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Coauthors Mike Drak (L) and Jonathan Chevreau (R).
As the accompanying photograph of me and coauthor Mike Drak shows, the book Victory Lap Retirement has finally come off the printing presses.
It will be a few weeks before it is available in bookstores but it can be ordered and delivered now directly through the web site VictoryLapRetirement.com.
The photo was taken Thursday at Mike’s Toronto home. As you can see from our casual poolside attire, we’re trying to live the lifestyle described in the book, and summarized by the subtitle Work While You Play, Play While You Work.
You can also see the yellow book cover is now in rotation on the front page of the Hub, along with the US and Canadian editions of Findependence Day and the summary Kindle ebooks titled A Novel Approach to Financial Independence.
You can’t plan for something you don’t know is coming.
Accidents and emergencies are inevitable and a financial cost is often attached to these surprise incidents. So what do you do when you find yourself with an unexpected emergency expense? One option is to use balance transfer credit cards.
Balance transfer credit cards are great tools to help you pay off your debts sooner. They offer a low interest rate (sometimes 0%) for any debts you transfer to the card for a limited period of time. By minimizing interest costs, the money you put towards your debt will directly pay off the amount owing and not go towards fees. While there can be costs associated to balance transfers — like a fee of 1% to 5% for transferring a balance or an annual fee — the interest savings can outweigh the cost of the fees.
So how can you strategically use a balance transfer credit card for emergency expenses? Charge whatever emergency expense you make to a card you already have, immediately apply for a balance transfer card, and quickly transfer over the balance to the new credit card.
There are considerations you need to know before applying for a balance transfer credit card, such as: Continue Reading…
If you found yourself on the high seas, and the captain and crew were battening down the hatches, what would you do? Depending on how fast they were scrambling, you might at least make sure your life preserver was within reach.
If the Canadian real estate market were an ocean liner, recent government words and deeds have sent some pretty solid warning shots across the bow – especially for properties in the Greater Toronto and Vancouver regions. Real estate investors who may have forgotten the essential rules of self-preservation would be wise to consider the following:
In a June announcement, Bank of Canada Governor Stephen Poloz warned: “The pace of house price increases in Toronto, and especially Vancouver, is unlikely to be sustained, given the underlying fundamentals.”
Several provincial governments have been looking for ways to manage their real estate markets. For example, this July Globe and Mail article noted that British Columbia was trying to “cool the Vancouver market” by adding a 15 per cent transfer tax on property purchases made by international buyers. Continue Reading…
At some point we’ve all daydreamed about what our retirement might look like. For some, a cabin in the woods might be their dream life. Others may want a condo near the beach or high-rise apartment in the city. Many daydreams also include travel, both in and outside the U.S.
Ample Hollywood movies about the joys and headaches of the retirement life have given nods to the recreational vehicle (RV) retirement lifestyle as well. From ex-CIA man Jack Byrnes’ sleek black Fleetwood RV in Meet the Fockers, to David and Linda Howard’s homier Winnebago in the movie Lost in America, RV living may represent a luxury life of leisure for many Americans.
One former co-worker of mine, shortly after his retirement, sold his home to buy a fancy new RV. While I was able to meet him at his retirement party and do a short quiz on his reasoning, the decision never quite added up for me. I decided to do some additional research to determine if RV-living was a sound and viable financial decision for my own retirement.
Full-time RVers, also known as full-timers, are people who live, work, and play in their RVs. Often they plan their lives and moves well in advance, but they’re also known to pick up and go on a whim, or to follow the weather on a seasonal basis.
However, there are a few considerations when contemplating the full-time RV life. Here’s a breakdown of points to ponder while deciding whether it’s the best lifestyle for your needs.
Finances
RVs can be purchased in a wide price range – anywhere from $3,000 to $3 million – which makes them perfect for any budget. Continue Reading…
As the days of summer dwindle to a precious few, the last few weekends at the family seem especially poignant now. And while those thoughts may warm you up a bit, you don’t want to be left out in the cold if you’re not aware of the financial implications when you sell the family retreat or if you transfer ownership to your children this year.
Unlike with your home, transferring ownership of the family cottage to anyone other than your spouse may trigger a taxable capital gain on the appreciation in value during your ownership. You may want to consider leaving the property to your spouse. Doing this helps defer the tax bill until the property is sold or passed on to future generations.
In addition, there are a number of strategies that you can undertake to help reduce and potentially avoid the capital gains tax, including:
Selling and taking back a mortgage
If you decide to sell the cottage to your children, consider taking back a mortgage by offering your children a mortgage loan as payment for the purchase price. The capital gain can be spread over a period of up to five years. And you can forgive the mortgage in your will so your children will own the cottage without debt or paying taxes.
Transferring ownership while you’re alive
Transferring ownership of the cottage to a trust that designates your children as beneficiaries will trigger an immediate capital gain. But from that point on, your heirs are responsible for taxable gains. They won’t pay those taxes until they sell the property or transfer ownership.
Declaring the cottage as your principal residence
You can have only one principal residence for tax purposes. So if your cottage has gone up in value more than your home, consider designating the cottage as your principal residence, which isn’t subject to capital gains tax.
Buying life insurance
Family members can use the tax-free proceeds from a life insurance policy to help pay capital gains taxes on your cottage when you leave it as part of your estate.
If you plan to sell or transfer ownership of your family cottage this year, make sure your finances align with your goals. Doing so can help ensure you stay on track to reach them.
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