All posts by Financial Independence Hub

What is Mortgage Insurance?

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mortgage-insurance-cartoon
Cartoon courtesy of LSM Insurance

By Chantal Marr, LSM Insurance

Special to the Financial Independence Hub

Sounds great just lying there on paper, doesn’t it?

Really solid.

The underlying concept of mortgage insurance is that if you die or are incapacitated mortgage insurance will pay off the rest of your mortgage. But be careful: Mortgage Insurance is the most dangerous financial product out there.

Mortgage insurance is the one financial product that declines in value as you continue to pay. Therefore each year you are getting less and less value for your premium.

Why Math is Important

Renting vs. Owning

Let’s start with your house. When you take a mortgage out on your house, it’s a very bad deal to start with. You are just paying interest on the value of the house and in most cases the interest far exceeds the cost of renting the same property.

Here’s an example based on a $500,000 20-year mortgage at 6% on a $600,000 house. We’ll assume rent inflation of 4%/year:

Year 2010: Mortgage payment $3,560/month. Rent: $2,500.

You are leaving over $1,000 in your pocket per month in ready money. That’s a lot of restaurants and vacations twelve months a year.

But let’s take it ten years later: Continue Reading…

The critical role of planning for Cash Flow

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ennio_4-1500x1058
Ennio Longo

By  Ennio Longo

Special to the Financial Independence Hub

Are you like so many Canadians? You have a good paying job, are in a two-income household, own a home and yet you run out money before you run out of month?

The majority of Canadians are spending more than they make.   If this sounds like you, you’re not alone.  We are trying to put some money aside for the future as we have been told we should, but we also want to enjoy today; take that trip, get a new car, renovate the kitchen. We cannot just live for tomorrow.  WE WANT TO ENJOY TODAY.

The reason we have this shared experience is that we never went to school to learn how to “handle” our finances or how to manage our CASH FLOW. With so many different companies from financial institutions to consumer goods vying for our money, managing our cash flow on a monthly basis can be very difficult for many people; myself included.

Certified Cash Flow Specialist

With a four-year business degree and a CFP (Certified Financial Planner) and CLU (Chartered Life Underwriter), one would think that I would have received a formal education in cash flow planning as well, but I didn’t; at least not until I received an actual formal education in cash flow planning and became a CCS (Certified Cash Flow Specialist). Continue Reading…

Tax evasion schemes land “De-taxers” in jail

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David Rotfleisch-03-500W
David Rotfleisch

By David J. Rotfleisch

Special to the Financial Independence Hub

When “de-taxers” use best business practices such as franchising and friends and family of multi-level marketing (MLM) techniques, you know that even fringe thinkers are watching and learning from the likes of “Dragon’s Den” and “Shark Tank.” Entrepreneurialism, it seems, has caught on in the tax evasion industry.

They’re running seminars and courses, and selling books, CDs, and DVDs, to teach fringe thinkers and gullible Canadians that it’s their God-given right not to pay taxes and here’s how to do it:  commit fraud by evading tax. They are “educational,” setting up schools to do this.

And they do this for fees, of course.

Two de-taxer founders now in jail

De-taxers have been on Canada Revenue Agency’s radar for a long time and the founders of two different tax evasion schemes have been jailed recently. Tax protestors have gone from nuisance to serving jail time, plus hefty fines, in short order.

Continue Reading…

5 ways financial apps can ensure data security

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Businessman selecting a futuristic padlock with a data center on the backgroundBy Barney Whistance

Special to the Financial Independence Hub

People are obsessed with money and their smartphones and tablets at the same time. The more money flow they have to manage, the more insecure they become about keeping track of it and keeping it safe.

There is no doubt that smart apps can help to manage your money, make large deposits and transfers of money in a short time, use the best use of financial information and make simple payments online. However there is still a potential threat of online theft and scams. Thousands of functional apps are developed every day to help keep track your money but the question remains whether or not these financial-related apps are safe and secure to use and protect you from an online hack or theft at the same time.

With the digital revolution and the integrated use of social media, the financial industry has to determine the safest ways to transect the online transfer of money in online apps. Contrary to their social media activities and brand identity hype, some finance apps tend to be of no use and are most vulnerable to outside hacks.

Financial applications should be able to provide users with the immediate access to their financial data with convenience and security. However there are some tips which can ensure that your financial data and money remain safe and secure.

Securing the Flow of Sensitive Data

Continue Reading…

The Mind-Body Connection: How Stress affects your Health

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Beautiful positive girl clothing in white sit at the seaside on the rock and meditating in yoga poseBy Sandy Cardy

Special to the Financial Independence Hub

Researchers have long known that there is a strong link between stress and overall health. In fact, the American Psychological Association suggests that we’re on the verge of a stress-induced public health crisis. The American Medical Association has also noted that 80 per cent of health issues are stress related! So how does stress affect your health?

It’s no secret that the mind plays a key role in health. Internalized stress equals dis-ease. But it actually goes beyond just stress. At the core of every symptom is an emotional pattern; the body speaks the mind. Trapped emotions in the nervous system are at the root of what ails us. Some sources believe that the liver is known to be connected to anger and the lungs produce emotions of grief. The emotions that we do not respect, honour and release are stored in anatomical sites and consequently can affect physiology, often leading to dis-ease and dis-comfort.

Did you know that the seven chakras are associated with specific body parts? Modern literature from both Western and Eastern cultures highlight the connection between each chakra and the endocrine and nervous system as well as organs. Additionally, each chakra is connected to mental and emotional issues as well as physical dysfunctions.

The first chakra, which is located at the base of the spine, is connected to the physical body by the spinal column, legs, bones, feet, rectum and immune system. This is emotionally and mentally connected to physical family and group safety and security, the ability to provide for life’s necessities, the ability to stand up for self, feeling at home and social and familial law and order. The physical dysfunctions associated with the first chakra are touted to include chronic lower back pain, sciatica, varicose veins, rectal tumours/cancer, depression, immune-related disorders. Continue Reading…