May 13, 2012 Posted by Hayley Steele No Comments »

Sector Breakdown of Diversified Portfolios

In a recent column, The Globe & Mails Rob Carrick (see Beware the limitations of buying the index, May 11, 2012) pointed out that investing in just the TSX Composite index might leave an investor with an unbalanced portfolio because of the indexs concentration in just three sectors: financials, energy and materials. The criticism is a valid one because, as you can see from the chart below, resource companies make up more than half the index and financials make up another one-third of the index. (As an aside, the sector breakdown of the S&P/TSX 60 index, which is tracked by the iShares S&P/TSX 60 ETF TSX: XIU is pretty much the same as the broader Composite index).

This limitation of the TSX Composite Index is one reason why passive investors diversify their portfolios globally. The US Total Stock Market, for instance, offers much better diversification. The three dominant sectors in the Canadian market make up less than a third of the US stock market.

Full article…

May 07, 2012 Posted by Hayley Steele No Comments » Tags: Car Ideas Car

5 Money-Saving Ideas for Your Car

I love my car. Besides my sister and  best friend, I don’t think there’s anyone I spend more time with in this world. After almost a decade together, you’d think I could show my car a little more respect and TLC. But, honestly, getting the oil changed every three months is like going to the dentist. In honor of Car Care Month, here are few ways to take care of your four-wheeled friend and save some money along the way.

1. Drive the speed limit: As my driver’s ed teacher said, “The car is not a time machine.” Did you know slowing down can also help you save as much as 20 to 30 percent on fuel mileage?

2. Check your tires: Under-inflated tires don’t roll as well so you may need more gas to keep the car moving. Invest in a tire gauge and check your tires every month or so.

3. Follow your car’s maintenance schedule: Every car is different so read your car manual and keep up with recommended care. This keeps your car in top condition and can help you avoid more expensive problems in the future. Here’s a car mai

Full article…

Apr 30, 2012 Posted by admin No Comments » Tags: Pensioners

Pain for pensioners

pensionerThe Budget was never expected to be a windfall for most people and clearing the country’s national debts is not a task to be envied. However, the move to strip pensioners of their annual increase on their tax allowance is expected to leave many struggling to pay their debts.

Under the plans, pensioners at the very top and bottom end of the scales will be unaffected, but for those in the middle, an estimated five million OAPs, will see their income drop.

The change has been made in an attempt to make the taxation system clearer but, in reality, it has left many older Brits needing to make their money reach even further than before. Full article…

Apr 19, 2012 Posted by admin No Comments » Tags: logbook loans

Is logbook loans answer to your credit problems?

In the current economic situation, more and more people are looking at new possibilities to loan money. A new trend that is gaining popularity is getting a loan by mortgaging your vehicle. This type of a loan is known as logbook loans. In order to take out a logbook loan, you need to completely own your car. This means that you should have paid your car loan or almost towards the end of paying it. The way these loans work is that the loan will be secured against your vehicle and the ownership will be transferred to the loaning company until you have fully repaid the debt. The guidelines for taking out a logbook loan are as follows:

  • In most cases you have to be over 18 years of age though some lenders ask you to be twenty one years of age.
  • You must be a citizen of the country where you are applying for the loan.
  • You must legally own a vehicle.
  • You must produce all relevant documents which includes V5 document, log book and so on.
  • The value of the loan is dependent on the cost of your vehicle.

Full article…

Apr 10, 2012 Posted by Hayley Steele No Comments » Tags: Work Work Income

In work, income always trumps deductions

I’ve wanted to be a real estate agent for more than 20 years. I would like to open a home office and take every tax deduction possible for it after I start working. Do I set up the office before or after I get my license? I would also like to lease a luxury car for the business.

I plan to sell and lease houses for clients, and buy houses for rentals for myself. I would then manage these properties.

I would like to start with one house in the $120,000 to $175,000 range because that is all I can afford to invest now.

My husband and I are retired and own two houses. One of them is a rental and is paid in full, while our main residence has a $350,000 mortgage at 4.25 percent. Our cars are 3 and 4 years old, also paid in full. We owe less than $1,000 in credit card debt. I usually pay the bill in full every month. I would rather invest part of our savings this way rather than leaving the money in the bank to earn 50 cents in interest.

What do you think of my plan?

Full article…

Apr 02, 2012 Posted by Hayley Steele No Comments » Tags: Age Security Old Age Old Age Security Security

Budget 2012: Changes to Old Age Security

The increase in the age of eligibility of the Old Age Security program in Budget 2012 was widely telegraphed in advance but there were still a few surprises. Here are the other major initiatives introduced by Finance Minister Jim Flaherty in Budget 2012:

Travellers Exemptions Increased

The travellers exemption is a dollar limit that Canadian residents can bring back after a trip abroad without having to pay customs duties or sales taxes. Budget 2012 proposes that the Travellers Exemption limits will increase to $200 for an absence of more than 24 hours (current limit: $50), $800 for an absence of more than 48 hours (current limit: $400) and $800 for an absence of more than 7 days (current limit: $750).

Increase in Old Age Security Age of Eligibility

Starting in April 2023, the age of eligibility for OAS and GIS will be gradually increased from 65 to 67. In other words, Canadians who were born on or after Feb. 1, 1962 can expect to receive OAS benefits at age 67. The age of eligibility will gradually rise for Canadians who were born between April 1, 1958 and January 31, 1962.

Full article…

Mar 27, 2012 Posted by admin No Comments »

Mistakes made by the loaners

So, the bank has approved the loan, you took the money, and now you can’t wait to get to the mall to spend them. However, remember that this is a big mistake, and if you are not able to spend the money wisely, your credit will soon be transformed in a bad loan leading to a bad credit history. Let’s see some bad credit practices that will affect not only your lifestyle for the future, but also your capacity to take a new credit and to pay for the old ones.

Don’t take all the money that the bank is willing to give you. The banks are always trying to give you as much money as possible for the loan, and the individuals usually take those options. If you want to avoid those problems, make a list with all the expenses that you want to cover with the respective loan, and ask the bank only for the respective sum. If the bank wants to give you more, refuse the extra sum.

Spend the money only for the purposes you have previously established. Sure, Full article…

Page 1 of 1412345»10...Last »