I have been writing about personal financial issues for over 12 years now. I have also been giving seminars to other accountants on my ideas since 2008.
Suffice it to say I have spent a large amount of time thinking about and analyzing the best way to get ahead financially and I have had a tremendous amount of feedback along the way.
And I still have 100% of my family’s investments in guaranteed fixed-income products.
Zero exposure to stock market
That’s correct, I have zero exposure to the stock market. It’s all in Guaranteed Investment Certificates (GICs) or provincial government bonds using a three-year laddered approach.
Sound crazy? Well I’ll tell you why it’s not.
First of all, the assumption is that you have to have exposure to the stock market because it’s the only thing that will give you excellent returns. But how good are those returns versus plain old GICs?
I have done an analysis for my Enough Bull course that will give you some idea. Continue Reading…
One of the greatest things I can do for my clients is to reassure them that they’ll be financially independent when they’re ready to retire. Unfortunately, not everyone meets their financial retirement goals. When they don’t, it’s often because they’ve made one or more of the five following mistakes:
1.) Not understanding your spending habits
Most people know what they earn and what they save, but have no idea what they spend. As you approach retirement and your ability to earn income is more limited, understanding what you spend and where you spend it becomes crucial.
Not knowing what you spend can lead to living beyond your means. Spending more than you earn can result in debt accumulation and, ultimately, reduced savings. Think of savings as fuel for your retirement; if you don’t have enough in the tank, you might not make it to your final destination.
2.) Carrying debt into retirement
A cornerstone of financial independence is being debt free. Continue Reading…
On Tuesday, Challenge Factory held a briefing via teleconference to update Canadian organizations interested in demographics, aging and longevity on the recent 2015 White House Conference on Aging, held on July 13th. For the Hub, Challenge Factory president Lisa Taylor adapted her remarks for the guest blog that follows. – JC
Lisa Taylor, Challenge Factory
By Lisa Taylor,
Challenge Factory
Special to the Financial Independence Hub
I first met Nora Super, CEO of the 2015 White House Conference on Aging last November when I was a speaker at a large symposium in Arizona focused on the aging workforce. It was my distinct honour to speak with the conference team in the weeks before the event and to participate as the only Canadian host of watch parties.
In 1961, Present Kennedy had the foresight to convene the first ever White House Conference on Aging – and he ensured that at least once a decade Congress was obligated to hold the event as a way to ensure the complexities and opportunities longevity offer were considered from a social, economic, environmental and legal perspective. “Science,” Kennedy is quoted “has added years to our life. Our task is now to add life to those years.”
50th anniversary of Medicare & Medicaid
This year’s conference happened in the year that marks the 50th anniversary of Medicare, Medicaid, and the Older Americans Act, as well as the 80th anniversary of Social Security. Organizers stated “The White House Conference on Aging is an opportunity to recognize the importance of these programs, highlight new actions to support Americans as we age and focus on the powerful role that technology can play in the lives of older Americans in the decade ahead.” Continue Reading…
The most important definitions are not found in the dictionary; they are the ones you make for yourself to serve your purposes.
You first encountered this idea when your mother told you to clean your room. When you thought you were done she made you clean it some more. The problem was not with the room; the problem was she had a different idea of what a clean room meant (it didn’t mean shove everything under the bed or into the closet and close the door). Besides, you wanted to get outside to play and she wanted the room tidy.
In a posting titled How Findependence differs from Retirement, Jonathan Chevreau makes a case for how he believes the two words are different and why. He argues that you might be financially independent before you retire because you no longer work for a salary. Some who retire need to continue to work because their income doesn’t meet their needs. His definitions for the words are his own.
Your palms are sweaty, your mind is racing! Are you ready for such a commitment? It is the next step in your relationship, isn’t it? Even if the odds are against you, but your love is different … stronger!
Right? If you have been in a serious relationship or are planning to, you will relate to the thoughts and concerns mentioned above. However, I am not talking about marriage; I am referring to joint credit.
How it can hurt
Having joint credit won’t automatically lower your score; however, it does increase your risk. As soon as you put your name on and sign an application, you are fully responsible for the complete balance and paying the minimum payment. The banks and lenders don’t care who spent the money, what it was spent on, who has it now, or what it is now worth. If they don’t get their money back as outlined in the contract you are both on the hook for everything. Even if everything on your credit is great, one collection or one bad account will cost you thousands in high interest and fees. You may even be declined.
The odds are not in your favour!
What are the chances of your relationship ending? I’m not generally a big fan of “what if?” questions but it’s important to weigh risk when it comes to personal finance. It doesn’t matter whether your relationship status is boyfriend, girlfriend, common law, partners, or even married. What are the chances of your relationship ending? Most stats give you around a 50/50 chance. If you are a hopeless romantic or really in love then I’m sure you will give yourself a higher chance of success.
Here is the hard cold truth. There is a 100% chance of your relationship changing. When I talk about joint credit most people assume I am talking just about separation or divorce but there is another “D” word that most people don’t want to think about.
The other “D” word
It doesn’t matter if you are in a relationship with your soul mate — death is still guaranteed. You cannot have a joint account with someone who has passed on. As soon as the bank finds out that one of the applicants is deceased you now have to close that account and apply for a new credit card, line of credit, or loan. If all your established credit is held jointly, you will have to start rebuilding your credit all over again if your spouse passes away.
Joint credit alone doesn’t hurt your credit but you need to know how the scoring system works so you don’t end up in trouble. My advice is to make sure you have built individual accounts if possible to limit your risk and protect yourself from having to start rebuilding your credit later on in life. For more free tips on credit you can visit my blog, www.eCreditFix.ca. If you would like to attend a free event to learn more about the other rules of credit visit our events page.
Richard Moxley is the Author of the book, The Nine Rules of Credit – How to Start, Rebuild, and Always Maintain Great Credit. He is also the founder of eCreditFix.ca. Richard has shared his credit expertise with financial professionals and the Average Joes across Canada and the U.S. His vision is too teach all Canadians the rules of the “Credit Game” so they can play the game to win!
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