Many first-time home buyers have cooled off and ceased their house hunting searches as the market levels off with interest rates still climbing. Home prices have still not dropped down as low as some buyers were hoping for; and as we sit poised for another year, it is now anyone’s guess what will happen. Many economists say the interest rates will climb even higher especially with the Canadian prime rate inching it’s way closer to 7%. But there are also those, like myself, who approved mortgages for clients in the early 90’s with rates at 10.75% and 11.50% who believe today’s market is a totally different economic environment. The Bank of Canada will increase the prime rate to slow down inflation which economists believe will decline by this year’s third quarter. Most of the current run-up in inflation now is still due to supply-chain constraints and is not believed [...]
Dear Money Lady, I am in my 70’s and remember when rates were 18%. I wondered if you think we are headed for a recession in 2023?
To answer you honestly – I’m not sure. Let me tell you why. Currently no one knows for sure where inflation is headed or whether it will continue to be volatile. The three-month trend is averaging 5.8% so there is no denying that it is a force to be reckoned with in 2023. Basically, economists and analysts, have very little experience with true inflation other than what we witnessed in the late 70’s and early 80’s, when you witnessed interest rates at 18%. I will agree, that Canadians should indeed brace themselves for continued instabilities in the markets for the beginning of next year; but it seems hard to predict which way inflation, rates and the financial markets will go in the latter part of 2023. There are many bullish and persuasive commentators that took the CPI results, (Consumer Price Index) as a positive sign that we had reached [...]
Dear Money Lady – I have not topped up my TFSA, should I do it now in December or wait until January?
Great question! – I think a lot of people are wondering this too. I don’t believe in timing the stock market; however, December and January have specific attributes that the other months of the year just don’t have. So, let’s talk about that. For those of you that regularly invest in the equity markets, you may have noticed that your portfolio always takes a bit of a hit at the end of November. This is due to the month-end pension fund portfolio rebalancing done by large mutual fund companies and institutional managed accounts. Typically, markets are always headed into a bit of a soft patch towards the Christmas season, and we should expect a slight pullback. Often viewed by advisors as the “sweet-month,” this is usually a good time to put money into the market to continue to build a higher return anticipated to come in the new year. [...]
I have 3 radio shows that play across Canada with over 14 million listeners and my broadcasting partners sell ad space on my shows. Recently, with the economic changes I have seen many sponsors leave their advertising campaigns, recoiling and reining in expenditures, to hunker down for an economic pullback. This is surprising to me every time it happens – and I have witnessed it many times in different markets. Everyone has lots of bravado and motivation when the going is easy, but when it gets harder, they cave, fold, and complain about “hard times.” So, let’s look at how to increase your business presence, expand your brand and grow in a market that some say is on the cusp of a recession. What should you do? Should you not advertise at all to save money – or should you advertise now because no one else is, and it [...]
Hustle culture is something my demographic, (ages 45 to 55) and our parents have been used to all our lives. Living by the motto that you can’t be successful unless you “work really hard, show up every day ready to overcome any obstacle, with a no-limits attitude, and of course, programmed for greatness.” We quickly passed judgment on anyone who didn’t seem to be working hard, and everything in our lives had to become second to our all-mighty career. Sound familiar? There are tonnes of books out there pushing the hustle culture. Suggesting you should create your own “vision board;” telling you to not limit yourself, and this one I love: “never settle for less than what you truly deserve.” While I agree that we all should be passionate about what we are doing in life, and yes, you should try to always better your situation; I no [...]
We all have different financial goals and different routes and timescales for getting there. For example, you might want to get out of debt for good and stop having to meet expensive interest payments. You may want to consolidate your debt or find a more structured debt repayment plan to free yourself from serious debts for good and start again. You might want to see a financial adviser to help you save for your first house or put aside savings to fund your kids' college tuition when they grow up. It might be time to start saving for your retirement - it's never too early! - or you might be interested in looking at tax-efficient investments that will allow you to maximize your asset growth or income in a tax-efficient way. Perhaps you are hoping to get better control over your budget and create a plan that will help [...]
We all want to enjoy better financial security for ourselves and our families. After all, a lack of financial security often means that we are constantly worried about how we are going to pay the next bill that comes up or how we are going to cover any unexpected costs. This is one of the reasons that so many people choose to use the services of a personal financial advisor. Financial stress leads to mental health challenges such as anxiety and stress. Financial worries or insecurity mean that you can never fully relax or make spontaneous decisions about how to live your life. You may also find that you are constantly struggling to get out of debt or meet escalating payments - working ever longer hours yet never getting any further ahead. When you work with a personal financial advisor to enjoy financial security, you enjoy benefits such as: [...]
Behind every successful person, there is usually a coach of some kind, whether it's in the field of sport, business or finance. In fact, it's puzzling that many people haven't yet considered using the services of a financial advisor or coach, especially given how hard we work to earn our money and want to make the most of it! What a finance coach does? As with any good coach, your financial mentor will be there to provide practical and straightforward advice about finance and the ways in which you manage your money. The important thing to understand, is that this bespoke advice will be tailored to your individual needs and objectives. For example, you may be struggling with debt, so your finance coach would help you create a strategy that allows you to organize your finances and escape debt permanently. You could be wondering how you could ever afford [...]
There are plenty of times during your life when it makes good sense to review your finances and future financial planning. But unless you really know what you're doing, it can be a challenging, daunting and sometimes expensive effort - if you get things wrong! With that in mind, here are five reasons why you should consider financial planning and advice from a professional financial services advisor. Financial planning and advice from an expert Personal finance can be complex, and mistakes are expensive. By using the services of a professional, you can enjoy a more positive, less expensive outcome and maximize your returns. Whether you are planning for your retirement or remortgaging, the right financial advisor can find you a better deal. Advisors offer clear and straightforward advice without bias, so you can make confident decisions about your money and meet your goals - whether you are saving for [...]
Good financial advice is essential for money-related decisions that we make in our lives, from saving up for college to investing in a pension. One of the greatest investments many of us make in our lives, is the purchase of a home, so should be considered carefully. The decision to buy your home For most of us, the decision to buy our first property - or any subsequent property - is tied up in more than just simple financials. After all, a bricks-and-mortar investment represents security, as well as a potentially smart investment. It's a place where you can stamp your mark, raise a family, and provides you with a source of security and a chance to avoid the rental trap. Often, with the right mortgage in place, your own home can also work out to be cheaper than a rental equivalent, even with the costs of maintenance involved. [...]