Not sure how to make a savings plan? Read on…
Latest News
Canada’s Best Credit Cards for People with Bad Credit 2020 + MORE Jul 18th
Conventional wisdom may lead you to believe that if you have bad credit, you should swear off credit cards. But if you want to improve your credit score you’ll have to show you can handle credit responsibly—and the only way to do that is (you guessed it) to have a credit card. Used properly, it .... More »
Ayana Forward, financial advisor + MORE Feb 18th
Meet Ayana Forward
Ayana Forward is a Certified Financial Planner based in Ottawa, Ont. She owns Retirement in View, a fee only financial planning firm that specializes in helping clients within one to five years of retirement navigate the financial and lifestyle aspects of transitioning out of t.... More »
How annuities work in Canada + MORE Jul 17th
Annuities are life insurance products that pay a regular income to a purchaser. When you buy an annuity, it’s like buying a pension plan with a lump sum premium paid from your savings. The payments you receive include a return of your original capital and interest income on that capital. It ma.... More »
10 simple ways to save money Aug 21st
As the cost of living increases for Canadians, having a savings strategy has never been more important to ensure you can live comfortably in the future. But many are unsure where to start. Not having a thought-through plan or having one that is too rigid and demanding can easily push you off track. .... More »
What Canadians living in the U.S. need to know about TFSAs + MORE May 9th
Q. I moved from Vancouver to San Francisco about nine months ago, and still have two Tax-Free Savings Accounts (TFSAs) in Canada. One TFSA has $11,000 in it (and has an unrealized loss of $6,000) and is held at a local bank. The second has $23,000 in it and is held through a robo-advisor.
However, .... More »
Your Jet Set Savings Guide
– ratesupermarket.ca
March Break is nearly here, and for many winter-weary Canadians that means a welcome jaunt to a sunnier climate. However, travelling may be harder on the wallet this year due to weaker spending power. But not to fear, would-be vacationers – this week’s travel tips will have you enjoying life in the jet set in no time. Read on for the full story.
INFOGRAPHIC: How to Fly for Free
A weaker Canadian dollar may be clipping vacationers’ wings, but there’s no need to settle for a staycation! There are tons of travel rewards credit cards on the market that can help offset your travel costs – but finding the right one (and understanding how points work) can be confusing. Check out our infographic for insider tips on taking to the skies for less.
Read Penelope’s Blog | How to Fly for Free
Travel in Canada Grows Due to Weak Loonie
Did you know: a vacation in the U.S. could cost you 30% more this year? It’s no wonder canucks are choosing to stay north of the border this vacation season, according to a recent Expedia study…
Should you ever use an RRSP to pay tuition fees?
– moneysense.ca
Q: I am a 55-year old with three kids who are in university. I have exhausted our RESP savings and am having a cash flow problem. My wife and I have about $250,000 in RRSPs and another $150,000 in LIRAs. We have had some money difficulties over the last couple of years and now have a $450,000 mortgage on a home that is worth around $650,000.I am a good earner and make close to $200,000 before taxes. I am a psychologist in private practice. My wife works for me and we income-split to help reduce taxes.
The dilemma we are facing is whether or not we should sell our house and downsize into something a little cheaper in order to reduce our mortgage, or use some of the money that we have in RRSPs to pay down the mortgage and help with the kids’ education. Once they are done, we will have a lot more money to put against the mortgage, but what is killing us is the interest on the mortgage.
We are also thinking about building a house and have found a nice lot. We could probably do it for about $500,000…
China’s Li pledges more reform, says debt under control
– canadianbusiness.com
BEIJING, China – Chinese Premier Li Keqiang pledged Wednesday to press ahead with an overhaul of the state-dominated economy and financial markets despite slowing growth, saying the country’s rising debt levels are under control.
Li’s comments at a news conference were the latest installment in a high-level campaign to reassure jittery global markets about the health of the world’s second-largest economy following stock market and currency turmoil.
Li, the country’s top economic official, expressed confidence Beijing can carry out plans to shrink bloated steel and coal industries while still meeting its economic growth target of 6.5 to 7 per cent. He promised to make it easier to set up private businesses and said financial markets will be made more market-oriented to support growth.
“We will continue to pursue market-oriented reform,” said Li at the event held following the closing of the annual session of China’s ceremonial legislature.
The premier acknowledged concerns about rising debts and potential bad loans at banks but said debt levels and manageable due to large reserves at financial institutions and a high savings rate…
Li’s comments at a news conference were the latest installment in a high-level campaign to reassure jittery global markets about the health of the world’s second-largest economy following stock market and currency turmoil.
Li, the country’s top economic official, expressed confidence Beijing can carry out plans to shrink bloated steel and coal industries while still meeting its economic growth target of 6.5 to 7 per cent. He promised to make it easier to set up private businesses and said financial markets will be made more market-oriented to support growth.
“We will continue to pursue market-oriented reform,” said Li at the event held following the closing of the annual session of China’s ceremonial legislature.
The premier acknowledged concerns about rising debts and potential bad loans at banks but said debt levels and manageable due to large reserves at financial institutions and a high savings rate…
Household debt rises to another record
– thestar.com
Canadian household credit market debt, which includes consumer credit, mortgage and non-mortgage loans, increased to $1.9 trillion at the end of last year
The Canadian Debt-to-Income Ratio Hits 165%
– ratesupermarket.ca
The latest household debt stats have been released by Statistics Canada – and they reveal a trend of persistent consumer and mortgage borrowing across the nation. The average debt-to-income ratio hit 165 per cent in the fourth quarter of 2015, up from 164 per cent in the previous quarter. That means the average Canadian now owes $1.65 for every dollar they earn after taxes.
Total debt, including consumer credit and non-mortgage and mortgage-based loans, grew 1.2 per cent to $1.923 trillion at the end of last year – but a whopping 1.262 trillion of that can be attributed to mortgages.
This follows a report from TransUnion that finds the average Canadian credit card balance has hit $3,610 – a three-year high.
Cheap Borrowing to Blame
It’s not surprising debt – and particularly mortgage borrowing – continues to grow in Canada; consumers have been spurred to borrow by the central bank for several years, as record low interest rates have been the norm. The Bank of Canada (BoC) cut the cost of borrowing to 0…
