All posts by Financial Independence Hub

The Canada Child Benefit – 4 key planning points to consider

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By Aaron Hector, Doherty & Bryant Financial Strategists Inc.

Special to the Financial Independence Hub

Budget 2016 introduced a new child benefit program called the Canada Child Benefit (CCB). This program replaced the UCCB, and despite their similar acronyms, they are very different from one another.

The U in UCCB stood for universal, and it was just that. Every Canadian resident family with a child under 18 received a benefit. For children aged 0-5, the amount was $160/month and for children aged 6-17 the amount was $60/month. This benefit was taxable as income to the lower income earning spouse (or single caregiving parent).

In contrast, CCB payments are tax-free. Eligibility for CCB payments are based on your family’s combined net income. The word “net” is important as it leads into other tax planning ideas that we will explore a little later on. In general terms, when compared with the UCCB the new program provides a higher benefit for lower and middle-income families at the expense of reduced benefits for high-income families. The specific calculation is as follows:

Step 1 – Calculate the maximum benefit

1. For each child aged 0-5 there is a maximum benefit of $6,400
2. For each child aged 6-17 there is a maximum benefit of $5,400 Continue Reading…

Billy & Akaisha’s 3 Lessons on how they reached their Victory Lap

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Almost 3 decades of retirement and we still have a great time on a boat ride across Lake Atitlan

By Billy and Akasha Kaderli, RetireEarlyLifestyle.com

Special to the Financial Independence Hub

Retirement is a great achievement, but it’s not static. It’s not like once you arrive you can forget about it and put it on auto-pilot. It’s an interactive manner of living that continues to respond to our input, the new skills we learn and how our goals modify. Hopefully we continue to grow and change, making our retirement sustainable and sweeter to live.

Below you will find three of our most effective lessons on retirement that will enrich you and increase your enjoyment along your path in financial freedom.

Control housing costs and you can live anywhere

This is a well-kept secret of retirement. The cost of housing is one of the largest financial outlays in anyone’s household no matter what age you are, and if you modify the price you pay for your residence, you have the financial freedom to virtually afford living anywhere in the world.

In other words, if you could save tens of thousands of dollars a year on mortgage payments or rent, insurance, maintenance and repairs, how would that affect your life? What if you could live in Paris or on a Caribbean island for free? You can do that, if you house sit. Continue Reading…

3 tips for raising a family in a Condo

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By Penelope Graham, Zoocasa

Special to the Financial Independence Hub

Healthy demand is forecasted for Canada’s condo markets in 2017, and it’s not just young professionals and investors fueling the boom. As low-rise housing prices grow further out of reach, families are increasingly turning to condo life as an affordable housing option.

For many, condos offer the only affordably entry point into the market, especially in Vancouver and Toronto real estate. And while some buyers choose to “drive until they qualify,” suburb life isn’t desirable to everyone, prompting buyers to increasingly sacrifice space to live within city limits.

The Toronto Real Estate Board (TREB) reports demand for high-rise units surged more than any other housing type in 2016, with 20,860 units changing hands – a 19.9% increase. In comparison, detached homes – despite being extremely highly sought – saw a year-over-year change of over 3.10% in the 416 region as sales were limited by tight supply.

Condos still an affordable option

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How to avoid Fraud in your Retirement Plan

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By Jeanine Skowronski

Special to the Financial Independence Hub

Believe it or not, your retirement plan can be at risk for fraud. In fact, in the 2015 fiscal year, the (US) Department of Labor closed 2,441 civil investigations into retirement plans and recovered US$696.3 million for direct payment to plans, participants and beneficiaries. Retirement fraud can occur in several ways: employees with access to your workplace benefits may skim from the top. Or, beyond that, you may be tricked into taking on risky or non-existent investments outside of your day job.

For businesses, avoiding fraud all comes down to implementing solid internal controls — that’s per the Internal Revenue Service, which actually has an Employee Plans Compliance Unit (EPCU). For consumers, it comes down to vigilance. Here are some personal finance insights to help you avoid fraud in your retirement plan:

1.) Check your Retirement accounts regularly

Most employees set up their employer-sponsored 401K account and forget it. Or they give their quarterly statements a passing glance before chucking them aside. (Note: It’s important to shred all sensitive financial documents before discarding.) However, failing to log into your account regularly means you’re missing out on spotting potential red flags.

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3 simple techniques for overcoming financial stress in Retirement

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Senior Couple Were Disappointed While Reading Letter On TableBy Leigh Marcos

Special to the Financial Independence Hub

We all look forward to retirement: complete freedom. We can do what we want, when we want, and don’t have to traipse into an office every day to join the rat race that dominates younger people’s lives.

Unfortunately, the transition to not working can come with a different set of pressures, not least the financial stress triggered by your drop in income. Current statistics show that 68% of working-age people in the U.S. don’t participate in an employer-sponsored pension plan, so this is a common anxiety that affects much of today’s retired populace.

Luckily, there are ways to combat financial stress and still relish what should be some of the most enjoyable years of your life. Here are three simple steps to help you do so:

Value yourself, and act like it

All too often, the change of routine involved in retiring after a lifetime of work can cause us to drift into a kind of daily limbo where time starts to lose meaning, and so as a consequence does our everyday life. Combat this lack of direction by actively redefining who you are without your job. What do you stand for? What do you still want to achieve? What do you enjoy doing? How do you spend your time? Take some time to reflect on these questions: brainstorming can help, as can physically writing things down or discussing them with a friend.

Make sure to avoid isolation by getting involved in regular, structured activity that enriches your life and brings you into contact with people who have a positive influence on you. This will help you keep financial worries in perspective and remind you that there are other important and valuable things in life.

Stay healthy

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