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A Financial Plan is a Roadmap

Posted on: January 10, 2018

In today’s hectic world, most people have neither the time nor the expertise necessary to navigate the financial complexities of modern life. They need help making sense of it all, and would benefit from a comprehensive, thoughtful approach to money matters.

For many Canadians, 2018 will be the year they get their financial house in order, and take their first few steps towards improved financial well-being. And a detailed financial plan will be their roadmap.

If you are like many Canadians, you’re anxious about your finances. Seven out of 10 Canadians say they worry a lot about their financial situation and nearly 80% don’t have confidence that they’ll achieve their financial life goals. These result aren’t terribly surprising – Canadians are facing the most challenging economic times in decades. Personal debt is at an all-time high, the cost of home ownership is out of reach for many, and day-to-day living expenses are outpacing income growth. Don’t forget about the ongoing concerns about funding retirement, and your child’s education. Add in the potential for having to cover some health care costs for aging parents and it’s no wonder Canadian’s are financially stressed out. Continue reading →

Posted in Investing, Money Coaching


Can money make you happy? Try giving some away.

Posted on: December 6, 2017

By Sabine Lay

Charles Dickens wrote A Christmas Carol in 1843. Most people know the story of Ebenezer Scrooge, a miserly man who transforms his life after three spirits teach him the joy of giving. It seems Dickens was way ahead of the research on money and happiness.

Dr. Elizabeth Dunn, an associate professor of psychology at University of British Columbia, and Michael Norton, an associate professor of business administration at Harvard Business School, wrote an article in which their research shows that “people with a comfortable living standard are happier than people living in poverty.” No surprise. But once people reach a “comfortable standard” of income, which falls somewhere around $75,000 a year in the United States, additional income doesn’t create additional happiness. Continue reading →

Posted in Money Coaching, Relationship to money


Give The Gift of Financial Independence this Holiday Season

Posted on: November 22, 2017

By Noel D’Souza, P.Eng, CFP®

Give The Gift of Financial Independence this Holiday Season

The holidays are a time of giving, but many Canadians are tired of spending money on “stuff” that is soon forgotten by kids and adults alike. As a result, there is growing interest in gifts that are more meaningful.

The gift of a shared experience—dinner, movies, trips, concerts or sporting events—has gained popularity over the last few years. Shared activities create memories that are priceless and last long after the event is over. And that’s what many people want to give; gifts with lasting impact.

But if impact is what you’re after, consider gifts that go beyond good memories; consider simple ways to add to your children’s or grandchildren’s financial security.

Here are some options that you probably won’t find on anybody’s wish list, but may be the best gift they receive. Continue reading →

Posted in Investing, Kids and Money, Money Coaching


Financial Literacy in Action

Posted on: November 8, 2017

By Melanie Buffel, BA Psych, MBA Candidate

November is Financial Literacy Month in Canada and this is a wonderful opportunity to learn from each other’s experience, sharing our knowledge and feelings about money.

There are so many financial concepts, products and services that one of our goals as Money Coaches is to increase each client’s financial knowledge and skills.  We intend that after our work together is complete, clients have a financial direction and plan, are confident making financial decisions and know what questions to ask when buying products and services. Financial literacy is power.

When people are in what I call the “Money Fog,” where they feel overwhelmed by the details and choices in front of them, the numbers on a spreadsheet or in a bank statement feel disconnected from their life and behaviours. Together we take action to clear that fog and make sense of the numbers, with decisions driven by goals and a clear path to achieve them. Financial literacy is about more than the difference between an RRSP and a TFSA, (although that’s important to understand too). Financial literacy is about clarity around your goals and a feeling of connection to your money. Continue reading →

Posted in Financial Literacy, Money Coaching, Relationship to money


I’m Fed Up with Paying High Fees; Should I Manage My Own Portfolio?

Posted on: October 25, 2017

By Karin Mizgala, Co-Founder and CEO

I’m Fed Up with Paying High Fees; Should I Manage My Own Portfolio?

It’s been over a year since the Canadian Securities Administrators (CSA) implemented phase 2 of the Client Relationship Model, known as CRM2. If you have investments, you will have received two reports in 2017; the first one itemizing the advisory fees and commissions you have paid, and a second report with information on how well your investments have performed. (You can read more about these two reports in my article Are You Ready for the Truth About Your Investments).

The first report, The Report on Charges and Other Compensation, left some Canadians surprised and frustrated at just how much they were paying, and that figure doesn’t even include the larger portion of mutual fund MERs paid as management fees, which won’t be disclosed under CRM2. We must remember that a fee isn’t inherently bad if you are receiving value for the money, but are we as Canadians receiving value? Is the answer to high fees, managing your own portfolio?

Let’s take a closer look. Continue reading →

Posted in Investing, Money Coaching, Retirement savings


Financial Literacy Starts at Home

Posted on: September 13, 2017

By Sheila Walkington, Co-Founder and CFO Money Coaches Canada

When it comes to topics of money and Canadians, Money   Coaches Canada has a great vantage point. Through our interactions with clients, our involvement with the media, our  frequent blog posts and our social media connections—we are in the privileged position of hearing Canadians’ hopes, interests, aspirations and concerns related to money and personal finance.

Over the years, we have written extensively on nearly every topic related to personal money management. One of the topics that elicits the greatest response is kids and money. And the comment we hear most is: “I wish I had learned to handle money sooner.”

When it comes to teaching kids about money, there are a lot of different opinions on how, and where (at school or at home?) it should be done. But there is agreement on one thing; kids need a financial education so that they can make intelligent choices about money at every stage of life. Continue reading →

Posted in Kids and Money, Money Coaching, Relationship to money


Allowance: Tips on Giving Children Allowance

Posted on: July 6, 2017

You are standing in the check out line at the grocery store dreading the nagging you are sure to get from the kids about buying another pack of gum. All the stuff at the check out line is a total temptation for the kids, and a total irritation for you. Sounds like it is time to start giving your children an allowance so they can start spending their own money.

It can be a difficult thing to start, there are so many questions about how to do it and how much to give. Continue reading →

Posted in Kids and Money


How Can My Home Equity Support My Retirement Goals?

Posted on: June 7, 2017

By Christine Williston, B.A., FPSC Level 1®

For older Canadians, with a paid or almost paid mortgage, ever increasing home values feels like watching winning numbers come up in the lottery. But how best to cash in the ticket? Or should it even be cashed in at all? The answer of course, depends on individual circumstances.

The optimal financial scenario for anyone approaching retirement is; a good pension, substantial savings, solid investments, and a mortgage free home. But quite often, life falls short of optimal scenarios. Many people arrive at retirement age, living in a very valuable asset, but with limited cash flow to live the way they imagined. This is often referred to as being house rich and cash poor and it can be quite a challenge to decide how (or if), to access that equity. But before you make any decisions, it’s important to have clarity on your situation. Continue reading →

Posted in Ask Your Money Coach, Money Coaching, Retirement savings


My Financial Advisor is Making More from My Investments Than I Am; What Should I Do?

Posted on: April 26, 2017

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

Frustration over high investment fees

To say that many Canadians are cynical and wary of advice from the financial industry would not be overstating the situation. The idea of hidden fees and commissions buried in investment transactions was tough enough to swallow, but now bank employees are speaking out about sales quota pressures, that lead them to sell you products and services you may not even need.

Last summer the Canadian Securities Administrators (CSA) introduced Phase 2 of the Client Relationship Model, known as CRM2. As a result, if you have investments, you will be receiving two new reports this year: The Report on Charges and Other Compensation and the Report on Investment Performance. The report names speak to their content, but for a deeper understanding, you can read my article Are You Ready for the Truth About Your Investments.

The CSA wants to ensure that investors are provided with an itemized transparent account of what they are paying in fees, and what commission advisors are being paid and by whom. This information wasn’t completely unavailable before CRM2, but it was more difficult to obtain. The Investment Performance report endeavors to present a measure of how well your investments are doing, but unfortunately, without a comparative context, such as the performance of the underlying market, the numbers aren’t as meaningful as they should be.

Interested in getting a second opinion on your investment portfolio?
Click here to learn more about a new service from Money Coaches Canada.

The biggest eye opener, for many Canadians, will be the realization that the person making the most return on their investment may be their advisor. It isn’t that fees are inherently wrong, but it’s important to know whether or not you are receiving value for your money. Continue reading →

Posted in Investing, Money Coaching


How Do I Take Money From My RSP in Retirement?

Posted on: April 12, 2017

By Tom Feigs, CFP®, CET

Withdrawing retirement savings

What do you think when you hear the term RSP? If you are like many people, you probably think: contributions. Certainly the banking industry focus is on RSP sales, because that’s where they make their money. But the point of all this saving is to provide for your future. How you withdraw money from your RSP will have a big impact on your retirement.

In this article we’ll look at how you can create a strategy to ensure you make the best choices for your situation.

Don’t Do Anything Without a Plan

Before you can make decisions regarding RSP withdrawals, you need to create as clear a picture as possible of your retirement income and expenses. You can do this on your own, but it can be daunting. You may want to consider working with a professional.

If you have registered and non-registered accounts, you may have seen conflicting information about where it is best to withdraw from first. It used to be accepted wisdom to defer RSP/RIF withdrawals as long as possible, but now balanced withdrawals from various accounts is often recommended. With a better understanding of your needs, creating a withdrawal game plan becomes more achievable.

But before we get to an ‘exit strategy’ for your RSP funds, let’s have a closer look at the basics. Continue reading →

Posted in Ask Your Money Coach, For your information, Retirement savings


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