Money Maven

03/13/2017

http://business.financialpost.com/personal-finance/debt/canadians-getting-lured-onto-auto-debt-treadmill-by-signing-on-to-long-term-car-loans-watchdog

Canadians are often buying more car than they can afford, paying much more interest, and, in some cases, going on to buy new cars before original loans are fully repaid

03/03/2017

Mortgage Insurance -do you have it? Not to be confused with the mandatory CMHC insurance if you put less than 20% down, mortgage insurance is sold to you by your mortgage provider. They make it seem like part of the package, and that it's mandatory.

What is mortgage insurance? Creditor Insurance. Almost always more expensive than having your own life insurance policy, and as you pay the mortgage down you still pay the same policy amount. The bank is the beneficiary and it's underwritten at the time of death.

CBC Marketplace aired a show about Mortgage Insurance in Canada, and how it rarely pays out.

Understand what you have and know your options.

01/30/2017

Just yesterday I found out one of my oldest friends was diagnosed with cervical cancer @38, 18 months after her husband was diagnosed with terminal cancer. They have life insurance, but no critical illness insurance. They are luckier than most and have been able to rely heavily on their retirement savings. However, they now have no clue as to when/if they'll ever be able to stop working as the extraordinary costs of dealing with cancer have taken their toll. I tried to sit down with them when I started this career 2 years ago, and they told me they had an advisor who they've worked with for years, and assured me they had their "ducks in a row". I urge you to take this seriously, when you're healthy and young.

01/18/2017

Are you over-extended? Have you taken on too many monthly payments? As a general rule - your housing costs (Rent or Mortgage, Insurance, taxes and utiliites) should be at most 30-35% of your take-home income. Any more than this, and you'll feel a strained - "house poor". Vehicles including payments, insurance, gas and upkeep should be at most 15% of this take-home income. 10% should go to savings. What do I see? 40% to housing, 20% to vehicles and 0% to savings :(. Send me a message to see how we can make adjustments to get you on track.

01/04/2017

A joint bank account is an old fashioned ideal. And most often breeds hostility. Because it's nearly impossible for a couple to value money in the exact same way, expecting to marry your finances without stress is a big expectation. I recommend being open and honest about your finances, but sometimes the one and only benefit to a joint account is having 1 set of bank fees. One person is likely to take on a parental role, and both are likely to harbor resentment over differing opinions.

12/19/2016

Caroline and Rob were feeling the stress of the economic downturn this year. After Rob was off work for much of the year, they were playing catch up. They had managed to make all their payments and keep excellent credit. They did however accrue a balance on a credit card with 12% interest. I advised them to inquire about the "skip payment" option on their car loan. Because they were creditors in good standing, and had never missed a payment, they qualified for this option. They were able to miss 2 car payments in October, and 2 in December. Putting the money towards the balance on their credit card. The interest rate on the car loan is 4%, and the 4 missed payments will be added onto the end of the loan. They've financially "reset" themselves and will no be able to start building an emergency fund.

10/17/2016

All too often I see people so focused on paying off their mortgage so they can start saving. They lock into fast-tracked mortgage payments and have all the urgency around paying off the mortgage. It's a great mentality, that they want to be debt free and that they're trying to formulate the best plan. However, they're losing precious time in allowing their savings to work for them. I've actually looked at lengthening mortgages to free up the cash to start investing with, shaving 5-10 years off clients' retirement age. It pays to get a professional opinion, sometimes it's just a different way of looking at things.

10/12/2016

Did you know....much the same as being able to skip a mortgage payment each year, you can skip up to 2 months worth of car payments? That's right - 2 payments if you pay monthly, and 4 if you pay bi-weekly! And I'm all for paying off debt, but in this financial economy and with Christmas looming, delaying your vehicle payments briefly could avoid you dipping into the higher interest credit cards or line of credit, and might be worthwhile. Check with your lender, you have to visit the bank in person.

09/21/2016

~Elizabeth was a single mom with no life insurance - leaving her children exposed to devastation if she didn't come home one day. She had no regular saving habits, just kept money in her chequing account. She did not understand the taxation laws regarding RRSPs, wasn't educated on the best places to save her money, and had no idea how to create a plan. One of our advisors sat down with her and educated her. She attended a Corporate Open House and moved forward with a plan encompassing life & critical illness insurance, a funeral & concierge package and diversified savings to cover her short and long term savings needs. Her financial house was given foundation, and she was given peace of mind that she was on the right path for a successful future. If you know anyone who might need this same guidance, we are happy to help.
(~Name has been changed to protect identity and confidentiality)

09/15/2016

On the radio yesterday a study was announced that said 1 million Canadians would be in a financial crisis if interest rates increased by 1%
700,000 of those said the financial crisis would hit with a smaller increase of .25%!
Would your family be ok? How about your extended family or neighbours?