All posts by Financial Independence Hub

Game-winning shopping hacks for Black Friday & Cyber Monday

Posted By Financial Independence Hub | November 23, 2016

By Sari Friedman, Ebates Canada

Special to the Financial Independence Hub

Get the coffee brewing and put your game face on! Thanks to our American neighbours, Black Friday and Cyber Monday sales are about to kick off the busiest shopping season of the year, with deep discounts and exclusive online offers.

Canadians are feeling pretty generous this holiday season, with 84 per cent saying they plan on spending almost $200 more than last year, according to our recent Ebates.ca poll. Whether looking for deals in Canada or across the border, more Canadians are turning to online shopping to avoid the chaos, with 82 per cent saying they will make at least some holiday purchases online.

While you won’t need a helmet and elbow pads to score a deal for these two big shopping days, a little preparation and some savvy strategies will help make sure you stay ahead of the competition – and within your budget.

Don’t believe the hype

The best way to know whether a deal is really a deal is to do your research beforehand. Make a list of items that you’re interested in, then do some recon to compare prices, features, quality and special offers across various retailers. You may find a similar item to what you’re looking for that is a better deal, or at the very least, you’ll have a solid back-up choice that you can still be confident buying.

Limit your spend

It’s easy to get carried away in the chase for a deal, but it’s important to set yourself limits or you risk blowing your budget: game over! Stick to the items on your budgeted list and avoid impulse purchases. That ‘blowout’ price may seem cheap in the moment, but is it really worth it if your purchase sits in your closet or on a shelf, unused?

Sign up ahead of time

The US Forex trading market after the Election

Posted By Financial Independence Hub | November 22, 2016

By Justin Duke

Special to the Financial Independence Hub

All over the world, trading markets are rapidly evolving. There are a lot of factors influencing the difference in the high and low of global currencies. In America, the influencing factors only get bigger: talk of oil prices, the outcome of the election, and many more factors. Currency pairs are moving with the market trends. What exactly does this mean for forex traders? The market can be lucrative, and it can be resilient.

In the past few weeks, a lot has happened in forex trading that the investors of this market should be aware of. Risky trends in the market have been amplified lately, but with the American Thanksgiving holiday coming up soon, forex traders in the U.S. are looking at some sort of break, but this time off from the market trends also means a period away from the optimism that some currencies were showing in the past week.

How commodities impact Forex

The market is still recovering from the somewhat aggressive election run by Trump and Clinton. Other trading commodities that influence the Forex Trading market, like oil and gold, also experience major changes. Thanksgiving, in the past, has rigged the market of its liquidity. The S&P 500, for instance, hits some of its highs during such holidays, leading many investors to believe that holiday cheer is an influential factor that can move the market from a low to a high.

Oil rigs moved from 452 to 471 in just a week, while gold is making a move towards $1,200. Last week, US stocks were trading at a low thanks to the loss of the bias previously owned by the GBP/USD currency trading pair. The Fed is looking to diversify some of its policies so as to help strengthen the current position of the dollar in the market. The position of the Euro, on the other hand, might just be about to get very interesting given the current market flux in Europe. Forex traders should consider the word of trading experts before placing their investments on any currency combinations in the current risky markets. Continue Reading…

Should I start CPP early? Real-Life Examples

Posted By Financial Independence Hub | November 21, 2016

By Ed Rempel, CPA, CMA, CFP

Special to the Financial Independence Hub

The most common Canada Pension Plan question I am asked is: “Is it smart to take my CPP early?”

A quick review of the facts:

The maximum CPP benefit in 2017 at age 65 is $1,092.50 per month, or $13,110 per year.
You can start as early as age 60, but you get 7.2% less for every year before age 65. If you start at age 60, you get 36% less, so the maximum is $8,390 per year.
New rules in 2012 increased the penalty for starting early, but you can start CPP even if you are still working.

The simple breakeven calculation misses many important factors. For example, if John starts receiving $8,390 per year at age 60 and Jane starts receiving $13,110 at age 65, it will take her nine years to catch up. The simple breakeven is age 74. John gets more before age 74 and Jane gets more after.

This implies that if you expect to live past 74 (and most people will), you should delay your CPP. But this is not the full answer.

The answer depends on five main factors:

Residential Buy- and Sell-back Agreements: a new option for Boomers?

Posted By Financial Independence Hub | November 19, 2016

By Penelope Graham, Zoocasa

Special to the Financial Independence Hub

In today’s real estate market, buying a house is less a traditional rite of passage and more a Herculean feat, especially for Millennials scraping together a down payment in Toronto or Vancouver. To them, the concept of owning a detached dwelling, complete with yard and picket fence, is a faded – and financially unfeasible – memory.

But it was a reality for Canada’s 9.6 million Baby Boomers, many of whom bought in their early 20s, and are still living in the family home. And, given the explosive surge of housing prices over the decades, a fair share of those Boomers have seen their investment grow by hundreds of thousands of dollars. Consider this – according to the Toronto Real Estate Board, the average Toronto home sale price was $75,694 in 1980, compared to September 2016’s average of $755,755 – an 898% increase!

These homeowners face a choice: sell while the market is hot (especially as new mortgage rules designed to cool demand go into effect), or stay put. For many, it’s not an easy decision. They may feel cashing out isn’t worth parting with the beloved family abode. Others may wish to sell, but dread navigating bidding wars and other competitive tactics when buying their next home. For some, “downsizing” may just be a dirty word. So, what options do these Boomers have?

Sell and Lease-back agreements offer an option

To address this conundrum, some seniors have turned to what is traditionally a commercial real estate practice: buy- and sell-back agreements. In these transactions, a home is sold to an investor buyer while the previous owner continues to live in it as a leased tenant. It’s a method growing in popularity, and can seem the best of both worlds, but it certainly comes with its pros and cons. Here’s what Boomers should keep in mind if considering a sell and lease-back agreement:

Pro: It’s attractive for Investors

5 ways Seniors can avoid Financial Scams

Posted By Financial Independence Hub | November 17, 2016

By Barney Whistance

Special to the Financial Independence Hub

The older we get the more important it becomes to look after not only our own financial situation but that of our parents as well. No matter what they’ve saved and tucked away for retirement, those funds may be at risk due to cognitive declines as they age.

The Huffington Post reports that over $36 billion is scammed in senior fraud and financial abuse every year. This is only the tip of the iceberg when it comes to these types of elderly scams: law enforcement officials estimate that only about eight per cent of crimes are reported ever year.

CNBC reports that women are also twice as likely as men to become a victim of fraud. They are considered easier targets, especially if they are in their 80s and living alone.

While knowledge goes a long way towards combatting these scams, obviously it’s not going far enough. Here are five ways to help protect your loved ones from scams, frauds, and financial ruin in their naive older years:

1.) Know the scams

The first line of defense is to know more about the common scams. This will help you anticipate and expect certain fraudulent activity, give you an edge heading them off from the first contact.

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