How to go about securing the best savings strategy in Canada.
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“Which reverse mortgage is right for me?” Sep 12th
When Vancouver condo owners Maggie and Rob found out they were on the hook for $400,000 in improvement costs to their building and unit as required by an assessment from their Strata Council, they weren’t sure what to do. (We’ve changed their names and some details to protect their privacy.)
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“Should I loan investments or money to my spouse?” + MORE Aug 2nd
Q. I’m 38 years old and have been married for 10 years. I would like to set up a spousal loan to my wife, who works part-time while raising our two young sons.
How would I go about doing this correctly? And is there any special consideration of a cash versus “transfer-in-kind” of stocks, other.... More »
The best high-interest savings accounts in Canada for 2024 + MORE Jan 2nd
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The best high-interest savings accounts in Canada for 2024
Here are the accounts offering the highest interest rates and lowest fees.
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How to invest as a teenager in Canada + MORE Dec 5th
If you’re starting to save the money you’ve received from birthdays, holidays and part-time jobs, you may be wondering how you can invest your savings. An important life lesson for any young person is the habit of saving—so investing for some teenagers can be the next step.
In Canada,.... More »
2022 Income Tax Guide for Canadians: Deadlines, tax tips and more + MORE Feb 13th
It’s been quite a year for numbers, hasn’t it? From rising interest rates to steep stock market drops, finances have been headline news throughout 2022. It’s almost enough to make you forget about tax season. But with the tax deadline approaching, you have a few reminders (see the dates below).... More »
How a young couple can kill $142,000 in debt and start investing
– moneysense.ca
iStockJulie and David live in Calgary with their two daughters, ages 10 and 7. David, 40, is a cable technician earning $150,000 annually while Julie, 37, works part-time at a retail store near home earning $6,000 annually. In 2014, their lives changed when David fell on the job and injured his left side, leaving him disabled for two years.
Through physiotherapy, massage therapy and other alternative medical care he has been able to make an almost complete recovery. “It’s been a long road but David is now back at work and is able to function at about 90 per cent of his previous abilities which is wonderful,” says Julie.
For the months that David was off work, the couple quickly started drowning in debt. Right now, they have about $142,000 in debt that includes $46,000 in high interest rate credit card debt, an $11,000 car loan, a $5,000 student loan, a $12,000 bank loan, a $52,000 line of credit, $1,250 in bank overdrafts as well as $14,000 from family and friends.
As renters, they have no mortgage but they’ve still managed to load up on debt…
Alberta could slay its deficit in one fell swoop, some say. Boost business investment and jobs. Build more schools and hospitals. Even make it so most Albertans pay zero in provincial income tax. Yes, Albertans have been talking about adding a provincial sales tax for decades. So why hasn’t it happened?
How Carol can calculate her advisor’s value
– moneysense.ca
Q. How do I know if my advisor is charging me too much in fees? How do I know if he is giving me the best advice? Should I leave what I have invested with him at Sun Life (about $75,000) and start putting the rest of my future savings with someone else? I am 61 years old and will retire at 65 with a full pension from a provincial police service. Any advice would be appreciated.
—Carol
A.You know, Carol, it may be the fund fee is too expensive and not your advisor’s fee.
A mutual fund advisor/dealer generally makes about 1% on the amount invested. A fee-based advisor/dealer makes 1% to 1.5%, and yet the all-in-cost working with a fee-based advisor is often less expensive than the mutual fund advisor. This is due to product selection.
Here is a breakdown of the fees on a mutual fund with a 2.5% combined MER/TER:
$637/yr. to the advisor ($75,000 x 1%) x 85%
$113/yr. to the dealer, Sun Life ($75,000 x 1%) x 15%
$1,125/yr. to the product manufacturer, Sun Life $75,000 x 1.5%
Your total annual fee is $75,000 x 2…
