How might inflation impact your retirement plans? + MORE Oct 7th

For retirees and near-retirees, at least five dire possibilities can threaten a long and fruitful retirement: taxes, investment fees, crumbling stock markets, soaring interest rates and inflation. 

We can largely control the first two by maximizing the use of tax-effective vehicles like TFSAs, RRSPs and RRIFs, and avoiding high-fee investment solutions. Stock market returns and interest rates are trickier, typically addressed by ensuring that the traditional free lunch of diversification and asset allocation are commensurate with your financial resources and lifestyle objectives. 

But what about inflation? Throughout 2022, inflation has remained elevated, triggered by the COVID recovery and stimulative monetary policy by way of ultra-low interest rates. Central banks in Canada and abroad have done an about-face, raising rates to try to slow down spending and cool inflation.

If you’re contemplating retirement or semi-retirement, is inflation a sufficient threat to consider postponing it? We tackled similar ground in this space a year ago, shortly after the COVID bear market hit…

You don’t think about your credit rating opening doors for you—until it abruptly swings one shut. However, in order to appreciate what you could do differently to improve your credit rating, it helps to understand what exactly that is.

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Faced with high inflation and rising interest rates, more Canadians are finding it difficult to qualify for a mortgage. The problem can seem even worse if you struggle with poor credit. The good news is that even if your credit history is less than stellar, you may not have to put off buying a home, although you will likely pay more for your mortgage.
This article will explain how to qualify for a bad credit mortgage and what steps you can take to improve your credit score.
Do You Know Your Credit Score?
One of the biggest mistakes people make before getting a mortgage is not knowing their credit score before applying. Recent reports have revealed that more than 50% of Canadians have never checked their credit scores. If you’re only finding out that you have bad credit when you apply for a mortgage, it may be too late to do something about it.
What Is a Good Credit Score?
While lenders can set their own minimum credit score guidelines, the following generally applies:
800 or above: Excellent
720 to 799: Very Good
650 to 719: Good
600 to 649: Fair or average
Under 600: Poor
To obtain a mortgage with a Prime lender (banks and credit unions), you will likely require a credit score of 600 or higher…