount of a mortgage payment
Should I buy a home or rent? It’s a common question but the answer isn’t as simple you may think – it totally depends on your situation, since there are advantages and disadvantages to both. It’s usually better to own an asset that’s likely to go up in value than to rent an asset that’s…
Be smart, shop around and make sure you’re aware of the total fees you pay and what you're getting for them
Some fees for investments are hidden, some are visible. But there’s always some type of fee or cost involved in investing. Some people will disagree with my broad use of the word fee, but I believe that any money paid out, regardless of how it’s paid, is a fee. Every business sets out to make…
Welcome to the predatory online scamming world. Fraudulent emails, often containing links or attachments, are dangerous. If it seems too good to be true, it is
Beware the phishing hook. Phishing describes an attempt to get you to unknowingly disclose personal information such as credit card details, banking information, usernames and passwords. The party trying to gather your information will try to hook you by sending you an email and asking you to click on a link. The email will look…
Using debt in your financial planning is a good strategy, but exercise caution and discuss all the risks and rewards with your accountant and planner first
Debt is often a four-letter word – but, when used correctly, it can be a real benefit to your financial planning. Most of us use debt when we buy a home, a second property, automobiles and other large purchases. We simply don’t have enough cash available to do otherwise. Many people are very comfortable using…
If you build up the money in your TFSA while you’re working, you can draw from it tax-free any time
K.M. wrote to ask if she should stop making registered retirement savings plan (RRSP) contributions and instead focus on her tax-free savings account (TFSA). With a little personal information from K.M., we decided it would be best for her to focus on her TFSA. Here’s why: K.M. works in a job she’s likely to leave…
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…
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…
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…