Media scan: Week of March 23rd

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This week I posted on Retirement Redux How the medical tax deduction can save you money and Anti-Fraud month: Seniors scams to watch out for. How hiring a professional organizer can save you money appeared on savewithspp.com and Here’s some clarity on workplace benefits was featured on Brighter Life.

Here are some of the interesting blogs and articles I read.

Blogger and pension analyst Sean Cooper gives reasons why he thinks borrowing to invest is not a sin. There are two types of debt: good debt and bad debt. Good debt is for things that go up in a value like your home, education and investments (when done properly). Bad debt is for things that depreciate or are consumed immediately like a car or vacation. By borrowing only for good debt, he says you won’t need to borrow later on to spend. You’ll have money in the bank waiting for you.

An oldie but goodie from Mr. Money Moustache reminds us that a Millionaire is Made Ten Bucks at a time. He says it is the perception of “small” versus “large” amounts of money that is the downfall of most of us. It drives many to fantasize about lottery winnings, because it seems like that’s the only way to become a millionaire if you’re not a Rapper or a greedy corporate CEO. In fact each dollar you save is a critical brick in the early retirement castle you are building.

Five reasons students should file tax returns by Brenda Spiering at Brighter Life reminds us that there is lots of free money in the form of tax refunds and credits students will forgo if they do not file a tax return just because they are not earning enough to pay income tax.

On the Financial Independence Hub realtor Linda Evans says more boomers are seeing the benefits of downsizing their home. However, she concedes that the hardest part for most people is the emotional attachment they have to the family home, not to mention all the stuff they accumulated over the years.

On Retirement – Early or Never? Boomer & Echo blogger Marie Engen questions how realistic extreme early retirement is and endorses early financial freedom as the real goal. Notwithstanding the obsession with leaving work at a young age, she says the trend is edging toward a longer working life.

Business, labour groups divided over ORPP reports Craig Sebastiano for Benefits Canada. CFIB says companies with DC plans should be exempt and companies with less than 20 employees should not have to contribute. Sid Ryan of the CFL says the plan should be universal and every Ontarian should be required to contribute to the ORPP, noting that some DB plan members don’t work full time.

Is anyone interested in PRPPS? by Lorraine Allard at law firm McCarthy Tetrault notes that the reaction of the press and the retirement industry to PRPPs has ranged from polite indifference to near hostility. As for employers, those who already provide retirement and other savings plans to their employees are likely better informed, but few appear to be rushing into the arms of PRPP providers.

Planning on transferring money? Get ready to wait an average of 19 days for your money to be transferred, during which time those funds are out of the market and out of your control says David Hodge at MoneySense. That’s the major finding from new proprietary data compiled by online investment service Wealthsimple.

A look inside Rob Carrick’s portfolio reveals that the Globe and Mail’s personal finace guru holds preferred shares (perpetual), GIC ladders, investment savings accounts, bond ETFs, corporate bonds, dividend growth stocks, equity ETFs and two low-fee mutual funds.

How to turn your mortgage into a tax advantage by Fabio Campanella at the Financial Post explains how with some careful structuring, Canadians can actually take advantage of preferential interest rates available to them by leveraging their homes, while at the same time obtaining a tax advantage. It’s important, however, to avoid the many tax pitfalls inherent in this sort of strategy.

 

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