Which Canadian property markets are most at risk?

Posted on May 14, 2012 by BDS

In his second weekly column for Globe Investor’s month-long Home Buying site, housing bear Ben Rabidoux looks at which Canadian markets are most at risk.

The oft-repeated axiom in real estate is “location, location, location.” Even housing “bears” recognize that there is no such thing as a Canadian real estate market. Granted there are macro factors that affect all regions equally, most notably the cost and availability of credit, but regional markets vary widely in terms of their fundamentals and, by extension, their vulnerability to a price correction.

The two markets that currently concern me the most are Vancouver and the Toronto condo market.   Read more…

Posted in Economy, Estate, Investing, Planning, Retirement | Leave a comment

10 ideas on what to do with your tax refund this year

Posted on May 8, 2012 by BDS

This week I put on a jacket that I haven’t worn for quite a while, and when I reached into the pocket I found a $20 bill. What a great feeling. You gotta love found money.

A tax refund is a lot like that. If you’re getting a refund, the money was always yours, but you’re now being reacquainted with those dollars – and I know it feels pretty good. Setting aside the fact that you were actually lending the government your hard earned money, free of charge, have you given thought to what you’re going to do with your tax refund this year? Consider these 10 possibilities.  Read more…

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The age of easy credit gives rise to ‘grandpa debtor’

Posted on May 1, 2012 by BDS

For many of us, the promise of retirement means rest, relaxation and some time to smell the roses. But for an increasing number of older Canadians, retirement means serious debt trouble.

According to a recent study by Hoyes Michalos & Associates in Ontario, 16 per cent of debtors who filed a bankruptcy or consumer proposal were “grandpa debtors” – over the age of 55, an increase from 12.5 per cent in 2008.

Read more…

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Tax Deadline is just around the corner – 10 things to know when preparing your tax return

Posted on April 24, 2012 by BDS

My kids are always coming up with little-known facts about the world. They get a kick out of telling me things I don’t already know. For example, did you know that the praying mantis is the only insect on earth with just one ear? Oh, and a beaver can chop down as many as 216 trees per year. Then there’s the fact that on average your skin accounts for 16 per cent of your body weight. I’m gaining an education daily on a bunch of little things that won’t make a whole lot of difference in my life. But it’s fun.

Today, I want to provide an education on a bunch of little things that can actually make a difference. I’m talking about things to keep in mind when preparing your tax return. No, these things individually won’t make you wealthy, but the money is better in your pocket than the taxman’s.  Read more…

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Start thinking about your debt levels – Bank of Canada hints at higher rates

Posted on April 17, 2012 by BDS

The Bank of Canada left its main interest rate untouched at 1 per cent Tuesday, while painting a brighter economic outlook and hinting for the first time since last summer that it is beginning to look for an opportunity to raise borrowing costs.

The decision to stand pat for a 13th consecutive meeting was expected. But after weeks of sunnier rhetoric from Governor Mark Carney amid a strengthening domestic recovery, Bay Street analysts had been debating how far he would go in trying to reshape expectations that he may be on hold until late next year.

Read more…

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The five pillars of planning that underpin tax savings

Posted on April 10, 2012 by BDS

Tim shares an approach to tax planning that can take the stress out of this time of year. It involves using five pillars of planning to create tax savings.  Read more…

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Setting Up In-Trust Accounts For The Grandchildren

Posted on April 3, 2012 by BDS

A lot of articles have been written about RESP’s recently but I thought it would be good to post an article on another way to save for your children or grandchildren, through in-trust accounts.  Continue reading to find out why you should proceed with caution before using in-trust accounts.  Read more… 

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Budget changes old age security eligibility to age 67, hitting anyone under 54

Posted on March 30, 2012 by BDS

OTTAWA – Anyone younger than age 54 will have some redrafting to do when it comes to retirement planning.

The federal government has raised the eligible age for old age security to 67, postponing existing benefits for two years.

The widely expected change to OAS will have a trickle-down effect on people’s financial plans. It will affect the guaranteed income supplement, veterans’ benefits, aboriginal benefits, survivors’ allowances and especially the way many companies have set up their employees’ pension plans.

But the changes won’t kick in right away.

Ottawa will start making the adjustments in 2023, and phase them in gradually over six years.

That means anyone over 54 won’t be affected. People in their early 50s will see moderate changes. And people under 50 will feel the full force of the new policy.

Read more…

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Map out the vacation finances along with the itinerary

Posted on March 27, 2012 by BDS

It happens to most of us: We return from one vacation anxious to plan the next. And now that March break is over, some people may already be thinking about their summer sojourns. Fortunately, the experts have some tips to help would-be vacationers come up with the cash to help finance the fun.

Read more…

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The Debt Bomb

Posted on March 20, 2012 by BDS

Bank of Canada Governor Mark Carney has been saying for the past couple of years that our household debt levels are too high. Now a new CIBC study tells us exactly who is borrowing all that money.

It’s not the people you might expect — those in the 25-35 age range where family formation and the buying of a first home has historically resulted in above-average debt accumulation. No, the big-time borrowers are actually the baby boomers, notably those who are approaching retirement. They are piling on debt at an unprecedented rate, prompting CIBC World Markets Chief Economist Avery Shenfeld to label them as “punch drunk”.  Read more…

Posted in Budgeting, General, Retirement | Leave a comment