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Investments Plain and Simple

How Investments Are Taxed

When making investment decisions, it is wise to consider the various tax implications – both positive and negative. As always, first remember that your investments should reflect your goals and values, your time frame and your risk tolerance. It’s vitally important to remember that though tax advantages can change with the government, investment decisions should only change with life considerations.

Here are some important guidelines on how investments are taxed for you to keep in mind:

Pension

Registered Investments (RSPs & Pensions):
These are not taxed until you remove money from your registered investment. You will then be taxed at the rate applicable on your income at withdrawal, which is usually at a lower rate at retirement than when you were working.  You also get a tax deduction when you contribute to a registered investment.

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Posted in Financial Literacy, Investing, Retirement savings, taxes


Do You Have What It Takes To Be An Entrepreneur?

By Karin Mizgala, Co-Founder and CEO Money Coaches Canada

Starting your own business is easier than it has ever been before. The internet has made it possible to serve customers not only across the country, but across the world. Accessible technologies have made it conceivable to create an app, bring a product or service to market, be a consultant or teach courses.

This exciting new path to entrepreneurship has no age barriers either; kids are pitching viable ideas to savvy investors on the television show Dragon’s Den; millennials have been nicknamed the side-hustle generation; and businesses started by baby boomers with no interest in retirement, are on the rise.

But what will make any of these new businesses successful is not an internet connection and a large Twitter following. Today’s entrepreneurs need the same mindset and success principles that Canadian J.L. Kraft had when he started selling cheese out of a horse-drawn wagon in 1903.

Let’s look at what draws people to entrepreneurship and what needs to be considered before taking the leap. Continue reading

Posted in Money Coaching, Small Business


Don’t Let Back to School Break the Bank

By Sheila Walkington, BBA, CFP® 

The back to school cliché is that kids dread it and parents are gleefully counting the hours. But in reality, lots of kids are excited to go back to school (albeit an excitement that usually fades with the first homework assignment) and many parents dread September because it feels like open season on their bank accounts. Back to school spending seems to escalate every year, but it doesn’t have to be that way. You may not be able to keep your kids excited about school, but saving on back to school expenses is possible with some planning.

Back to school basics

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Posted in Budgeting and Cash Flow, Money Coaching


Embrace Aging and Plan for a Happy Retirement

How We Age is Changing

As youngsters, we can’t wait to get older.  Sometime later, we become less enthusiastic about our next birthday.  We come to realize our mortality with the tick-tock of age.  It’s a matter of perspective.

Age has also changed in perspective over history.  For much of human history, the toil of daily work didn’t stop until health failed or death.  Retirement didn’t exist.  Caring for the elderly was short-lived if at all.  When Benjamin Franklin uttered his famous quote: “Nothing can be certain, except, death and taxes”, the average longevity was just 35 with almost nobody reaching age 60.  It would be the 20th century before average longevity creeped up to 50.  With modern breakthroughs in health care and eradication of diseases, average longevity has surged to 85 today with many reaching 100.  Aging isn’t gone but we have the opportunity to stay with it longer. Continue reading

Posted in Relationship to money, Retirement savings


Second Time Around? 5 Things You Need to Know about Marriage and Money

By Karin Mizgala, Co-Founder and CEO Money Coaches Canada

Almost thirty-five per cent of married Canadians are married for the second or even third time. And while it would be nice to believe that the experience of divorce improves chances for a subsequent marriage, statistics don’t bear that out. Financial issues—the cause of many a marital breakdown—may have something to do with that.

The good news; with joint planning and consistent communication, you can address the array of new money concerns that come with a second marriage; and avoid the financial resentments, anger and misunderstandings that can undermine any couple’s relationship.

Here are 5 areas to consider: Continue reading

Posted in Budgeting and Cash Flow, Money Coaching, Relationship to money, Retirement savings, Will & Estate Planning


Podcast: Get a Second Opinion with the Investment Report Card

Bruce Sellery of Moolala recently spoke with our own Karin Mizgala, co-founder of Money Coaches Canada, about the On Your Side Investment Report Card service and why Canadians should get a second opinion on their investment portfolio.

The On Your Side Investment Report Card provides answers to some of the most important questions investors have about their portfolio, including:

  • How do I get started with building an investment portfolio?
  • Is my investment portfolio performing as well as it should?
  • Do I have the right investment strategy for my goals and needs?
  • Am I paying too much in investment fees?
  • What should I do to get my investments on track?

The answer to these questions – and many more – is an unbiased and independent second opinion. That’s why we created the On Your Side Investment Report Card.

Please click on the recording below to listen to the Moolala Money Made Simple podcast about the Investment Report Card. (running time approximately 11 minutes).

Learn more about the On Your Side Investment Report Card.

Posted in Investing


Seven Ways to Green Your Money

How is your money impacting the world? How is it impacting you?

The way in which we manage and invest our money sends a message about what we believe in and has the potential and power to make a big difference in the world. Whether you have a little or a lot of money, each of us can make an impact on our lives and the world around us by leading a financially sustainable and conscious life.

By the way, this doesn’t mean not having fun.  It simply means aligning your money with what truly makes you happy.

Here are seven ways to “green your money” – to spend your money and live a financially conscious life. Continue reading

Posted in Money Coaching, Relationship to money


Money Makeover – How Thomas and Emily Funded Their Retirement Sooner Than They Thought Possible.

By Money Coaches Canada

 

Meet Emily and Thomas

Irish born Thomas and American Emily, have worked in three different countries throughout their careers. They currently live in Alberta, where Thomas, age 56, is

employed with a large non-profit organization and Emily, age 58, works as an administrative professional. The couple is debt and mortgage free. They travel at least once a year to the U.S. and Ireland to see family.

With retirement funds tied to three countries, and unclear about how much they would need to maintain their desired lifestyle, the couple felt uncertain about their retirement readiness. Frustrated by the generic nature of online tools, and unimpressed by the investment management focus and impersonal advice they received from traditional financial advisors, they were drawn to the idea of working with a Money Coach. The couple’s story is real, but we’ve changed their names to protect their identity. Continue reading

Posted in Money Coaching


How to Manage Your Inheritance

By Karin Mizgala, Co-Founder and CEO Money Coaches Canada

Canada is on the verge of a colossal transfer of wealth from one generation to the next. Baby Boomers are expected to inherit roughly $750 billion by 2026; the largest shift of wealth in Canadian history according to a CIBC Capital Markets report. Maybe you are one of them.

There are currently more than 2.5 million Canadians over the age of 75—the largest cohort of that age group this country has ever seen. And the CIBC report estimates their total net worth at $900 billion plus. The reality is that many of these individuals will pass away over the next 10 years, either leaving that wealth to a spouse or to their children (most in their 50’s and 60’s).

But there is a problem that is going to make successfully managing an inheritance even more difficult.

Even though we are in the midst of the largest inter-generational wealth transfer in Canadian history, the majority of heirs are being kept in the dark. A 2018 poll by IPC Private Wealth of Investment Planning Counsel revealed that 58% of affluent Canadians have not discussed instructions for their estate with their heirs

If you will be one of the beneficiaries of this huge wealth transfer, it’s important that you keep the following thoughts in mind. Continue reading

Posted in Ask Your Money Coach, Will & Estate Planning


Exchange Traded Funds: Everything You Wanted to Know But Were Afraid to Ask

By Karin Mizgala, Co-Founder and CEO Money Coaches Canada

Most Canadians are very familiar with mutual funds. In simple terms, a mutual fund is made up of a collection of individual stocks, bonds or other securities carefully chosen by a fund manager, with the goal of generating returns for the investors while balancing risk. Investors pay a management fee, referred to as the Management Expense Ratio (MER), to cover the cost of the management, marketing and administration of these funds. In Canada the average MER is around 2%.

With greater focus on the cost of investing and fee transparency in Canada, it’s not surprising that there is growing interest in Exchange Traded Funds (ETFs), which in most cases, have lower fees than mutual funds. But what else should you know about this up-trending investment option before deciding if ETFs are right for you? Continue reading

Posted in Financial Literacy, For your information, Investing