Married with money: How to combine finances with your partner + MORE Dec 21st

With the current volatility of today’s market, I have seen my LIRA investment bounce up to almost $90,000 earlier this year, to almost $20,000 less today. That said, it is in a medium- to high-risk portfolio at the moment.

With any luck, I probably still have approximately 18 more years I could potentially be working, however I cannot contribute anything to this LIRA. I am interested in knowing the following:

Should I move it to GIC investments?I am interested in investing in a mortgage fund, but can I, and how?

—Sharon

How to deal with market volatility as a long-term investor

This year has been a brutal one for investors. Stocks are down, bonds are down, real estate is down—there has been nowhere to hide.

The Toronto Stock Exchange net total return is negative 11% year-to-date. The S&P 500 has been much worse, with a 23% drop. Canadian bonds, as measured by the FTSE Canada Universe Bond Index, have lost 13%.

If your locked-in retirement account (LIRA) has gone from $90,000 to just over $70,000, Sharon, it sounds like you are down about 20% in 2022…

My nine-year-old, Matilda, has a piggy bank filled with coins she doesn’t know what to do with. And since I’m not role-modelling how to manage physical money very often, I’m not incredibly surprised.

Not to say I’m bad with money, but like most parents in 2022, I rarely carry actual cash. She watches me make nearly all purchases either in-store with a card or online, and often with my phone. And although Matilda has started to take note of how well I can spend money (and truly, I am gifted in this area), I’m finding it much trickier to explain concepts like financial security or fiscal goal-setting to her.

Like most parents, I want my kid to have a solid sense of financial literacy and good money habits in adulthood. So, with this in mind, I asked two money professionals for their advice on teaching kids the basics around earning, saving, spending and giving. Here are their top six tips.

How to teach kids about money

1. Share your spending strategies

To start, it can be as simple as explaining your day-to-day spending decisions, says Robin Taub, author of The Wisest Investment: Teaching Your Kids to Be Responsible, Independent and Money-Smart for Life…

My husband is retired and concerned that his money that is invested in his RRSP and TFSA is fluctuating too much. He is retired and is wondering if his funds should be in a GIC account as it’s paying 4% and not losing principal. He’s concerned in this volatile market.—Rodeen

Are GICs a good idea for retirement?

As you noted, Rodeen, guaranteed investment certificate (GIC) rates have risen to levels we have not seen in over 10 years. There are one- to five-year rates that are between 4% and 5%. You may not get these rates at major banks, though, where rates are about 2% lower than that, but credit unions and trust companies generally offer a healthy premium.

Are GIC rates going up in Canada?

A year ago, GIC rates were less than 2%. The reason they are so much higher now is worth considering. The May year-over-year inflation rate was nearly 8% so the Bank of Canada (BoC) has raised interest rates to slow down spending and price increases. So, while a 4% GIC rate may seem enticing, it represents nearly a 4% negative real rate of return when adjusted for 8% inflation…

How to use this tool: Simply scan the table below to view GIC interest rates offered by financial institutions across Canada. Click one of the tabs at the top of the table to focus on your choice of non-registered, registered, TFSA-eligible or U.S. GICs. Or, follow the prompts in the six fields at the top of the finder tool to input the amount you wish to invest in a GIC and your preferred investment term, along with other details, and the calculator will automatically display what your total return would be from each of the financial institutions listed. This allows you to compare the options side-by-side and decide which is the best for your money.

These are current rates offered by Ratehub partners. You can find information about additional product options below.

GIC rates in Canada 2022

If you’re looking to purchase a guaranteed investment certificate (GIC), you’ve come to the right place. We’ve rounded up the GICs with the best interest rates in Canada. Read on for additional information on GICs, including whether GICs are worth the investment, how to know if GIC rates are likely to go up (or down) and how to choose GICs that align with your goals…

If you’re in a relationship, the topic of money will eventually come up. Since the pandemic started, couples have spent more time talking about money, according to a 2021 RBC poll. Almost half—47%—identified finances as one of the biggest stressors in their relationship. One U.S. study found that disagreements over money were a leading predictor of divorce.

Whether you’re planning to cohabitate or you’re already living together and are starting to plan financial goals, here are some tips on bringing your money together.

Talk about money with your partner early

Whether you’re married or not, it’s important to understand your partner’s financial situation, goals and values. Feelings about money formed during childhood often influence us as adults—for instance, fear of not having enough, discomfort with debt, or family taboos around talking about money. Even without these money hang-ups, everyday spending and saving can be stressful when you’re combining finances with another person…