Debt & Frugality

As Didi says in the novel (Findependence Day), “There’s no point climbing the Tower of Wealth when you’re still mired in the basement of debt.” If you owe credit-card debt still charging an usurous 20% per annum, forget about building wealth: focus on eliminating that debt. And once done, focus on paying off your mortgage. As Theo says in the novel, “The foundation of financial independence is a paid-for house.”

Invisor.ca launches “goal-based” robo-like service

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Invisor (CNW Group/Invisor)
Invisor Logo (CNW Group)

By Jonathan Chevreau

Financial Independence Hub

After the initial wave last year of new robo-advisers washing up on the shores of the Canadian market comes a variation on the theme — a so-called “goal-based” online investment management service called Invisor.ca.

Announced Tuesday, the service claims to offer “personalized online investment management at a fraction of the cost of a traditional financial advisor.” The service is available initially in Ontario and Manitoba and it plans to register in other provinces “in the near future.” The custodian is Credential Securities Inc.

The reference to traditional advisors is evidently to mainstream retail mutual funds, whose fees are high enough that all domestic robo-advisers can undercut them and still make money. In a press release, Invisor notes that many Canadians pay more than 2.5% a year for mutual funds and that “in some cases these costs can be s high as 2.8% to 2.9%.” Continue Reading…

Do you have an unclaimed bank account?

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MarieEngen
Marie Engen, Boomer & Echo

By Marie Engen, Boomer & Echo

Special to the Financial Independence Hub

Have you ever moved and forgotten about an old bank account? The Bank of Canada holds about $532 million dollars of unclaimed money dating back to 1900.

Where does the money come from?

Bank of Canada unclaimed balances are Canadian dollar deposits or negotiable instruments that were held at a bank or trust company. They include chequing and savings accounts and GICs, as well as uncashed bank drafts, certified cheques and travellers’ cheques.

Related: 350 reasons to switch your banking

Not included are non-Canadian currency accounts, RRSPs, credit union accounts and safety deposit box contents. Continue Reading…

One Thing I Wish My Father had Taught Me

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Drak 2014
Michael Drak

By Michael Drak,

Special to the Financial Independence Hub

As I was growing up my father taught me many important lessons. I was taught about the importance of getting a good education and using that education to get ahead in the world.

He instilled in me the need for working hard, making good money and providing for family. He taught me the importance of saving and having the goal of eliminating debt as quickly as possible.

But what he didn’t teach me was about the important concept of Findependence and how it would positively impact my life once it was achieved.

It really wasn’t his fault for not making me aware of Findependence [a contraction of Financial Independence] because back when he was working the goal was to find a good-paying job with a solid company, try to stay there for the rest of your working life, and eventually retire with a defined benefit pension in your back pocket.

Days of a single employer for a lifetime are almost gone

Life was so simple back then but times have changed. Continue Reading…

Fed up: Latest Fee Grab Enrages Banking Customers

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robb-engen
Robb Engen, Boomer & Echo

By Robb Engen, Boomer & Echo

Special to the Financial Independence Hub

For years Canada’s big banks have walked all over their retail customers without fear of repercussion. They’ve raised account fees and hiked minimum balance thresholds at will, invented new charges for moving our money around, and generally nickel-and-dimed us to death just because they can.

Related: 10 fees you can avoid

Banks get away with it because of the perception that it’s difficult and inconvenient to switch. Typical Canadians, we grumble about the fee grab for a while,  then quietly return to our normal everyday routine.

But this time it feels different. While banks continue to enjoy record profits – particularly from their retail banking operations – consumers are paying higher fees and earning lower interest on savings deposits. Continue Reading…

Seniors fastest growing risk group for insolvency

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A speedometer with needle plunging down past word Bankrupt

By Jonathan Chevreau

Financial Independence Hub

While this website is devoted to Financial Independence, it’s an unfortunate fact that many people in all age brackets are so far from Findependence as to be under water financially.

Today a report entitled Joe Debtor: Marginalized by Debt is being released by Kitchener, Ont.-bankruptcy trustees Hoyes Michalos.

Among the many disturbing findings are the fact that seniors continue to be the fastest growing risk group when it comes to debt. The 2015 study shows insolvency filings by debtors over age 49 rose 30%, compared to a 27% rise in the 2013 study. The single biggest age group for insolvency is the 40s, where 28% of Canadian insolvencies occur. But those in their 50s account for 20%, those in their 60s 8% and 70-plus 3%.

DougHoyesCanadaTrustee
Doug Hoyes

In the report, Doug Hoyes writes that older Canadians are carrying debt into retirement because of debt accumulated over time to pay for living costs, family needs and medical bills, additional borrowing to keep up with post-retirement mortgages and the financial cost of carrying unsecured debt into retirement as income drops; and tax obligations from extra earned income and pension withdrawals. Continue Reading…