Do You Need Loan Insurance? + MORE May 31st

 
Managing debt can be a challenge. Sometimes that challenge is driven by circumstances out of your control. Critical illness or disability can put a huge strain on your finances, making it hard to pay off a credit line or loan.
Those times of distress are what loan insurance is designed for. But is it always the right choice? Depending on the type of debt, your lender and your personal circumstances, it may be the best fit — or just another option.
How Does Loan Insurance Work?
Your lender may offer loan insurance at the time of application for a credit card, loan or line of credit. You’ll have to pay either a one-time, upfront fee for the policy, or a regular premium. Insurance might cover the remaining balance in the event of death, or regular payments while you are sidelined due to disability or serious illness. Some policies may also cover you in the event of job loss.
If you don’t sign up for insurance at the time of application, you may be able to do so later…

Q. I have just turned 40, am single, and earn $86,000 a year. I also have zero debt. I just finished paying off my house, worth $315,000, and I would like to continue to put away my mortgage payment of $1,000 every two weeks as savings.
Because all money went to debt repayment, I’ve never really invested before, but I do have $20,000 in my RRSP that a family member manages for me. I also have a small amount in my TFSA. I will receive a pension upon retirement, but as I would like to retire early, I won’t receive the full amount, and the pension payments will not fully sustain my lifestyle. So some advice on how I should invest the $26,000 in annual disposable income would be appreciated.
– Mara
A. Despite your lack of investing experience, Mara, your instincts are right on target. Most of us don’t want financial independence, which can easily be achieved by selling everything we own and buying a hut in an impoverished country; we want to achieve and maintain our desired lifestyle…

When you finally graduate university or college, it can be a huge relief – you’re officially with school, homework, and tests! But graduation also brings a whole host of new responsibilities, including career searching and new levels of financial management. Whether you’re just graduating or just know someone who is, here are some pointers for tackling these new money challenges with success.
1. Take control of your debt immediately
National student loans and lines of credit can be staggering to look at once you’ve graduated. Fortunately, there is a grace period after graduation until a you need to start repaying your debt, but that doesn’t mean you should wait – if you have a little extra cash, start paying it off as soon as possible. The National Student Loans Service Centre or your financial institution will set up a repayment plan for you, but interest starts as soon as you are done school. This interest can add extra years to the amount of money it takes to pay off the loan, so you’re better off figuring out your best repayment plan early and sticking with it…

With the sleepless nights that come with a newborn it can be hard to plan even one week in the future, let alone grappling with how to save up enough money for when that little bundle of joy heads off to college or university in 18 years. Fortunately Canadian parents have a powerful savings tool at their disposal: the Registered Education Savings Plan (RESP)
Below we’ll take a look at some of the most common questions people have about RESPs to help you get started.
Here’s what you’ll learn:

What is an RESP?
How does an RESP work?
Why should you open an RESP?
How do you open an RESP?
What if you have more than one child?
Is there a contribution limit?
How do you get the RESP grant?
How should you invest an RESP?
How are RESPs taxed?
What if your child doesn’t go to school?
What if there’s leftover money in an RESP?

 

What is an RESP?
A Registered Education Savings Plan is, like the name suggests, an investment account geared towards saving for a child’s education…