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Diana used to come to work with bags around her eyes. Her co-workers would always ask her if she was alright, and if everything was okay at home. Diana was tired of being sick, and she was also tired of people asking questions about her personal life. Diana had many sleepless nights, and it was now showing on her face.

There were a number of things that were contributing to Diana’s sleepless nights. Problems at work and home were among those issues. She was also struggling with credit card debt. Diana had managed to accumulate a credit-card balance of more than $10,000.

Diana had a good credit score and a good-paying job, so she did not expect to end up in credit-card debt. She had used her credit card to pay for a getaway with her husband to the Caribbean. As readers of the Financial Independence Hub know, using a credit card as a borrowing tool can lead to trouble quickly.

Diana believed she could pay off the debt before interest was charged to the card. However, a crisis happened and she had to cover an unexpected dental expense and a leak. Diana’s expensed trip to the Caribbean caused her to carry a credit-card balance that she was now struggling to pay off.

Diana was now living the personal finance nightmare: stuck in high-interest credit-card debt.

Diana’s new debt made life extremely difficult. She felt like she was in a sinking boat with no lifeline. She was feeling out-of-control, stressed and anxious. Diana struggled to budget in the minimum payments every month, but they never seemed to make a dent on the balance.

It is easy to understand Diana’s predicament when you take a look at the math involved.

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By Som Seif

Special to the Financial Independence Hub

Many, even most, Canadian investors suffer from a bias by which they invest in what they know: home.

This is short-sighted and dangerous for an investor’s portfolio, as the Canadian market is very small and concentrated in comparison to the U.S., especially around three primary sectors. Canadians really don’t have to go away to far flung places for diversification – they only need to look southward to the U.S. market, which is one of the broadest, deepest and most liquid financial markets in the world.

For those considering investing in the U.S., really focus on these three areas that are the core to growing and diversifying an investment portfolio.

1. Go for the big treasure chest of companies. Go for diversity.

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By Aman Raina, MBA, Sage Investors

Special to the Financial Independence Hub

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By Billy and Akaisha Kaderli

Special to the Financial Independence Hub

Man sacrifices his health in order to make money. Then he sacrifices his money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; he lives as if he is never going to die, and then dies having never really lived. – James J. Lachard

You have worked your butt off for many years saving, investing, and doing mostly the right things. You’ve accumulated a substantial retirement account and are ready to retire. You know both your yearly spending average and your daily spending average, and are well within your Safe Withdrawal Rate.

You retire, and life is better than you ever expected. As the years pass your net worth continues to grow, and you are feeling confident and have relaxed into your lifestyle.

Then you get sick.

Health insurance covers most of the expenses, and you move on. Then something more serious happens, and costs are exploding. You need in-home care and services that are not covered by your policy. You are starting to strain your nest egg, and the financial security that you have worked your entire life for is slipping away.

Long-term care insurance? Continue Reading…

By Randy Cass

Special to the Financial Independence Hub

If you’re like many Canadians, your financial life story may go something like this: over the past 20 years you’ve been busy taking care of multiple financial commitments. You may have gotten married, bought your first home and have made some good headway to paying it off, you may have even had a child or two and gone back to school to further develop your career.

Now in your 40s, you’ve achieved quite a bit and are probably starting to seriously think about how you will fund your retirement, children’s education, a bigger house or something else specific to you. Throughout all this, you’ve managed to put away around $100,000.

Congratulations! But, this is most likely not enough for you to be considered a good prospect for most financial advisors. You’re either left to do it yourself [DIY] or your hard earned money is probably going to be put into an expensive option, typically in a mutual fund paying up to 2.5% in fees each and every year.

Though, you may not know just how much you’re paying and may even believe that you don’t pay anything at all because fees are not currently reported on investment statements. What’s more, these fees will likely destroy up to 50% of your potential gains in wealth — yes, small fees have devastating effects over time — leaving you with much more work ahead of you and a harder time reaching your goals. If this is not a slap in the face, I don’t know what is. The good news is that there are new options available for individuals just like you.

Financial services industry in flux

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