All posts by Financial Independence Hub

5 Ways to maximize your returns next Tax Season

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By Caroline Battista, H&R Block

Special to the Financial Independence Hub

It’s probably not the first time you’ve heard the saying ‘a little preparation goes a long way’. And that is especially true when it comes to filing your taxes – I can attest to that after years of counselling clients and ensuring they get what’s theirs each tax season.

Below are five ways to help you ease the burden with some simple end-of-year preparation tax tips that will help you maximize your returns and get ready for the upcoming tax season.

1.) Keep a calendar with key dates

Because timing is everything, keep a calendar with key tax filing dates. The deadline for filing your 2016 personal tax return is May 1, 2017 and June 15, 2017 for the self-employed. You can begin preparing your return once your T4s and other slips arrive. Also, try to keep up with important dates that can increase your chances of receiving a larger refund. For example, by scheduling health-related treatments before the end of the year you can maximize your medical expense deduction. Continue Reading…

Simplifying Investing for Financial Independence

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By Billy and Akaisha Kaderli

Special to the Financial Independence Hub

As 2016 comes to a close, we thought we would look back financially to where we started this adventure, from January of 1991. The chart below shows the ascent of the S&P 500 Index over our 26 years of retirement.

On our retirement date of January 14, 1991, the S&P 500 index closed at 312.49. It has recently closed at 2262, making roughly an 8% annual gain plus a couple per cent counting dividends. Hard to imagine, right? With all of the market ups and downs, global turmoil, governments coming and going, businesses expanding and failing, and still producing roughly a 10% annual return.

But is this really a one-off period and not the norm? Continue Reading…

Shifting Trends: from Low Volatility to quality Dividend Growth

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By Christopher Gannatti, WisdomTree Associate Director of Research

Special to the Financial Independence Hub

Over the period of about the last three years, the annualized returns of the S&P 500 Index have been nearly 12%. That is a strong number, and it shouldn’t be surprising that U.S. stocks are more expensive now than they were then.

Let’s discuss what has been driving these returns and analyze various factor strategies to shed light on their potential to continue this trend in returns going forward.

Multiple Expansion, Earnings Growth or Dividend Yield: what’s most Important?

By itself, an index’s trailing total return may not say much about its future return potential. Fortunately, we can model different drivers behind performance by deconstructing the three separate components of total return:

• Average Dividend Yield

Continue Reading…

The sad decline of Defined Benefit pension plans

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Ryan Goldsman, author of Financial Myths

By Ryan Goldsman

Special to the Financial Independence Hub 

When times change but our pension options don’t, we are quick to point the finger. “You made a promise, now I’m going to hold you to it. Even though it will be paralyzing for you to keep this promise, that’s ok –  you will keep this promise.”

“Oh and by the way, the next generation is entitled to the same promise.”

It makes no sense, but last summer we’ve seen a few major employers — Canada Post and GM (General Motors) to name a few — go into the wee hours to get a deal done, both arguing over pension benefits. It’s been a major sticking point for a number of employers and their employees over the years and will only continue to increase in frequency.

The reality is the DB (Defined Benefit) Pension Plan — which was a very good idea a generation ago — is no longer readily offered to employees today. Effectively, gone are the days of the gold watch and the even more valuable promise of income for life: “You don’t have to worry, we’re your employer, we will worry for you.”

In the past, an employee gave the very large majority if not 100% of their working years to one employer; in return he or she was offered the benefit of income until death and it was the employer who would pay up if needed. It was a wonderful deal for employees who lived to an average age of under 70. Employers were also able to hire the best employees and make them this promise. It made sense. With contributions made over 30 working years and a payout not usually exceeding 10 or even 15 years in the worst case, employers had a fair amount of money in the employee pension plan, allowing everyone to sleep well at night.

Many pensions today underfunded

Continue Reading…

You’re never too old for these fun and stimulating hobbies

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By Cher Zevala

Special to the Financial Independence Hub

One of the chief concerns regarding senior citizens, especially those who live alone or in assisted living facilities, is boredom. Experts in senior care know that when a person is bored or feels unstimulated this can escalate to depression, which is already another concern among the senior population.

While the lack of activity could be due to a physical ailment that prevents the person from doing things they loved to do — such as walking, running, or other highly physical activities — in many cases it’s simply that a little nudge and some positive guidance is needed. A caregiver can be instrumental in this role and encourage their client to be more active, mentally or physically.

If you work with or know a senior citizen who needs to be challenged, adding a hobby to their daily routine can make a world of difference in their mood and ultimately their overall health. These are just a few hobbies that are fun, challenging, and can help lift mood and energy levels.

Art

Art is one of the easiest hobbies to introduce because it comes in so many forms. From painting with watercolors to adult coloring books, art brings a sense of freedom and independence as there is no right or wrong way to do it; art is subjective.

Continue Reading…