After years of saving and investing in money-market accounts, you may have noticed that your balance is just not growing like you wish it would. Experts advise that you look at investing in stocks and bonds. Recent years have offered enticing performance, up to five times what you earn on savings,
but not guaranteed.
So, how do you take the plunge, when your every dollar is important, and you cannot afford to risk what you have to grow?
One answer might be a stock mutual fund. It’s a form of saving in which your money will be pooled with others, and a professional manager will purchase a diversified portfolio of stocks. Each investor owns a share of the whole fund, so you get diversification you couldn’t buy with your own small investment capital.
Because the fund is managed by a professional, you should benefit from constant attention. Trading of stocks in the account is done so as to minimize the impact of commissions and other trading costs
Showing posts with label Saving Money. Show all posts
Showing posts with label Saving Money. Show all posts
Thursday, August 6, 2009
Thursday, July 30, 2009
8 Ways to Stretch the Almighty Dollar
1) Cut your car insurance by increasing your deductible.
2) Check into dropping your mortgage insurance if your balance is low enough.
3) If you’re salaried, take your next raise and direct it to an RRSP or other retirement plan.
4) Save for college by having kids earn on their savings,or open a Trust Fund account in their name at your local bank.
5) Spend twenty minutes per week staying up on your financial options.
6) Invest some of your cash in stocks, bonds, or stock mutual funds.
7) If you don’t need it, don’t buy it. If you can’t pay for it, then don’t buy it, and if you don’t understand it, don’t buy it.
8) Analyze your health care plan. You may be driving a Cadillac when a Chevrolet will do.
2) Check into dropping your mortgage insurance if your balance is low enough.
3) If you’re salaried, take your next raise and direct it to an RRSP or other retirement plan.
4) Save for college by having kids earn on their savings,or open a Trust Fund account in their name at your local bank.
5) Spend twenty minutes per week staying up on your financial options.
6) Invest some of your cash in stocks, bonds, or stock mutual funds.
7) If you don’t need it, don’t buy it. If you can’t pay for it, then don’t buy it, and if you don’t understand it, don’t buy it.
8) Analyze your health care plan. You may be driving a Cadillac when a Chevrolet will do.
Tuesday, July 28, 2009
How Much to Spend to Increase Curb Appeal
When investing in landscaping, try to get the most bang for the least amount of buck. You never want to spend a huge amount of money on a property if you’re planning on selling in the near future.
The idea is to do whatever is necessary to make the yard look clean and efficient. Buyers want a home that is easy to maintain. Prune the shrubs, keep the grass nicely mowed and green, and possibly add colorful flowers near the entry ways.
Make sure that your yard is not extravagant when compared to the other homes in the neighborhood. A buyer will tend to pay only as much as the other homes in the neighborhood are selling for. Therefore, if you overspend, it is unlikely that you will be able to recover your expenses.
The idea is to do whatever is necessary to make the yard look clean and efficient. Buyers want a home that is easy to maintain. Prune the shrubs, keep the grass nicely mowed and green, and possibly add colorful flowers near the entry ways.
Make sure that your yard is not extravagant when compared to the other homes in the neighborhood. A buyer will tend to pay only as much as the other homes in the neighborhood are selling for. Therefore, if you overspend, it is unlikely that you will be able to recover your expenses.
Thursday, July 23, 2009
Selecting a Mutual Fund
Start by selecting a fund that feels right. Money magazine and other financial publications offer dozens of funds, analyzed by performance. You can call the fund directly using their toll free number, or you may wish to talk with a stock broker to get her input.
Funds are available with ‘load’ or ‘no load’ options. The ‘load’ funds have a commission of say 5% paid out of your initial deposit. The alternative is to choose ‘no load’ funds. These funds have to pay the brokers, and it is reflected in overall performance. However, most studies comparing the two find little difference in overall performance.
Different funds have different objectives. Some seek growth with a higher degree of risk and little current income. Others will seek dividend income now, but with less risk. Which is best for you? It depends on your overall objective. Do be sure to look at a minimum of five years past performance though. You are interested in long term.
Funds are available with ‘load’ or ‘no load’ options. The ‘load’ funds have a commission of say 5% paid out of your initial deposit. The alternative is to choose ‘no load’ funds. These funds have to pay the brokers, and it is reflected in overall performance. However, most studies comparing the two find little difference in overall performance.
Different funds have different objectives. Some seek growth with a higher degree of risk and little current income. Others will seek dividend income now, but with less risk. Which is best for you? It depends on your overall objective. Do be sure to look at a minimum of five years past performance though. You are interested in long term.
Wednesday, July 22, 2009
How to Start a Babysitting Co-op
First, gather a list of interested parents. Invite them to an organizational meeting and discuss the following: the size of the group, membership requirements, election of officers, how often you will meet, dues needed to pay for supplies, guidelines for handling emergencies, sick children and late pick ups.
Next, you will need to establish an exchange system. Consider a ticket system. Authorize an established number of tickets per child, per hour. Determine the number of tickets the average person will need per month and distribute.
It would also be a good idea to appoint a secretary that can establish a system for personal record-keeping for each child. Include allergies, doctor’s name and number, emergency information, etc. Once, the baby-sitting co-op is in place, kick back and enjoy a night out in comfort. You deserve it.
Next, you will need to establish an exchange system. Consider a ticket system. Authorize an established number of tickets per child, per hour. Determine the number of tickets the average person will need per month and distribute.
It would also be a good idea to appoint a secretary that can establish a system for personal record-keeping for each child. Include allergies, doctor’s name and number, emergency information, etc. Once, the baby-sitting co-op is in place, kick back and enjoy a night out in comfort. You deserve it.
Tuesday, July 21, 2009
Where do Remodelling Dollars Pay Off the Most
It’s a proven fact that certain home improvement projects pay off when it comes time to sell, while others do not. If you’re looking into doing some remodeling to improve your home’s appeal now, don’t forget to take into account which projects will make a difference if you sell in the future.
Kitchen and bath improvements are high on the list of what buyers are willing to pay more for. Also, additions such as sunrooms are very popular. Try not to do anything that would be considered extreme or outrageous. Homes with very unique tastes are usually hard to find the right buyer for later.
Repainting in more neutral colors almost always pays off, and adding on a new deck is a good investment as long as the costs are not too unreasonable.
If a remodeling project is done by a professional, it is worth more in the long run. Ask your neighbors for recommendations of contractors that they’ve used, or give me a call for my list of people.
A good rule of thumb is to confine your total remodeling expenses to 10% of the homes estimated value. If you stay within this figure and plan wisely, you’ll most likely recoup most of your investment.
Kitchen and bath improvements are high on the list of what buyers are willing to pay more for. Also, additions such as sunrooms are very popular. Try not to do anything that would be considered extreme or outrageous. Homes with very unique tastes are usually hard to find the right buyer for later.
Repainting in more neutral colors almost always pays off, and adding on a new deck is a good investment as long as the costs are not too unreasonable.
If a remodeling project is done by a professional, it is worth more in the long run. Ask your neighbors for recommendations of contractors that they’ve used, or give me a call for my list of people.
A good rule of thumb is to confine your total remodeling expenses to 10% of the homes estimated value. If you stay within this figure and plan wisely, you’ll most likely recoup most of your investment.
Thursday, July 16, 2009
Goal Setting for Every Type of Family
· Establish an emergency fund of cash that is equal to 3-6 months of pay.
· Start saving for college. Any little bit helps. At 7% interest, money doubles every ten years. So by starting when kids are young, you can make one dollar at their birth worth $2 at age 7, $4 at age 14, and $8 at age 21.
· Buy term life insurance for at least twice your mortgage amount. More is better, especially if you have more than one child. A $200,000 policy for a 35 year old male costs about $200 a year. Your objective is to be sure that the mortgage would be paid, that living expenses would be available for a period of transition, and there would be a downpayment made on the children’s education. Some planners suggest much more insurance, knowing that in a one income family the other parent would need time to train, seek a job, etc.
· As your children get to age 14 and beyond, you may wish to encourage after - school employment. Not just for the character building potential, but because they can earn thousands of dollars without paying federal income tax. (see your accountant)
Single / Single Parent
· Set aside three months take home pay for your emergency fund. If you are a single parent you’ll want to strive for six months on hand.
· As you accumulate savings, look for mutual funds or other alternatives to provide a higher return than money market accounts, with measured risk. If you are a single parent, decide when to start saving for college. As little as fifty dollars per month in a savings account can make a big difference. Ask your banker.
· Protect your credit rating. Perfect credit will be helpful in moving, refinancing, or even obtaining a credit line or home improvement loan, when needed. If you have recently divorced you will want to open accounts in your own name with credit cards, department stores, and credit unions.
· Check your homeowner’s insurance to be sure you have sufficient coverage to replace your belongings. “Replacement cost” coverage is preferred.
· Collect child support if you’re entitled to it. For information on your right to child support contact BC Child Support Info Line at 1-888-216-2211 or go to wwwhsd.gov.bc.ca.
Two Income Families
Buy a home or a second home, if appropriate. The wealth created though long term ownership of real estate is unmatched. The tax deductible nature of your real estate payments make for another bonus.
Use and maximize your RRSP’s, or other retirement options. As much as retirement seems far off in the future, it is coming. Anything you can do now can make a big difference in 20 to 30 years.
Empty Nesters
Maximize your savings for retirement
Consider reducing your life insurance if your mortgage is paid off.
Triple check your long-term health care insurance options while you’re still healthy.
Check your Canadian Pension Plan and/or Old Age Security benefits by filling out the proper forms. Call 1-800-277-9914 to get the form.
· Start saving for college. Any little bit helps. At 7% interest, money doubles every ten years. So by starting when kids are young, you can make one dollar at their birth worth $2 at age 7, $4 at age 14, and $8 at age 21.
· Buy term life insurance for at least twice your mortgage amount. More is better, especially if you have more than one child. A $200,000 policy for a 35 year old male costs about $200 a year. Your objective is to be sure that the mortgage would be paid, that living expenses would be available for a period of transition, and there would be a downpayment made on the children’s education. Some planners suggest much more insurance, knowing that in a one income family the other parent would need time to train, seek a job, etc.
· As your children get to age 14 and beyond, you may wish to encourage after - school employment. Not just for the character building potential, but because they can earn thousands of dollars without paying federal income tax. (see your accountant)
Single / Single Parent
· Set aside three months take home pay for your emergency fund. If you are a single parent you’ll want to strive for six months on hand.
· As you accumulate savings, look for mutual funds or other alternatives to provide a higher return than money market accounts, with measured risk. If you are a single parent, decide when to start saving for college. As little as fifty dollars per month in a savings account can make a big difference. Ask your banker.
· Protect your credit rating. Perfect credit will be helpful in moving, refinancing, or even obtaining a credit line or home improvement loan, when needed. If you have recently divorced you will want to open accounts in your own name with credit cards, department stores, and credit unions.
· Check your homeowner’s insurance to be sure you have sufficient coverage to replace your belongings. “Replacement cost” coverage is preferred.
· Collect child support if you’re entitled to it. For information on your right to child support contact BC Child Support Info Line at 1-888-216-2211 or go to wwwhsd.gov.bc.ca.
Two Income Families
Buy a home or a second home, if appropriate. The wealth created though long term ownership of real estate is unmatched. The tax deductible nature of your real estate payments make for another bonus.
Use and maximize your RRSP’s, or other retirement options. As much as retirement seems far off in the future, it is coming. Anything you can do now can make a big difference in 20 to 30 years.
Empty Nesters
Maximize your savings for retirement
Consider reducing your life insurance if your mortgage is paid off.
Triple check your long-term health care insurance options while you’re still healthy.
Check your Canadian Pension Plan and/or Old Age Security benefits by filling out the proper forms. Call 1-800-277-9914 to get the form.
Tuesday, July 14, 2009
The Scent of Your Home is Important to Buyers
How a home smells when a potential buyer comes to see it for the first time, can make or break the sale. Imagine for yourself the difference between the scent of fresh cut flowers and the smell of a cat’s litter box.
My experience with showing various homes over the years suggests that foul smelling odors do turn off a buyer from purchasing an otherwise perfect home. Even homes that are very attractive, with great curb appeal, can be overlooked by buyers if they fail the sniff test!
It is important when preparing for a showing of your home to do everything you can to eliminate unpleasant odors. Common odors to look out for are cigarette or cigar smoke, strong smelling foods, mothballs, pet odors, and the smell of trash left in receptacles.
Take whatever action is necessary to remove all of the above mentioned odors, and replace them with pleasant scents. Some fresh cut flowers placed strategically throughout the house, or mild potpourri could be used. One more tip, consider baking cookies or something with a cinnamon fragrance before an open house or showing. Everyone loves the scent of Mom’s home cooking!
My experience with showing various homes over the years suggests that foul smelling odors do turn off a buyer from purchasing an otherwise perfect home. Even homes that are very attractive, with great curb appeal, can be overlooked by buyers if they fail the sniff test!
It is important when preparing for a showing of your home to do everything you can to eliminate unpleasant odors. Common odors to look out for are cigarette or cigar smoke, strong smelling foods, mothballs, pet odors, and the smell of trash left in receptacles.
Take whatever action is necessary to remove all of the above mentioned odors, and replace them with pleasant scents. Some fresh cut flowers placed strategically throughout the house, or mild potpourri could be used. One more tip, consider baking cookies or something with a cinnamon fragrance before an open house or showing. Everyone loves the scent of Mom’s home cooking!
Thursday, July 9, 2009
Protect Your Cash
Here are some more great ways to control your finances and keep your cash:
Join a buying club that offers deep discounts. Buy what you need, and have it on hand, saving late night trips to the expensive quick stop shops. How did they ever get by on those wagon trains to California, without a convenience store?
Remember that the Revenue Canada allows you to take a deduction for donations of clothing, furniture, and miscellaneous items. Whatever they would be worth at a thrift shop is a guide. Simply obtain a receipt, and report it on your taxes. You’ll empty the house of cast off items, get more room in your closet, and help someone less fortunate, while lowering your taxes!
Being fit may require joining a health club, but if you joined and don’t go, it’s time to decide, go or quit. As a half step, some clubs offer off peak or alternate day plans that can help cut the fat out of your budget.
Join a buying club that offers deep discounts. Buy what you need, and have it on hand, saving late night trips to the expensive quick stop shops. How did they ever get by on those wagon trains to California, without a convenience store?
Remember that the Revenue Canada allows you to take a deduction for donations of clothing, furniture, and miscellaneous items. Whatever they would be worth at a thrift shop is a guide. Simply obtain a receipt, and report it on your taxes. You’ll empty the house of cast off items, get more room in your closet, and help someone less fortunate, while lowering your taxes!
Being fit may require joining a health club, but if you joined and don’t go, it’s time to decide, go or quit. As a half step, some clubs offer off peak or alternate day plans that can help cut the fat out of your budget.
Wednesday, July 1, 2009
Sell Your Home or Become a Landlord
Renting your home out may seem like a great alternative to selling at a lower price than expected, but make sure you consider the financial implications.
If the main idea in renting the house is to move now and sell later, be sure to factor in the costs which may occur when reconditioning the rental home for sale as a residence. Chances are the aggravation of converting your home to a rental will exceed any contribution to costs or profits.
Most importantly, keep in mind that being a landlord can be difficult. Tenants will demand that repairs and home maintenance be kept up with in a timely manner. Expenses can be quite substantial, so be prepared with funds to cover them. Feel free to ask me for more information on sales or rental, anytime!
If the main idea in renting the house is to move now and sell later, be sure to factor in the costs which may occur when reconditioning the rental home for sale as a residence. Chances are the aggravation of converting your home to a rental will exceed any contribution to costs or profits.
Most importantly, keep in mind that being a landlord can be difficult. Tenants will demand that repairs and home maintenance be kept up with in a timely manner. Expenses can be quite substantial, so be prepared with funds to cover them. Feel free to ask me for more information on sales or rental, anytime!
Tuesday, June 30, 2009
Some Guidlines for Selecting a Builder
So you’ve decided that a new home is for you. Make sure you follow some guidelines to make sure you’re happy with the home building process.
Select a reliable builder with a strong reputation in the area that you desire to live in. Try talking to people in the neighborhood about their home building experience. Were they happy with how the process went? Do they feel good about the end result? When you’ve narrowed down which builder you think you’d like to work with, then begin working out the details.
Think through in great detail, exactly what features you would like in your new home. You will prepare a detailed agreement before building, usually referred to as “plans and specifications.” It is easy to have misunderstandings if you are not very specific in this agreement.
Make sure if interest rates are low when the building process begins, that you “lock in” an interest rate. Do not allow any arrangement where the lender may increase the interest rate later if they go up before your home is finished. Also, make sure there is a definite completion date stipulated in your contract.
If there are any improvements or street repairs to be made in the neighborhood, find out in advance whether you or the builder will be responsible.
Keep an eye on how your new home is progressing during the building process. If things don’t seem to be going according to schedule, don’t be afraid to inquire with the builder. If changes are called for that deviate from the original agreement, get a written change order agreement drawn up. This will ensure no surprises at the closing.
If all of this seems like a lot for you to keep track of, call on me first, for help. I can help make sure you are being represented and protected properly. An investment this large deserves special attention to detail.
Select a reliable builder with a strong reputation in the area that you desire to live in. Try talking to people in the neighborhood about their home building experience. Were they happy with how the process went? Do they feel good about the end result? When you’ve narrowed down which builder you think you’d like to work with, then begin working out the details.
Think through in great detail, exactly what features you would like in your new home. You will prepare a detailed agreement before building, usually referred to as “plans and specifications.” It is easy to have misunderstandings if you are not very specific in this agreement.
Make sure if interest rates are low when the building process begins, that you “lock in” an interest rate. Do not allow any arrangement where the lender may increase the interest rate later if they go up before your home is finished. Also, make sure there is a definite completion date stipulated in your contract.
If there are any improvements or street repairs to be made in the neighborhood, find out in advance whether you or the builder will be responsible.
Keep an eye on how your new home is progressing during the building process. If things don’t seem to be going according to schedule, don’t be afraid to inquire with the builder. If changes are called for that deviate from the original agreement, get a written change order agreement drawn up. This will ensure no surprises at the closing.
If all of this seems like a lot for you to keep track of, call on me first, for help. I can help make sure you are being represented and protected properly. An investment this large deserves special attention to detail.
Tuesday, June 23, 2009
Top Fixes Recomended By Home Inspectors
Buyers today are more educated and demanding than they were in the past. It should not be surprising to a seller that a buyer would ask for a home inspection before signing a hefty purchase agreement. Therefore, it would be wise for homeowners to look at the areas where most home inspections fail. Start by fixing those areas up in advance, before you’re ready to place your house on the market.
The most frequently found problem area is water in the crawl space or basement. Poor drainage can result in water damage that will be more than apparent to an inspector. This can be an expensive problem to fix.
Start by re-grading the soil around the foundation of the home where water seems to be entering, or invest in waterproofing. It’s also a good idea to invest in a dehumidifier to remove moisture on an ongoing basis.
There are some areas that are more prone to water in the basement than others. Most buyers know if a little water is to be expected or not. If you’re unsure how prevalent the problem is in your area, feel free to call me anytime for advice.
The second most common problem found by inspectors is poor wiring. The wiring in your home needs to be up to code, and has to have sufficient overload protection.
Sometimes the best way to be sure the wiring in your home is in good shape is to hire a home inspector, or electrical contractor to check it out for you. Even if you’re not selling your home right now, you would want to make sure your family is living in a house that is safe from fire hazards.
Another major problem found in certain areas, is termite damage. If you begin to suspect at any time that your home may have termites, it’s urgent that you call a pest control service right away. This particular problem needs to be taken care of quickly.
More Important Home Fixes
Other areas that should be looked at as potential problems are the heating systems of your home, structural damage, such as extensive cracks in the walls or ceiling, or leaky roofs.
When deciding what is important to fix, put yourself in the place of the buyer. If you were considering buying the home you live in now, what would you consider important that the seller fix?
Handle problems in condition or construction with estimates and repair by a reputable contractor. Sooner is better than later, especially when the demands of moving and evaluation of the buyer run high. Do it now!
Anything you can do to make your home more saleable in advance may mean more money and less hassle when you’re actually ready to sell.
The most frequently found problem area is water in the crawl space or basement. Poor drainage can result in water damage that will be more than apparent to an inspector. This can be an expensive problem to fix.
Start by re-grading the soil around the foundation of the home where water seems to be entering, or invest in waterproofing. It’s also a good idea to invest in a dehumidifier to remove moisture on an ongoing basis.
There are some areas that are more prone to water in the basement than others. Most buyers know if a little water is to be expected or not. If you’re unsure how prevalent the problem is in your area, feel free to call me anytime for advice.
The second most common problem found by inspectors is poor wiring. The wiring in your home needs to be up to code, and has to have sufficient overload protection.
Sometimes the best way to be sure the wiring in your home is in good shape is to hire a home inspector, or electrical contractor to check it out for you. Even if you’re not selling your home right now, you would want to make sure your family is living in a house that is safe from fire hazards.
Another major problem found in certain areas, is termite damage. If you begin to suspect at any time that your home may have termites, it’s urgent that you call a pest control service right away. This particular problem needs to be taken care of quickly.
More Important Home Fixes
Other areas that should be looked at as potential problems are the heating systems of your home, structural damage, such as extensive cracks in the walls or ceiling, or leaky roofs.
When deciding what is important to fix, put yourself in the place of the buyer. If you were considering buying the home you live in now, what would you consider important that the seller fix?
Handle problems in condition or construction with estimates and repair by a reputable contractor. Sooner is better than later, especially when the demands of moving and evaluation of the buyer run high. Do it now!
Anything you can do to make your home more saleable in advance may mean more money and less hassle when you’re actually ready to sell.
Friday, June 19, 2009
Travel Games for the Road
Alphabet Objects: While riding in a car, look out the windows in search of items beginning with the letters a-z, in alphabetical order, starting with a. These can be actual letters on signs, or license plates, or objects that begin with the letter. The first person to finish the alphabet is the winner.
Find All 10 Provinces and all 3 Territories: A good way to start this game is to make a list of all 10 provinces and all 3 territories. See who can spot all 13 of the license plates first, or who can come up with the most.
Going on a Picnic: One player begins by reciting the phrase, “I’m going on a picnic and bringing _____.” The first player fills in the blank with an item that begins with A. The second player must recite this sentence in it’s entirety and add an item that begins with B. Each turn requires that the previous items be repeated. The winner is the person who is able to complete the longest string of items without making a mistake.
Find All 10 Provinces and all 3 Territories: A good way to start this game is to make a list of all 10 provinces and all 3 territories. See who can spot all 13 of the license plates first, or who can come up with the most.
Going on a Picnic: One player begins by reciting the phrase, “I’m going on a picnic and bringing _____.” The first player fills in the blank with an item that begins with A. The second player must recite this sentence in it’s entirety and add an item that begins with B. Each turn requires that the previous items be repeated. The winner is the person who is able to complete the longest string of items without making a mistake.
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