By Sheryl Smolkin

Nobody likes paying for home or automobile insurance. But you can’t get a mortgage or drive a car without it. And if you are involved in an accident or a natural disaster your insurance company will suddenly become your best friend.

But insurance premiums are going up all the time and there is no reason why you should pay anymore than you have to. Recently the insurance rating website InsurEye put together a comprehensive list of “101 tips on how to save money on insurance.”

Some of the more obvious, general suggestions are:

• Shop around online and on the telephone.
• Bundle home and auto insurance with the same carrier.
• If you are a member of an association (i.e. professional engineers) or an alumni group there may be a deal for members.
• Staying with one insurer longer may result in loyalty discounts.

However, the list also includes some unusual money-saving options which were news to me. Here are some of my favourite.

Auto insurance

1. Welcome discount: Some insurers offer a welcome discount just for becoming a customer. E.g. five per cent at Grey Power.
2. Rental car rider: If your existing auto insurance policy does not cover rental cars, you can often add it as a rider (policy extension) for $20-$30/year. Compared to the $20/day you might pay when renting a car, it’s not a bad deal.
3. Dashboard camera: Get a dashboard camera for your vehicle. Insurance companies do not offer any premium discount related to dashboard cameras, but it can help you prove you are not at fault if you have an accident.
4. Claims history: Keeping a clean claims history may make more sense than submitting claims for small damage repairs that could result in increased premiums. Contact your insurance provider/broker before you decide whether or not to claim for minor property damage.
5. Good students: Students with good grades may be eligible for a break on car insurance rates. For example, the State Farm good student discount rewards student who are younger than 25 with a discount of 25% if they have a B average or better.
6. Short distance to work: If you are located close to work, the distance you need to drive is short or you may not have to drive at all. The further you have to drive to work, the higher your premiums.

Home insurance

1. Valuing your contents: If you are renting an apartment or condo and you only have a laptop and some IKEA furniture you may not need hundreds of thousands of dollars worth of coverage. Check the policy to see what you are paying for.
2. Mortgage free home: When you have paid off your mortgage, some insurers will reward you with lower premiums. This one was news to me and I am now looking into discharging my mortgage.
3. Heating: Insurers like forced-air gas furnaces or electric heating. If you have an oil-heated home, you might be paying more than your peers who have alternative heating sources.
4. Stability of residence: Some insurance companies will offer a stability of residence discount if you have lived at the same address for a certain number of years.
5. Dependent students: Some insurers will cover dependent students living in their own apartment under their parents’ home insurance policy at no additional charge.
6. Credit scores: Some insurers factor in credit scores when calculating home insurance premiums. If you have a good credit rating your rates will be lower.

These are only a few of the tips. However, the list also includes some interesting ways to keep down premiums for life insurance, travel insurance and credit card protection.

Some of these ideas are more practical than others, but every little bit helps.

Have you saved money on insurance lately? Send us an email to so*********@sa*********.com. If your story is posted, your name will be entered in a quarterly draw for a gift card. And remember to put a dollar in the retirement savings jar every time you use one of our money-saving ideas.

If you would like to send us other money saving ideas, here are the themes for the next three weeks:

28-Mar	Books	Comparing eReaders
04-Apr	Real estate	New or resale house? Pros and cons
11-Apr	Taxes	10 tax deductions you might miss

Also see:

Car insurance: 10 things you need to know 

Does your home insurance cover storm damage?

By Sheryl Smolkin

Whether you are a student looking for a summer job, a new graduate seeking a career opportunity or a recently laid off worker looking for a new position, hunting for work can be nerve-wracking.

In Boomer & Echo, Robb Engen talks about cutbacks in the Alberta university sector where he is employed and how he would manage financially if he lost his job.

Mochimac shares her top 5 career regrets. She suggests that you see how little money you can live on so you can expand your career options.

Brighter Life blogger Kevin Press regales us with a humorous story about a seven hour interview for a job he did not get writing for a Manhattan magazine published for global investors. No regrets though, because soon after in Toronto he met his wife “the lovely Lisa.”

The Blunt Bean Counter Mark Goodfield discusses why references are a no win situation for past and future employers. That’s because employers feel compelled to give “plain vanilla” references because they are worried about defamation or negligent misrepresentation lawsuits.

And finally, on Canadian Dream – Free at 45, Dave tries to figure out how to productively spend the extra time he has now that he has finished courses for his CGA designation.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?”  Send us an email with the information to so*********@sa*********.com and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

I got my first travel rewards card in the mid-1990s when I was doing a distance LLM at University of Leicester and had to travel to Europe for series of residential weekends.

Without a great deal of thought, I opted for a CIBC Aerogold card because in addition to getting one point for every mile in the air, points were also awarded for amounts spent on household expenses with 1.5 per dollar credited for purchases at some grocery stores, drug stores and gas stations.

But it was often very hard to get Aeroplan seats on the flights we wanted to take. And it got even more difficult when Aeroplan instituted the current program, where the number of points required to reach a particular destination varies depending on the time of day, the day of the week or the time of the year.

When I started researching travel rewards cards again for this article, I realized that the current selection of over 70 cards is mind boggling and selecting a card that delivers the best value depends on whether you pay a fee, how much you spend each year and where you want to go.

In all cases, unless you pay off your credit card balance every month, the interest you pay on the outstanding balance will quickly erode the value of any travel benefits.

The most up-to-date resource I found was Rewards Canada. Here is their top 2012 pick in two categories with some of the key features of each card.

Top Travel Points Credit Card (with annual fee)

Capital One® Aspire Travel™ World MasterCard®*

The Capital One Aspire Travel World MasterCard has has been number 1 in this category for three years. Here are some of the reasons why:

• Earn 2 reward miles for every $1 – on all purchases
• Get 35,000 bonus reward miles with your first purchase
• Get 10,000 anniversary bonus reward miles every year
• Annual fee of $120. No additional fee to get a second card for “an authorized user.”
• This card can be a good choice for someone who spends at least $2,000/month.

A requirement of this card is a minimum personal income of $60,000 or household income of $100,000.

Top Travel Points Credit Card (with no annual fee)

American Express Blue Sky Credit Card (2011: 1)

The Blue Sky Credit Card has been top in this category for four years. Here’s why:

• Earn 2 points for every $1 in eligible card purchases at your chosen 5 places.
• Earn 1 point for every $1 in card purchases everywhere else.
• Earn a welcome bonus of 7,500 points the first time you use the approved card

I encourage you to follow the five step guide to choosing a travel rewards on the Rewards Canada website for a brief description of the types of travel rewards credit cards and what to look out for when choosing one.

There is an excellent chart updated to January 2013 comparing features of a series of the most popular Canadian travel cards. The Choosing a Travel Rewards Credit Card Flow Chart can also help you narrow down what category and type of card you should choose.

Have you selected a new travel rewards credit card lately? Have you had good or bad experiences with the card you are currently using? Send us an email so*********@sa*********.com. If your story is posted, your name will be entered in a quarterly draw for a gift card. And remember to put a dollar in the retirement savings jar every time you use one of our money-saving ideas.

If you would like to send us other money saving ideas, here are the themes for the next three weeks:

21-Mar	Insurance	Getting a better deal on car, house insurance
28-Mar	Books	Comparing eReaders
04-Apr	Real estate	New or resale house? Pros and cons

By Sheryl Smolkin

This week’s best blogs are a mixed bag.

As soon as there is a hint of spring in the air, many people start thinking about buying and selling houses.

Peter Anderson writes in Bible Money Matters about how Cutting Expenses, Increasing Income And Staying On Budget To Reach A Short Term Savings Goal will allow his family to afford a brand new custom built home.

But Boomer and Echo blogger Robb Engen confesses  his biggest home buying regret was getting in over his head on his first home purchase. Fortunately  he caught a lucky break and got a promotion and a raise so things turned out ok.

If moving house is in your future, take a look at Joe Wood’s hints for moving for under $3 a click on Timeless Finance.

In Call Me Maybe: Why my $783 unlocked iPhone is a ringin’ deal  Squawkfox Kerry K. Taylor makes a good case for buying an unlocked cell phone so you can select the best deal from any carrier.

And if this is the weekend that you tackle your tax returns, take a look at Ray’s blog Tax Audits – Simple and Sound Advice on How to Avoid One, on Financial Highway.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?”  Send us an email with the information to so*********@sa*********.com and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

Now that RRSP season is over for another year, personal finance bloggers are again exploring basic money saving tips that can help to free up cash so you can stretch your paycheque to include saving for longer term goals like retirement.

On $he Thinks I’m Cheap blogger Andrew says you can save thousands if you do your research before purchasing almost anything and always try to negotiate a better price.

Jim Yih reports on BalanceJunkie that he has been collecting Air Miles for many years and he got a pretty good bang for his bucks when he cashed them in for a family trip from B.C. to Ottawa for his family of 6.

Boomer and Echo blogger Robb Engen offers 25 tips for filing your own tax return.

Tim Stubbs considers why it is important to have interim goals on the road to financial independence on Canadian Dream Free at 45.

If hitting the reset button to turn failure into success  worked for Steve Jobs, Steven Spielberg and Oprah Winfrey, Birghter Life blogger Gerald McGroarty says it could work for you.

And after her MacBook Pro went blip, Squawkfox (Kerry K. Taylor) offers helpful hints for caring for your computer to keep it healthy and happy as long as possible.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?”  Send us an email with the information to so*********@sa*********.com and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

A recent CBC article reports that the average Canadian’s consumer debt load hit $27,485 at the end of 2012, a six per cent increase over the previous year’s level and the first time the figure has been above $27,000.

According to credit monitoring firm TransUnion, at the end of 2012 consumer debt had increased at the fastest pace seen since 2009, with average debt loads increasing by more than $1,500.

If erasing debts was as easy as spending money, there would not be so many Canadians struggling to take from Peter to pay Paul every month. It takes courage, commitment and perseverance to make a bare bones budget and stick to it.

If you didn’t catch Gail Vaz-Oxlade’s signature television series ‘Til Debt Do Us Part” when it originally aired, I encourage you to watch a few episodes online to get you started.

The Financial Consumer Agency of Canada also has the following tips to help you get your finances under control:

1. Stop using credit:  If you continue to spend beyond your means, it will be difficult to realize your goal of being debt-free.
2. Find ways to cut spending: Review your budget and list ways you can cut down on your spending. Make coffee at home instead of buying it. Consider selling some of your assets or taking on additional work to bring in extra money.
3. Pay at least the minimum by the due date: If you do not, you will harm your credit history and score. Paying off the debts with the highest interest rate first will reduce the amounts you pay in interest and reduce your debt more quickly.
4. Contact your creditors: You may be able to negotiate a lower interest rate or a payment plan that works better for you.
5. Set a reasonable repayment time: If your time frame is too long, debt fatigue will set in and you will lose focus. If your time frame is too short or unrealistic, your chance of success decreases and so does your motivation.
6. Once a debt is paid, close that account: You do not need the temptation of that available credit to pull you back into debt. You will need to keep some credit and loan products in order to rebuild your credit, but only keep what you need and can manage responsibly.
7. Commit to a payment schedule: Write post-dated cheques in order to keep to the payment plan and to show your creditors you are committed to repaying them.
8. If your debt has gone to collection:  See Tips for dealing with a debt collector.

If you are stressed because of your debts, struggling to make your minimum payments, and need a plan to get your finances back on track and get out of debt, the Credit Counselling Society in Saskatchewan can help.  Other provinces have similar services.

The free and completely confidential service is available to all residents of the province. Connect them by phone, email or online  live chat.

Are you working hard to pay down debt? Send us an email to so*********@sa*********.com and tell us about your successes and your set-backs. Your name will be entered in a quarterly draw for a gift card. And don’t forget that the Saskatchewan Pension Plan offers a flexible way to save affordable amounts for retirement.

If you would like to send us other money saving ideas, here are the themes for the next three weeks:

7-Mar	Airline points	Which kind of airline points are better?
14-Mar	Insurance	Getting a better deal on car, house insurance
21-Mar	Books	Comparing eReaders

SPP posted a return of 2.20% to the balanced fund (BF) and 0.045% to the short-term fund (STF). The year to date return in the BF is 2.20% and in the STF is 0.045%.

Market index returns for January 2013 were:

Index	Jan 2013 return (%)
S&P/TSX Composite (Canadian equities)	2.25
S&P 500 (C$) (US equities)	5.51
MSCI EAFE (C$) (Non-north American equities)	5.61
DEX Universe Bond (Canadian bonds)	-0.74
DEX 91 day T-bill	0.09

Click here for a complete list of returns.

A comprehensive investment update to the end of the fourth quarter is available on our website at saskpension.com.

By Sheryl Smolkin

If there was a money tree growing in every back yard, we wouldn’t have to worry about saving or investing for retirement. Our annual harvest of $100 bills would pay for everything.

But money doesn’t grow on trees, so once you allocate hard-earned money to retirement savings, you must decide on an investment strategy that will grow your account into the nest egg you need to retire.

Before deciding how to invest your money, you have to identify how much risk you can stomach. Your retirement goals, the number of years left to retirement and the amount of money you can tolerate losing are all factors that will influence the percentage of your portfolio allocated to various asset classes.

The Investor’s Education Fund has a simple quiz that will help you identify your risk tolerance. When I took the quiz, I found out I have a “medium” tolerance for risk which means I am most comfortable with a mix of bonds, stocks and fixed income investments.

In a Masters of Money blog on the same website, Globe and Mail financial writer Rob Carrick says one thing everyone agrees on is that you must get more conservative in your asset mix as you get older.

Carrick suggests that every five years or so you should think about ratcheting down the risk level of your portfolio. In practical terms, that would mean moving some of your stock market exposure into bonds and cash. Your evolving mix of assets in a registered retirement savings plan account might look something like this:

AGE	% IN STOCKS	% IN BONDS & CASH
25	85	15
30	80	20
35	75	25
40	70	30
45	65	35
50	60	40
55	55	45
60	45	55
65	30	70

However, financial experts do not advocate that older Canadians get out of the stock market completely. You still need some portfolio growth in the period when you are drawing down funds to pay for retirement, particularly if you live to age 90 or beyond.

Members of the Saskatchewan Pension Plan benefit from the investment expertise of independent money managers. Funds of members who have not yet retired are pooled in the Contribution Fund.

The Contribution Fund allows members to invest in a balanced portfolio or a short-term fund. The balanced fund investment strategy is to maximize earnings for members and minimize the risk, while the purpose of the short-term fund is capital preservation.

The balanced fund portfolio composition is shown below.

The average earnings of the balanced fund since inception in 1986 have been 7.86 per cent with returns of 8.45 per cent in 2012.

Accounts of members who have retired are pooled in the Annuity Fund.The Annuity Fund is invested in bonds and short-term investments. The strategy for this fund is to produce income to pay members’ pensions.

Have you checked recently to see if your investments are consistent with your risk tolerance? If so, send us an email to so*********@sa*********.com. Your name will be entered in a quarterly draw for a gift card.

And don’t forget March 1, 2013 is the deadline for contributing to the Saskatchewan Pension Plan and your RRSP for the 2012 tax year.

If you would like to send us other money saving ideas, here are the themes for the next three weeks:

28-Feb	Debt Reduction	How to eliminate debt
7-Mar	Airline points	Which kind of airline points are better?
14-Mar	Insurance	Getting a better deal on car, house insurance

By Sheryl Smolkin

As we contemplate retirement somewhere down the road, most of us are probably focused on how to save enough money. However, deciding how we are going to spend our time is equally important.

Dave Dineen on Brighter Life says if you have debt you are not ready to retire and provides a check-list for a debt-free retirement.

$he Thinks I’m Cheap blogger Andrew suggests that in addition to investing in stocks and bonds, planning how you will use your time, skills and health are three critical areas that should not be ignored when creating a retirement budget.

On Retire Happy, Donna McCaw discusses how planning retirement is a little like planning a honeymoon. You have to think about what happens after the first few months.

Guest blogger Robert writes on Canadian Dream: Free at 45 that since he retired he is busier than ever, volunteering, training for a triathlon and taking courses towards a Masters degree in Education at the University of Calgary.

And finally, readers of all ages will be interested Boomer & Echo’s 20 tips to save money on gas. But be wary of companies that try to sell you mileage-improving devices and fuel additives.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?”  Send us an email with the information to so*********@sa*********.com and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

SPP, RRSP, Group RRSP, TFSA. This alphabet soup of acronyms represents only a few of the most common retirement savings options available to Canadians.

Other important retirement savings vehicles beyond the scope of this blog include employer-sponsored defined benefit pension plans, defined contribution pension plans and hybrid registered pension plan designs.

Where you chose to save your money and how much you save each year is an individual decision based on your disposable income and your longer-term financial goals. Because each type of plan has different contribution levels, tax consequences and withdrawal rules, it often makes sense to contribute to more than one kind of savings vehicle.

For example, you might decide to:

• Contribute to the Saskatchewan Pension Plan to ensure you have a stream of income at retirement.
• Participate in the Group Registered Retirement Savings Plan sponsored by your employer to get the benefit of employer matching of your contributions.
• Save your “emergency” or “rainy day” fund in a TFSA.

To help you understand and prioritize your retirement savings, here are some key features of each of these program. SPP and RRSP contributions for 2012 must be made by March 1, 2013 to be eligible for a tax deduction.

In all cases, you should consult your financial advisor and obtain more detailed information about each type of program before making savings and investment decisions.

Saskatchewan Pension Plan 

SPP is the only pension plan of its kind in Canada. It is a voluntary defined contribution plan open to anyone between the ages of 18 and 71. Employers who wish to make SPP available as an employee benefit can set up a group plan. Often employers with group plans match employee contributions up to a specified amount selected by the company.

SPP Key Features

Savings objectives:	Retirement savings.
Contributions:	Maximum contributions of up to $2,500/year if RRSP contribution room is available. Up to $10,000/year can be transferred in from another RRSP. No minimum payment. Contribution schedule and payment method at the member’s option.
Tax treatment:	Contributions are tax deductible. Tax is paid on benefit payments after retirement.
Investments:	Active members can invest in a professionally-managed balanced portfolio intended to maximize earnings and minimize risk or a short-term fund geared to capital preservation. Investment returns in the balanced fund have averaged 8% over the last 26 years and annual fees have been around 1%.
Withdrawals:	SPP contributions are locked-in within 6 months of joining and earn interest until the member retires.
Portability:	Membership in SPP can continue regardless of where the member resides or works throughout his career.
Retirement:	SPP members can elect to retire (start receiving benefits) as early as age 55 and no later than the end of the year they reach age 71. Members can elect to receive a pension from the fund, transfer the lump sum in their account to another locked-in account with a financial institution or a combination of both.

Registered Retirement Savings Plan 

Any person currently working in Canada is eligible to open and contribute to an RRSP until the year he/she turns 71 providing the individual has contribution room and files Canadian taxes. An RRSP account can be opened at any financial institution such as a bank, credit union and most investment houses.

RRSP Key Features

Savings objectives:	Retirement savings. Home purchase, education (see “withdrawals” below)
Contributions:	Until the year the taxpayer turns 71, contributions of up to 18% of earned income from the previous year can be made up to $22,970 in 2012 ($23,820 in 2013.) RRSP contribution room can be found on line (A) of the RRSP Deduction Limit Statement, on taxpayer’s latest income tax notice of assessment or notice of reassessment.
Tax treatment:	Contributions are tax deductible. Tax is paid on the full amount of withdrawals before or after retirement.
Investments:	RRSPs can be self-directed, or administered by a bank or financial institution. Generally, the types of investments permitted in a in a RRSP include: Cash Mutual funds Securities listed on a designated stock exchange Guaranteed investment certificates (GICs); Bonds; and Certain shares of small business corporations. The earnings record and investment fees charged will vary and investors must do their own due diligence.
Withdrawals:	RRSP contributions are not locked in. However, when funds are withdrawn from an RRSP, the contribution room is lost. The Homebuyer’s Plan and Lifelong Learning Plan allow RRSP withdrawals and repayment in specified circumstances.
Portability:	Membership in an RRSP can continue regardless of where the member resides or works throughout his career.
Retirement:	Funds in an RRSP can be withdrawn at any time and tax is payable on the full lump sum. Funds that are not withdrawn by the end of the member’s 71st year can be used to purchase an annuity or transferred into a registered retirement income fund. There are provincial pension and federal income tax rules about the maximum/minimum amounts that must be withdrawn each year.

Group RRSPs

Some employers establish Group RRSPs as an employee benefit. Often employers with Group RRSPs match employee contributions up to a specified amount selected by the company. They also may be able to negotiate lower fees for similar investments than fees charged to individuals by retail financial institutions.

Employers may restrict withdrawal of RRSP contributions by active employees except in extenuating circumstances, by withholding employer contributions for some period of time after a withdrawal is made.

An employee who changes jobs will not be able to continue in the group plan but the funds can be transferred to an individual RRSP with no tax consequences. However, the available investment options and the investment fees may not be as attractive as in the Group RRSP.

Tax-Free Savings Account

TFSA stands for Tax-Free Savings Account. Like an RRSP, a TFSA can be set up at a financial institution such as a bank, credit union, trust or insurance company. 

TFSA Key Features

Savings objectives:	Saving for any short or long term objective including retirement.
Contributions:	Up to $5,500/year beginning in 2013. Previously, $5000/yr
Tax treatment:	Contributions are not tax deductible but investment earnings accumulate tax free. Any funds withdrawn are also tax free.
Investments:	Generally, the types of investments that will be permitted in a TFSA are the same as those permitted in a RRSP. This would include: Cash Mutual funds Securities listed on a designated stock exchange Guaranteed investment certificates (GICs); Bonds; and Certain shares of small business corporations. The earnings record and investment fees charged will vary and investors must do their own due diligence.
Withdrawals:	Funds can be withdrawn at any time. Withdrawals will be added to the member’s TFSA contribution room at the beginning of the following year.
Portability:	Membership in a TFSA can continue regardless of where the member resides or works throughout his career.
Retirement:	Federal income-tested benefits and credits such as: Old Age Security (OAS) benefits, Guaranteed Income Supplement (GIS), or Employment Insurance (EI) benefits will not be reduced as a result of the income earned in a TFSA or amounts withdrawn from a TFSA.

Have you made your 2012 SPP contribution yet? Are you also contributing to an RRSP or a TFSA? Send us an email to so*********@sa*********.com and tell us about how you are saving for retirement and your name will be entered in a quarterly draw for a gift card.

If you would like to send us other money saving ideas, here are the themes for the next three weeks:

21-Feb	RRSP/SPP deadline	How should you invest your retirement savings?
28-Feb	Debt Reduction	How to eliminate debt
7-Mar	Airline points	Which kind of airline points are better?

Also see:
SPP vs. TFSA
Understanding SPP annuities
The Wealthy Barber explains: TFSA or RRSP?
RRSP vs. TFSA: Tim Cestnick on where to put spare dollars
To TFSA or to RRSP?
TFSA vs. RRSP – Clawbacks & income tax on seniors
TFSA vs. RRSP – Best Retirement Vehicle?