www.moneyincanada.ca

www.moneyincanada.ca and moneyincanada.ca stand on guard for thee. The definitive Canadian money site in Canada is called simply MONEY aka www.money.ca above all the main namesake and top ranked site for Canadians and their money considerations and information.

Money Information is indeed and important commodity. All the things we do at Money Canada Limited is in fact for the benefit of the general public our readers and we play the role of  Canadian Financial Literacy ambassador. Join us for all the right reasons info@money.ca

Check out Money News, Money Magazine, Money Newsletter and Money Video  for top Canadian money, business and finance news.

 

 

 

www.moneyinformation.ca

www.moneyinformation.ca  moneyinformation.ca and Money Information respectively are part of The MONEY Network and considered to be sites, landing pages and online destination places for Canadians – MONEY and Canada. Our main site is MONEY.CA please join us for all the right reasons.

Money Information and this site is intended for long-term use for public awareness and primarily for Canadian Financial Literacy.

This site is all about Money in Canada – Money News, Money Information, insight and commentary including blogs and daily video.

 

 

Guildhall Diamonds – Launches shiny new alternative investments site for investment grade diamonds

Guildhall Diamonds
Guildhall Diamonds

Shine bright like a diamond. Why pay good money for good diamonds? white diamonds, yellow, diamonds, green diamonds, blue diamonds or red.

The markets may go up and down and with it fortunes and lifetime savings are crushed or diminished. There is a good reason for not putting your eggs in one basket.  Some say” diamonds are like real estate in your pocket”. In this day and age with markets up and down and perhaps too complex there was always other ways to invest. Precious Metals, jewels, gems, silver and gold, all hot commodities in general also may have their ups and downs.

To really know what your getting you need research, you need experience, you need connections. You know where you can get the best deal on “alternative investments”?.

One such company is Guild Hall Diamonds that has a unique offer that is wearable, beautiful investment opportunity. For most of us who barely know about cosmetic jewellery and then less of precious metals and least about diamonds then this new website will help. Learn the difference between diamonds first of all. You get what you pay for and knowing pays Nicole Snitman known as the Queen of Diamonds is ready to provide a high end service for a few millionaires and a growing and varied group of alternative investments investors. Targeting the rich is easy but getting them to buy still proves difficult. Often times less than one hundred regular and loyal clients that buy, buy  often and more than one diamond for keeping and re-sale.

For me and my money I am quite impressed with this website, alternative investments and shiny stuff that is valuable and and in high demand. I can see the client list growing to not only the elite and wealthy but perhaps the average Canadian.  Check the website our at www.guildhalldiamonds.com Guildhall Diamonds Inc. I can see this market growing to include a few market segments that were not available before. Learn more about the risks and rewards of alternative investing and investment grade diamonds  at this recommended site.

 

Tax Free Profit Extraction Using Life Insurance

A tax avoidance strategy has been growing in popularity in recent years. Although CRA has been aware of the strategy for over ten years, its increase in popularity and the Federal government’s current focus on reforming the taxation of insurance means that the life of the strategy may be coming to an end.

There are several good reasons for life insurance to be owned corporately rather than personally. A business owner is typically a key person of the business, and any buy-sell agreements or business interruption applications may require that the policy be owned corporately. Corporate ownership also allows for the payment of premiums with corporate dollars, which for small businesses generally have a lower tax rate than if the policy is owned personally.

There are of course also downsides. The loss of creditor protection, a potential impact to the capital gains exemption, additional complexity and accounting requirements, and the potential taxation of the death benefit are among the impacts to consider. Properly planned, these issues can be minimized, making corporate ownership an attractive option.
The corporately owned policy can be a newly issued policy, or could be a personally owned policy that is sold to the corporation. The latter may be the only option if health concerns make it costly, or even impossible, to obtain a new policy.

The sale of a policy from personal ownership to corporate ownership introduces a little used, until recently, tax savings opportunity. In exchange for the policy the corporation pays the individual the fair market value of the policy. The gain reportable to the individual is based on the cash surrender value of the policy rather than the fair market value, the two of which may differ substantially.

In many cases the taxable gain to the individual is zero, effectively resulting in a tax free disbursal of earnings from the corporation.

Overview of the transfer

A shareholder transferring a policy to his or her corporation is making a non-arm’s length transfer and therefore subject to Section 148(7) of the Income Tax Act. In exchange for the policy the company pays the shareholder the fair market value of the policy. The tax consequences consist of four parts:

  • Deemed Disposition – The shareholder who owns the policy is deemed to have disposed of the policy for the cash surrender value (CSV). The taxable income to the shareholder will be the CSV minus the Adjusted Cost Basis (ACB).
  • New Adjusted Cost Basis – Section 148(7) also deems the new ACB after the transfer to be equal to the CSV. The corporation has acquired an interest in the policy at the new ACB.
  • Payment for the fair market value – The corporation pays or provides a note to the shareholder for the fair market value of the insurance policy. There is no tax to the shareholder and the company has a reduction in retained earnings.
  • Payment of the Death Benefit – Upon the death of the life insured, the death benefit is paid into the Capital Dividend Account (CDA) to the extent that the benefit exceeds the ACB. The ACB will typically have enough time to decrease to $0, so the entire death benefit is paid into the CDA, which can then be distributed tax free.

Best Policies to Value

An actuary specializing in fair market valuation can provide advice on the potential value of a policy. The best policies to transfer will result in little or no taxable income upon disposition, and have fair market value that is greater than the cash value. There are several factors which contribute to a policy having a fair market value that is greater than the cash surrender value.

  • Deterioration in health – Any health problems that reduce life expectancy will increase the value of a life insurance policy.
  • Policies with guaranteed costs – Policies with guaranteed level premiums build up value over time, as the initial premiums exceed the cost of insurance in order to keep the premiums lower at higher ages when the cost of insurance exceeds the premiums. The reduction in interest rates has further increased the value of such policies, as they premiums were set assuming higher interest rates, and the premiums are guaranteed. Examples of these policies are Universal Life with level cost of insurance, term to 100, and whole life non-participating policies.

Government Position

Although the CRA has stated that they agree with the tax treatment described above, they also feel it is an anomaly and referred the matter to the department of Finance. This position has been confirmed several times in the past ten years. While Finance has yet to take any action, the issue does now appear to be on their radar. The next budget may very well put an end to this opportunity.

Ryan Wall
www.wallactuaries.ca

Mindset

 

Mindset

Definition:  A fixed mental attitude or disposition that predetermines a person’s responses to and interpretations of situations. 

What is your mindset around money?

Here are five quick questions, answer them truthfully.  Then ask yourself is my debt a result of circumstances or poor decision making.

  • Are you honest with yourself and/or your spouse about your financial purchases?
  • Are you hiding on-line shopping purchases?
  • Do you have a secret account?
  • Are you justifying purchases that are really not necessary?
  • Are you using shopping as an outlet to make yourself feel better?

The emotions that are tied to money can be very overwhelming.    Before you tackle your financial situation, take a deeper look at why you are in the financial position you are.  I am a firm believer that most debt occurs for one of two reasons: 1. Circumstances; or 2. poor decision making. 

Bad Luck

Sometimes, really bad stuff happens to really good people and it does not matter how financial savvy you are, or how great the communication is between spouses, or how fantastic you are at managing your finances you can still end up in financial trouble.  The people who are in financial trouble due to an unforeseen circumstance (for example the loss of an income because of an ill child) just need some clear, helpful support, an advocate and a plan and they will be back on their feet financially in a short period of time. 

Bad Planning

Poor decision making however is repeated over and over until you learn new habits and change your mind set when it comes to finances.  The current financial trend is to adopt an attitude of:

  • “I deserve”
  • “Debt is the new norm”
  • “I will pay off my student loans later, for now check out my new i-phone !”

     

Having a credit limit is not your money, having a student loan is not your money, a credit card is not your money.  Until the mindset changes, whether it is coming from, I deserve, or I will always be in debt, it is very difficult to change one’s spending habits. 

 

Look at Money Differently

If you truly want to be put yourself on the path to financial freedom then treat the money you have earned from your paycheque as your income, that’s it.  Treat all other forms of credit as the banks’ money, which you will HAVE to pay back with interest, and interest, and more interest, until you are very old, leave the country, or file for bankruptcy, (right student loans are not including in bankruptcy).  OR you can start right from the beginning with a success mindset and do not carry this debt to begin with.

Success Story

Yes with a little discipline, the right mind set, and a clear picture of what you want you can set the tone for a life of financial success.  Take my client “John.” I started working with him when he was only 19.  He was attending university and had two large student loans.  He had a clear (albeit ambitious) financial goal: no debt when he graduated from university.  We worked together to develop a plan to give him the best chance to achieve his goal: we divided up his student loan into needs, books/rent/travel, expense to and from school, food etc…  The plan included $40 spending money per week for all other events/activities and the remainder was never used.  After three year of university he took one year off and work his #@# off, following the same plan, $40 per week for entertainment and following the budget for food etc…. Four years later after implementing the plan he had graduated and he continued to follow the same plan while working in his field.  Only six months after graduating we celebrated that he was debt free, all student loans paid for.  What a success story!  He has an amazing well-paying job in his field, and no debt.   Why did he succeed?  He had the right mindset and a clear goal!

Money is such a personal issue and we all carry our history when it comes to financial successes and failures.  You cannot change your past but with the right mindset around money your future can be a financial success.  Always wanting more, and never feeling that you have enough has everything to do with changing your mindset not your finances.   Having a grateful heart and being thankful can change your outlook on your finances and your future.  Take control of your money, don’t let money control you!

Laurie Lee

Goodcents Co.

 

Financial Advertising

MEDIA Release: NEWS FOR MONEY – FINANCIAL ADVERTISING

It’s not a newsflash to understand that marketing and advertising are important and meaningful facts of life. There are many economic indicators that we judge are standard of living by including, new home sales and automobiles by example. Advertising is another key indicator of how things may go in general. People both in and out of the financial world often say “How are the markets?”. We want to say in reply How goes your marketing? Everyone somewhere is doing better than some one else at any time in the same very same field or market. Differentiation is the new norm and specializing companies will yield greater value and market share.

Advertising is important and Financial Advertising even more so. It will be the first indicator that shows the pre-season is warming up to the idea it is time to keep up with the Dows and the Jones, surpass them, succumb to them or wind down.

It is the Season for Financial Advertising and this year looks to be a grand one in deed. Canadian Financial Services is doing well, starting off with the Canadian economy, stable banking system and positive outlook.

More and more financial companies are getting the idea slowly that advertising and marketing is not what their grandfather’s generation did. It’s all new and exciting with a whole new generation both online and mobile and totally social.

Less than 5 years ago most executives had no idea about social media and may have caught up to websites and email just now. This next generation has heard that video killed the radio star and now expects nothing less. The “tell me in 1 minute or less” generation is here and the convergence of these multi-media lead to one thing a younger and more sophisticated, savvy customer.

“The message is the media”. And to that extent we agree as Canadians. MONEY will go one step further and deliver it to those who want, warrant and need it most and in the manner, time and method they best prefer.

The Great One – Wayne Gretzky said: “Go to where the puck will be”.

People will be drawn to MONEY in many ways and the BRAND is a natural and beyond compare. Learn more about MONEY Financial Services Advertising and Marketing, learn more about attracting and retaining your exact target market.

The MONEY Vertical is a multi-directional financial campaign that makes sense and pays dividends it is affectionately known as The 5 Pronged Marketing Attack.

MONEY.CA

Toronto, Canada

416-360-0000

Confessions of a CFP: You may need a second mortgage

 

 

 

 

 

 

 

 

 

As a financial planner clients come and see me for a variety of reasons from investment advice to debt consolidations. On a good day clients can bring me a big lump sum of money to invest and on a bad day clients can be in my office with tears in their eyes because they can no longer provide for their families due to the fact that they have accumulated thousands of dollars in debt that they can’t afford to pay off.

A second mortgage gives you access to cash

There are many reasons why people accumulate debt from over spending and poor budgeting to experiencing a job loss or making a bad investment.  When clients are experiencing financial difficulties or need a large amount of money they often turn to their home as a way to free up some extra money because their home is most likely their most valuable asset.

A second mortgage is a new loan in second position on your property title.  In simple terms it means that you will have two mortgage loans on one property.  If you can no longer afford to make your monthly mortgage payments, the second lender will be paid in second priority if your home is forced into default and needs to be sold at auction. Second mortgages are offered by trust and finance companies, they are not offered by big banks.

The first position bank would be (i.e. your original mortgage loan) would be paid first and if there is money left over after your home is sold your second position lender (i.e. your second mortgage loan) would be paid afterwards.  Depending on how much money is leftover from the sale of the home, the second mortgage lender may not be repaid in full. Therefore in exchange for their added risk trust and finance companies charge higher interest rates on second mortgages than first position banks charge on first position mortgage loans.

Consider your options with a second mortgage

According to Cait Flanders of RateHub.ca, a mortgage rate comparison website that aims to help Canadians access the best mortgage rates in the country, second mortgages are most often used as a solution to help clients consolidate high interest debt; but she says that a second mortgage should be a second option for homeowners.  “Most of the big banks (initially offer) homeowners a home equity line of credit (HELOC) for debt consolidation.”  A HELOC is more advantageous than a second mortgage loan because the interest rates are usually lower and the product offers more flexibility, but if your credit is less than ideal a second mortgage may be your only option.  Flanders confirms that “someone with a lower credit score may not be approved for a HELOC and could then consider a second mortgage loan.”

My best advice to clients considering a second mortgage is to make sure you fully understand the financial implications involved when taking out a second lien on your home because that’s exactly what a second mortgage is.  It’s a completely different mortgage contract than the original loan, with a new mortgage term, a new interest rate and a new amortization.  A second mortgage loan also means a second monthly mortgage payment.

Shop for the best interest rate on your second mortgage

How do you find the best interest rate available? By shopping around and comparing rates between trust and finance companies. Consumers should visit RateHub.ca to find a local mortgage broker in your area who can help compare second mortgage interest rates.

Rate comparison websites such as RateHub.ca exist – to provide Canadians with unbiased mortgage information and financial calculators so they can make informed decisions when it comes to their homes and financial lives.  Flanders hopes that with the help of their website “more Canadians will feel comfortable with the decisions they make regarding their mortgages.”

 

Tahnya Kristina, CFP

Tahnyakristina.com

Photo by camknows

The Mortgage Killer – NPA and the big banks Secrets Revealed

NPA a bargaining chip with big banks that helps a great number of average Canadians in many ways.

By:Jaoquin Benitez – Learn more tips, tricks and techniques that make, save or preserve more of your money.

www.themortgagekiller.ca

Perhaps you will be shocked to find out the banks’ worst kept secret, or perhaps it is something that you already knew, but never recognized as a valuable piece of information.

Lending institutions protect themselves by securing the loan with the property that they are financing. This gives the moneylender some assurance that the property owner will pay back the borrowed money on time as specified in the original mortgage agreement and as long as you keep making your mortgage payments, everybody lives happily ever after.

However, if the homeowner begins to fall behind on mortgage payments, the dream of owning a home could become your worst nightmare, not only for you but also for the lending institution.

What is the secret that the bank does not want you to know? The bank does not want to take away your home! I know it sounds absurd, but by the time you finish reading this article you will be persuaded that it is an accurate statement. Allow me to go a step further; the very last thing that the bank wants to do is foreclose on your property. It will become an extra expense that they don’t need to incur and it will cost them thousands of dollars to take a property through the foreclosure process. Now you may be asking yourself: If that’s true, why are they threatening me with foreclosing my property? What do they really want?

There is a simple answer: the bank collection agent wants to scare you into making up the late mortgage payments, and by doing so, ensure you will continue to make your payments on a regular basis until the end of the term as specified in the mortgage agreement. The threat of foreclosure is the only tool that the bank has at its disposal to persuade you to make the mortgage payments.

Furthermore, once the bank initiates the foreclosure process, the laws regulating the banking industry require them to report that property as a non-performing asset. Doing this will hinder the bank’s capacity to borrow more money and will affect its overall credit rating. The bank must try to avoid having to report a non-performing asset on its books at all cost. In many cases, banks intentionally delay initiating a foreclosure proceeding for up to six months, and sometimes even up to a full year, to avoid reporting the property as a non-performing asset.

The ‘non-performing asset’ problem or the NPA, as it is commonly known in the banking and financial industry, affects the banks in more ways than you and I may care to know. These three simple letters strike terror in the banking sector and business circles. The dreaded NPA rule simply states that: “When interest on a loan or any other monies is due to a bank and it remains unpaid for more than 90 days, the entire bank loan automatically becomes a non-performing asset.” They will go to great lengths to avoid having to report a property as a non-performing asset.

Why would three simple letters, “NPA,” cause such terror to a financial institution?

There are a number of problems that will arise from having too many NPAs on the bank’s books. The biggest problem is that the bank must have a certain amount of dollars in cash reserves. If their levels of non-performing assets become too high, they will have to put more cash into their reserve account to compensate for these non-performing assets. This means they now have less money to lend. In addition, they now have to deal with a house that they don’t want because it will become a money pit. Furthermore, they will not be able to make a profit on it because of the way mortgages are structured.

In their quest to maximize their profits, banks structure mortgages in a way that they are paid the majority of the interest up front or at the beginning of the loan term. This is called a front-loaded mortgage, and most mortgages are structured in the same way. This means that in the early years of your mortgage you have not built much equity in the house because the majority of your mortgage payment was slotted to pay for the interest on the loan.

Often banks find that their asset (your house) is worth less than what they lent out, and once the bank takes ownership of your property, they not only have an administrative and legal nightmare, but they are about to take a financial bath!

Even though I am not a bank advocate, I am certain that if you were in the bank’s situation, you would be forced to do the exact same thing. The bank does not have any other recourse. The only legal recourse available to them is foreclosure in order to try to minimize some of their losses. However, that is their very last option.

Can you see the predicament that lending institutions find themselves in? On the one hand, they are losing money by not receiving your mortgage payment and on the other hand, they can’t really afford to foreclose on you because of the negative consequences this will bring them.

While this is an admittedly simplified explanation of how financial institutions operate, the bottom line is that banks are in the “money buying and selling business.” To put it in clear and simple terms, the bank’s profit is generated by the spread created between the interest rate that they pay you on your money and the interest rates that they charge on the money that they lend out. The bank pockets the difference. For the bank to make any money, it must lend out the funds in its possession, or find some sort of investment vehicle that will guarantee a rate of return greater than its cost of borrowing.

Consider the main motivating factor for a bank to be in business. It is not to provide a service to the general public; they are in business to make money. In a foreclosure case, they will most likely lose money. As the old saying goes, “the best way to make money is to stop losing money.” Having the knowledge of how lending institutions operate is empowering. Since you now know that lenders don’t want to foreclose on your property — and you don’t want them to foreclose on you — you have common ground to work out an agreement that will stop the foreclosure process and satisfy both of your needs. Remember: The bank does not want to foreclose your property.

The Mortgage Killer – Mortgage and Real Estate Seminar Toronto

The Mortgage Killer-Canadian Mortgage and Real Estate Seminar Nov. 13

Media Release: News for “The Mortgage Killer” Mortgage Seminar Toronto Airport Marriott.

November is Financial Literacy Month here is your chance to learn more about mortgages and debt financing from a 40 year veteran that knows more, tells all and shows the dedicated few that want the facts, the proof and the truth about mortgages, financing, interest rates and contracts.

“The average Canadian pays too much interest”.

Charles S. Bell covers the basics and deals with the serious issues of debt reduction and mortgage elimination with tried and true methods that have proved to make, save and preserve millions of hard earned dollars for the average Canadian over the many years working with one client at a time.

Join “The Mortgage Killer” for a one night only in NOVEMBER pre-scheduled Mortgage Seminar at The Toronto Airport Marriott Hotel on Wednesday November 13, 2013 at 7:15 pm.

The small print is put into precise focus and the fuzzy math that most people don’t read or understand is carefully interpreted and explained for the benefit, privilege and advantage of the average Canadian.

There are so many variables and offerings that have can have many complex issues when it comes to money, credit and financial contracts and obligations. Finally it is the person and the circumstance with best case scenarios and forward moving plans that make for a more enjoyable home ownership and balanced life.

An excellent source for an Investment Seminar or Financial Seminar this Real Estate Seminar is brought to you by MONEY at no cost or low-cost as a valuable education worthy course and money saving Mortgage Seminar.

http://www.marriott.com/hotels/maps/travel/yyzot-toronto-airport-marriott-hotel/

Learn more… R.S.V.P. Register online or call to attend!
Wednesday, November 13, 2013 at 7:15 pm
http://www.themortgagekiller.ca/
1-800-789-1011 x227
416-626-8143
info@themortgagekiller.ca