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6 things to consider before investing in a rental property

Posted on: May 4, 2016

By Karin Mizgala, co-founder and CEO Money Coaches Canada

Holding house keys on house shaped keychain in front of a new home

The average Canadian house price hit $508,567 in March however that number is skewed by the incredibly hot real estate markets in Vancouver and Toronto. If you remove those markets from the equation the average home cost drops to $366,950. But even that lower number represents an increase of 15% in the average sales price over the last year, and coupled with low interest rates, real estate has certainly been a financially attractive investment recently.

However, there are things to consider when contemplating investing in a rental property, as I explained in a recent Globe and Mail Q&A article. Continue reading →

Posted in Ask Your Money Coach, Investing


Records Retention – How Long Should I Keep My Paperwork?

Posted on: April 8, 2016

By Steve Bridge, BA (Hons.), FPSC Level 1® Certificant in Financial Planning

Overflowing Filing Cabinets

With the Canada Revenue Agency (CRA) 2016 personal income tax deadline fast approaching, you are probably working overtime to get all of the forms and documents accounted for and organized.

Once everything has been organized, and you’ve filed your return to the CRA, you should spend some time thinking through what to keep, what to discard, and fully understanding your obligations related to record keeping.

Here are some important guidelines to remember: Continue reading →

Posted in Budgeting and Cash Flow


Money Coach Spotlight: Melanie Buffel

Posted on: April 6, 2016
“We can’t solve problems by using the same kind of thinking we used when we created them.” –Albert Einstein
Melanie Buffel Money Coach in Vancouver BC

Melanie Buffel, BA Psych, MBA Candidate

Melanie Buffel changes the way her clients think about money.

“When I begin working with clients,” she says, “whether they are individuals, couples or entrepreneurs, they usually present me with foggy numbers: unclear expenses, numbers that are rounded up or imprecise. Then at one point on the journey they begin updating their spreadsheets, rebalancing their plan and speaking with a level of confidence that tells me they’ve had a paradigm shift. It’s wonderful to see them believe in their capacity to make sound financial decisions.”

Understanding what’s important to her clients is the foundation of Melanie’s approach. She recognizes that every person, couple or business owner has different needs and goals, and on an even deeper level; everyone has an emotional relationship with money that has been shaped by their childhood and life experiences.

Conflicting money personalities can cause tension within a relationship, says Melanie. “I help people clarify their priorities, and as an objective third party I can ask the hard questions without judgement.”

Melanie’s objective perspective can also help couples who enable each other with magical thinking solutions to their challenges. Judging or enabling is just two sides of the same coin; nothing changes.

Clients working with Melanie can expect change. “It’s so important that we clear the fog and determine priorities and goals, but that is just the beginning. The end game is integrating workable solutions into the reality of their lives.” Continue reading →

Posted in Meet Our Money Coaches, Money Coaching, Relationship to money


Pension Plans and Retirement: Should You Be Worried?

Posted on: March 30, 2016

By Julie Langevin, CPA, CA

With the Federal government tabling their 2016 budget recently, we should all be aware of the challenges facing Canada’s pension system. The fact that Justin Trudeau’s Liberal government reduced the age of eligibility for Old Age Security (OAS) from 67 to 65 does not mean that the system is fully funded – far from it.

It’s becoming increasingly difficult to ignore the fact that many pension plans, both public and private sector, are underfunded or that many individuals are ill-prepared for retirement. This news understandably breeds anxiety amongst the baby-boomer generation now approaching retirement. Setting aside the more existential questions of how we went from Woodstock to “bonds ‘n stock”, we should be asking ourselves whether or not this fear is justified. In short, should we be worried? Continue reading →

Posted in Budgeting and Cash Flow, Relationship to money, Retirement savings


The Real Secret to Making Smart Investment Decisions

Posted on: March 16, 2016

By Tom Feigs, CFP®, CET

As a fee-for-service financial planner it’s not unusual to be approached for a “quick” portfolio review. “Can you just look over my investments?” or “Can you tell me if I’m saving enough?” As much as it’s in my nature to want to help people, it would be unethical and unprofessional to advise someone without a comprehensive look at their finances and a clear understanding of their goals.

The idea that investments are priority one is a by-product of how traditional financial advisors are paid – commission on investment sales. In fact, where and how to allocate your funds are decisions that should only be made after reviewing your personal situation and needs.

Imagine your financial journey. The destination is your retirement. Your personal framework (income, obligations, health, family commitments, risk tolerance, age) represents your vehicle and the road map is your various goals. Your investments and savings are the fuel to get your vehicle to your destination.  You wouldn’t be looking for fuel before having a car and directions.

I work with individuals and couples that earn upwards of $150,000 a year, and because of the possibilities their income allows, they will all have their own set of priorities and cash flow needs for retirement. They also have various personal situations (for example, some people may have family in distant locations, others have no children, others have health concerns and still others have various complexities in their personal and business lives.)  All this information is vital to the financial plan we create together. Continue reading →

Posted in Investing, Retirement savings


Credit card rewards: perk or pitfall?

Posted on: February 17, 2016

By Karen Richardson, FPSC Level 1TM Certificant in Financial Planning

Photograph of a stack of credit cards

Credit cards, when used carefully, can play a positive role in your financial life. Using credit wisely is critical to building a solid credit history. If you need a loan or a mortgage, or you want to renegotiate a loan, a good credit rating is important and will help you negotiate the best terms. But credits cards used carelessly can send your life and finances into a tailspin.

But we all know this, right? So how do smart people with six figure incomes end up with more credit debt than they intended? Often it’s the seductive lure of credit card reward programs.

How many people do you know who put almost everything on their credit card so they can earn reward points? Maybe you do it too. Well let’s take a look at the perks and pitfalls of a rewards plan spending habit.

Perks

1. If you are using a card with rewards that are of value to you, and you are paying off your balance each month, you may be benefitting from the program.

Well that was a short list.

Pitfalls

Unfortunately this list isn’t as short. Continue reading →

Posted in Debt, Money Coaching, Relationship to money


Three reasons to stick with a defined benefit pension plan

Posted on: February 3, 2016

By Karin Mizgala, co-founder and CEO Money Coaches Canada

Karin M byline photo

Retirement planning can raise a lot of questions and feel overwhelming to many Canadians, so I was very pleased when The Globe and Mail newspaper asked me to be one of the go-to experts for their Retirement Q&A section.

Here is my most recent contribution.

globe and mail

pensionQuestion from Derrick Alstein, Port Elgin, age 60:

I have a number of friends and a relative who are considering cashing in a defined benefit pension plan. I think an article on the pros and cons of a cash out strategy versus taking normal payments would be informative. Many people I know that have cashed out are taking advice from people that want to invest their money, have not done well and have had to go back to work.

Answer:

While the lump sum offered to people who consider cashing out their defined benefit pension can be very tempting, I rarely advise clients to withdraw from their pension and invest the proceeds with a financial adviser. Here’s why: Continue reading →

Posted in Ask Your Money Coach, Retirement savings


Financial Literacy: Join the Conversation

Posted on: November 18, 2015

By the MCC Financial Literacy Team

November is Financial Literacy Month in Canada and in our  November 4th blog post Money Coach Melanie Buffel asked readers, clients and fellow Money Coaches to share personal stories about their financial journey. She challenged them to consider; “What’s been your biggest money lesson?” and “What have you learned about money that you wish you knew when you were younger?”

Here are some of the responses we received.

 

Anthony Larsen Money Coach in New Westminster BC“I think the biggest lesson is that you cannot plan for everything. Life happens and you can only do your best to deal with it. But it’s also true that any planning you have done will often be to your advantage when the unexpected happens. For example, you saved for travel, so that money is available if you need an emergency roof repair.” Anthony Larsen, Money Coach

Leslie Gardner Money Coach in BC Interior“Every payday we put aside equal amounts for Christmas gifts, property taxes, car insurance, annual activities (like hockey or skiing), vacations and any other annual expenses that are not monthly payments. By doing this we ensure that when the payment is due, we aren’t scrambling at the last minute to find the money magically. Talk about taking the worry out of money, it’s always there when it’s needed.” Leslie Gardner, Money Coach Continue reading →

Posted in Ask Your Money Coach, Financial Literacy, For your information, Money Coaching


Why are so many high earners in debt?

Posted on: October 21, 2015

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

How would you react if I told you that many of your friends are in debt? You probably wouldn’t be shocked. You’d probably nod your head in agreement, and say something like, who isn’t? Because the likelihood is you are probably in debt too. According to Statistics Canada  in 2012 71% of all Canadian families had some debt. Gradually the stigma around debt that our grandparents would have felt has softened into an irritating, but accepted side effect of the good life.

The odd thing is, you would think that the less money you made the more likely you would be to be in debt. Not so. According to a recent May 2015 article by Theresa Tedesco in the Financial Post; “Today, households with at least $100,000 or more in total income account for 37 per cent of all debt in Canada. Households with income of at least $50,000 but less than $100,000 represent 38 per cent.”

I think there are two factors at work here; rising expectations, and hefty demands on time. Continue reading →

Posted in Debt, Money Coaching, Relationship to money


Do I have enough money to retire?

Posted on: October 8, 2015

By Janet Gray, BA, BAdmin, CFP™, CHS, EPC, CPCA

iStock_000029614368_MediumI am often asked, “Do I have enough to retire?” It’s an earnest question, asked by smart, educated people with good incomes, who want to be sure they are making good decisions about their future. They hear all sorts of mixed messages in the financial media, or maybe even from friends, about how much they need to retire. You need at least X amount of money saved, or you must have Y% of your pre-retirement income still coming in.

I call those sorts of statements or formulas top-down planning. With top-down planning you’re trying to meet an external expectation that has nothing to do with you and your needs. Top-down plans are the ones that make many people nervous and worried about the future.

I believe the way to create a personalized retirement plan that excites you rather than unnerves you, is through bottom-up planning.  As you may have guessed, bottom-up planning is not about meeting an external expectation it’s about meeting your needs. And it begins by being very clear on your current expenses. Continue reading →

Posted in Money Coaching, Retirement savings


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