Trusted Tips and Resources

Trusted Tips & Resources

Trusted Regina Financial Advisors at Worby Wealth Management Discuss Credit Ratings

Chris Worby and Jeremiah Worby are Trusted Regina based financial advisors and Wealth Management services providers servicing local Regina households and businesses. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners. Worby Wealth Management listens and provides a personalized financial plan.


Credit Ratings

by Jeremiah Worby

We’ve all heard the stories from someone we know (though we may or may not like that person) about having been a victim of some form of identity theft.  Identity theft can drastically affect your credit rating, and your credit rating affects almost everything in your financial world.


Whether you’re looking to apply for a credit card, take out or renew a mortgage, get a car loan, or want to borrow a million dollars from that loan shark down the street, your credit rating will greatly impact the interest rate which you might receive for such loans.



There are two major players in the credit rating world of Canada – those being Equifax and TransUnion.  You can, and we suggest you do, go to both these websites and sign-up for their free service to check your credit scores.



Equifax

Directly from their website, Equifax states:
“We are a global data, analytics, and technology company. We believe knowledge drives progress. Our unique data assets, technology and analytics transform knowledge into insights to power decisions that move people forward.”

Here’s a wonderful and short read [they claim it’s 2 minutes but I think it’s way more like 3 minutes :)] from Equifax about what impacts your credit score.

https://www.consumer.equifax.ca/personal/education/credit-score/what-impacts-credit-score/



TransUnion

Directly from their website, TransUnion states:

Our mission is to help people everywhere access the opportunities that lead to a higher quality of life. By helping organizations optimize their risk-based decisions and enabling consumers to understand and manage their personal information, we empower both to take their destinies into their own hands.”

Here’s a true 2 minute read from TransUnion about 5 factors that affect your credit score.

https://www.transunion.ca/what-affect-credit-score?



Find Out More

Whether you’re 20 years old or 50 years old, credit ratings are of utmost importance. Contact Worby Wealth Management to help fix your credit score and set you on the path to success!


Some of the services that Worby Wealth Management can help you with: 

TRUSTED REGINA FINANCIAL ADVISOR Chris Worby from Worby Wealth Management helps you live your dream!


The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This Blog was written, designed and produced by Jeremiah Worby and Chris Worby for the benefit of Jeremiah Worby and Chris Worby who are Financial Advisors at Worby Wealth Management, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.

Trusted Regina Financial Advisors at Worby Wealth Management Share Expense Considerations After Retirement

Chris Worby and Jeremiah Worby are Trusted Regina based financial advisors and Wealth Management services providers servicing local Regina households and businesses. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners. Worby Wealth Management listens and provides a personalized financial plan.


Retirement Considerations

by Jeremiah Worby

One of the biggest financial questions on everyone’s mind is whether or not they will have enough money to retire. Not only do savings and investments need to be taken into the equation, income and expenses also need in-depth analysis.


Expenses


Will my daily coffees increase in price? Although I’m poking fun, inflation is a serious concern. Everyone’s expenses will clearly vary from one person to another, but some other considerations need to be taken into account, such as:


  • Will I be able to find work if needed?

    • If income falls short, will a new source of income be required?

  • Am I financially dependent on someone else?

    • Or is someone else financially dependent on me?

  • Do I plan on living in the same city upon retirement?

    • Costs of living can vary greatly from one city to the next

  • Have I taken into account inflation?

    • Will my entertainment and hobby expenses increase during my retirement years?

  • What if interest rates rise?

    • Will I be able to afford my home if rates rise?

  • Do I plan on living in the same home upon retirement?

    • Will I downsize?  

    • Is condo living a consideration due to limited mobility (that could mean increased expenses due to HOA fees)?

  • Do I have or need insurance?

    • What if something unexpected happens during retirement?

  • Do I have a will, power of attorney, health care directive in place?

    • Making sure all angles are considered and taken care of in your retirement years can help you live without unneeded stress


Find out more

Whether you’re 30 years away or just a few months from retirement, proper retirement planning is essential. Contact Worby Wealth Management to start planning your retirement today.


Some of the services that Worby Wealth Management can help you with: 

TRUSTED REGINA FINANCIAL ADVISOR Chris Worby from Worby Wealth Management helps you live your dream!


The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This Blog was written, designed and produced by Jeremiah Worby and Chris Worby for the benefit of Jeremiah Worby and Chris Worby who are Financial Advisors at Worby Wealth Management, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.

Ready To Retire? Trusted Regina Financial Advisors at Worby Wealth Management Share Their Advice

Finding the shortest and safest route to any of your dreams requires planning and only with a carefully thought out financial plan can you be sure to make the most of your resources and to protect against risks along the way.  At Worby Wealth Management, Chris & Jeremiah Worby will do their best to help you achieve those dreams with a plan that is tailored to your specific needs and based on your individual situation.

Let Trusted Regina Financial Advisors Chris & Jeremiah Worby of Worby Wealth Management help you live your dream!

Expert Financial Advice Regarding Retirement.



Retirement Considerations


One of the biggest financial questions on everyone’s mind is whether or not they will have enough money to retire?  Not only do savings and investments need to be taken into the equation, income and expenses also need in-depth analysis.

 

Income*

 
Old Age Security (OAS)


The OAS pension is a monthly pension payment payable to eligible individuals.  OAS pension benefits are considered taxable income. To be eligible for full payment, you must:

• be 65 or older

• be a Canadian citizen or legal resident of Canada at the time of application approval

OR

• if you no longer live in Canada (a non-resident), you were a Canadian citizen or legal resident of Canada on the day preceding the day of departure from Canada

• have lived in Canada for a minimum of 10 years (or 20 years for non-residents) after reaching age 18

Individuals who have lived in Canada for 40 years after the age of 18 are eligible for 100% of the OAS pension benefit.

 

 

Canada Pension Plan (CPP)


CPP program benefits, except for the death benefit, are indexed annually for increases in the cost of living.  In order to receive CPP program benefits, eligible individuals must apply.  Benefits are not automatically paid once someone reaches the age of eligibility.  Applications are accepted via two methods; online through the My Service Canada Account, or via paper forms mailed to the applicable Provincial CPP office.

You can start receiving CPP as early as age 60 (at a reduced rate) and as late as age 70 (at an increased rate).  The maximum CPP payment in 2022 is $1,253.59 a month.

 

Tax Free Savings Account (TFSA)

The tax-free savings account (TFSA) provides a way to earn investment income tax-free.  Whereas other registered accounts allow the deferral of tax on income earned within the plan; the TFSA is unique in that any investment income earned within the plan is tax-free when it is withdrawn.  In order to open a TFSA account, you must have reached the age of majority, defined as age 18 or 19, for the province or territory in which you live.  The types of investments permitted in a TFSA include cash, mutual funds, securities listed on a designated stock exchange, guaranteed investment certificates (GICs), bonds, and certain shares of small business corporations.

The annual TFSA dollar limit was established at $5,000 in 2009, the year that TFSAs were introduced as a registered account.  Any unused amounts are carried forward to future years.  The $6,000 contribution room for 2022 means the lifetime contribution limit is now $81,500.

 

Registered Retirement Savings Plan (RRSP)


A registered retirement savings plan (RRSP) is a type of registered savings plan set up underthe Income Tax Act and registered with the Canada Revenue Agency.  An RRSP is not an investment; you cannot buy an RRSP. Instead, an RRSP is a registered investment vehicle within which investors can deposit various types of investments.  In order to contribute to anRRSP, an individual must have earned income.

The growth of money invested inside an RRSP is not subject to tax until it is withdrawn.  In other words, the tax payable on investment growth is deferred until the future.  Since income earned inside an RRSP is tax-sheltered, RRSP investments grow much faster than non-registered investments held outside an RRSP.


Find out more

Whether you’re 30 years away or just a few months from retirement, proper retirement planning is essential. Contact Worby Wealth Management to start planning your retirement today.

 

*Source: Canadian Investment Funds Course




Some of the services that Worby Wealth Management can help you with: 

TRUSTED REGINA FINANCIAL ADVISOR Chris Worby from Worby Wealth Management helps you live your dream!



Trusted Regina Financial Advisor Chris Worby talks about Household Finances and the 25 % rule.

Finding the shortest and safest route to any of your dreams requires planning and only with a carefully thought out financial plan can you be sure to make the most of your resources and to protect against risks along the way.  At Worby Wealth Management, Chris will do his best to help you achieve those dreams with a plan that is tailored to your specific needs and based on your individual situation.

Let Trusted Regina Financial Advisor Chris Worby of Worby Wealth Management help you live your dream!

Expert Financial Advice Regarding Household Finances.


The truth is that financial management is boring. I mean, it sounds interesting when you watch movies and they’re yelling, “Buy, Buy! Sell, sell!” But this behaviour does not make you rich – in fact, it can have the opposite effect.

Smart people understand one thing – tactics do not win the battle, logistics do. And one of my best pieces of advice is the 25% rule.

It essentially breaks down like this: If you want to attain financial security contribute 25% of your net monthly income towards your net worth. It is very important that financial security has very little to do with being ‘rich’ but everything to do with having the resources available to have options throughout your life.

Net worth is composed of two things: Assets and Liabilities. I think of liabilities as the hole requiring filling and think of the assets, as the mountain you build with your resources.

A few notes about each. Paying down credit cards does not fit into the asset/liability described above. Credit cards are consumption. If you have already made errors and are carrying balances, then you need a plan to pay them down and it can be worked into a liability repayment plan. However, further credit card debt becomes consumption rather than a liability.

Big expenses – trips, renovations, etc. should be paid for with funds that have been saved in advance; they should not be financed. The reasons are many. First, once you start down the ‘financing fun’ road, it can be hard to maintain discipline. Second, a trip paid for and fully funded is less stressful. Third, something you pay for as you go tends to be better planned out and fits your budget – and studies show that planning your spending is almost as fun as the actual spending.


Building assets is then the ‘exciting’ part, right? “Buy, buy, sell, sell” and all that. Actually, it is very hard to get rich quickly and fairly easy to get rich slowly. Using pension plans and RRSP, TFSAs and RESPs to accomplish your family’s plans can be done well over time but the ‘get rich quick' schemes rarely work out.

Find a strategy you are comfortable with and run it as a discipline. If you are going to buy and hold, never deviate. If you are going to move with certain market cycles like a momentum system, or act as a value manager, do this and never change it. Make sure you do your homework upfront to get a working system and then never change. Mistakes in investing come from emotion.

But none of that happens without a strategy – and the spending strategy that works best is using 25% of your net, monthly income to build your net worth. Not only do you have funds available to build assets and pay down liabilities but you also create a buffer in case something bad happens. You aren’t living at capacity with your finances, you have options.

And that is financial security.


Some of the services that Worby Wealth Management can help you with: 

TRUSTED REGINA FINANCIAL ADVISOR Chris Worby from Worby Wealth Management helps you live your dream!



Trusted Regina financial professionals tip on marriage finances

 Trusted Regina’s Financial experts tip on 50/50 finance in a marriage:

Can 50/50 finances work in a marriage?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bills can be a headache at the best of times. Figuring out who pays for what in a relationship can be complicated enough to trigger a migraine.

Should you split bills evenly in your marriage or partnership? What if one person makes substantially more? Should it be based on a percentage of income instead?

A 50/50 split is one way to go, but it seems fraught with problems.

“Fifty/fifty isn’t usually sustainable as incomes differ, and over a lifetime one partner usually takes time off to raise children, care for elderly relatives, or may be on sick leave for a period,”. “Fifty/fifty is a roommate, not a marriage.”

Fee-only financial planner Marie Engen of Boomer & Echo agrees that splitting expenses down the middle has the potential for unhappily-ever-after.

“This may work if both salaries are somewhat equal, but if there’s a considerable difference the lower-income partner is eventually going to resent it,” Engen says.

Ron Graham, president of fee-only financial-planning firm Ron Graham and Associates Ltd., has seen the ways a 50/50 split can work out for the worst.

“I have some clients with vastly different incomes who keep their finances separate,” Graham says. “They discuss and agree to which expenses they will pay jointly and each put an equal amount into the pot to pay those joint expenses. The balance of their incomes is then available to be spent according to each partner’s wishes. This is where sometimes conflicts arise. One person has money to go on vacation, and the other cannot afford it. I have seen some couples take separate vacations as a result. Sometimes these relationships do not last.”

 

 

A better plan

So what are alternatives? Some couples decide on another breakdown, say 60/40. Some have an informal agreement where one covers the mortgage and the car, and the other takes care of things like food and kids’ clothing. Others have the higher-paid partner pay the bills while the lower income-earner’s wages go straight to investments.

Pooling resources appears to be the most effective means to a marriage not marred by money woes.

“I have seen most harmony from a joint account all income goes into,” Waite says. “From this, pay fixed expenses … Figure out what you afford as an allowance for each person and open individual bank accounts. That way, the lower-income earner isn’t overstretched paying a high percentage of income towards fixed costs, and you each have some personal money you can spend without feeling guilty.

“Save for joint goals out of the joint income so no one feels the mountain is insurmountable alone,” she adds.

Graham says that putting money into a joint account, with each person having an equal amount of spending money, works well, especially when there’s a large discrepancy in incomes.

“If you go into a relationship thinking that your money belongs to you, this can lead to conflict and potentially separation,” he says. “My suggestion for newlyweds is to pool their resources to pay for the family expenses, put aside savings for future goals, and pay five to 10 per cent of the total to each partner to spend as they wish.

“This way, each partner gets to spend the same amount on what they want,” he says. “The family expenses are covered, and they are putting aside funds for future goals like buying a house, new vehicle, kids’ education retirement, et cetera.”

Engen is onboard with the idea of shared money too.

“I believe that in a committed relationship, income should be pooled,” she says. “Couples should determine together what is required and budget for regular expenses and short- to medium-term savings for large purchases and Registered Education Savings Plan (RESPs). Longer term Registered Retirement Savings Plans (RRSP) investments would depend on variables such as the availability and type of company pension plans. Each partner should have an amount for their own discretionary spending, no questions asked.”

 

 

Often one person has more of an interest in financial matters than the other, Engen notes, from paying bills to investing. “The other partner should be involved in discussing goals and strategies and at least have basic knowledge of assets owned,” she says.

To avoid future disagreements, Waite suggests handling joint expenses systematically.

“It’s really important to write down what you agree [to],” Waite says. “Email it to each other, use a spreadsheet saved in a joint Dropbox or OneDrive, or write it in a notebook so there are no arguments later.

“Set up automatic transfers,” she adds. “Use phone apps and tools like Mint and FreshBooks …to track progress.”

 

 

 Trusted Regina’s Finance Experts -give them a call to see how they can work for you!

 


 

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