Tag Archives: Boomer & Echo

Aug 8: Best from the Blogosphere

8 Aug

By Sheryl Smolkin

And just like that, it’s August! The days are getting shorter and families are starting to think about getting the kids back to school and getting serious about the upcoming round of fall activities.

Those of you sending your kids off to college or university will be interested in The Business of University Fees by Big Cajun Man aka Alan Whitton on the Canadian Personal Finance blog. Did you know if your child is still in school he/she is probably still covered under your group medical plan at work and most universities will allow you to opt out of the university’s plan?

If you have received your first child benefit cheques and haven’t already spent them on back-to-school supplies, here are 3 Great Ways to Use Your Canada Child Benefit Payment  by Craig Sebastiano on RateHub. RESP contributions, TFSA deposits or charitable donations, anyone?

And talking about TFSAs, take a look at Robb Engen’s TFSA Dilemma and Solution on Boomer & Echo. Like many of us Robb has a ton of TFSA contribution room ($50,500) He plans to turn his $825 monthly car payment – which ends in October – into future TFSA contributions, starting in January 2017. That’s $10,000 per year to stash in his TFSA, which at that rate would catch-up all of his unused room by 2027.

Have you reviewed your life insurance lately? Are you and your partner adequately covered so if one of you dies, the other can continue to pay the family bills? Bridget Eastgaard from Money after Graduation says Cash-Value Life Insurance Is For Suckers, Buy Term Instead.

And finally, Should you work part-time in retirement? by Jonathan Chevreau on moneysense.ca includes an analysis commissioned by Larry Berman, host of BNN’s Berman Call and Chief Investment Officer of ETF Capital Management. It illustrates the powerful impact of earning just $1,000 in part-time income each month between the age of 65 and 75; or in the case of couples $2,000 a month between them.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Apr 18: Best from the blogosphere

18 Apr

By Sheryl Smolkin

We’re back and there is more than ever to share with you! We took a two-month break, but our favourite bloggers were still hard at work. So we have lots of great stories to tell you about in the weeks to come.

The Liberal government’s first Federal Budget was tabled last month. It eliminated some measures enacted by the Conservatives and others will be phased out over time. On the Financial Independence Hub, Paul Phillips from Financial Wealth Builders gives a financial planner’s perspective on Budget 2016. One surprise he notes is the elimination of the tax deferral on fund switches within a mutual fund corporation.

The significance of not having a great credit rating may not hit until you apply for a credit card or mortgage and are either turned down or not approved for the amount you need. Blogging on Money after Graduation, Bridget Eastgaard discusses five easy steps to build good credit. Because 18% of credit reports contain errors, she regularly checks her credit report to ensure her student loan payments have been properly recorded, no credit cards were opened under her name through identity theft, and that companies have complied with her requests to close credit accounts.

Robb Engen is a well know blogger at Boomer & Echo and over the years he has shared lots of ideas about how to more effectively earn and save money. While he does not encourage calls from his office on evenings and weekends, he says it is a fair trade off because his employer covers his cell phone bill. In fact, he estimates that he has saved more than $9,500 over the last 12 years (144 months x $66 per month) because in a series of jobs over that period he has never spent a dime out of his own pocket on a cell phone plan.

As the balance in your RRSP grows over time, it can be hard to resist the temptation to tap into your nest egg in an emergency or just because you “need” something that is above and beyond your current budget. Retire Happy’s Sarah Milton gives three good reasons why withdrawing money from your RRSP before retirement is not a great idea.

And finally, personal finance maven Gail Vaz-Oxlade recently announced she has written her last blog. While we know from personal experience that blogging week in and week out can be challenging, her fans (myself included) will miss her consistently great advice. Fortunately, most of the archived blogs are timeless.

So for those of you who are considering buying a home this spring, we are linking to one of her better articles. She makes a great argument for spending a little time saving for a down payment rather than locking yourself into a mortgage payment that strangles your cash flow while you pay exorbitant amounts in interest and insurance premiums.

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Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Aug 24: Best from the blogosphere

24 Aug

By Sheryl Smolkin

After several weeks of “theme” issues of Best from the Blogosphere, for the next several weeks we will get back to basics and check out what our perennial favourites have been writing about lately.

On Boomer & Echo, Marie Engen discusses 3 financial mistakes to avoid. They are buying too much home; raiding your RRSP; and, putting your child’s needs ahead of your retirement.

Retire Happy’s Sarah Milton describes Using the Lifelong Learning Plan. The LLP is a program that allows Canadian residents to borrow up to $20,000 from their RRSPs in order to cover the costs of a full-time further education program for themselves, their common-law partner or spouse. If the Harper government is re-elected, they have promised to raise this amount to $35,000.

The Frugal Trader gives a Financial Freedom Update on Million Dollar Journey. He says in the year since he has reached the million dollar net worth milestone it feels great but nothing has really changed. His family has recently decided to become a single income family and with tight fiscal management they are able to live on one government salary. 

Blonde on a Budget Cait Flanders moved from Vancouver to Victoria recently and she has established a final de-cluttering challenge for herself. Last year she purged 43% of her belongings in one month to embrace a minimalist lifestyle. She has given herself 20 days to see how much more stuff she can get rid of when she unpacks her moving boxes.

Finally, Michael James on money says Your Retirement Spending Plan is Critical. While working, if you don’t like the plan your financial advisor has set up for you, you can find a new advisor and make up for past mistakes. But if your advisor puts you on a bad retirement spending plan, by the time you figure out there is a problem, there’s little you can do. other than cut spending.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Jul 13: Best from the blogosphere

13 Jul

By Sheryl Smolkin

Back from two weeks of vacation and back in the saddle! While it’s hard to get re-establish anormal routine, it’s not difficult to find many interesting personal finance stories and blogs to share with you because all of our favourites kept on blogging when I was away.

On Boomer & Echo, Robb Engen wrote about The Evolution of Loyalty Cards. Scanning weekly flyers and clipping coupons is a great Canadian tradition but he says that like the landline telephone, VCRs, and analog TV – coupons and flyers are on their way out. Retailers are moving online and developing smart phone applications to get more personal with their offers.

In Is Paying Down a Mortgage Underrated? on Our Big Fat Wallet, Dan says the real value of paying down the mortgage isn’t the interest savings. With rates as low as they currently are, the interest you save will likely be minimal. He suggests the best approach for anyone looking to use extra funds to pay down their mortgage is to consider a ‘hybrid’ approach – using the money to reduce the mortgage and then putting more money each month towards investing.

Blond on a Budget’s Cait Flanders has finally finished her year-long shopping ban. In a herculean 6,000 word blog The Year I Embraced Minimalism and Completed a Yearlong Shopping Ban she explains why she did it and how it changed her life. Flanders says, “There is nothing I need right now that could make my life better than it already is and that’s a great feeling to end this year-long challenge with.”

Globe & Mail reporter Ian McGuigan agrees that accumulating wealth is a challenge but he says that “decumulating” it can be trickier still. In a recent article he refers to the paper Making Sense Out of Variable Spending Strategies for Retirees written by Wade Pfau, a professor of retirement income at American College in Bryn Mawr, Penn. McGuigan notes that spending only 4% a year works out pretty well if you don’t want to outlive your money. It also keeps your spending at a constant level, in after-inflation terms. However, it’s not so good if you’re interested in being able to live as well as possible in retirement.

Guess who’s saving for retirement? The kids  reports Adam Mayers at the Toronto Star. While we often point the finger at young people as having limited interest and understanding of their personal financial affairs, Sun Life finds that’s not so. Younger workers know a good deal when they see one and like all smart consumers they’re snapping it up. Only 40% of those in their 40s and 50s are taking full advantage of matching Registered Retirement Savings Plan or pension money in plans Sun Life administers. On the other hand, 90% of those in their 20s (presumably new employees) are opting in.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Jun 15: Best from the blogosphere

15 Jun

By Sheryl Smolkin

This week we have a mixed bag of offerings from some of our favour bloggers and media pundits. First of all, Boomer & Echo’s Robb Engen discusses Why Multiple Income Streams Is A Better Emergency Fund For Millennials.

Engen says that instead of having 3-6 months worth of expenses sitting in a savings account for an emergency fund, a better way for Millennials to combat the threat of job loss – or job uncertainty – is to build up multiple income streams outside of their traditional day jobs.

There are plenty of articles that focus on things women need to know about life after work. But in a role reversal, on Retire Happy Donna McCaw writes about Issues that Men Face in Retirement. Her interviews with a number of men about their experiences with retirement reveal that for many, identity issues are paramount. Those who do not replace the status, position, role and job satisfaction with something else once they are no longer employed can have a real challenge regaining a sense of who they are and how their lives are meaningful.

In Diving Canadian Dollar Has Made Holiday Travel More Expensive, Sean Cooper quantifies the cold, hard facts about how poor performance of the loonie as against the U.S. dollar has made travel outside Canada a much more expensive proposition. With lower gas prices, he says this just could be the year to take the family on a road trip to learn more about what our beautiful country has to offer.

Globe and Mail personal finance guru Rob Carrick believes It’s time to get real about retirement planning. He poses the questions: What’s retirement really like from a financial point of view? How likely is an unexpected financial crisis, and how do people cope financially? How big a deal are health care costs? How feasible is it to plan on working in retirement?

According to Carrick, the answers to these questions can be found in a new report issued this week by the Ontario Securities Commission and prepared by Brondesbury Group, a consulting firm. It’s called Financial Life Stages of Older Canadians.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

May 25: Best from the blogosphere

25 May

By Sheryl Smolkin

Due to the holiday Monday (yeah!) and other days away from my desk for random reasons, this issue of Best from the Blogosphere is being written super early. So, on no particular theme we present some great content from the last several weeks.

The Apple watch has received a bad tap from many reviewers, but Retired Syd reports on Retirement: A Full-Time Job that the device works for her. She likes being able to do all sorts of things without digging in her purse for her iPhone like paying for coffee; listening to music; getting directions from Siri; dictating error-free texts; and just lifting her arm to display her boarding pass.

In a guest post on the Financial Independence Hub, Michael Drak writes about one thing he wishes his father had taught him. While he learned about the need for working hard, saving and eliminating debt as quickly as possible, his Dad didn’t teach him about the important concept of Findependence (financial independence) and how it could positively impact his life once it was achieved.

Freedom Thirty-Five is authored by a nameless late-twenties male living in Metro Vancouver. He recently wrote about succumbing to lifestyle inflation. It seems he’s ahead of schedule by one year to reach financial freedom by his 35th birthday. So he has decided to succumb to lifestyle inflation and increase his food expenses from $100 to $150/month; eating out from $25 to $50/month and phone and entertainment from $75 to $100/month. Could you get by on these modest amounts?

Boomer & Echo blogger Marie Engen says unless there is room for occasionally splurging in your budget, becoming too frugal can ultimately undermine your budgeting efforts. Don’t banish nice things from your life. Occasional guilt-free splurges can help you stay on budget if they don’t detract from your other goals. When you don’t feel deprived you will likely find it a lot easier to stick to the plan.

And finally, on Brighter Life, I wrote a piece about Five smart ways to use your tax refund. You can start an emergency fund; top up your RRSP; pay down credit card debt; pay down your mortgage; or, open a Registered Educational Savings Plan for your child.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Apr 20: Best from the blogosphere

20 Apr

By Sheryl Smolkin

Spring has definitely sprung in our neck of the woods and yesterday I woke up to a neighbourhood of happy smiling people wbiking, jogging and cleaning garages.

This week we feature a blog from Blonde on a Budget Cait Flanders who is nine months into her shopping ban. Of course, as she notes in Nine Months Without Shopping and Takeout Coffee, she gets to make up the rules as she goes along. So she discarded a ripped pair of jeans and replaced them. She also broke her “no take out coffee” ban a few times when she was out with friends. Nevertheless, she has upped her savings goal from $100/month at the beginning of the period to $250/month and she has a nice little nest egg to show for it.

On Boomer & Echo, Robb Engen writes about how we can always find joy in the smallest things like using a cash back credit card for his everyday purchases. I know what he means. I prefer my travel rewards credit cards, but it feels great when I accumulate enough points at Shoppers Drug Mart or Longo’s and the cashier asks me if I want to take $20 or $30 off my bill.

Sean Cooper writes on Retire Happy about three More Costly Pension Mistakes and How to Avoid Them. They are: not updating your spouse and beneficiary designations; not joining your company pension plan right away; and, not starting your pension as soon as you are entitled to a unreduced pension.

The question that every person who is saving for retirement struggles with is Will they run short in Retirement? As part of the Masters of Money series on GetSmarterAboutMoney.ca, Allison Griffiths acknowledges that few working people have any idea how much money they will need and she offers an approach to budgeting that can help them nail down these elusive numbers.

Spring is the time when new university and college graduates hit the street looking for their first career position. On stupidcents.com blogger Tom Drake discusses best careers for the future. With baby boomers aging in the next 20 years, he says those who are involved in health care such as dental hygienists, registered nurses and physical therapy assistants will be in demand. But software developers and construction equipment operators are also growth areas.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

 

Feb 26: Best from the blogosphere

23 Feb

By Sheryl Smolkin

Well, one more week and RRSP season will be over for another year. But that doesn’t mean you should forget about contributing to your retirement savings plans including SPP for another 12 months.

In the three+ years savewithspp.com has been up and running, we have posted many blogs about the importance of paying yourself first and the mechanics of retirement saving in Saskatchewan Pension Plan, RRSPs or TFSAs.

Here are some of my favourites you can take a look at again to refresh your memory.

Pay yourself first
Save early, save often
FAQ: Employer-sponsored Sask Pension Plan
Can my spouse join SPP?
Why transfer RRSP funds to SPP?
What if I move away from Saskatchewan?
How do I know my SPP money is in good hands?
Pension Plan vs. RRSP?
SPP or TFSA?
Retirement savings alphabet soup
Understanding SPP annuities
Book Review: RRSPS THE ULTIMATE WEALTH BUILDER
How much can I contribute to my RRSP?
How to save for retirement, Parts 1, 2 and 3

You may also want to review some of these posts written by some of our favourite bloggers:

Retire Happy: RRSP Quick Facts 2015
Boomer & Echo: A Sensible RRSP vs TFSA Comparison
Canadian Personal Finance Blog: Pensions and Spousal RRSPs
Brighter Life: Six things you may not know you can do with your RRSP
Forward Thinking: Bruce Sellery on how to get excited about your RRSPs

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Nov 24: Best from the blogosphere

24 Nov

By Sheryl Smolkin

Do you typically buy a fistful of gift cards for holiday gifts? Just in time to save you a bundle, Boomer & Echo’s Rob Engen writes about How To Hack Gift Cards For Big Discounts. He suggests buying gift cards with your cash back credit card, the RedFlagDeals forum dedicated to buying and selling gift cards and purchasing discounted gift cards at Costco. Who knew?

On Retire Happy, government benefits expert Doug Runchey explains that Receiving a partial OAS pension affects the amount of GIS a pensioner will receive in two ways:

  1. A pensioner receiving partial OAS will receive more GIS than someone receiving a full OAS pension, to make up for their lesser amount of OAS.
  2. A pensioner receiving partial OAS will receive GIS up to a higher income, compared to someone receiving a full OAS pension.

Jonathan Chevreau on Findependence Day Hub profiles a 28 year old Winnipeg-based investor named Saxon Funk who has a firm plan for achieving financial independence through various passive streams of income. But his real play for findependence comes through real estate. He was attracted to real estate when he discovered he could buy properties at 10% down, and he caught the Winnipeg real estate cycle at just the right time.

Do you know How Your Daily Commute Affects Your Finances? Dan Wesley from Our Big Fat Wallet reports that the average time Torontonians spend commuting is 80 minutes – the longest time in the world. In contrast, Saskatchewan Jobs says the average commute time in the province’s two largest cities is only 20 minutes. Another reason to count your blessings!

And if unexpected, frequent required changes to eyeglasses for family members is putting stress on your budget, you may be interested in How I saved over 50% buying eye glasses online, my recent blog on Retirement Redux.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Oct 27: Best from the blogosphere

27 Oct

By Sheryl Smolkin

In the last several weeks there has been a stock market correction and although the market has bounced back to some extent, for some investors it has been a bumpy ride. Here’s what several personal finance columnists and bloggers had to say about recent market gyrations.

The Globe and Mail’s Rob Carrick says Balanced is best: Never doubt long-term portfolio gains. No matter what the markets do in the short term, the long-term potential from investing is not in question. He also says As markets plunge, it’s time to take stock of Investing habits that have become sloppy. For example, many people are too financially committed to their homes and lots of households owe too much

On Retire Happy, Jim Yih shared The Five Realities of the Stock Market. He says markets go up and down but they go up twice as often and twice as much.  Logically, when markets go down, the odds are in your favour to make money in the times ahead.

What Are You Doing With This Stock Market Pullback? Sorry, but no one can help you during a market correction says Robb Engen at Boomer & Echo.  Watching your portfolio drop from $100,000 to $90,000 over the course of a few weeks is painful, no doubt. But you’d be better off sticking your head in the sand and waiting it out instead of trying to “do something about it.”

In Stock Market Momentum, Michael James on Money says the recent downtrend in stock prices has many commentators saying that we are “in a correction.” But all we can say with any certainty is that we have had a correction. It may or may not continue. Saying that we are in a correction implies that falling prices will continue over the short term, which is far from certain.

Finally, Mark Seed at Million Dollar Journey interviewed Derek Foster, “Canada’s Youngest Retiree”. While the general consensus is that investing only in stocks is too risky, Derek is sticking with dividend stocks because at age 40+ he has other income streams from his books and speaking engagements. Foster says, “Many people point to the 2008-2009 downturn as evidence that bonds will save you during downturns, but what about the 5 years since then?  Look at the long-term returns of stocks over bonds – I think the stats speak for themselves.”

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.