Trusted Tips and Resources

Trusted Tips & Resources

Trusted Regina Financial Advisors at Worby Wealth Management Explain Inflation

Chris Worby is a Trusted Regina based financial advisor and Wealth Management services provider. 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 in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, they share details about inflation.

Inflation

By Jeremiah Worby - April 2023

Inflation is when you inflate your tires with air.  Inflation is also an economic term that refers to the increase in the price of goods over time. The latter will be the focus of this article.  This increase in prices can be caused by a variety of factors, including supply and demand as well as changes in interest rates or government policy.  Inflation can make it difficult for people to plan their finances effectively because they have less purchasing power with each paycheck. 

Break it down for me

Inflation is measured using the consumer price index (CPI).  CPI is a measure of the changes in the cost of living for consumers, including food, housing, transportation, healthcare and entertainment. The CPI measures price changes for all urban consumers by calculating average expenditures for each category.


Supply and Demand

The main factors that cause inflation are supply and demand.

Supply and demand are how much of a good or service is available, and how much people want to buy at any given time.  In economics, there is only so much money in circulation (the supply).  People will spend their money on goods and services, which creates an increased demand for those goods and services – and therefore an increased price for them.


Hard to Predict

Will Tom Brady be inducted into the Hall of Fame?  Some things are easy to predict.  Inflation is not one of them as it has a big impact on the economy.  When inflation rises, it's usually because the quantity of money has increased faster than the goods and services available for purchase.  In other words, there is more money available than there are goods and services in circulation.  As a result, companies may raise their prices in order to maintain profit margins or simply keep up with rising costs associated with production.

However, if companies raise their prices too much without enough corresponding demand for their goods and services – or not enough supply of them – then inflation will decrease as people will buy less from those companies or stop buying altogether for fear that prices will continue to increase over time.  The result is often called “stagflation” (a combination of "stagnant" economic growth coupled with inflation).

Inflation can also cause decreases in employment or increases in commodity costs such as food or fuel.  This can lead consumers' purchasing power down while putting pressure on businesses' profits by reducing demand for products thus increasing unemployment across sectors.  For example: If consumers spend less time driving to go shopping due to rising gas prices, then fewer products will be sold at grocery stores or department stores which would decrease profits.


Conclusion

Inflation is a complex topic, and this article only scratches the surface (it will not scratch that impossible to reach spot on your back).  It’s important to understand how inflation impacts your personal finances, but it also affects businesses and governments as well.  Inflation can be hard to predict and can have a big impact on the economy.  The two main factors behind inflation are supply and demand.  Inflation is generally caused by an economy growing too quickly and demand for goods outstripping supply.


Questions regarding inflation? 

If you have questions about inflation or what you can do to fight against it, then contact Worby Wealth Management to get your questions answered and start investing today.

 

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


TRUSTED REGINA FINANCIAL ADVISORs Chris & Jeremiah Worby from Worby Wealth Management help 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 Explain Bonds

Chris Worby is a Trusted Regina based financial advisor and Wealth Management services provider. 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 in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, they discuss bonds.  

The Wealth Building Toolkit: Bonds

By Jeremiah Worby - March 2023

Bonds are a type of investment that can be used for both short-term and long-term goals. They're considered safer than stocks, but also have less potential for growth over time. In this article, we'll explain what bonds are and how they work as part of your investment portfolio.


What is a Bond?

OK, maybe not James Bond, but rather we’re going to talk about financial bonds.

Investopedia.com defines a bond as a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).

Bonds tend to move opposite from share prices, which means investors often turn to bonds when they want to reduce their portfolio risk – unfortunately this wasn’t the case in 2022.  Investing in bonds can be a good thing for diversification as it offers an alternative investment class for those who want a more conservative option in their portfolios.

If you’re looking for a way to diversify your portfolio, bonds are an effective tool.  


What is a Bond Yield?

The yield, also known as the coupon rate, is the annual percentage of money provided to investors for making the loan.  In other words, it's how much interest you'll get from your bond. 

When a bond is originally purchased, there is an interest rate on it - for our example, let's say 5%. But because bonds can be bought and sold afterwards, sometimes the yield can vary because the price varies. It is a bit like a rental property, if you purchased a house for $300,000 and rent it for $15,000/yr, that's a 5% yield. But if the value of the house goes up to $400,000 but you're still only getting a $15,000 rent, then it's a 3.75% yield.

The yield on bonds is generally in response to changes in the Bank of Canada’s target for the overnight rate.  The Bank of Canada has a target for the overnight rate, which is the rate that banks charge each other for overnight loans.  This rate can be increased or decreased by the bank and this change affects all other market interest rates.  When bond yields go up and down, it usually means that interest rates are going up or down as well.


Conclusion

If you’re considering buying bonds, you might want to look at what’s happening in the market before making a purchase.  This will allow you time to do research and make a decision based on facts rather than emotions.

Remember that there is no one right answer when it comes to investing so it’s important to do the research and talk with experts before making any decision about what will work best for you and your financial situation.

Questions regarding bonds? 

If you have questions about bonds or other types of investments, then contact Worby Wealth Management to get your questions answered and start investing today.

 

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


TRUSTED REGINA FINANCIAL ADVISORs Chris & Jeremiah Worby from Worby Wealth Management help 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 Insurance Provider Campbell & Haliburton Tip About Vacation Property Insurance

Trusted Regina Insurance experts at Campbell and Haliburton Insurance Inc have been in the community for over 50 years. They know it is customer service and knowledge that counts when you are in need of an insurance company in Regina. Campbell & Haliburton Insurance, myCH.ca, dedicated insurance brokers in Regina, can assist you with finding the plan that works best for you. In their latest Campbell & Halliburton Regina insurance tip, they talk about vacation property and cottage insurance.




Retirement getaway. Cabin in the woods. Cottage by the lake. Whatever you call it and wherever it is, your vacation property needs to be insured too. It’s more than bricks and mortar, it’s the keeper of cherished memories of families and friends, BBQs, birthday parties, and anniversaries! Advisors understand that a vacation property is a precious place and our experts work hard to provide you with the peace of mind of knowing it’s properly insured.


Two key considerations that may affect your vacation property insurance policy

When creating your vacation property insurance policy, insurers take into consideration how frequently your property is occupied, and whether it’s rented to others. Let’s explore these two scenarios further.


1. How frequently is your vacation property occupied?

Seasonal vacation property insurance policies are often more expensive than your typical home policy due to a higher risk of theft, burglary, and vandalism. Since you don’t live there year-round, any damage that occurs can go unnoticed for longer periods, and get progressively worse if not fixed quickly.

Comprehensive coverage provides extended protection for your year-round vacation property and it includes boathouses, sheds, bunkhouses, as well as your belongings.

Broad form or basic insurance coverage covers only the specific risks detailed in your policy.

Also, leaving your seasonal property unattended for an extended period of time may result in losses or damages that will not be covered. It’s important to check your vacation property regularly for safety and security.


2. Do you rent out your vacation property?

Renting out your vacation property is a great way to make extra income, and extra incentive to keep your property well-maintained. However, it is important to review your policy with your broker to ensure it includes coverage for renting.

Vacation property Rental Insurance is available depending on the length of time and frequency you intend to rent out your vacation property. Also, personal belongings may not be protected by some policies, so when renting out your space reduce the amount of personal items in your vacation property to avoid the risk of theft.

Some insurance companies include rental income protection, which will help replace lost rent payments if the vacation property you are renting is temporarily uninhabitable due to a covered claim.

Advisors can review your options with you to ensure you have the best policy to fit your situation.


Important tip: Builder’s Risk Insurance Policy

A Builder’s Risk Insurance Policy may also be helpful if you're doing extensive renovations to your vacation property, including building boat houses or bunkies. Builder’s risk insurance is a special type of property insurance that protects against damage to buildings while they are under construction.

Additional vacation property insurance factors to consider

To insure your vacation property, some companies may require that you also insure your home with them. Additionally, the size and age of your vacation property and its property can affect your premium. The size and age will also affect whether you can list your vacation property on your home insurance as a seasonal location, or as a stand-alone policy. Bundling your policies often leads to additional savings so it may be a good idea to bundle your home and vacation property insurance policies.

Let’s explore some other factors that may influence the cost for your vacation property insurance:
  • Your vacation property’s proximity to fire protection. Insurance companies reward Vacation Properties with a lower premium if they’re within 300 metres of a hire hydrant and/or 8 kilometres from a fire station. For remote properties, this distance may be unrealistic. Consider installing a sprinkler system or have access to an alternate emergency water supply.
  • Year-round road maintenance so that access to your property is not restricted in case emergency services are needed.
  • All construction materials rated as fire resistant.
  • How you heat your vacation property, e.g. oil, electricity, propane, wood stove.
  • Requirements to cover any secondary buildings like bunk houses, boat houses, tool sheds and saunas on the property.

Should I get additional vacation property insurance coverage?

Reviewing your policy in detail with an advisor can help reveal any gaps in your vacation property insurance policy. Additional coverage may increase your premium, however each vacation property is unique and your broker can advise about options that could be a benefit. Below are a few to take note of:
  • Contents: some insurance packages automatically include contents up to a certain limit. This coverage applies to contents permanently kept at the vacation home. Anything you take back and forth – such as clothing – is covered by your primary home insurance policy.
  • Detached private structures: some insurance packages include limited coverage for outbuildings such as boathouses, garages, or sheds.
  • Watercraft: coverage for recreational properties often limits coverage for power boats, canoes and sailboats. These recreational items can be added to your policy with an endorsement, to ensure you have the appropriate coverage should something unexpected happen.
  • Theft / vandalism: vacation property are an easy target for theft and vandalism due to their seasonal occupancy. When possible, install motion sensor lighting or a security camera.
  • Third-Party Liability: this will protect you in case someone gets injured on your property.

What is not covered by vacation property insurance?

There are some items for which no coverage is available on your vacation property insurance policy.

Some common exclusions include:

  • septic backup and flooding.
  • fuel oil release.
  • earth movement (for example, earthquake).
  • damage to, or loss of motorized vehicles, campers or trailers, buildings used for business or farming purposes.
  • damage caused by bears, racoons and other animals.
  • wear and tear of the premises and building.
  • acts of terrorism and losses due to war.
Your vacation property is your sanctuary and may represent a significant investment of time and money. That’s why we’re here to answer your questions and ensure that your vacation property is protected properly. We want to help make sure you can enjoy it for many years to come. Contact an advisor to discuss your vacation property insurance needs today!

Our Trusted Regina Insurance Agents at Campbell & Haliburton have your best interests and safety in mind and our commitment to customer service is one of the pillars of our business. They know insurance inside and out, so please get in touch with them for all of your insurance needs and they will be more than happy to help ensure what you value most is protected.
**This is a general overview. There are many different insurance companies, and there are always differences in insurance policies. For specific details on your policy and coverage, we recommend that you contact your agent or broker.

Trusted Regina Insurance Provider Campbell & Haliburton Insurance Tip About Commercial Insurance

Trusted Regina Insurance experts at Campbell and Haliburton Insurance Inc have been in the community for over 50 years. They know it is customer service and knowledge that counts when you are in need of an insurance company in Regina. Campbell & Haliburton Insurance, myCH.ca, dedicated insurance brokers in Regina, can assist you with finding the plan that works best for you. In their latest Campbell & Halliburton Regina insurance tip, they talk about commercial insurance and the 3 most commonly asked questions. 



What is Commercial Insurance?

Commercial insurance is a type of insurance that is designed to protect businesses from financial losses resulting from unexpected events. It is an essential part of any business’s risk management strategy and can help protect a business from a wide range of potential liabilities. However, many business owners are not familiar with the specifics of commercial insurance and have questions about what it covers and how it works. Here are the top 3 most asked questions about it.


1. What does it cover?


Commercial insurance can cover a wide range of potential liabilities for businesses, including property damage, liability for injuries or accidents that occur on the business’ property, and losses resulting from natural disasters or other unexpected events. It can also provide coverage for lost income or extra expenses that a business may incur as a result of a covered event. Some common types of commercial insurance include general liability insurance, property insurance, and business interruption insurance.


2. How much do I need?

The amount of insurance that a business needs will vary depending on the type of business and the specific risks that it faces. For example, a business that operates in an area with a high risk of natural disasters may need more coverage than a business that operates in a low-risk area. Additionally, a business that has a lot of valuable assets, such as expensive equipment or inventory, may need more coverage than a business with fewer assets. Business owners should work with their Campbell & Haliburton insurance agent to assess their specific risks and determine the appropriate amount of coverage.


3. How do I choose the right policy?


Choosing the right commercial insurance policy can be a complex process, as there are many different types of coverage available and different policies can have different terms and conditions. Working with Campbell & Haliburton’s Commercial Brokers who have experience working with businesses similar to theirs will help them understand the different options available. Business owners should also read the policy carefully and make sure they understand the coverage and exclusions before making a decision.

In conclusion, commercial insurance is an essential part of any business’s risk management strategy, but it can be complex and difficult to understand. Business owners should be familiar with the top 3 most asked questions about it which includes what commercial insurance cover, how much do I need and how to choose the right insurance policy. If you aren’t sure what about your commercial insurance, connect with Campbell & Haliburton’s Insurance Brokers and they will get everything straightened up for you.


Our Trusted Regina Insurance Agents at Campbell & Haliburton have your best interests and safety in mind and our commitment to customer service is one of the pillars of our business. They know insurance inside and out, so please get in touch with them for all of your insurance needs and they will be more than happy to help ensure what you value most is protected.
**This is a general overview. There are many different insurance companies, and there are always differences in insurance policies. For specific details on your policy and coverage, we recommend that you contact your agent or broker.

Trusted Regina Insurance Provider Campbell & Haliburton Insurance Tip On Vacations and Your Auto Insurance

Trusted Regina Insurance experts at Campbell and Haliburton Insurance Inc have been in the community for over 50 years. They know it is customer service and knowledge that counts when you are in need of an insurance company in Regina. Campbell & Haliburton Insurance, myCH.ca, dedicated insurance brokers in Regina, can assist you with finding the plan that works best for you. In their latest Campbell & Halliburton Regina Home insurance tip, they talk about going on vacation and your auto insurance. 


Vacations can take you away, i.e. the cruise of a lifetime, other times you are using travelling somewhere with your vehicle. Here are a few tips to remember as you prepare for either vacation.

  1. If you are not taking your car, and leaving it at home, be sure to take anything personal out of the vehicle including your auto insurance policy and put it safely in your home. If your vehicle is kept in your garage, keep the keys separately from it and out of sight. When you return, you can return your personal items to your vehicle.

Road Trips and Your Auto Insurance

  1. Know Your Car Insurance Policy – Read through your existing coverage to ensure that it provides everything you need to remain safely protected no matter where you’re travelling. Make sure you know if you are covered in Canada and the US and what would happen if you were in an accident.
  2. Make sure that your car is ready for the long journey ahead. Visit your car mechanic and make sure the important service checks are up to date (e.g. tires, oil pressure, brakes, fluid levels). If you’re attaching a hitch or trailer to your car, check that it, and all the items inside, are secure. Additionally, it’s not a bad idea to load the maps for your destination on your GPS or mapping apps in advance. The more you know, the more you’ll feel confident on the road.

By taking the right steps before you go, you’ll be ready to enjoy your vacation. If you aren’t sure about your vacation and your auto insurance, connect with the Campbell & Haliburton Insurance Brokers they will get everything straightened up for you.


Our Trusted Regina Insurance Agents at Campbell & Haliburton have your best interests and safety in mind and our commitment to customer service is one of the pillars of our business. They know insurance inside and out, so please get in touch with them for all of your insurance needs and they will be more than happy to help ensure what you value most is protected.
**This is a general overview. There are many different insurance companies, and there are always differences in insurance policies. For specific details on your policy and coverage, we recommend that you contact your agent or broker.

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