A Lifetime Plan For Managing Your Money

As your life changes, so do your money needs.  The best way for you to save money, reduce your taxes, and get credit will depend on whether you’re just out of school, have extra income to invest or are planning for your children’s education. Here’s a money plan you can use every step of the…

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How Do You Choose Your Bank?

Like most people, my first bank account was held at the financial institution my parents dealt with.  Once I was out on my own I just opened an account at a bank close to where I worked.  There wasn’t much choice – a plain chequing account (no fees at that time) and a savings account…

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Pros And Cons Of Holding Your Mortgage In Your RRSP

One investment that is eligible to be held in your RRSP is your mortgage.  You need to have enough cash, or assets that can be converted to cash, and hold your mortgage in a self-directed RRSP.  You then make your mortgage payments to the RRSP instead of a financial institution. You can fund your own…

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The Best Time To Start Saving Is Now

Natalie and Jessica want to save for their retirement.  Natalie began setting aside $100 a month when she was 23.  She continued doing so until she turned 31 and then stopped.  In nine years she invested $10,800. Jessica didn’t start saving until she turned 31.  That year, she invested $100 a month and she plans…

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Fund Facts About Mutual Funds

The Canadian Securities Administrators now (as of July 2011) require all Mutual Fund companies to provide a new disclosure document for mutual fund investors. These documents are called Fund Facts and they replace the simplified prospectus (although these are still available upon request if you want additional information). Investors were previously provided with a simplified…

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Smart Tax Planning Strategies

No one likes paying taxes.  Tax evasion is illegal but you have the right to reduce the taxes you pay to the least amount possible.  You want to pay attention to your financial affairs during your working years to be the most tax effective. The key components of smart tax planning are the three “D”s…

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Borrowing To Invest

Borrowing money for investment purposes offers the ability to gain financial leverage.  Leveraging when used prudently can dramatically magnify your goals, adding some muscle to your portfolio more quickly. You are familiar with the concept of leveraging if you have ever: Borrowed to make a contribution to your RRSP Bought securities on margin from your…

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How To Save Money On Groceries

While reviewing my budget spreadsheet recently I noticed that our grocery bill has really been creeping upwards lately.  I realize the cost of food has increased and, now there are only the two of us at home, we tend to buy more convenience and semi-luxury items, but it still seems too high. I’m determined to…

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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…

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Could 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…

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