Trusted Tips and Resources

Trusted Tips & Resources

Trusted Regina mortgage professional shares a tip on reverse mortgages and empowering older homeowners.


When most of us dream of retirement, we imagine ourselves in our homes - sharing a meal with family or just relaxing in a comfortable spot.

But retirement can also bring financial strain. Seniors often face the challenge of managing with less cash flow than they anticipated or coping with unforeseen expenses. 


A Trusted Regina Mortgage Broker empowers older Canadian homeowners with smart, simple ways to use the value of their home during retirement.

For over 25 years The Canadian Home Income Plan (CHIP) our reverse mortgage solution has helped thousands of older homeowners enjoy more financial flexibility without having to sell or move. CHIP might be the solution for you.

CHIP Home Income Plan is a home equity loan available exclusively to Canadian homeowners to convert a portion of your home equity into tax-free cash. But, unlike a traditional loan or mortgage, you never have to make a payment until you choose to move or sell – although you can make payments if you so choose.

The CHIP Home Income Plan has other advantages over traditional loans or mortgages. For example, there are no income qualifications and once you receive the loan, it can never be recalled.



It's called a Reverse Mortgage because unlike a traditional mortgage in which you make regular payments to a lender, the CHIP Home Income Plan pays you! You do not have to make any payments — principal or interest – for as long as you or your spouse lives in your home.

Features of a CHIP Reverse Mortgage:

  • Homeowners age 55 and older
  • No payments are ever required
  • No Income qualifications
  • No Credit requirements
  • Qualify for up to 50% of the value of the home
  • Money can be received as a lump sum, or over time or combination
  • Owner maintains title
  • They can sell or move at anytime
  • Receive the money tax free



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!

 


 

Trusted Regina Financial experts tip on Client Defections

 Trusted Regina’s Financial experts share a tip on client defections: 

Client defections to speed up!

“There are a lot of advisors who don’t keep up with their clients and wait for them to call instead of being proactive and keeping up regularly,” she said. “If my client mentions something about taking a trip at a specific time, I’ll often call them just to find out how it went. It lets them know I care, that I’m thinking about them and it’s led to more referrals while keeping my attrition rates low.”

 

 

A survey of client attrition rates for 2014 may, in fact, represent a turning point for the industry as it prepares for fallout from regulatory change.

Currently, Canada’s top financial advisors have a one per cent attrition rate while the average for Canadian advisors as a whole is closer to 10 per cent, according to Maximizer Services Inc., based in Vancouver B.C.

But CRM2 is expected to change that, with many transactional advisors anticipating client defections will double post CRM2’s full implementation.

“There will be a lot of unhappy clients out there once they realized the truth about their accounts and how much fees they’re paying to some of these advisors,”  “I think that we’ll see the attrition rate get much higher when CRM2 finally kicks in.”

Top advisors and their commitment to using advanced technology as well as those who previously anticipated CRM changes and engaged clients in difficult conversations are most likely to maintain low attrition rates.

The study also found that 69 per cent of advisors had an attrition rate of five per cent or less if they were previously using a strong customer relations management system.

Using DayLite or Symantec has helped to build her business because she is able to keep up with clients regularly. The Important thing, she says, is to be proactive for their needs, and not reactive to their demands.

 

 

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

 


 

 

Trusted Regina Financial Experts tip on breaking up with your Financial Advisor - Part 2

Trusted Regina’s Financial experts share a tip on how to break up with your Financial Advisor - PART 2:

If you are looking for compensation, consider contacting the Ombudsman for Banking Services and Investments, a dispute-resolution service for banking services and investment clients. OBSI receives about 8,000 complaints a year and launches 600 to 800 investigations. They will try to facilitate a settlement and if one cannot be reached, they will write a report and make a non-binding recommendation. They can recommend restitution of up to $350,000.

Suitability is the biggest complaint (the next most common complaint is that fees are not properly disclosed), says Tyler Fleming, OBSI’s director of communications.

“Advisors and their firms have an obligation to make sure that the investments that they recommend are consistent with the client’s investment objectives, risk tolerance, financial circumstances,” he says.

“Lets say there’s a young couple who is looking to buy a house in six months and they need their savings in a safe, low-risk product. Their investment advisor puts them in something that is high risk and they lose the money that was meant for their down payment, that might be an instance where we would find it was unsuitable.”

You can take efforts to minimize conflict, he says. Take notes at meetings. Get everything in writing. Keep copies of your documents. Ask questions if you do not understand. Review your account statements. Bring someone with you who understands. Have a regular dialogue with your advisor about your changing goals — this may affect your investment plan.

“Trust your gut. When you have a feeling that something is wrong, don’t be afraid to raise that with your advisor,” Mr. Fleming says.

If things are not working out, you can either just walk away and let your new advisor deal with the transition or send a Dear John letter:

“Thank you for your help in the past. I will be going in another direction. I will no longer be needing your services. I wish you well in your future,” Ms. Waite says. “This is a good lesson in life. This is not personal,” Ms. Waite says. “Send a nice ‘thank you’ note and move on.”

Be aware that you do not have to sell your investments when you fire your advisor. If the advisor has used widely available funds such as Fidelity or Trimark funds, you can move them “in-kind” to another advisor, Ms. Waite says. You may get charged an administration fee.

However, some fund companies such as Primerica and Investors Group sell their own products and an advisor at a different company may not work with them; you can opt to find another advisor within the company.

If you want to leave the fund company, make sure you contact the firm to ask what fees you may pay if you sell your funds; a typical deferred sales charge (a back-end fee that is charged to a mutual fund investor if they redeem their investment prior to a set amount of time) starts at 6% of your initial investment in year one, declining to 0% by year seven.

You can also leave your account as is and move the money when the DSC expires or gets lower; each year, you can take out 10% of the original amount invested without being charged a DSC. Take note, your next mutual funds representative may want you to transfer your funds because she gets a commission, Ms. Waite adds.

“There are often more options than people think there are. Don’t just panic and cash out.”

 


 

 

 

 

Trusted Regina Financial Experts share tip on Things to do with your RRSP Refund

Trusted Regina’s Financial experts share a tip on Things to do with your RRSP Refund:

 

 

·Put it on your mortgage – lower debt would allow you to fast track your early retirement plan.

·Pay off credit card debt – saves more interest than you can likely make by investing.

·Start a rainy day fund – life has a habit of surprising us.

·Put it in your children’s RESP – receive an extra 20% grant on it (30% in Saskatchewan). That’s a very good return on investment.

·Reinvest it in your RRSP – supercharge your RRSP by getting the deduction for next year.

·Do some essential home maintenance – you have been putting off because of the expense but now you have the cash. Your home is your biggest asset, look after it

·Fed up with your job? – Start an escape fund, plan your own business and this will help fund the start up.

·Donate it to charity – that’s a tax deduction!

·Put in in the TFSA

·Keep it non registered and explore – do something riskier than you usually would with it and learn about investments.

·OR be really naughty and treat yourself…..who says we always have to be sensible. Live a little!

      

 

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

Previous Posts

ADDRESS

S & E Trusted Online Directories Inc
TrustedRegina.com
310 Wall St #209
Saskatoon, SK   S7K 1N7
Ph: 306.244.4150

GET THE APP

App Store Google Play
Follow us on Facebook Instagram Linked In Twitter YouTube RSS Feed
Abex
Abex
Stevies
Sabex
NEYA
Website hosting by Insight Hosting