Brighter Life

Aug 18: Best from the blogosphere

August 18, 2014

By Sheryl Smolkin

185936832 blog

In this week’s Best from the blogosphere we revisit some of our old favourites who have appeared repeatedly in this space.

First of all, congratulations to Robb and Marie Engen who are pioneers in the world of personal finance blogging. This week they are Celebrating Four Years Of Boomer & Echo. Their articles have been featured in the Globe and Mail, MoneySense, the National Post, and MSN Money.  They’ve been interviewed and quoted in numerous online and print magazines, and recognized as one of the best personal finance blogs in Canada.  Robb also writes a bi-weekly column in the Toronto Star.

On retirehappy, Jim Yih crunches the numbers to find out if it makes good financial sense to Rent or own vacation property in Vernon, B.C. He concludes that the amount of $16,000/year it would cost to carry the property probably cannot be recouped by renting the unit for part of the year. He also decides that renting makes more sense because the property may not increase significantly in value over time.

Tim Stobbs keeps us up-to-date on his retirement journey on Canadian Dream: Free at 45. Therefore I was initially surprised when I saw I Hate Hard Work is the title of one of his recent blogs. But it makes more sense when he clarifies that he would rather work smart than work hard. That means even at the office he tends to focus most of his efforts on high impact items, so although he doesn’t work hard Tim says he is more effective than the majority of his co-workers.

“I just refuse to spend lots of time working on something when in fact if I focus on the core items I can get 80% of the work done with a mere 20% of my effort,” he says.

The Big Cajun Man, Allen Whitton reminds us that Lifestyle Creep is like “Feature Creep,” a term used in high tech development teams, where someone keeps trying to shove more and more into a release of software or hardware, thus slowing things down, and eventually making the whole thing unusable. In other words, if every time you get a raise or pay off a debt you use the money to buy a bigger house, a newer car or more consumer goods, your financial picture will never really improve.

And on Brighter Life, Kevin Press asks the perennial question, Why is financial literacy such a stubborn problem? He shares the following thoughts:

First, he thinks it’s a mistake to argue that personal finance is uniquely difficult to teach and learn. It is a complex and technical subject certainly, but so are dozens of others. We could just as easily be sweating about why so few Canadians understand how to take care of their cars.

Second, the complexity of the subject is not the issue. The problem is the way we are trying to teach it. Adult learning theory explains a number of things about how adults prefer to be taught new information.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


July 14: Best from the blogosphere

July 14, 2014

By Sheryl Smolkin

185936832 blog

This week we have a mixed bag of posts for your summer reading from the world of the ever-prolific personal finance bloggers we track.

Brighter Life presents a series of both get your health and get your finances in shape tips from other bloggers. One of my favourites is from Jeremy Biberdorf, author of Modest Money. He says too many people think the path to financial freedom is to focus heavily on either frugality or earning more money. The trick is actually to find a healthy balance of both worlds. The more extra income you earn, the fewer sacrifices you have to make in your daily life.

Many of us are card-carrying members of the sandwich generation with responsibility for both elderly parents and young children. On Moneycrashers Michael Lewis discusses six must-have conversations you need to have when caring for elderly parents. If you have to tell a parent that it is time to stop driving or take over the finances of an aging relative, you will appreciate this information.

How much do you really need to retire? $1 million? $2 million? On Retire Happy Donna McCaw says your expectations may be too high.  Only about half of the Boomers polled by Scotiabank are doing any planning and most of that planning is only financial in nature, No one mentioned planning for their lifestyle, healthy living, building social networks outside of work or any of the other aspects this major transition brings.

Boomer & Echo blogger Robb Engen says  Investors Should Embrace Simple Solutions. He refers to a young investor seeking feedback on his investment portfolio. While he has wisely opted for low fees by investing in ETFs, seven funds are too many as it may require a lot of fine-tuning to keep the asset allocation in line with his original strategy.  

And finally, on the Canadian Finance Blog, Tom Drake exposes 5 Lies About Your Credit Report. Did you know that if you paid off your debt to a collection agency rather than paying the original vendor the information stays on your credit report?

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


July 7: Best from the blogosphere

July 8, 2014

By Sheryl Smolkin

185936832 blog

After two weeks of vacation in lovely (except for the mosquitoes) Muskoka, I’m back. And so are all of our favourite personal finance bloggers with lots of interesting material. In particular, we welcome back Kerry K. Taylor (aka Squawkfox) who has been on sick leave.

In her classic comeback post Kerry questions whether Dollarama’s $3 HDTV antenna is worth it.  The bottom line is that she was able to receive as many channels on the $3 antenna as on the $67 model she bought at Future Shop. Her readers also have made interesting comments about what worked and what didn’t in their part of the country when they ditched cable or satellite TV.

Alan Whitton (The Big Cajun Man) gives us three financial rules of thumb to live by: Spend less than you make; don’t confuse spending less with saving money if you are buying an item you don’t really need; and lifestyle creep is dangerous and an excuse to build up debt.

Sean Cooper wrote about how he reached $500,000 in net worth by age 29 in this post on Million Dollar Journey. He worked at multiple jobs, lived with his parents until he had a significant down payment on a house and rented out the top floor of his home while living in the basement apartment.

Mark Seed at My Own Advisor joins the legion of Canadians who are opting for VOIP telephone services instead of Bell or Rogers. For $4.95/month he got to keep his home phone number using Fongo Home Phone and after several months he states categorically that it was the right decision.

And last but not least, a free e:book Understanding Unretirement written by Today’s Economy blogger and Sun Life Financial Assistant Vice-President, Market Insights Kevin Press draws on six years of company research to explore why retirement in today’s economy is different and harder to achieve but could be better than ever before.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


June 16: Best from the blogosphere

June 16, 2014

By Sheryl Smolkin

185936832 blog

This week we have a potpourri of blogs dealing with a variety of money-related topics topics you can read on these long late spring evenings.

On Brighter Life, Dave Dineen brings us up to date on his travels in Slow money: A richer way to travel in retirement. He says renting from a local, not a corporation and adopting a local lifestyle means he and his wife can afford weeks instead of days on a beautiful Italian island.

Retire Happy’s Jim Yih reminds couples getting married this summer that they need to talk about money. You or someone you know can certainly benefit from his list of things to talk about to help build the foundation for a better relationship.

We usually post Robb Engen’s blogs from Boomer & Echo but he also writes about lots of interesting issues on his blog Earn Save Grow. For example, he recently shared How an annoying pop up saved his business. By adding a “pop up” form allowing readers to sign up to receive updates from Boomer & Echo, he increased the number of subscribers from 250 to 1,600 in under six months.

Avoiding and paying off debt is a recurrent theme in all personal finance blogs. In Payday Loans: Think Twice Before Entering This Cycle of Debt Tom Drake reminds us that these high interest, short term loans can turn into serious long-term term debt, because the interest payable is astronomical. For example, the fees for payday loans are between $51 to $72 on a $300 loan, which works out to annual percentage rate of 443% to 626%!

And last but not least, Tim Stobbs finally bit the bullet and accepted a work cell phone because he is more offsite more frequently and he needs it to communicate with the office. However, he has devised A Leash for the Beast and turns it off outside of business hours. He also uses an app that separates his work and personal email.

I’m off to cottage until after Canada Day, so the next Best from the Blogosphere will appear on July 7th. Until then, throw another steak on the barbecue, pour yourself a tall cold one and don’t forget the sun screen and mosquito repellant.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


June 9: Best from the blogosphere

June 9, 2014

By Sheryl Smolkin

185936832 blog

There is nothing I love better than planning a vacation or two or three. At the moment we have two weeks in our Muskoka fractional ownership cottage coming up; a week at Disneyworld with our granddaughter in September; and I’m working on the arrangements for a family vacation somewhere warm in February.

So with summer vacations coming up for many families, I pulled together a series of posts both old and new, with a vacation theme.

Krystal Yee explains how she is saving money and travel rewards points for a European vacation this fall and prioritizing her travel plans. She is comfortable that nearer term trips to Edmonton and Las Vegas are off the table because her long term goal is worth saving for.

Peggy Goldman, President of Friendly Planet Travel offers 9 Great Tips For Budget-Conscious Travelers. Choosing a hotel with breakfast, avoiding baggage fees at all cost and selecting a credit card without foreign conversion fees are all good suggestions.

Several years ago on Brighter Life, Helen Burnett-Nichols weighed the pros and cons of buying a fraction of a vacation home. She says because most people don’t use their cottages all year it may be difficult to justify full time cottage ownership. Shared ownership means you have the property for 4 or 5 weeks a year and when you arrive it’s like walking into a “no upkeep resort.” However ongoing maintenance costs will increase and the re-sale market for fractional units is often limited.

In a more recent Brighter Life blog, Brenda Spiering gives some interesting suggestions for preventing family cottage feuds. She says the best way to decide how to pass on the family cottage to the next generation is to talk to your family and consult a financial advisor. Depending on your needs, he or she can direct you to other professionals, such as an estate-planning lawyer or tax accountant.

And don’t forget the many vacation destinations close to home. Tourism Saskatchewan’s Travel Tales Blog gives you updates on things to see and do, places to stay and eat, and exciting year-around experiences available in Saskatchewan, all only a few mouse clicks away.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


May 12: Best from the blogosphere

May 12, 2014

By Sheryl Smolkin

185936832 blog

This week there were several interesting blogs about life insurance I’d like to share with you.

On Brighter Life, Kevin Press discusses Understanding life insurance. First of all he gives basic information regarding term, permanent and universal health insurance. But for Kevin, the question was never “term or permanent.” It was, “How much term and how much permanent?”

Robb Engen from Boomer & Echo outlines The 4 Best Strategies for Successful Life Insurance Applications including preliminary inquiries, multiple applications, a covering letter and an insurance broker who is knowledgeable and up to date.

In a Toronto Star column I wrote about Eight red flags when you apply for life insurance. If your application reveals you have or had a serious or life-threatening illness the insurer may charge you higher premiums or postpone coverage for specific conditions until you can show the condition has stabilized. Or, the insurer may refuse to cover you. However, you still may be a good candidate for a “simplified issue” policy.

In an archived article Retire Happy blogger Jim Yih tackles the question, Do you need life insurance in retirement? Several of the situations where he says life insurance makes sense for retirees are to:

  • Pay off debt
  • Cover taxes at death
  • Cover final expenses like funeral expenses
  • Provide income for dependants
  • Leave a larger estate
  • Equalize your estate
  • Business continuation
  • Provide for charities

And finally this week, thanks go to Dan on Our Big Fat Wallet who introduced his readers to The Secret Pension Plan: Saskatchewan Pension Plan. He gives a great summary of the main features of the program.

He says the Saskatchewan Pension Plan is great for anyone looking to invest but not quite comfortable with DIY investing. It’s also useful for the self-employed who have no desire to handle their own investments. The costs of the plan are low and they offer lots of flexibility. You can also get potentially-lucrative cash back rewards for all contributions if you make them on your credit card.

Many employers also offer this easy-to-administer pension plans as an employee benefit. You can get more information on the Saskatchewan Pension Plan here.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


Apr 21: Best from the blogosphere

April 21, 2014

By Sheryl Smolkin

185936832 blog

If there are snow flurries as forecasted for this week, it’s probably all my fault because I took our winter coats to the dry cleaners this past weekend. But when the temperature goes up, the temptation to put away boots and down jackets for another year is irresistible.

Sometimes your financial accounts also need a spring cleaning. In Spring Financial Cleaning Big Cajun Man recounts how he cleaned up his Quicken data files removing redundant accounts so they give him a more realistic financial picture.

Jim Yih reminds us that investing and taxes go hand in hand, particularly outside of your RRSP. That’s because different forms of investment income can provide significant tax benefits.

In spite of the plethora of personal financial blogs and other sources of financial advice available to Canadians, Brighter Life editor Brenda Spierling reports on Brighter Life that Women lag behind in financial planning. Does this sound familiar? She suggests that you create a financial plan and open an automatic savings plan or payroll deduction plan as soon as possible.

This week Robb Engen on Brighter Life writes tongue-in-cheek about Bank Slogans And Taglines, Translated. For example, he says TD’s “Open earlier, open later. Even Sunday” really means, “We don’t care that most of you want to bank online. We’re going to make you come in and speak to an advisor so we can sell you more products  any time, day or night.”

Finally, after a foot injury in January, on Give me back my five bucks, Krystal Yee reports that she laced on her running shoes for the first time 75 days later and that she is determiend to run and blog her way back to top physical condition.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


Apr 14: Best from the blogosphere

April 14, 2014

By Sheryl Smolkin

185936832 blog

With spring finally in the air, high school and university students are pounding the pavement looking for work.

The pros and cons of unpaid internships have been all over the news lately with prominent publications cancelling illegal internships that were little more than free labour. On his blog youth and work Toronto lawyer Andrew Langille writes about The Growing Influence of Canada’s Intern Rights Movement.

Talentegg’s Sidneyeve Matrix says instead of waiting for opportunity to knock, students should get out there and create their own career luck. She gives four DIY opportunities that give young people ways to take the initiative and open doors for themselves.

Spring is also the time when many homes are bought and sold. When you apply for a mortgage, the bank will probably try to sell you mortgage insurance. Brighter Life blogger Helen Burnett-Nichols considers whether mortgage insurance or increasing life insurance will give you the best protection.

Robb Engen (Boomer and Echo) also has a new blog called Earn Save Grow. It is still very much a personal finance site, but it focuses less on frugality and more on topics like how to increase your income, and how to save wisely in the areas that impact your finances the most. Check out his latest post Long term outlook: Where do you see your finances in 20 years?

And last but not least, if you use a Keurig or other one cup coffee maker with disposable K-cups or pods you don’t even have to do the math to know you are over-paying for the small amount of coffee contained in the excessive packaging.

But in case you never gave the subject any serious thought, check out Squawkfox where Kerry K. Taylor calculates that if you use Starbucks French Roast Ground Coffee in the K-cup mini reusable filter it only costs 26 cents per cup, while using a K-cup will ratchet the cost up to 67 cents for eight ounces of java.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


Mar 24: Best from the blogosphere

March 24, 2014

By Sheryl Smolkin

185936832 blog

Whether you simply can’t face the pile of paper on your desk or you are waiting for the last few T5s to come in the mail, the deadline for filing your income tax return is on the horizon.

In Income Splitting 101: Tips On Keeping It In The Family Boomer & Echo’s Robb Engen discusses the Conservative government’s proposal to permit income-splitting for families with children and some legitimate income-splitting strategies that are already available under the Income Tax Act.

Many young people are considering post-secondary education with a co-op component. On canadianbudgetbinder.com Mr. CBB tells us How his co-op program at a zoo shaped his work ethics.

He says one of the greatest parts of his co-op program was when he was feeding the animals and visitors to the zoo asked him questions he learned how to interact with people and share his knowledge freely.

Blogger Krystal Yee has a new job working close to the downtown Vancouver core. She says Having a car is expensive, particularly now that she has to rent a downtown parking spot. But her home is in the suburbs and she’s not ready to give her car up yet.

Brenda Spiering the editor of brighterlife.ca has some great ideas for spring cleaning your finances. Begin by digging out all of your essential financial documents. If you are unsure what they are, check out Twelve key documents you need to gather.

And as wedding season comes into full bloom, take a look at How I Made 100 Wedding Invitations for Under $60 on whenlifegivesyoulemonsaddvodka.com. All it took was card stock from a stationery store, an online template and a new printer cartridge.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


Mar 17: Best from the blogosphere

March 17, 2014

By Sheryl Smolkin

185936832 blog

The road to retirement is a long one with many twists and turns on the way. In addition to saving to pay for your retirement you have to think about where you will live, how you will spend your time and how much you will need for health care costs not covered by Medicare.

In Retirement: Who do you want to be when you grow up? on retirehappy.ca, Donna McCaw says we could be volunteering, mentoring, coaching, working part time, serving on committees or boards, engaging in politics at various levels, writing, taking courses, getting more fit, and taking on projects, challenges, or causes.

Dave Dinnen weighs the pros and cons of retiring early in his blog Should you retire early or retire late? on Brighter Life. Early retirement costs more and most of your friends will still be working. But he retired at 54 and loves that he is young and free with the time to make his own lifestyle choices.

For many people, getting ready for retirement is such an overwhelming goal that they simply can’t get started. Using cleaning her office as an example, Eileen Chadnick of Big Cheese Coaching says Tiny is the new big – when it comes to goals. It’s often better to set smaller goals, because you’re more likely to achieve them. This gives you something to celebrate and reinforces the habit of goal-setting in the first place.

Lent started on March 5th. Big Cajun Man suggests that for your financial Lenten journey you could go without lattes for 40 days; read four personal finance books and live on cash for 40 days. Even if Lent is half over when you read this, it’s not too late to commit to strategies that will save you money all year.

And, on another note, independent life insurance broker and president of Life Insurance Canada.com Inc. Glenn Cooke exposes three big fat myths about critical illness insurance on myownadvisor.ca that you need to know about. For example, you could be denied coverage for a heart attack because insurance companies use their own definition of a heart attack instead of the typical consumers definition of heart attack or even the medical industry’s terminology.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.