Tag Archives: Canadian Finance

Apr 6: Best from the blogosphere

By Sheryl Smolkin

As I write this on March 31st, it is for the second time because I closed the completed document the first time without saving it. I can only attribute this oversight to an early April Fools’ Day joke from cyber space!

Here are some interesting blogs I read this week:

For those of you who prefer cash back credit cards over travel cards, Tom Drake on the Canadian Finance blog rates the Best Cash Back Credit Cards of 2015. Top of the list is the Scotiabank Momentum VISA Infinite Card which offers a full 4% cash back on gas station and grocery store purchases. You also receive 2% cash back on your recurring payments and on drug store purchases. All other purchases earn a 1% cash rebate. 

The Big Cajun Man aka Alan Whitton writes on the Canadian Personal Finance blog about his daughter’s experience trying to find a student line of credit to attend Chiropractic College. The only financial institution willing to fork over enough money was the National Bank of Canada. However, by mistake they set up the loan as a personal line of credit. As a result, the very next month there was a demand for payment. Although the error was fixed, Whitton had to co-sign on the loan.

Five unconventional ways to get your financial act together from Kerry K. Taylor aka Squawkfox resonates with me. She suggests we can save money by throwing out fewer grocery products and curbing our collecting. We just renovated our kitchen cabinets and I couldn’t believe the number of stale-dated packages we pitched and how many marginally useful kitchen gadgets we have collected. Did we ever really need  six sets of barbecue skewers?

Why “Healthspan” trumps “Lifespan” by Dan Richards is a guest blog on the Financial Independence Hub. Financial advisors spend a great deal of their time with clients who ask, “Will I run out of money?” But Richards says according to new research, an equally pressing question is “How can I enjoy life in my 60s before health issues creep in.?

RRIFs 101: Using your nest egg by Preet Banerjee on Tangerine’s Forward Thinking blog fills in the blanks for readers who understand how RRSPs work but were not aware that they must be converted into RRIFs at age 71 and that beginning the year after, minimum fully taxable amounts must be withdrawn.

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.

 

Feb 3: Best from the blogosphere

By Sheryl Smolkin

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The depths of winter (and this has been one of the worst I can remember) seems to be the time when we all wish we could retire somewhere warm but figure we will never be able to afford it. After all, post- Christmas credit card bills have to be paid and finding the money for SPP and RRSP contributions may not be at the top of your “to do” list.

But now is the time to set up an automatic withdrawal plan for next year’s retirement savings plan contributions so in February 2015 you won’t be faced with the same dilemma.

It is also important to make retirement savings a part of an overall financial plan that you review often to make sure it still works for you, says Dave Dineen at Brighter Life. When you make your financial plan, Robb Engen on Boomer & Echo says there are 4 Big Rip-Offs To Watch Out For including mortgage life insurance.

Kerry K. Taylor (aka squawkfox) has been saving in an RRSP for about 17 years or half of her life. She recently blogged about how a can of cat food scared her into saving for retirement.

“I always thought seniors eating cat food to afford food was a myth. I wanted to be sure. [So I asked a woman in the grocery store line who was buying 25 cans about her cats.],” says Taylor. “She threw me a side-eye and said nothing. Whether she ate the cat food or not didn’t matter. [Since then], my fear of eating Fancy Feast in retirement [has been] very real.”

And once you have contributed to an RRSP, don’t forget that you will completely defeat the purpose if you treat it like a normal bank account and make withdrawals for reasons such as paying down debt. In an excellent Financial Post column Should you raid your RRSP to pay debt? Melissa Leong does the math.

She reminds us that if you need $8,000 for credit card debt, you’ll have to withdraw $10,000 to have enough to pay the full bill. Furthermore, once the money is withdrawn the contribution room is lost forever.

One case where it may make sense to take a loan from your RRSP is to Help Pay for Your Education with the Lifelong Learning Plan (LLP). However, as Tom Drake explains on the Canadian Finance blog, you are borrowing from yourself, but it is still a loan. You have to repay your RRSP, or face the tax consequences which can be quite hefty if you aren’t careful.

There is also a lost opportunity cost that comes with withdrawing money from your RRSP. While you can use the money for your LLP and education, you won’t be earning a return on it until you pay it back. You’ll have to decide if this approach is worth it for you.

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.

October 28: Best from the blogosphere

By Sheryl Smolkin

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This week we have random posts from some of our favourite bloggers that consider how you can save for retirement, invest your savings and spend your money after retirement.

Robb Engen on Boomer & Echo thinks that many media money makeovers are unrealistic, and that we really need to prioritize our financial goals. He shares his portrait of the ideal saver.

When it comes to spending and saving money, for many of us monthly mortgage payments take the biggest chunk out of our earnings. From the archives of the Canadian Finance blog, Nelson Smith offers 6 ways to save thousands on your next mortgage.

Saving is not enough. You have to invest your money in a way that both minimizes risk and maximizes growth of your account. A Young and Thrift blogger explains how he finally overcame his inertia and invested the $100,000 cash he had in his accounts. Spoiler alert: He topped up his TFSA and RRSP and then invested in ETFs.

But the Canadian Capitalist says we can learn a thing or two on how to invest our own money from the manner in which the CPPIB invests our surplus Canada Pension Plan contributions.

And finally, however much you save and whatever your plans are, Kevin Press tells us how you choose to spend your retirement will be a compromise. That’s because recent Sun Life research revealed seven ways men and women disagree about retirement.

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.