Archive for February 2012
Finances From A To Z
A is for Annuity: An annuity provides a regular income of a fixed amount for the rest of your life, or an optional fixed time period. A lifetime annuity would have been great when interest rates were around 12%, instead of the current rates of 2%. B is for Balanced Mutual Fund: These funds invest…
Read MoreWhy A Mortgage Payment Vacation Is A Bad Idea
We have been paying an extra $600 per month on our mortgage since we moved into our new house last summer. We are taking advantage of increased payment options to reduce our total interest costs and pay down our mortgage faster. Our goal is to pay off our mortgage in less than 15 years. Apparently…
Read MoreCould You Have A Frugal February?
Recently on the news I saw an interview with a family of six who vowed to stop spending for the month of February. On January 31st, they shopped for a month’s worth of groceries. They didn’t drive, but walked everywhere. The 9-year old daughter made a wallet out of duct tape for a friend’s birthday…
Read MoreWhat’s Your Findependence Day?
I just finished reading Findependence Day by Jonathan Chevreau, the personal finance columnist for the Financial Post. Findependence Day is a fictional personal finance story that follows the lives of a young debt-ridden couple’s long journey to financial independence. I’m sure many Canadians will identify with this story as it guides you through all of…
Read MoreCan We Fix The Economy?
At this time of year many corporations are announcing their profits and governments are handing down their budgets. On the one hand, the economy seems to be forging ahead. On the other hand, governments are preaching restraint. In the meantime the media loves nothing better than doom and gloom and uses fear tactics that cause…
Read MoreQuick Cash Solutions: A Dangerous Game
“I will gladly pay you Tuesday for a hamburger today.” – J. Wellington Wimpey What are friends for? Payday seems an eternity away and you only have two loonies in your wallet. All your credit cards are maxed out and you need some quick cash. What do you do? Just ask your friend to loan you…
Read MoreI’ll Admit It – I Am A Tightwad
I wouldn’t exactly call myself cheap (although some family members may disagree) but I hate to spend money unnecessarily and I like to consider myself thrifty or frugal. To promote my thrift I like to read books or articles with money saving tips but I’m invariably disappointed with the advice. Suggestions to turn out the…
Read MoreA Case for Thinking Beyond 401Ks and RRSPs
There is an entire industry devoted to helping adults save for retirement. Company pensions do not exist any more except in few rare instances, and even when they do, the current economic environment and the increasing job mobility makes it difficult for any employee to put in enough years at an employer to grow it…
Read MoreHow To Put Your Kids To Work
Are you tired of your kids always asking for money? Allowing kids to earn their own money can be a fun and prosperous venture even for the very young. Young adults who start their own business, or work in other employment, benefit from increased confidence, learning to take direction, time management and organizational skills as…
Read MoreCanada Pension Plan: Understanding CPP
While the Federal government considers increasing the age of eligibility for Old Age Security due to Canada’s aging population and economic challenges, they maintain that our Canada Pension Plan is actuarially sound. Canada Pension Plan’s chief actuary submits a report to Parliament every three years on the financial status of the plan. In June 2011…
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