Why You Should Care About A Government Surplus + MORE Nov 18th

Two weeks ago, Ottawa revealed that progress for reducing Canada’s annual national deficit was ahead of schedule – by $7 billion, to be exact. This was further confirmed in Tuesday’s budget update by a confident Finance Minister Jim Flaherty, who also indicated that the government is on track for balancing the budget by 2015 and achieving a surplus.
What Does A Surplus Mean For Canadians?
Why should the average Canadian care whether the government is carrying a surplus? It comes down to our nation’s vulnerability to debt, and its ability to operate during tough financial times.
Like the U.S., Canada carries a huge sum of national debt, dating all the way back to our nation’s conception. The deficit, on the other hand, refers to the debt accrued during a year-long period in order to run the country. Accomplishing a surplus means the government has effectively managed the budget for the year, and has not needed to take more debt out in order to operate.
It’s important to note that the government is in the same boat as consumers when it comes to borrowing – interest must be paid on any loans they take out…

Monday Makeover looks at a recent graduate with $60,000 in student debt. She has a modest income and needs help repaying her loans more quickly.

Q: I have 95% of my bond investments in an ETF with a low yield. Instead of investing such a large amount in a bond fund, should I search for individual bonds offering higher returns?
—Jim Semple, Regina
A: You’ve probably seen those obnoxious ads offering “factory direct” pricing. They promise great savings on furniture or flooring by cutting out the middleman. Unfortunately you can’t go direct to the factory when it comes to bonds. “Individual investors are at a disadvantage in buying bonds because unlike stocks, bonds trade from dealers’ inventories,” says Terry Shaunessy, president of Shaunessy Investment Counsel. “Pricing is not transparent. Retail buyers usually pay a big premium—1% or more—over the wholesale or institutional market.” If you want to increase your yield, you could go with a corporate bond ETF or allocate some of your fixed-income portfolio to a preferred-share ETF. Both options involve a bit more risk, but offer the prospect of extra reward…

TORONTO – Police say an American already facing charges for allegedly impersonating a Canadian deputy minister is now facing more charges for allegedly trying to defraud TD Bank of $2.5 million.
RCMP have laid eight fraud and forgery charges against Howard Leventhal, 57, of Long Grove, Ill.
The authorities allege Leventhal tried to get a $2.5-million line of credit from TD Bank in Toronto in July.
The RCMP allege Leventhal tried to secure the line of credit against seven fraudulent accounts receivables he said were owed by Health Canada to his company Neovision.
Prosecutors in the U.S. alleged earlier this year that Leventhal scammed Paragon Financial Group for US$800,000 by claiming it could collect money he said Health Canada owed to his company.
Authorities allege Leventhal assumed the identities of Health Canada representatives, including that of deputy health minister Glenda Yeates, who retired recently, as part of that alleged scheme.
According to the complaint filed in Federal Court in Brooklyn, N…

A taxpayer group says Canada’s employment insurance system is broken and needs to be replaced.