Save up to 30% on groceries with new coupon app + MORE Sep 29th

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Q: We have recently retired and our financial advisor is very positive on us putting some part of our savings into a segregated fund, since it guarantees a minimum 3% annual return and a full return of capital in 10 years.
We like the security of this, but are concerned about the lost opportunity of having these funds invested in ETFs for the 10-year period even with the risk that markets could correct for some period of time.
—Andy
A: I have a general rule of thumb about guarantees and it is that buyers should beware, Andy. When someone offers you a guarantee, it is usually in their best interest, not yours. Extended warranties, for example, are priced so that they are profitable for the offeror, not so that you are likely to come out ahead as a consumer.
Segregated funds are the insurance industry’s spin on mutual funds. They generally have a principle guarantee of either 75% or 100% of your capital after 10 years, or in the event of your death…

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Michael and Heidi are using a mix of TFSAs and RRSPs to shelter their savings. Since they may be in a higher tax bracket in retirement, the TFSA is becoming increasingly attractive. (Photography by Dave Milne)
Heidi Shearman and Michael Slark are within shouting distance of retirement. Although they’re both just 56, they believe they can leave the workforce in about four years. Shearman is looking forward to getting her hands dirty in the garden of their home in Prince George, B.C. Slark, who survived a life-threatening illness in 2008, will have more time to devote to his hobby: collecting comic books, graphic novels and science fiction. And their TFSAs are taking centre stage in their retirement plan.
Having spent many years in the financial industry, Heidi always knew the importance of saving for retirement. “While I was working full-time I contributed to my RRSP, though we weren’t able to max out,” she says…

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Want a better shopping experience? Consider Digital flyer’s updated Flipp app.
The free shopping app lets consumers scroll through digital flyers to find items on sale at local retailers; a key new feature lets users find further savings as they can now coupon-match deals from local store flyers with manufacturer coupons. As part of the new feature, users can now search through a collection of coupons by brand, category or item type.
Globe and Mail personal finance blogger Kerry Taylor has been quite vocal about the fact that the cost of groceries keeps going up and how Canadians can save money on groceries. In recent articles, she has spoken about how flyer coupons can be frustrating since they involve physically searching for, clipping, carrying and then presenting them to a cashier (she admitted she often has several expired coupons in her wallet).
Flipp asked Taylor to try out its newest version; she shared the results of her weekly shopping trip to three stores, during which she bought items such as toilet paper, diapers, detergent, spaghetti, chicken and produce…

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The Delperos may want to use some of their TFSA savings to help finance travel with their twins or pay for post-secondary school costs when three-month-old Julia and Anthony are older. (Photograph by Angela Lewis)
The highlight of 2015 for Anthony and Jennifer Delpero was the arrival of their twins. But the $4,500 bump in annual TFSA contribution room was a (not very) close second. “I love the TFSA increase,” says Anthony, the owner of Hawksdale Landscaping in Toronto. With Jennifer at home looking after the kids, she’s not earning income, which means she’s not accumulating RRSP room. “So our primary tax savings vehicle is the TFSA,” he explains.
GIVE FREELY TO SPOUSES
A key benefit of the TFSA is that it allows single-income couples like the Delperos to avoid the “attribution rules” that normally apply when you give your spouse money. If Anthony were to give Jennifer money to invest in a non-registered account, all of the income and capital gains would be taxable in his name…

CALGARY – Power company TransAlta Corp. (TSX:TA) has announced it’s cutting 239 jobs as it looks to drive down costs.
The reductions, with savings of $25 million, are mainly at the Calgary head office of the electricity generator and marketer.
The latest layoffs are on top of 247 positions TransAlta cut earlier this year in its Canadian coal mining unit.
All together, the company expects to save $47 million this year from the restructuring.
It says ongoing economic and regulatory uncertainty has made it necessary for TransAlta to trim its workforce.
Chief financial officer Donald Tremblay says TransAlta’s goal is to be profitable in all market conditions.
“These are important steps in the context of a very competitive Alberta market and they will ensure sustainable cost reductions into the future,” he said in a release.
“We have responded to these challenges by sharpening our focus on providing the most competitive pricing for our customers.”
Note to readers: This is a corrected story…