Money Management

Canadian & US Banks Are Not the Same

With the collapse of 3 US banks in the month of March 2023 alone, it is clear that there is a significant amount of financial concern about the health and sustainability of US banks in a higher interest rate environment. As Canadians, it likely leaves many of us wondering about the strength and stability of our own banks. Read more here to understand the fundamental differences in system design and function between Canadian & US banks, and why you should be much more confident about our Canadian banks...

by Max Kirouac

Investing Basics, Money Management, Personal Finance

Arthur Burns & the Danger of Stopping Too Soon When It Comes to Inflation

The recent bout of inflation that the western world has been seeing is one that is familiar to us following periods of intense economic growth . Learn more about our historical fight against inflation to give more perspective on our current inflation situation...

Investing Basics, Money Management, Personal Finance

Should I Lease or Buy My Next Car?

There's a good reason why both of these options exist. The appropriate decision of whether to lease of finance your next vehicle comes down to your personal circumstances. This article will breakdown what you should consider when deciding between lease or finance...

Investing Basics, Money Management, Personal Finance

Short-Term Pain for Long-Term Gain

Sacrifice is a requirement for making progress in life. In order to save for the future, you must sacrifice your consumption now. In order to learn to speak a new language or to play a musical instrument, you must sacrifice time relaxing. In order to be healthy, you must sacrifice the temporary pleasure of eating whatever you want all the time. Essentially, there must be short-term pain for long-term gain...

Investing Basics, Money Management, Personal Finance

The Prime Rate in Canada: Understanding the Fundamentals

In Canada, the current prime rate is 6.70%. Understanding the importance of Canada’s prime rate is an essential component in ensuring that you are getting the best possible interest rate on your credit products through your financial institution....

Investing Basics, Money Management, Personal Finance

Diamonds and Inflation

For decades, the stranglehold that De Beers had on the diamond industry was unmatched by any private company operating in any line of business. For a time, De Beers controlled as much as 90% of global diamond production, and they ruthlessly exploited this near-monopoly when dealing with competitors. They encouraged other diamond producers to engage in cartel-like behaviour with them, artificially raising the price of diamonds by constraining supply...

Investing Basics, Money Management, Personal Finance

What is a Multi-Employer Pension Plan?

Retirement planning doesn't have to be overly complicated. Pension plans, such as a multi-employer pension plan, are available and accessible tools. If utilized efficiently, pension plans can be a very effective retirement tool...

Investing Basics, Money Management, Personal Finance

Foreign Exchange Rates – What You Need to Know

The US dollar made headlines last week when it reached parity with the euro for the first time in nearly 20 years. Perhaps it’s a sign of broader American exceptionalism that this was viewed so favourably. After all, the US dollar has “strengthened” relative to the euro (and all other major currencies) in 2022, and strength is generally cast in a positive light. But currency strength differs from economic or military strength. Not all American consumers and producers benefit from an appreciating dollar...

Investing Basics, Money Management, Personal Finance

Top Financial Tips for New Parents

Becoming a parent is one of the most exciting things that can happen in your life, but if you’re not prepared for it financially, it can quickly become extremely stressful. With someone relying on you to care for them now and for many years to come, you’ll want to make sure your finances and estate plan are set up properly to support you through parenthood. Here are some items you’ll want to consider prioritizing as new or soon-to-be parents...

Building Your Emergency Fund

Although planning for financial independence forces us to face so much future uncertainty, something we can feel certain about is that unexpected expenses will arise along our journey. We shouldn’t let the unpredictability of the future stop us from chasing our goals and our vision – we should plan for it instead. One of the best ways to ensure our financial plans stay on track is by building an emergency fund...

by Jarrett Holmes

Investing Basics, Money Management, Personal Finance

How to Protect Your Income as a Doctor

The risk of becoming disabled due to an accident, illness or injury is high, and as a doctor you see this daily. You might be thinking, it won’t be me, but the risk is always there. Not only does it affect you physically, but it takes a significant emotional and financial toll. Having proper income protection is key to the longevity of your practice. Disability insurance will be one of your most important tools in your financial plan....

Investing Basics, Money Management, Personal Finance

Why do Gas Prices Rise Quickly, but Fall Slowly?

The way in which gas prices move with crude prices has a name in the industry: rockets and feathers. When oil prices rise, gas shoots up like a rocket. When oil prices fall, gas drops like a feather. Learn why this happens...

Investing Basics, Money Management, Personal Finance

How to Split Expenses Between Couples

Money is a stressful topic. A survey of married couples conducted by the Bank of Montreal in 2014 found that fighting over money would be their top reason for divorce, followed by infidelity1. Those at both ends (and in the middle) of the income spectrum fight about money, so it isn’t just about not having enough. Conflict also arises when partners have different outlooks on household finances that lead to disagreements on how funds should be spent or saved and on how expenses should be split...

Investing Basics, Money Management, Personal Finance

Attainable Ways to Improve Your Finances in the New Year

Some financial resolutions take considerable time and dedication: upskilling to improve employment prospects, developing a strategy to pay down debt, reducing the fixed costs associated with home and vehicle ownership. But there are also opportunities to improve at the margins with a relatively low degree of effort. Here are a handful of financial New Year’s Resolutions that you can accomplish before the motivation starts to wear off...

Investing Basics, Money Management, Personal Finance

Tips to Ensure the Effective Use of Your RRSP

For a lot of Canadians, this is the only time of year that much thought is given to RRSPs. RRSPs have traditionally been the primary means of saving for retirement in a tax-advantaged way. Despite this, operational complexity of RRSPs prevents many from taking maximum advantage of these accounts. As more and more pension plans shift from defined benefit to defined contribution, effective use of RRSPs will be crucial for fulfilling retirement goals...

Investing Basics, Money Management, Personal Finance

Tips to Ensure the Effective Use of Your RRSP

Investing Basics, Money Management, Personal Finance

Is Retirement Still the Goal?

Another revelation that has come to light in recent years for more and more people is that the traditional concept of retirement is inherently flawed. The idea that you work your whole life, while building assets in hopes that when you are older you will be able to enjoy those assets. The problem of course is that you spend the majority of your life not doing the things that make you happy, and instead you wait until you are too old to do the things you want to do and the sad truth is that far too many people pass away in the first few years of their retirement and never get to enjoy what they built as a result of their hard work.

Investing Basics, Money Management, Personal Finance

Don’t Worry Too Much About Inflation

I recently paid $61.81 to fill up my Toyota Corolla. At the onset of the pandemic in March of 2020, I filled my tank for about $30. From trough to peak, prices at the pump increased about 100% in a year and a half. Clearly a worrying sign...

Investing Basics, Money Management, Personal Finance

Do I Need Life Insurance? Life Insurance For Canadians Made Simple with PolicyMe

PolicyMe is Canada's leading online life insurance company and is dedicated to helping Canadians protect their families and their futures by simplifying the process of getting life insurance. Learn what you need to know about life insurance, and how PolicyMe can help...

Investing Basics, Money Management, Personal Finance

Are Tax Rates Going Higher in Canada?

There have been numerous rumours about tax increases coming over the last few years including taxing gains on principal residences, estate taxes, and an increase in the capital gains inclusion rate. Although it remains unclear what increased taxes could look like in the future, I think it’s more likely that we will see an increase in the capital gains inclusion rate as compared to introducing a tax on principal residences...

Investing Basics, Money Management, Personal Finance

What is the 2023 TFSA Contribution Limit?

With the TFSA contribution limit announcement of $6,500 for 2023, the total contribution room available in 2023 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $88,000.

Investing Basics, Money Management, Personal Finance

Everything You Need to Know About Registered Retirement Income Funds (RRIFs)

Beyond being tax-deductible, RRSP contributions are also able to grow tax-free as they aren’t subject to tax on capital gains, dividends, or interest. The goal of an RRSP, as the name implies, is to provide a tax-efficient vehicle to encourage Canadians to save for retirement. However, the CRA eventually wants to be able to collect tax on all the funds that have accumulated in your RRSP, so by age 71 it must be converted to a RRIF (Registered Retirement Income Fund). Think of a RRIF as the butterfly that emerges from the cocoon that is an RRSP.

Investing Basics, Money Management, Personal Finance

What Exactly is Life Insurance? Life Insurance 101

Human beings, like all living organisms, are vulnerable to a risk that we eventually fall victim to: mortality. This risk is more acute when there are others who depend on you for their livelihood. In the animal kingdom, this takes the form of baby birds relying on their mother for nourishment and protection. Among people, the reliance is generally financial.

Investing Basics, Money Management, Personal Finance

5 Ways KOHO Can Help You Get Ahead

KOHO is dedicated to helping Canadians be able to travel more, retire sooner and live more balanced lives. Here's how KOHO can help.

Investing Basics, Money Management, Personal Finance

Focus on the Big Things

Prioritize the big things in life and let the little things fill in the cracks. If you waste your time on the little things, then the big things don't fit. This is all too true when it comes to the world of personal finance. Focusing on the big ticket items (house, cars, electronics, etc.) is the best way to set yourself up for future financial success...

Investing Basics, Money Management, Personal Finance

What are Individual Pension Plans? Understanding the Fundamentals

Individual pension plans are ideal for business owners and incorporated professionals who may not otherwise have access to a pension plan through work...

Investing Basics, Money Management, Personal Finance

Is it Time to Worry About Inflation?

Inflation is a general upward trend in the price level over time, meaning the same amount of currency buys you less stuff than it used to...

Investing Basics, Money Management, Personal Finance

The Hidden Cost of Paying Cash

As a young professional, you are faced with a myriad of decisions when it comes to managing your personal finances. Should you buy or rent, tackle your student loan or car loan first, invest or pay off debt, pay cash or finance? While these might sound like relatively straightforward decisions, we occasionally fail to account for the true cost...

Investing Basics, Money Management, Personal Finance

Registered Disability Savings Plans: What They Are & Why They Matter

A Registered Disability Savings Plan (RDSP) is a type of savings plan that is focused on helping persons with disabilities attain long-term financial security. In order to qualify for an RDSP, the individual must be eligible for the Disability Tax Credit (DTC)...

Investing Basics, Money Management, Personal Finance

Fiat Currency Versus Digital (Crypto) Currency

I never have too much to say about the technology underlying cryptocurrencies. People much smarter than I am firmly believe that blockchain technology represents a new frontier for digital ownership rights, and it accomplishes this without a central authority...

Investing Basics, Money Management, Personal Finance

Your Personal Finances are Important. Why Don’t Schools Teach Basic Finance?

Although personal finances are important in your every day life, school doesn’t teach basic finance. You graduate high school and you’re forced to navigate the world of finance on your own – the good, bad and the ugly. So why don’t schools teach basic finance?

Investing Basics, Money Management, Personal Finance

The Importance of Diversification: You Need More Assets

Part 3: Why You May Want to Hold Off on Buying Your Home: The Importance of Diversification: You Need More Assets - Diversification means holding a wide variety of assets such as equities, bonds, cash, and yes, real estate. The point of diversification is to enjoy the benefits of investing while protecting yourself from its risks. Investing in many different assets...

Investing Basics, Money Management, Personal Finance

Equifax vs. TransUnion: What is the Difference?

Equifax and TransUnion are the two major players in the Canadian credit score industry (they are often referred to as the credit bureaus). Both of these companies build/develop, maintain and process information relating to the credit profiles and scores (more on the fundamentals of credit scores...

Investing Basics, Money Management, Personal Finance

What is the 2021 TFSA Contribution Limit?

Wondering what the 2021 TFSA contribution limit will be? Well, the wait is finally over as it has officially been announced. The 2021 limit is $6,000, matching the amount set in 2019 and 2020...

Money Management

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