How to go about securing the best savings strategy in Canada.
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The Best No-Fee Rewards Credit Cards For 2019 Nov 9th
Credit card rewards come in many forms. From points to statement credits to cold-hard cash, a good rewards card maximizes on your everyday purchases and ultimately helps you save.
Reward credit cards generally offer different amounts of rebates for particular spending categories (gas, grocery, phar.... More »
Eight solid alternatives to the Capital One Costco Mastercard for Canadians + MORE Jun 6th
Costco wasn’t the world’s first retail warehouse club, but in the nearly 35 years since opening in Canada, it’s become a staple shopping destination for families and groups who want deep discounts on bulk buys. The way that Costco works is that it relies on membership—you can’t walk into a.... More »
Should I Get a Variable or Fixed Mortgage? RBC Cuts Rates and the Answer is No Longer Clear Feb 1st
Last week, Canada’s biggest bank, RBC, cut its five-year fixed rate by 15 basis points. This gave customers the option to lock in their mortgage rate at 3.74 per cent, for a five-year term. And surely enough, TD Bank and BMO Bank of Montreal followed suit and cut their five-year fixed rates to th.... More »
A guide to the best robo-advisors in Canada for 2022 + MORE Jan 9th
“You had me at low fees!” That was our reaction to the arrival of robo-advisors in Canada, beginning in 2014. Faced with few alternatives to mutual funds and self-directed brokerage accounts, young and middle-income investors embraced the option of having their savings passively managed in a bu.... More »
The best high-interest savings accounts in Canada for 2023 + MORE Jan 30th
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The best savings accounts in Canada for 2023
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How a young couple can kill $142,000 in debt and start investing
– moneysense.ca
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Julie and David live in Calgary with their two daughters, ages 10 and 7. David, 40, is a cable technician earning $150,000 annually while Julie, 37, works part-time at a retail store near home earning $6,000 annually. In 2014, their lives changed when David fell on the job and injured his left side, leaving him disabled for two years.
Through physiotherapy, massage therapy and other alternative medical care he has been able to make an almost complete recovery. “It’s been a long road but David is now back at work and is able to function at about 90 per cent of his previous abilities which is wonderful,” says Julie.
For the months that David was off work, the couple quickly started drowning in debt. Right now, they have about $142,000 in debt that includes $46,000 in high interest rate credit card debt, an $11,000 car loan, a $5,000 student loan, a $12,000 bank loan, a $52,000 line of credit, $1,250 in bank overdrafts as well as $14,000 from family and friends.
As renters, they have no mortgage but they’ve still managed to load up on debt…
Julie and David live in Calgary with their two daughters, ages 10 and 7. David, 40, is a cable technician earning $150,000 annually while Julie, 37, works part-time at a retail store near home earning $6,000 annually. In 2014, their lives changed when David fell on the job and injured his left side, leaving him disabled for two years.
Through physiotherapy, massage therapy and other alternative medical care he has been able to make an almost complete recovery. “It’s been a long road but David is now back at work and is able to function at about 90 per cent of his previous abilities which is wonderful,” says Julie.
For the months that David was off work, the couple quickly started drowning in debt. Right now, they have about $142,000 in debt that includes $46,000 in high interest rate credit card debt, an $11,000 car loan, a $5,000 student loan, a $12,000 bank loan, a $52,000 line of credit, $1,250 in bank overdrafts as well as $14,000 from family and friends.
As renters, they have no mortgage but they’ve still managed to load up on debt…
Alberta could slay its deficit in one fell swoop, some say. Boost business investment and jobs. Build more schools and hospitals. Even make it so most Albertans pay zero in provincial income tax. Yes, Albertans have been talking about adding a provincial sales tax for decades. So why hasn’t it happened?
How Carol can calculate her advisor’s value
– moneysense.ca
Q. How do I know if my advisor is charging me too much in fees? How do I know if he is giving me the best advice? Should I leave what I have invested with him at Sun Life (about $75,000) and start putting the rest of my future savings with someone else? I am 61 years old and will retire at 65 with a full pension from a provincial police service. Any advice would be appreciated.
—Carol
A.You know, Carol, it may be the fund fee is too expensive and not your advisor’s fee.
A mutual fund advisor/dealer generally makes about 1% on the amount invested. A fee-based advisor/dealer makes 1% to 1.5%, and yet the all-in-cost working with a fee-based advisor is often less expensive than the mutual fund advisor. This is due to product selection.
Here is a breakdown of the fees on a mutual fund with a 2.5% combined MER/TER:
$637/yr. to the advisor ($75,000 x 1%) x 85%
$113/yr. to the dealer, Sun Life ($75,000 x 1%) x 15%
$1,125/yr. to the product manufacturer, Sun Life $75,000 x 1.5%
Your total annual fee is $75,000 x 2…