Tag Archive for “budget”

A recent report from TransUnion shows the total debt in Canada increased to close out 2011, with holiday shopping likely responsible for the rise in credit spending.

The fourth quarter of 2011 in Canada saw total debt, excluding mortgage, rise to $25,960. The nation is still experiencing decelerating annual growth below 1 percent for the first time since TransUnion started analyzing credit trends eight years ago.

"The fourth quarter increase in average consumer debt is in line with seasonal patterns as consumer debt levels generally rise during the holiday shopping season," said Thomas Higgins, TransUnion's vice president of analytics and decision services. "The continued deceleration in the annual growth of total debt is the bigger story." Continue reading »

Global economic uncertainty and unstable stock markets have many Canadians concerned about their financial future, and a recent study revealed very few citizens have clear pictures of their retirement.

According to TD Canada Trust, only 38 percent of Canadians have a financial plan, while just 16 percent say they have a clear picture of retirement. More baby boomers have a financial strategy compared to the average Canadian, as 43 percent reported having a plan.

The report said younger investors are the most likely age group to contribute the maximum amount to their Registered Retirement Savings Plan, as 21 percent of respondents in their 30s committed such a amount. Furthermore, the report said Canadians should consider meeting with a financial advisor to discuss a personal retirement plan. Continue reading »

Canadians are constantly attempting to save as much as possible for retirement, and the earlier someone starts saving the more likely they'll have sufficient retirement funds, financial experts say.

According to a Postmedia News report, building a retirement portfolio should be the top concern for Canadians in their 50s, while the goal for investors should be creating an asset base six to 15 times their household income.

"We've had circumstances where people have come in at age 62 and say, 'I want to retire at age 65,' and they've saved either nothing or next to nothing,'' said John Clark, president of Pacific Spirit Investment Management, as reported by the news source. "At that point, there's very little a planner or adviser can do other than damage control." Continue reading »

Global economic uncertainty is dominating headlines and impacting household finances, but many Canadians still have limited economic knowledge.

According to a recent study by Investors Group, Canadians give themselves a B grade in financial literacy, while only 27 percent call themselves well-informed. Forty-four percent of respondents said they find economic topics confusing.

"The truth is that all of us learn as we go to some extent," said Debbie Ammeter, vice president at Investors Group. "Every important life stage and milestone requires a different investment and personal finance strategy to help you achieve your goals. Learning how to budget, save and invest at an early age lays the foundation that is vital for the rest of your life." Continue reading »

An increased number of Canadians will reach retirement during the next few years, but while saving as much as possible is important, how a retirement fund is fulfilled may be equally or more vital.

According to a recent Certified General Accountants Association of Canada report, saving for retirement the correct way is just as crucial as saving in general.

"Saving regularly for your retirement is commendable," said Rock Lefebvre, CGA-Canada's vice president of research and standards. "But without considering the best blend of alternatives, you could be overlooking some important strategies for building retirement capital." Continue reading »

Helping Your Kids Get into Investing Early

In this Internet-dominated, economy-fearing age it may be possible that your kids will out-know you in terms of stocks and trading before they finish grade school. American author Katherine R. Bateman suggests in her book, The Young Investor: Projects and Activities for Making Your Money Grow that no age is too young to get kids making sense of their dollars.

She suggests that even in delivery babies are buying currency – that is, the effort they exert coming into the world is generally awarded with monetary gifts. Bateman says that rather than encouraging your children to begin saving in piggy banks, go one step further and have them deposit into real bank accounts as soon as they can, or open an account for them as soon as they are born. Continue reading »

According to a recent poll conducted by the Canadian Imperial Bank of Commerce, a rising number of Canadians have made progress on reducing their debt. However, a significant number of Canadians view their debt as an obstacle to achieving their future financial goals.

Of those responding to the company's poll, 72 percent claimed to have some form of debt. From this percentage, 61 percent relayed they have made good progress on paying down their debt thus far in 2011. Continue reading »

According to an Ipsos Reid Retirement Risk survey conducted earlier this year, roughly 72 per cent of Canadians approaching retirement are concerned over how they will maintain a comfortable standard of living through their retirement years. Most Canadians are additionally anxious that their savings will not be sufficient in covering needed health care expenses.

Sun Life Financial spoke to two experts in the finance field – Jim Yih, author of 10 Things I Wish Someone Had Told Me About Retirement and Gail Bebee, author of No Hype – The Straight Goods on Investing Your Money – who recommended the following tips on building, and maintaining, your emergency retirement fund. Continue reading »

Common Mistakes Couples Make when Dealing with Money

“I work all night, I work all day, to pay the bills I have to pay,” sings Abba in their famed hit Money, Money, Money – it’s a rich man’s world. For the majority of couples who didn’t find their “wealthy man”, money is a weighty issue, especially between partners who find themselves working and working yet surrounded by debts.

Talking about money is important, but surveys have found that roughly 70 per cent of couples do just that and yet they are still at war when it comes to funds. Why is that? Mary Claire Allvine, financial planner, told SmartMoney.com she believes this is because couples don’t know how to discuss their finances appropriately.

“People tend to be emotional and reactive about money, not strategic,” she says. And this is what leads them to make large financial mistakes. Continue reading »

What you Need to Consider Before Purchasing your Vacation Home

There is little more appealing than a second property that provides a getaway from your hectic city life; a place to host family and build memories; and an investment from which rental revenue can be generated during the weeks or months you won’t be using it. But before you take on a dream that ends up a costly burden, think over the following steps when researching for the purchase of your home away from home.

How will you Pay for it? Is it better for you to refinance your current mortgage, take out a Home Equity Line of Credit on your current home or apply for a completely separate second mortgage? Discuss your options with a reputable mortgage broker or financial adviser and be sure to pick the option that will see you attain the lowest mortgage rate possible, and pay the least amount of taxes. Before you cash in an RRSP or other investment to come up with a down payment, examine your equity take out options.

Continue reading »