Women & Wealth ® BLOG

Welcome to my mini BLOG page. This is where I post interesting information or my personal thoughts on wealth management, investment topics and women & wealth issues. 

• Fixed-rate mortgages are trending upwards
• Among those looking to buy a home in 2013, four-in-ten (40%) will be first-time homebuyers
• Less than 1/2 of Canadian homeowners take advantage of options that allow them to shave years off their mortgage and save on interest costs

RBC marks Earth Day with a new commitment to tackle climate change. The company pledges to reduce greenhouse gas emissions by 20%.  

• Hudson's Bay Company (HBC) is going public with an IPO this month.
• Sears launched a rebranding campaign today. Their slogan: "Make Every Day a Great Day".
• Target is coming to Canada - expect most stores to open Spring / Summer 2013.

• Canada ranks 21 overall (out of 135 countries)
• In economic participation and opportunity Canada ranks 12^th
• On educational attainment, Canada ranks 70th
• On health and survival Canada ranks 52nd
• On political empowerment it ranks 38^th

• NEVER leave a mobile device unattended in a public place. Thieves look for any unguarded moment, to relieve you of your belongings.
• Keep your mobile devices with you. If it’s necessary to leave a mobile device, or even a briefcase, unattended in your car for a short period of time:
  1. lock these in the trunk, so they won't be visible to passersby
  2. transfer mobile devices to your trunk when you get into your car, not at your destination, in case someone is watching 
• Remember to use the passphrase or password lock feature on all your mobile devices to protect your information and your friends' information too.
• Keep the amount of confidential information stored on your laptop or other mobile device to the minimum needed to do your job

Jayna Hefford, Hockey Gold Medalist, will be on hand with her Olympic medals, signing autographs, giving out Play Hockey water mugs and hockey pucks. Free hot chocolate too!

September 25, 2012

A new report has found that 2/3 of middle class earners acknowledge having made financial mistakes—with the average cost being $23,000—and points to the urgent need for advisors to help them.

 

How about you? Have you made a serious financial mistake? Do you need advice on how to recover from it? If you answered YES, than please contact me. I can help you get back on track.

 

September 14, 2012

Wayne Gretzky wasn't the biggest, fastest or the strongest hockey player. So what made him the Great One? He focused his attention not on where the puck was, but on where the puck was going to be. Your investments should be positioned the same way. Don't buy the "stock-of-the-day". Buy the investments that will position you for great opportunities in a few months time. Chasing hot stocks is like chasing a puck. You are more likely to get a penalty than a goal.

 

September 5, 2012

The ABC's that every university student needs to know about financial planning:

 

“A” — Always stick to a budget. 

“B” — Be disciplined around debt.

“C” — Consider all your financial options for funding your education.

 

"C" can also be - Check your cell phone plan to make sure it fits your lifestyle.

 

August 20, 2012

Once again, our Canadian banks make the list of World's 50 Safest Banks 2012. Here is how they rank:

 

11th - TD Bank

12th - Bank of Nova Scotia

17th - Royal Bank

25th - Bank of Montreal

26th - CIBC

38th - National Bank 

 

July 27, 2012

Today is the start of the 2012 Summer Olympic Games. This year, Olympians at the top of the podium will take home the most valuable gold medal, given gold's current value is roughly $1610 per ounce.

"Go For Gold" Canada!

 

 

July 23, 2012

I just found out that there are mutual funds that invest only in companies that are owned by women, led by women, or women friendly. These investment products are not available in Canada, but the idea of Gender Based Investing is an interesting one. http://dailyworth.com/posts/1371-Put-your-money-where-the-women-are

 

July 20, 2012

Advised households have 4.2 times greater financial assets than non-advised households. Yes, advisors create value by increasing returns and minimizing taxes...but the main reason seems to be that advisors encourage the habit of regular saving. So go ahead and get advice; it's worth it!

(Source: 2011 IFIC Value of Advice Report)

 

July 18, 2012

Interesting bank facts:

• Royal Bank is Canada's largest bank
• Bank of Montreal is Canada's first bank (opened in 1817). It carries the official institution number 001.
• TD Bank has more branches in the USA than in Canada
• Scotiabank has more employees who speak Spanish as their mother tongue than English
• The Bank of Canada was born in 1935 and became a Crown corporation in 1938
• Canada has 23 Schedule 1 banks, but most of the smaller ones serve niche markets. The big 6 have a monopoly hold on consumers

June 21, 2012

 

Finance Minister Jim Flaherty is changing mortgage rules to make it harder for people with limited means to buy homes or borrow on ones they already have. Today's announcement marks the fourth time Ottawa has tightened mortgage rules since 2008.

The maximum term of insured mortgages will be cut to 25 years from the current 30 years. The changes will also limit refinancing loans to 80% of the value of a home, from the current 85%.

With Canadian households reaching a record debt level of 152% of income, this change comes as no surprise. The new measures are also aimed at cooling the condo market in places such as Toronto, Vancouver and Montreal.

 

The changes will hit only a small number of people; less than 5% of new home purchasers, according to Flaherty.

 

June 7, 2012

The Royal Bank logo of "Leo the Lion" holding a globe is now 50 years old! Check out the evolution below: 

 

 

June 1, 2012

Attn: Ontario residents earning $500,000 +

The top tax rate is increasing from 46.1% to 49.53%. Click here to find out more about Ontario's Wealth Tax.

 

May 18, 2012

 

Today's date will be known as the day Facebook Inc (NASDAQ:FB) went public!

Lots of hype, lots of trading, lots of new billionaires created.

 

So what happens now that Facebook is worth more than RBC (Canada's largest bank)? As Golden Girl Finance says: "Analysts are divided as to whether FB can deliver on its celebrity stock status over the long term, or if investors will eventually need to quietly un-friend them…"

 

April 26, 2012

Women are the new face of business. Did you know: Every 60 Seconds, a Woman Starts Her Own Business!

Nominate an extroardinary woman today for the RBC Women Entrepreneur Awards.

 

April 17, 2012

The Bank of Canada left interest rates untouched again, but it warns that rate hikes are coming. Economic momentum in Canada is slightly firmer and the Bank expects economic growth of 2.4% this year, which is well above their January forecast of 2%. Business and household confidence are also improving. The next policy meeting is set for June 5th.

 

What this means to you: If you have any variable debt - either a mortgage or a line of credit - you may want to make extra payments to bring down the balance before interest rates rise. 

 

April 16, 2012

It's Not a Purse...it's an Investment. Calculate your ROI (Return on Investment) for every purchase you are contemplating. What is the Cost Per Use of each item? Calculate before your buy. This applies to purses, shoes, cars, gym memberships, etc. http://dailyworth.com/posts/1215-It-s-Not-a-Purse-It-s-an-Investment-

 

March 29, 2012

The good and bad of the 2012 Federal Budget:

 

L Born after March 1958? You will have to wait longer before collecting Old Age Security. 

 

J    For parents of disabled children: the RDSP (Registered Disability Savings Plan) changes are positive.

  

J Cross-border shoppers will like the increased exemptions. (Let's hope our C$ stays high vs the U$.)

 

 

March 21, 2012

RBC launched the first interactive iPad app that teaches kids about money!!!!! You can check it out and dowload it here: http://www.rbcroyalbank.com/learning-money-with-leo/index.html

 

March 8, 2012

In honour of International Women's Day (which is today), RBC donated $375,000 to Canadian Women's Foundation!

Also, the following challenge is issued to corporate Canada: Name more women as directors to boards, says RBC CEO Gord Nixon

 

February 29, 2012

The RRSP turn 55 years old! It was introduced in 1957 to encourage Canadians to save for their retirement. 

 

Many Baby Boomers are also turning 55 and looking forward to retirement. Sadly, many of them have underfunded their RRSPs and may find that freedom 65 turns into freedom 75.

 

According to a recent RBC report, RRSP contribution have been on a steady decline since 1997, when it peaked at 5% of income. Today, Canadians are contributing less than 3% of their income towards RRSPs. Some possible explanations: Canadians are saving elsewhere (TFSAs, or Real Estate), maybe poor stock market performance is deterring them, or they may simply be strapped for cash as the cost of living has been increasing (especially housing). Either way, the statistics don't look good.

 

Reminder: This is the last day to top up your 2011 RRSP contributions!

 

 

February 23, 2012

Canadian men and women are on different planets when it comes to saving and investing. Click here for the "RRSPs are from Mars, TFSAs are from Venus" gender gaps.  

S&P =  flat

DJIA = + 5.5% (U$)

Nasdaq = -1.8% (U$)

Russell 2000 = - 5.5% (U$)

MSCI Emerging Mkts = - 20.4%

MSCI World = - 7.6%

	Zombie Stocks These are shares that have been left for dead, but they aren't dead yet. Exact definitions vary, but they're often described as shares of insolvent companies that are near or in bankruptcy. Take, for example, the creepy penny-stock (BLIAQ) that was once Blockbuster (and is now BB Liquidating Inc.). Recently trading around two cents per share, these emaciated shares have continued to roam some investment portfolios.
	Quadruple Witching Beware the third Friday of March, June, September and December. On these days, four different types of tricky investments (stock options, stock index options, single stock futures and stock index futures) expire—a situation known as “Quadruple Witching.” The phrase originates from the three famed witches in William Shakespeare's “Macbeth.” And until 2002, there were just three of these types of investments expiring—hence the old name of “Triple Witching.” These witches are feared for the increased volatility they can cause. That's given these days another spooky nickname: Freaky Fridays.
	The Misery Index Add together the unemployment rate and the inflation rate, and you get the Misery Index. Recently, the Misery Index hit a 28-year high. Scary.

•  In 2010, more than 500,000 Canadians are living with dementia.
• Of these, approximately 71,000 are under the age of 65.
• 1 in 11 Canadians over 65 has dementia.
• Women account for 72 per cent of all Alzheimer cases, and 62 per cent of all dementia cases.
• Within a generation, the numbers of Canadians living with dementia will more than double to 1.1 million.

 

1. Having money is better than not having money.
2. Don't become "Cash Rich," and "Time Poor."
3. Memories are better than material objects.
4. Watch your lifestyle leverage, especially early in your career.
5. Having goals is incredibly important.
6. You must live in the here and now.
7. It helps to be incredibly lucky.

Check out Team RBC: http://www.rbc.com/sponsorship/golf/team-rbc.html

1. Do nothing. By not doing your estate planning, you could end up like Jimi Hendrix and have someone that you barely knew controlling your legacy...after a lengthy and expensive court fight almost 30 years after he died.
2. Do it yourself. Former Supreme Court Justice Warren Burger created his own will consisting of 176 words; but he left out key provisions and his family paid the price.
3. Don't update. Heath Ledger never updated his will with the birth of his daughter, leading to chaos and family members fighting through the press.
4. Take shortcuts. Princess Di used a "letter of wishes" to leave personal effects to her godchildren instead of specifying her wishes in a will or trust.
5. Forgetting to tell your loved ones where your estate planning documents are located. Olympian Flo Jo's original will couldn't be located and her probate estate took over 4 years to close.
6. Failing to finish what you start. Michael Jackson created a trust, but never fully funded it, defeating a primary purpose of having a trust. This made it much easier for his family to fight in probate court ... and made the feud public.
7. Making verbal promises. Marlon Brando's housekeeper alleged that he made oral promises of a home and continued employment to her, which led to two separate lawsuits after Brando's death.
8. Procrastinating. Sonny Bono passed away at the age of 62 without even a simple will in place. This lead to many complications, including a secret love child who surfaced and wanted a piece of Bono's estate.
9. Leaving your intent unclear. Whitney Houston's father named Whitney as a beneficiary on a large life insurance policy, but it was unclear if he wanted Whitney to keep the money or to repay money owed by Whitney´s step-mother.This confusion led to a two-year court battle which is still ongoing!
10. Choosing an untrustworthy executor or trustee. Tobacco and energy heiress Doris Duke (renowned for her gardens) chose an unsavory trustee - her butler - to manager her $1 billion foundation. When he used assets for himself, it lead to an expensive fight in court that dearly cost the charities Duke wanted to benefit.