How to prepare financially for a layoff + MORE Aug 31st

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Q. The 2016 Budget included a big change by eliminating the tax benefit on capital gains for corporate class (C-Class) mutual funds. First, how do these funds work and who uses them? Second, will all these corporate class funds (including ETFs) be affected? And, third, didn’t Ottawa already start doing this back in 2013?
A. Corporate class funds have had broad appeal for their tax advantages, especially by seniors and higher net worth investors. In recent times, their investment returns have struggled within an extended period of low interest rates, inflation, currency fluctuation, market volatility and now, new high income tax brackets and rates. Corporate class funds offered an important hedge against all of those risks for non-registered account holders, through their tax efficiency.
Corporate class funds offered an opportunity to diversify income earnings and most importantly, the ability to switch between individual funds held within the structure on a tax-free basis…

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University or college is a great time for one to to expand their mind and to meet new people. However, this might be the first time that young adults are responsible for keeping their finances in check. Many students struggle with staying financially responsible during their first few years of independence, however financial expert Bruce Sellery says students can take several tips to avoid heading into debt.
Make a budget
Many students are not aware of how much money they have coming in, and how much money they are spending. A budget creates much needed financial awareness for students.
Students need to pull out a piece of paper and budget their incoming revenue and outgoing expenses. A budget should include incoming revenue such as RESP money, personal savings, mom and dad, scholarships…

If there’s one thing every new parent needs to do to ensure they can adequately save for their child’s education, it’s opening up a Registered Education Savings Plan (RESP). The RESP is the most important vehicle for your child’s future, and an early start means you won’t feel the pinch 17 or 18 years down the road.
What is an RESP?
The RESP was introduced by the Government of Canada to help Canadians save for education. Under the Canada Education Savings Grant (CESG), anyone can contribute money to help fund a child’s post-secondary education. Regardless of family income, the government will match 20 per cent of contributions up to a maximum of $500 annually and lifetime limit of $7,200. Visit the CRA site for income-specific contribution details.
Also Read: RRSPs, RESPs, CSBs and GICs: The ABCs of Your Savings Options
Why should I start early?
Parenting is tough, and the finances around it are no exception. With the barrage of commitments from daycare to activities to food and clothing, it can be difficult to find a few extra bucks to commit to savings…

Q. I am being laid off in the next few months. What should I be aware of as I prepare to leave?
—Milly W., Winnipeg

A. Like many of us, at some point in your life you might go through a job loss. Hopefully it’s just a short time out of work with minimal financial pain. But there are still a few things you can be aware of.

Severance and/or vacation pay
If you have been laid off, you are sometimes given severance pay depending on how long you have worked there. You may also be paid for unused vacation time. Your employer or Human Resources department should explain your parting benefits to you and what you are entitled to.
Emergency fund and unnecessary expenses
If you’ve followed the advice of many personal finance experts, you should have at least three months of expenses available in liquid savings in the event of a job loss. It’s time to reassess your expenses against your savings. Try living frugally—just the bare essentials. Frugal expenses are shelter, utilities, a scaled-down food budget, Internet and phone services (to help you in your job search, of course)…

TORONTO — Canada’s five biggest banks raked in a combined $9.89 billion in profits during the third quarter, as analysts shifted their focus from sour oilpatch loans to a possible housing downturn.

Executives at Scotiabank — which on Tuesday reported a quarterly profit of $1.96 billion, up six per cent from a year ago — said they are encouraged that oil prices appear to have bottomed.

“With regards to our energy exposures, we have been consistent in stating that losses will be manageable and we are confident that losses in this sector have peaked,” Scotiabank CEO Brian Porter told analysts during a conference call Tuesday.

Scotiabank building in Toronto. (Photo: Roberto Machado Noa/LightRocket via Getty Images)

The bank reported that provisions for credit losses — the money set aside for bad loans — fell to $571 million, down $181 million from the previous quarter, largely thanks to lower losses in the energy sector.

Scotiabank earnings amounted to $1.54 per share, up from $1…