Tag Archives: Financial Independence Hub

Dec 11: Best from the blogosphere

It’s getting close to the end of the year and the holiday season is upon us. Here are some examples of subjects  personal finance bloggers havw been writing about recently.

Marie Engen (Boomer & Echo) offers tips on How To Leverage Technology Into Good Financial Habits. She notes that most banks have a budgeting app that tracks your spending so you get a better idea of where your money is going. If all your accounts don’t reside with just one financial institution, there are lots of mobile apps and budgeting software available, such as the popular Mint.com, GoodBudget and You Need a Budget.

Chris Nicola on the Financial Independence Hub tackles the perennial question, Should you take early CPP benefits or defer as long as possible?  Using Statistics Canada figures, he calculates that a woman maximizes her total CPP payout by waiting until age 70, resulting in an average of $75k (36%) more than if she took it at age 60. A man maximizes his total CPP a little earlier, at age 68, receiving an average of $50k (27%) more than at age 60.

Maple Money’s Tom Drake addresses the question: Should You Invest in Group RESPs? He concludes that the risk with group plans comes if you drop out early. Many of these types of RESPs have high enrollment fees. It’s not uncommon to pay up to $1,200 in fees. With Group RESPs, you don’t pay that amount up front. Instead, it is deducted from your returns when you close the plan early. Therefore if you withdraw from the plan before it matures, you could face big penalties — and even have  your contributions eaten up by the fees.

And getting back to how to save money and still enjoy holiday entertaining and gift giving…..

Holiday décor hacks for having a dinner party by personal finance writer, on-air personality, speaker and bestselling author Melissa Leong suggests that you create your own decor very cheaply, whether by gathering some greens or acorns from outside and dumping them in a vase or using wrapping paper to wrap empty boxes, make napkin rings or use as a table runner.

What If This Christmas… You Didn’t Have to Worry About Money? by Chris Enns on From Rags to Reasonable offers the following suggestions:

  • Figure out how much you want to spend.
  • Figure out how much you can afford to spend.
  • Buy a prepaid credit card and use it as the ONLY way you pay  for Christmas-related materials.

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 on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Written by Sheryl Smolkin
Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

Nov 6: Best from the blogosphere

We are again going to sample recent material from a series of bloggers who participated in The Canadian Financial Summit in September.

This week headlines across the country blared that CRA has changed their position on allowing diabetics to claim lucrative disability tax credits in certain cases.

On Your Money, Your Life, accountant Evelyn Jacks discusses why these changes are being made and how audit-proofing strategies must be implemented by tax professionals and their diabetic clients.

Andrew Daniels writes at Family Money Plan about how he paid off his mortgage in 6 years. Five of the 28 things he and his wife gave up to quickly pay down his mortgage are noted below:

  • Eating out, largely due to food sensitivities and allergies with the added bonus that they saved big bucks.
  • For the first five years of the pay down period they gave up travel.
  • They went without cell phones for four of the six years of paying off their mortgage
  • They opted to repair their old cars as required rather than buying new ones.

Jonathan Chevreau, CEO of the Financial Independence Hub notes in the Financial Post that Only a quarter of Canadians have a rainy day fund, but more than half worry about rising rates.

This is based on a survey of 1,350 voting-age adults by Forum Research Inc. conducted after the Bank of Canada raised its benchmark overnight rate from 0.75% to 1% on Sept. 6, the second increase in three months. That said, 17% believe rate hikes will have some positive aspects: Not surprisingly, debt-free seniors welcome higher returns on GICs and fixed-income investments. Another 38% don’t think it will have an effect either way.

Do you know how long it will take to double the money you have invested? MapleMoney blogger Tom Drake explains the rule of 72 which take into account the impact of compound interest and  allows you to get a quick idea of what you can achieve with your money.

For example, if you were expecting a rate of return of 7% you would divide 72 by 7, which tells you it would take about 10.3 years to double your money at that rate. If you want $50,000, you would need to invest $25,000 today at 7% and let it sit for 10.3 years.

Kyle Prevost explores 5 stupid reasons for not getting life insurance on lowestrates.ca. If your rationale is that you are healthy and never get sick, Prevost says, “Glass half-full thinking is a positive thing, but pretending that your full glass is indestructible is a recipe for disaster.”

And if you have avoided buying life insurance because you have so many other bills you can’t afford it, he says, “You seriously need to ask yourself what sort of situation you’d leave behind if tragedy struck. Those bills that look daunting right now would look downright insurmountable.”

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 on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Written by Sheryl Smolkin
Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

June 26: Best from the blogosphere

A million dollars doesn’t go as far as it used to but it’s still a nice chunk of change. I’m always fascinated by media articles and blogs that feature wunderkind who achieve seemingly unreachable financial goals by a very young age. So I pulled a few pieces to share with you in the hope that something may resonate and help you to exit the rat race sooner rather than later.

In The 10 Most Common Millionaire Habits, Jessica Kane writing for the Financial independence Hub says most of the people who have achieved the status of millionaires engage in daily rituals that help them meet their goals. Some of her suggestions are: be an early bird; read about current events; learn something new every day, and sleep less than 8 hours each night.

Grant Sabatier, the founder of The Millennial Millionaire went from $2.26 to $1 million in 5 years, reaching financial independence at age 30. He also shares A Few Not-So-Easy Steps.  Several of my favourites are:

  • Get paid what you are worth. Negotiate a raise or look for a higher paid career track.
  •  Save at least 20% of your after tax pay cheque before spending anything.
  • Find a side hustle and invest the profit.

Kyle from Young and Thrifty offers 6 Non-Traditional Steps to Becoming a Canadian Millionaire In Today’s Market that will certainly raise some eyebrows. He says there are many paths to prosperity and only some of them lead through university. One alternative is to take shop or industrial arts so you can start your education in the trades while you are still in high school. Then you can start making money right away when you graduate. Also, don’t be afraid to move where the jobs are.

Millennial Revolution is a FIRE (Financial Independence Retire Early) site started by two computer engineers/children’s authors, FIRECracker & Wanderer, who retired at 31 to travel the world with a seven figure portfolio.

They primarily attribute their ability to save and invest scads of money to renting instead of buying in the pricey Toronto housing market. But they have also published a detailed and highly entertaining series on their blog about “how they got there.”

How We Got Here, Part 1: God, We Were Spendy Back Then
How We Got Here, Part 2: PANIC
How We Got Here, Part 3: After the Crash
How We Got Here, Part 4: The Bearded One
How We Got Here, Epilogue: The Real Cost of Traveling the World

And finally, Alexis Assadi is an entrepreneur and he believes that getting rich in Canada is easier than you think. In fact he has written about it extensively in his book Rich At 26 . He says rather than having to work for money, financial independence occurs when the revenue from your business and investment holdings surpasses your cost of living. He recommends that readers:

  • Invest in income producing assets.
  • Take advantage of TFSAs.
  • Contribute to RRSPs,
  • Start a business.
  • Learn about and use tax incentives.


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 on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Written by Sheryl Smolkin
Sheryl Smolkin LLB., LLM is a retired pension lawyer and President of Sheryl Smolkin & Associates Ltd. For over a decade, she has enjoyed a successful encore career as a freelance writer specializing in retirement, employee benefits and workplace issues. Sheryl and her husband Joel are empty-nesters, residing in Toronto with their cockapoo Rufus.

April 17: Best from the blogosphere

By Sheryl Smolkin

In a guest post for the Financial Independence Hub, Certified Financial Planner Gennaro De Luca writes that based on his experience, men and women approach taxes and investing differently. For example, he says nine times out of 10 it is the woman who takes the bull by the horns to get the family’s taxes done. Women tend to be more involved and are much more apt to ask questions of their accountant or tax preparer about tax credits and government benefits the family may be eligible for.

Robb Engen on Boomer & Echo discusses which accounts to tap first in retirement with Jason Heath,  a fee-only financial planner. Heath says it may make sense for people who retire early to withdraw funds from their RRSPs first and defer CPP and OAS until age 70.

Retire Happy veteran blogger Jim Yih outlines the top 5 new retirement trends and how they will affect your retirement. For example: retirement is not about stopping work; many people are “phasing into retirement.” Furthermore, long term care is an essential component in a retirement plan.

10 simple ways to save money at the gas pump was recently posted by Tom Drake on the Canadian Finance Blog. Who knew that avoiding unnecessary weight in your car; using cruise control on highways and driving under 100 km/hour could save you money?

And Sean Cooper recounts the story of his unexpected $1,300 furnace repair bill in the depths of a Canadian winter. Luckily, he is mortgage-free, so he had the necessary money sitting in his savings account. But his experience shines a spotlight on the importance of saving up an emergency fund in advance.


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 on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

April 10: Best from the blogosphere

By Sheryl Smolkin

Last week I couldn’t resist buying bright yellow forsythia, pussy willows and stalks of purple iris from the florist at one of my favourite grocery stores. It will be a few weeks before the flowering trees in my neighbourhood burst into bloom, but when I walked the dog this morning I heard the rata-tat-tat of industrious woodpeckers and crocuses were already pushing through the damp earth on the sunny side of the street.

If it’s spring, Alan Whitton aka the Big Cajun Man says its time to revisit the idea of a spring financial cleaning. A few of his ideas include:

  • Think about rebalancing if you are a Couch Potato investor.
  • Clean out and shut down any superfluous bank accounts.
  • Consider how many credit cards you really require and close extra accounts you don’t need.
  • Is your mortgage about to be renewed? Time to go shopping for a better rate.

Minimalist blogger Cait Flanders decided to move to back to her hometown in Squamish this spring. Although her rented condo is not small, she says she is living small in her not-so-tiny home. To Flanders that means living below her means with less stuff and making do, mending and prioritizing her life. Her list also includes getting involved in and supporting her local community.

“Living small is essentially not chasing ‘more’, but  learning to find the more in less,” she  notes. “It’s about utilizing the space you have, shrinking your carbon footprint and being an active member in your community (whatever that looks like for you).”

Kerry K. Taylor aka Squawkfox says our accomplishments are not just a matter of luck whether they be saving enough for the down payment on a house, paying down debt or scoring the winning goal in a soccer game. She reminds readers that “Luck is what happens when preparation meets opportunity,” and urges each one of us to own our successes and accept the kudos we deserve.

Why it’s NOT okay to be in debt when approaching Retirement by Douglas Hoyes was recently posted on the Financial Independence Hub. In the most recent Joe Debtor report issued two years ago by his firm Hoyes, Michalos & Associates Inc., the company reported that seniors are the fastest growing risk group for insolvency and that’s still the case today.

Hoyes says if you have more debt than you can handle, talk to a Licensed Insolvency Trustee about filing a consumer proposal or personal bankruptcy.  In most cases, you can keep your RRSP even if you go bankrupt.  Also, he suggests that if you own a home, you should discuss a consumer proposal as a viable alternative to bankruptcy. Both solutions will allow you to eliminate your debt, and preserve your RRSP.

And finally, on My Own Advisor, Mark Seed explores whether Financial Independence Retire Early (FIRE) is right for him. He reviews the financial and social implications for his family of retiring significantly earlier than his current target date of age 50 (which is still pretty early) and concludes that he and his wife are not ready to make any radical changes.

In his early 40s now, he concludes that more time and freedom would be great but instead of rushing towards this, they are more or less inching in that direction.


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 on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Personal finance writers share 2017 New Year’s resolutions

By Sheryl Smolkin

Several years ago Globe & Mail columnist Tim Cestnick listed what he considers to be the top five opportunities for anyone looking to get their financial house in order:

  • Create a pension
  • Own a home
  • Pay down debt
  • Start a business
  • Stay married

So I decided to ask 10 money writers to share their top personal finance New Year’s resolution with me, in the hope that it will encourage readers to establish and meet their own lofty goals in 2017.

Here, in alphabetical order, is what they told me:

  1. Jordann Brown: My Alternate Life
    I’m still in the process of ironing out my New Year’s resolutions but here is one I’m definitely going to stick to. I plan to save $10,000 towards replacing my vehicle. It’s always been a dream of mine to buy a car with cash and as my car ages it has become apparent that I need to start focusing on this goal. I never want to have a car payment again, and that means I need to start saving today!
  2. Sean Cooper: Sean Cooper Writer
    I  paid off my mortgage in just three years by age 30. My top personal finance New Year’s resolution is to ensure that my upcoming book, Burn Your Mortgage, reaches best-seller status. A lot of millennials feel like home ownership is out of reach. After reading my book, I want to them to believe buying a home is still achievable.
  3. Jonathan Chevreau Financial Independence Hub
    My top New Year’s Resolution, financially speaking, is to make a 2017 contribution to our family’s Tax-free Savings Accounts (TFSAs). This can be done January 1st, even if you have little cash.  Assuming you do have some non-registered investments that are roughly close to their book value, these can be transferred “in kind”, effectively transforming taxable investments into tax-free investments.
  4. Tom Drake Canadian Finance Blog
    My New Year’s resolution for 2017 is to increase my income through my home business. But this can be done rather easily by anyone through side-gigs and part-time jobs. While saving money by cutting expenses can be helpful, you’ll hit limits on how much you can cut. However, if you aim to find new sources of income in 2017, the possible earnings are limitless!
  5. Jessica Moorhouse Jessica Moorhouse.com
    My personal finance New Year’s resolution is to track my spending, collecting every receipt and noting every transaction down, for at least 3 months. Doing this really helps me stay on track financially, but for me it’s definitely something that’s easier said than done!
  6. Sandi Martin Spring Personal Finance
    I don’t expect much to change in our financial lives over the next year. I hope to avoid the temptation to build a new system because the boring old things we’re already doing aren’t dramatic enough. I’m prone to thinking that “doing something” is the same as “achieving something”, and I’m going to keep fighting that tendency as 2017 rolls by.
  7. Ellen Roseman Toronto Star Consumer Columnist
    My personal finance resolution for 2017 is to organize my paperwork, shred what I don’t need and file the rest. I also want to list the financial service suppliers I deal with, so that someone else can step into my shoes if I’m not around. It’s something I want to do every year, but now I finally have the time and motivation to tackle it.
  8. Mark Seed My Own Advisor
    I actually have three New Year’s resolutions to share:

    • Eat healthier.  We know our health is our most important asset.
    • Continue to save at least 20% of our net income. We know a high savings rate is our key to financial health.
    • After paying ourselves first, simply enjoy the money that is leftover. Life is for the living.
  9. Stephen Weyman HowToSaveMoney.ca
    For 2017 I’m looking to really “settle down” and put down roots in a community. I believe this will have all kinds of family, health, and financial benefits. The time savings alone from being able to better develop daily routines will allow me to free up time to focus more on saving money, growing my business, and better preparing for a sound financial future.
  10. Allen Whitton Canadian Personal Finance Blog
    I resolve to keep a much closer tab on my investments and my expenses, while planning to retire in four years. I have a pension, I have RRSPs, but I still have too large a debt load. Not sure this is possible, but I will try!”

Michael Drak on Victory Lap Retirement

By Sheryl Smolkin

Click here to listen
Click here to listen

Today I’m interviewing Michael Drak for savewithspp.com.  He is an author, blogger and speaker based in Toronto and co-author of Victory Lap Retirement with Financial Independence Hub CFO Jonathan Chevreau. Thank you for joining me today, Michael.

Thank you Sheryl.

Q: First of all tell me, what made you decide to write this book?
A: The stress at work was affecting my health, and I was reminded of this each morning as I took my blood pressure pill. I began to look into the possibility of retiring and got my hands on every retirement book that I could. I found out that most of them were just filled with numbers and rules of thumb about how much money I would need in order to retire. None of them really told me anything about what I might actually do in retirement. I think Victory Lap Retirement fills that gap.

Q: What exactly does the phrase “victory lap retirement” mean to you? How does it differ from full stop retirement?
A: To me victory lap retirement means freedom. It’s freedom to do what I want to do when I want to do it. In contrast, full stop retirement means pulling back — disengaging, sitting on the sidelines and becoming a spectator. It wouldn’t work for me at this point in my life because I still have a lot of game left in me.

Q: Is victory lap retirement essentially a synonym for an encore career or an encore job?
A: No, not really, because victory lap retirement is all about lifestyle design. The goal is to maximize the quality of your remaining years by creating a low stress, fulfilling lifestyle based on your own unique needs and values. An encore career is really work either paid or unpaid. But it can be an important component of the victory lap lifestyle. Part of my own victory lap contains a component of paid work, which I view as my fun money to fund new experiences for me and my family.

Q: Your coauthor Jonathan Chevreau coined the expression “findependence,” which is a mash up of the word “financial” and “independence.” Why is findependence the cornerstone and prerequisite to victory lap retirement?
A: Having financial freedom is what allows you work and live on your own terms. In other words, you can do what you want to do with your time and energy, not what someone else on whom you are financially dependent says you have to do. In short, “findependence” equals personal freedom and freedom is what life is all about in the end.

Q: How can people calculate how much they’ll need to be findependent and then reach that objective?
A: Findependence is best described on a cash flow basis. This is the way I was trained to think as a banker. It’s the point where your basic non-discretionary living expenses are covered by your passive non-work income. This is the amount of annual cash flow you need to keep a roof over your head, put food on the table and pay for the basic necessities such as heating, electricity, property taxes, etcetera.. Any additional non-discretionary expenses will be covered by the active work income that you generate during your victory lap, which we view as your fun money.

Q: As you’ve noted already, the decision to retire is not simply a financial one. In your book you counsel readers to beware of “sudden retirement syndrome.” What do you mean by this expression, and how can prospective retirees avoid it?
A: I really believe that they should put a label on retirement just like they do on cigarette packaging. Something like “Retirement could be dangerous for your health. Retire at your own risk.” Sudden retirement syndrome (not actually a medical condition) is a very dangerous thing. It’s the shock of withdrawal that occurs when a person suddenly ends their career. Not everyone goes through it, but I went through it, my father suffered from it, and I had a good friend die because  of it. Most people, unfortunately can’t relate to what you’re going through. They really can’t understand why you’re unhappy, especially when you don’t have to go to work anymore.

In my mind, it’s important to have a retirement mentor in your corner to help get you through this period to ensure that you do not do some dumb things like I did. I really believe that investment advisors should expand their offerings to include this service instead of just focusing on the investment piece. In my opinion, assuming you can just fall into retirement and everything will be okay is a disaster waiting to happen.

Q: How far in advance should victor lappers plan their exit from their current jobs or careers?
A: I’m teaching my kids that they should start aiming financial independence as soon as they start working. Victory lap planning is best done probably a few years before achieving financial independence. It’s always important to have an escape plan in place in case of emergency because these days with layoffs and mergers, you really never know what may happen. It really helps to know where you want to go in life and how you plan on getting there.

Q: How important is a social network to a successful victory lap?
A: To maximize happiness in retirement a lot of people are talking and writing books about it these days. Everyone says it’s really important to socialize with family and friends and continuing to work gives you an opportunity to surround yourself with fun, interesting people. Some people, for whatever reason tend to isolate themselves in retirement. They turn sour about life and that’s when bad things usually start to happen for them. Your social network will also provide emotional support and guidance as you work your way into your victory lap.

Q: The three stages of retirement have been described as go go, go slow, and no go. In that context, how long do you think your victory lap might last?
A: I love those descriptions of the stages and I totally agree with them. If things go according to my plan my victory lap will last into the go slow stage. This will be when I’m no longer capable of doing everything that I used to and it’s probably at this point that I would consider moving into a retirement home and letting others take care of me.

Q: Have you ever regretted your decision to leave the corporate world and embark on this new journey?
A: The only thing I really regret is that I didn’t learn about the concept of financial independence earlier in life. I really don’t understand why they don’t teach financial independence in school, and why the financial services industry doesn’t talk about it is puzzling. If I had known about financial independence I would have reached findependence that much earlier andhave left my high stress corporate job much sooner than I did. Life now is so much better on this side of the fence. It’s unbelievable.

Q: If readers are considering embarking on a victory lap retirement but are afraid to cut the ties to their former life, what advice do you have for them?
A: I acknowledge, it’s hard to leave a well paying job late in your career. The key is, if you don’t like your job, it might be better health-wise and also result in increased happiness if you make the change. I came to that conclusion for myself after reading Ernie Zelinski’s book How to Retire Happy, Wild, and Free. If on the other hand, you like what you’re doing, why would you ever retire? People have to get over the fear of taking a calculated risk and making a change for the better.

That’s great. Thank you very much for chatting with me today, Michael.
My pleasure, Sheryl.

Michael Drak can be reached at michael.drak@yahoo.ca. Victory Lap Retirement is now available for orders online. It can also be purchased for Kindle or Kobo. The paperback edition is available in bookstores, and from either Amazon or Chapters.

This is an edited transcript of a telephone interview conducted in October 2016.

Nov 21: Best from the Blogosphere

By Sheryl Smolkin

Lots of interesting reading this week from bloggers both old and new.

On Millenial Revolution, FIRECracker writes about How to Succeed at Anything. She says success is not linear so you have to keep on trying and eventually things will click.

For example, in 2013 she and her husband had two failed children’s novels and 75 rejection letters. But since then, they have had three books published by Scholastic. Their blog has also been internationally syndicated by CNBC and in less than six months it has grown to 650,000 page views.

If you can never figure out where all your money went (a key requirement for budgeting), take a look at Jordann Brown’s blog 50 Ways to Track Your Spending. From personal experience she recommends Mint.com, and best of all, it is free.

As a new homeowner, Jessica Moorhouse says the one thing she wishes she had researched more thoroughly is mortgages. Read 10 Questions You Need to Answer Before Getting a Mortgage to benefit from her experience.

Jonathan Chevreau advocates for “Freedom, Not Stuff.” In Survey finds financial security beats milestones like buying a home and a car on the Financial Independence Hub, he is happy to report on a survey released by Credit Canada Debt Solutions and Capital One Canada that reveals the majority of Canadians agree with him that that financial security beats milestones like buying a home or a car.

Making Financial Decisions? Beware of Confirmation Bias says Tom Drake on the Canadian Finance Blog. When it comes to making financial decisions, confirmation bias can lead you to stay the course with an investment that has changed fundamentally for the worst, all because you are sure that you can’t make a wrong decision, or because you dismiss the reasons that the investment is no longer a good choice.


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 on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Oct 3: Best from the blogosphere

By Sheryl Smolkin

The leaves are turning and the weather is changing. As fall visits us briefly before the long cold winter sets in, it’s time to re-visit recent posts from some of our favourite personal finance writers.

On Boomer and Echo, Marie Engen offers 5 Ways To Stretch Your Retirement Dollars. My favourite is to sign up for senior discounts. In Calgary an annual transit pass for seniors is just $95. BC Ferries gives a 50% discount on passenger fares (Monday to Thursday, except holidays). Retailers such as Shoppers Drug Mart have senior discount days. A number of universities and colleges offer free tuition, at least for non-credit courses.

Sara Milton writes on Retire Happy about Financial warning signs: Are you prepared for the worst?. She says before financial disaster hits, there have  usually  been warning signs for some time. Just like on the dashboard of a car, an individual’s financial “check engine” light was lit up like a Christmas tree and, either he/she didn’t notice or  deliberately ignored it in the hope that it would somehow fix itself and switch off.

While investors may be reluctant to sell stocks because the sale will trigger tax inclusions, Pat McKeough reminds us on the Financial Independence Hub thatCapital gains tax is one of the lowest taxes you’ll ever pay. For example, if an investor purchases stock for $1,000 and then sells that stock for $2,000, they have a $1,000 capital gain. Investors pay Canadian capital gains tax on 50% of the capital gain amount. This means that if you earn $1,000 in capital gains, and you are in the highest tax bracket you will pay about $247.65 in Canadian capital gains tax on the $1,000 in gains.

For most young people in college or university student loans are a necessary evil. But they can become a tremendous burden after graduation. How I worked my way through university by Robin Taub on Forward Thinking profiles Corey Barss (age 25) who grew up in Brantford and attended Ryerson University. By saving money while he was in high school and working nearly full-time as a cook and server at the Ryerson campus pub while he was in university, he was able to graduate with only $30,000 in student loans. Even when he got a full-time job he continued work 12 hours/week at the pub in order to become debt free in three years.

And finally, the Globe and Mail’s Rob Carrick writes that one of the most important financial literacy lessons young people can learn is how to deal with banks. In Millennials, banks are not your friends his message to students is that banks aren’t your friend, and neither are they your enemy. They’re companies you do business with and that means you have to have to go in prepared to defend your own interests. He says students should look for ways to bank for nothing, and he gives  important factors to consider when evaluating student bank accounts.

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 on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Jul 25: Best from the Blogosphere

By Sheryl Smolkin

There’s lots of good reading in the blogosphere this week if you get tired of skimming romance novels on the beach or binging on your favourite Netflix series after dark. We’ve just started on the series Sherlock  and Spotlight and Trumbo are two great movies we saw from the comfort of our couch.

In other news, financial maven, television personality and blogger par excellence Gayle Vaz-Oxlade has retired at 57. While we will miss her valuable voice and sense of humour, it is encouraging to see has followed her own personal finance advice and can look forward to time for grandchildren and gardening.

Cheques started arriving in mailboxes across the country and Rob Carrick at the Globe and Mail says high-income families have reason not to like the new Canada Child Benefit, but it’s a win for most everyone else. Here’s how much the benefit will give you.

An interesting post on Canadian Budget binder explains How To Become Financially Secure So You Forget It’s Payday. While there is no magic formula, the checklist includes: start using a budget (no surprise); know where your money is going; understand your bills and how interest works; pay your bills on time and earn extra money if you can.

Cait Flanders sums up what she learned as a result of her two-year shopping ban in Two Years Without Shopping: What I Bought, Donated and Learned to Be True. She explains the rules for each year and details the few necessities she did buy. “For two years, I avoided all mindless and impulse spending decisions. But in a two-year period of time, I also learned you are bound to need some stuff – and that’s ok,” she says. “What I learned from tracking all my purchases this year is that there is a huge difference between talking yourself into thinking you need to buy something and actually needing to buy it.”

On the Financial Independence Hub, Kollin Lore says Millennials can learn from Boomers’ reinvention of retirement. Referring to Jonathan Chevreau’s new book Victory Lap, he says many millennials grew up during the recession and were set back earlier in their careers by student debt, so working past age 65 will be as much a necessity for them as for any other generation. Boomers can teach millennials how to stay motivated and take care of themselves in their senior years

And finally, on Retire Happy, Jim Yih asks: What are your family financial values? He and his wife are very open about money with their children but he suggests that because it’s easier to talk constructively about money from a unified front, a family financial value system might be useful. He shares a helpful series of questions that can help you create one under the headings: spending, debt, saving, income and money management.

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