Wednesday, 9 November 2016
Monday, 7 November 2016
Monday, 31 October 2016
Friday, 28 October 2016
Wednesday, 26 October 2016
Tuesday, 25 October 2016
Monday, 24 October 2016
Tuesday, 18 October 2016
Factoring in a 2.1% inflation (think hydro bills,auto insurance rates, childcare and higher education costs), and the projected returns declined to 1.2%, 1.84%, and 1.62%, respectively.
Sunday, 16 October 2016
Wednesday, 12 October 2016
Income from Government-CPP and OAS: $30,000
Income from other sources: $20,000
Total pre tax income $50,000
Less: Taxes ( 5,000)
Net Income $45,000
Major Assumptions for a retired couple. I used Ufile 2015 tax return software to calculate the taxes
GIS: - (do not qualify)
Without being too technical, here is a quick summary:
- Sellers will now have to attest that they are Canadian citizens or a minimum 25% witholding tax of the sales price will apply. This will prevent non-residents to buy homes and then sell homes for a profit to avoid paying capital gains tax by claiming it as principal residence.
- Seller will have to complete Form T2091 effective 2016 tax return, i.e for any sale starting January 1, 2016. Big brother now wants to know how many homes you have purchased and sold and may even potentially deems the gains as normal income vs capital gains. In addition, they can even cross-reference against seller's reported income for further analysis and for potential audit.
- Prospective buyers in most cases will now have to qualify for mortgages based on the 5-year posted interest rate or currently 4.64% instead of the mid 2% currently offered. This means a 20% reduction in the price of home they can afford to purchase.
Together, with the recent measure by the British Columbia government to impose a 15% tax on foreigners purchases of property, this will hopefully bring some law and order to the housing markets in Vancouver and the GTHA. Note that housing prices in these areas have almost tripled in the past ten years.
Monday, 25 July 2016
Take for instance, my mother-in-law who passed away recently. She did have a whole life insurance policy that was purchased some time ago. My wife called the insurance co today, and to her surprise, the customer rep told her to provide certain information and once they are able to verify the information, the cheque should be mailed within 5 business days.
I think this is when most people start asking what's the catch and why is the insurance company so easy to deal with. I just wanted to share the story to let people know that there is use for insurance after all, and if planned properly, can provide someone you love a relief from all the financial obligations associated with death. Or, if you are lucky, maybe an inheritance, as well.
And as always, proceeds from a life insurance policy is tax-free.
Sunday, 24 July 2016
The year 2016 has been somewhat memorable in the sense that I have probably attended more funerals in the past six months than I had in the past ten years. Human beings are mortal. It is a reminder to us to cherish what we have around us.
When we plan for our retirement, it is important to not only think about dollars and cents, but the quality of life that we want to experience. Health should be first and foremost. I read an article on retirement by a prominent actuary in Toronto and the thing that struck me the most was the concept of disability free retirement life and on average, one can expect to live about ten years or so in good health assuming one retires at 65. Then, your health can expect to go downhill from there, I totally agree and have begun to embark on a healthy lifestyle by watching what I eat and exercise regularly.
Friday, 24 June 2016
Is the world coming to an end? Not unless you are 100% invested in cash, fixed income or US$. Some may not even want to check your investment accounts now. What about your retirement plans? What about all your real estate holdings? Is FI even possible now? It is truly Black Friday with possibly an even worse Black Monday to come
The best thing to do is to stay calm. The best course of action is sometimes do nothing. History has proven again and again that financial markets are resilient and will eventually recover (maybe after dropping a few thousand points further). Also remember, this is also a great time to pick up bargains!
I am a big fan of history. Another thing to learn is that the common and lowly people have spoken. World leaders and even the most powerful corporate CEOS and senior management need to learn (and be humble). Blessed are the meek, for they will inherit the earth (Matthew 5.5).
I think the best comment I have read came from Viktor Orban, the Prime Minister of Hungary, who basically said that the Brexit issue was decided by the issue of migrants or a vote against human migration. He further said that the ideal number of migrant coming to Hungary is ZERO. Note that I am totally against it, but it is the truth.
Fast forward to November 2016 to the U.S. Presidential elections between Hilary Clinton and Donald Trump. Trump may now have the upper hand because of Brexit. There are similar sentiments around the world from a minority of people who are fed up of seeing their country being taken over by immigrants and or migrants . And they will rise up , vote and be counted.
Monday, 30 May 2016
Sunday, 29 May 2016
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