All posts by Financial Independence Hub

5 common mistakes when working with an advisor

Posted By |
Chris Ambridge

By Chris Ambridge, Transcend

Special to the Financial Independence Hub

Canadians are often faced with complex and nondescript investment products that can be overwhelming.  As such, most people need professional advice. With personal recommendations as one of the most common forms of referrals, selecting the right advisor should also be based on qualifications, fees that won’t gouge, and the advisors autonomy to act in the best interest of the customer.

However, many people are now spending a significant amount of time surfing the web and seeking advice online, where it can be difficult to distinguish expert advice from the inept.

In Canada, 96% of registered advisors are “dealing representatives,” which means they are salespersons not legally required to look after your best interests. On the other hand, just over 4,000 advisors are registered in categories where they must act as true fiduciaries and are legally required to deliver clients advice that must be in their best interest. While there are many financial advisors who look after their clients in the same way as true fiduciaries and deliver exceptional support and guidance, there are a whopping 118,000-plus advisors who do not have to adhere to such standards.

As an investor in search of an advisor, your goal should be to find the right person to help you reach your future financial goals. While you can correct a poor choice down the road, you would have wasted valuable time and may have actually suffered financial setbacks. It is therefore paramount you avoid the following mistakes:

Mistake #1

Don’t fall for the opening pitch. No matter how enticing the discussion and no matter how obvious the initial set of benefits are, chances are you are only seeing one side of the equation. No one wants to reveal their warts, especial right off the bat. So take your time to establish a rapport with the advisor. Trust comes with knowledge and clarity so make your first appointment about gathering information and creating a connection.

Mistake #2

If investments and products are the first subject of conversation before attempting to build a profile of you and your family, take a pass. Remember you are looking for someone that can give you personalized advice and not a canned spiel or off-the-shelf solution. If the advisor starts talking about investments before understanding your fears then you should think twice.

Mistake #3

Continue Reading…

Top 10 tips to Save on Car Insurance

Posted By |

By Anne Marie Thomas

Special to the Financial Independence Hub

Car insurance is one of those costs of owning a vehicle that everyone wants to save money on, and with these tips from InsuranceHotline.com you’ll be able to ensure that year after year, your premiums are the lowest they can be.

1.) Compare rates annually at renewal

For the sake of convenience, you may be tempted to simply renew with your current auto insurer when your policy is about to expire, but this could end up costing you big time. Rates often change and the insurer who offered you the best rate two years ago, or even last year, may no longer offer you the best deal today.

2.) Don’t wait for your renewal to shop around

A lot can happen over the course of a year, and as a rule of thumb, you should shop around anytime anything that could affect your insurance rate happens. For example, you should spot check your premiums when you move, get a ticket (or are involved in an at-fault collision), get married, change jobs or retire.

Tip: If you find a better rate when you shop around mid-policy, make sure the savings are more than the fee you’ll be charged for cancelling your policy. If the fees are higher than the savings, then it might be better to wait until your policy is set to expire before switching companies.

3.) Bundle it

We all know bundling phone and television services nets a lower bill, and the same is true for insurance. If you get your property insurance (home, condo, or tenant insurance) from the same company as your auto insurance then you’ll likely qualify for a discount that could save you from five to 15 per cent off of one, or even both of your policies.

4.) Review your deductibles Continue Reading…

The what, when and why on the new Debit Card Chips

Posted By |

By Jessica Kane

Special to the Financial Independence Hub

For years, we got used to swipe, type and go. Then, all of a sudden, we were forced to insert our cards and wait, like we’ve been thrown back to the Stone Age. Well, you will be pleased to know that it was not a step backward. This is real progress for the protection of the cardholder.

What makes the chip so different?

The difference between the chip and the magnetic strip is bigger than just your experience when you check out. When you swipe your card at the terminal, your personal information is vulnerable. We have seen this numerous times in major department stores over the years. All it takes is one good hacker, and all of the information on every card ever swiped within that database is up for grabs.

Yes, that means identity theft.

With the new chip, all of that information is encrypted before it is processed. What does that mean? In a nut shell, your information is transmitted as a one-time-use code. No more hanging your personal info out there for someone to grab a hold of. This doesn’t mean the codes are unbreakable, just that it takes a whole lot more to crack them.

In addition to that, the chip can’t be counterfeited. That magnetic strip on the back of your card, which you’ve been swiping forever, can easily be duplicated. If someone gets their hands on your card, that one strip could quickly turn into hundreds. If you have a chip card stolen, the culprit must have your personal identification number (PIN) in order to use it. And because it can’t be copied, there will only be one bad guy to track down.

When did the chip come into play?

The United States just adopted the more secure way to pay in 2015. But, believe it or not, the chip card has been around since 1994. Fraud was a huge problem in Europe, so they decided to change the way they make transactions by using this seemingly new technology. Since they made the change, Europeans have saved millions that would have been lost to fraud and counterfeiting. Slowly but surely, the rest of the world is following suit.

Why do I have to use them?

Continue Reading…

How to save on prescription medicine

Posted By |

By Chantal Marr, LSM Insurance

Special to the Financial Independence Hub

In Canada, we enjoy a universal health-care system that provides us with emergency medical treatment, regular health check-ups and hospital care.

Unfortunately, this publicly funded system doesn’t cover all of our prescription medications. This means that aside from meds given to you while you are in the hospital, the majority of Canadians have to pay for their prescription drugs themselves – either through an insurance plan or out of pocket.

Prices for prescription drugs in Canada are also among the highest in the developed world. This is due to a complex web of negotiations that undermine our collective buying power.

This results in many Canadians being unable to afford doctor-prescribed medications. Polls indicate that as many as one in five people can’t buy the medication they need. But not taking the prescribed drugs could lead to catastrophic consequences to their health.

For people who need several prescriptions per month, even saving a few dollars on each one could really add up over the coarse of a year. Here are some ways to save money on prescription medicationL

Ask your doctor if you really need to take the medication

You should never stop taking prescribed drugs without speaking to your doctor first. Not taking the prescribed amount or stopping altogether could seriously effect your health or interfere with the progress of the condition your doctor is treating. However, it never hurts to ask if you really need the medication.

Continue Reading…

Top global investment trends of 2017

Posted By |

By Sia Hasan

Special to the Financial Independence Hub

One of the most important things anyone can do for their future is to invest. There are many ways to build wealth over time if you start early and stay consistent no matter what the market is doing.

There are many global investment trends in 2017 that you need to know about. With all the changes that are going on around the world, this is one of the most important things you can look at changing in your personal finances. When it comes to investing, it pays to look at ways that you can improve constantly.

Real Estate

In many parts of the world, real estate is starting to heat up. With fewer properties on the market, many investors want to take advantage of real estate demand. In some developing nations, there are still opportunities to invest in growing areas. In certain places like the United States, the real estate market is so competitive that it is difficult to find a solid deal for the future. You always need to think five or ten years down the road when you are investing in real estate. This is true whether you are buying a home to flip or if you are just buying a home to rent out.

One other reason to consider real estate is that interest rates are still low. With the low rates, the amount of interest you have to pay on your debt is minimized and you can make more money as an investor. If you borrow money this year, it will be cheaper than in the future.

Equities (Stock Market)

When it comes to investing in the stock market, many are worried that we are in bubble territory. The stock market has been on a positive run for nearly a decade now. At some point, there is going to be a correction, and no one wants to invest right before a crash. If you are going to invest in the stock market, you need to have a plan for the future. Investing in the stock market is all about thinking many years down the road. Continue Reading…