News Archives - Page 18 of 28

The pros and cons of bootstrapping your company

Bootstrapping, or self-funding your company can be a good idea when starting, but it can have its drawbacks as well. It forces you to work within a budget and be more proactive in your marketing strategies. But, you may not be able to hire consultants, increase risk and you’ll likely grow at a slower pace. Depending on what your business is and how much work you are able to do initially, bootstrapping may or may not work for you.

Personal Investor: How does your mobile bank measure up?

A recent evaluation of mobile banking has revealed that the Bank of Nova Scotia takes the top spot, while credit unions still lag behind their larger counterparts. Surprisingly, TD Canada Trust, once a leader in the mobile bank industry has slipped down in rankings to 17th place. The list of the other top 16 banks can be found in the original article. The study ranked banks based on the available services, usability, results and support.

Could your loved ones figure out your finances if you died?

You might gain a great deal by having several investment accounts, but if you were to suddenly pass away, your family might not benefit from your careful investing. While it isn’t a topic we like to consider, it’s important to plan for and ensure that your family can find and make sense of all the accounts you have which make up your estate. One solution may be a new company called Onist that will consolidate and keep all your information for a nominal yearly fee. This may breach some of the agreements you have with your financial institutions, so it’s important to speak to a professional to help advise you on the best approach for you and your situation.

Startup pension option could save small-business owners, workers from worry

Currently, the gap between how much Canadians need to save for retirement vs what they are actually saving is $3 trillion. This number is expected to rise to $15 trillion by 2050. One of the reasons is that 70 percent of Canadian workers (up to 90 percent in the private sector) are working without a pension. Establishing a pension plan is challenging for many businesses both in terms of costs and management, and so a new program by a startup may be the answer. It allows even the smallest companies to outsource pension planning for their employees. All the plans are flexible and can be customized to any employee’s needs. Using services like these may help reverse the ever growing Canadian pension crisis that seems to be getting worse every year.

Canadians Shopping In The US To Pay A New Tax For Going Over Their Spending Limits

Beware frequent border shoppers. Canada is imposing a new surtax on goods purchased in the United States, and brought back into Canada. It is based on how long shoppers were in the U.S., and how much they purchased. This new tax is in addition to the tariffs American president Trump has recently levied. The Canadian government, and trade experts, expect the new fees will discourage cross border shopping and promote renewed interest in Canadians keeping their spending in Canada.

What to know about owning a cottage with friends or family

As vacation property prices rise, co-ownership of vacation properties is becoming more common. Before purchasing a property, you should have a valid legal agreement drawn up regardless of whether you are entering into the deal with family members or friends. The agreement should cover areas like transferring the property, exit strategies, dividing time spent at the property, and the decision-making process to name a few.

Highest, lowest real estate transfer taxes across Canada (INFOGRAPHIC)

A recent study outlines the cost of land transfer tax (LTT) across Canada for first-time home buyers and repeat buyers. When purchasing a home, LTT is a tax paid upon closing, which cannot be mortgaged. Out of all the cities in Canada, Vancouver, Toronto and Victoria rank as the top three with the highest total LTT sums paid. Calgary ranked 22nd with 0.1% LLT as a percentage of home price.

Personal Investor: Bank of Canada keeps savers on the sidelines

Although the Bank of Canada just upped the interest rate to 1.5%, a nod to the stabilizing and steady-moving Canadian economic outlook, it is still lower than the inflation rate, which remains at 2.2. Because the gap remains, savers should consider their investments carefully. As the economy slowly gets stronger, it is expected that rates will go even higher. To that end, it’s important for savers to keep investments in short-term investments as the gap between short and long-term yields continues to flatten, and be ready to move when higher rates finally come.

How the banks persuaded Canadians to pay off their debts

Canadians responded to rising interest rates on line of credit and loan products by paying down loans. According to the latest stats, the ratio of household debt to net income fell to a two-year low of 168 percent in the first quarter of 2018. These payments appear to have slowed down, but further reduction of debt should not be ignored as rates will likely rise again in July. Instead of putting your money into investment and saving products that offer small interest rates, experts argue paying off debt is the smarter option.

Everything you need to know about paying taxes by instalments, and why ignoring the CRA’s reminders is a bad idea

Not everyone is required to pay their taxes in quarterly installments, but if you do then the June 15th payment deadline is important. If you have to pay quarterly payments, there are several ways to calculate what you owe. This year, the CRA is notifying certain taxpayers through automated telephone messages, so if you hung up on them (thinking it was a spam), then you’ll want to follow up with CRA and make a payment ASAP. It is a mistake to ignore your installation payments. Failure to pay installments on time can result in arrears interest and may also result in penalties.