Industry Pioneer: Michael Ellenzweig + MORE Jun 28th

Some good news this week for long-time homeowners, as economic data points to rising property values and the potential for tidy returns. Should would-be sellers cash in on their abodes? Should buyers drop all conditions in order to gain a competitive edge? Read on below for this week’s real estate coverage, and other personal finance headlines
StatsCan: Canadians are Richer and in Less Debt
Finally – a silver lining to Canada’s red-hot housing market! The latest Statistics Canada numbers point show national net worth has increased as a result of rising property values. And, to top it off, mortgage debt amounts also appear on the decline.
Read on for our report highlights and infographic!
Read Penelope’s Blog | Canadians are Richer and in Less Debt
How Offer Conditions Can Make You Lose in a Bidding War
When it comes to winning a bidding war, money doesn’t always talk – in fact, a lower offer free of conditions will often beat out a higher amount saddles with upon-approval or inspection requirements…

(Image courtesy of Danilo Rizzuti / FreeDigitalPhotos.net)
Q: I have maximized my RRSP contributions for 2013, including $1,300 paid back to my Home Buyers’ Plan (now at $13,000). I have about $12,000 in RRSP contributions to carry forward to next year. Can I apply it directly to my HBP all at once?
— Kelly Leach, Kelowna, B.C.
A: You can eat an entire chocolate cake in one sitting, but you might not want to. The same goes for using that RRSP carry-forward to eliminate what you owe under the Home Buyers’ Plan. Adrian Mastracci, a portfolio manager with KCM Wealth Management in Vancouver, says “there may be more benefit in repaying the minimum HBP and deducting the rest as a normal RRSP contribution for 2014.” The reason is that the RRSP contribution will defer income tax into the future, and give you a higher tax refund in the present. An HBP repayment doesn’t do either because you received those benefits already, when you make the RRSP contribution the first time around. In future years, if you have retired all other consumer debt, are making good progress on your mortgage, maxing out your RRSP, and still have cash on hand, you could retire your HBP early and celebrate your accomplishment with the aforementioned cake…

In some way, all mortgage brokers owe a debt of gratitude to Michael Ellenzweig. He has spent almost 40 years advancing Canada’s broker industry, organizing its members and educating its Read More

No more school, no more books – and three long months to keep your kids busy. Summer’s a great time to have family experiences – but outings and trips can get expensive. Guest poster Désirée Fawn shares her top 5 and frugal ideas for keeping kids busy.
The school year is coming to an end which means families all across the country will soon be embarking on a summer filled with fun, excitement, and new adventures. From day and overnight camps, road trips, camping, and beyond, there are an incredible number of ways to enjoying this season — and just as many ways to break the bank!
We all know that even the most basic road trips and camping excursions can start to add up in the pocketbook department, but there are lots of ways to give your kids a summer to remember without taking out a second mortgage on the house. Today I’m going to share five of my favourite summer-fun-on-a-budget tips and ideas that’ll keep your family smiling and help you to save for the more extravagant seasonal activities!

No…

(Image courtesy of creativedoxfoto / FreeDigitalPhotos.net)
Q: I have $100,000 invested in low-rate GICs in my RRSP. I’m a 63-year-old retiree and don’t need this money for five more years. Are there any other ‘secure’ investments or ones with very minimal risks that will give me a better return? I have $200,000 in registered mutual funds, and want to keep a balanced portfolio.
—John Tobias, Russell, Ont.
A: Interest rates have been in this insanely low Twilight Zone for a few years now. Homeowners are demonstrating their love of low rates by taking on huge mortgages and lines of credit. But retirees like you have very few places to find yield. Exchange-traded funds (ETFs) that focus on corporate bonds or that hold dividend stocks might do a bit better. But higher returns mean higher risk and you might not be willing to make that trade-off for a few grand more a year. My advice would be to step back and look at your overall retirement plan, including CPP, any other pension income you have and your home…