Financial Library

Beware of this insurance trick

Alicia was about to sign the papers on her new vehicle when she noticed an additional charge of a little over $3,400 for insurance on the Bill of Sale. When she asked the finance manager what it was for, he said, 'Well, that's for the life and disability insurance for your car loan.' She was left with the impression that the insurance was mandatory. Alicia didn't sign the papers and said she would finish them up the next day. She asked for a copy of the coverage wording to help with her decision.

Riddle Me This

If you were going to recommend a treatment plan for a loved one suffering with alcoholism, would you prescribe more alcohol as the best course of action to help them to recover, improve or otherwise cure them of their disease? Now put this riddle aside for the moment.

Let us look at the personal situation of the average Canadian these days and make some observations about what their circumstances look like as they go about their daily activities in life, work, & family. Then we will tie these real-life situations together with the riddle.

NIRP, ZIRP and You

In his early July testimony before Congress, US Federal Reserve Chairman Jay Powell. Mr. Powell stated that the Fed funds rate will be reduced, given lower than expected U.S. inflation. This follows on the heels of President Trump’s demands for lower interest rates to help support the economy and more specifically the US stock market. As anticipated, in late July the US Federal Reserve lowered interest rates for the first time in over ten years but at the same time signaled that there was no certainty that further rate cuts would occur during 2019 or beyond.

Pay Yourself First for Financial Success

A fire breaks out in a movie theatre. You're there with your spouse and children, as are several local merchants. Who do you save first? The butcher? The banker? The hardware store owner? Their families? Or your family and yourself?

A ridiculous question. Of course you would save your family and yourself first. Then why don't we use the same principles with our money? All too often the butcher, the banker and the hardware store owner get paid first and little or nothing is left for us.

Finding the Right Retirement Location

Grant and Sarah are planning on retiring within the next two years. Paul and Linda, already retired, are thinking about making a move. Whether you are about to retire or are already retired and considering a change, you should consider:

Law of Large Numbers

Over the next several years, governments in advanced countries will likely continue to struggle with mounting debt burdens and the associated rising costs of servicing that debt. It is also noteworthy to remember that total government debt continues to increase every year because of deficit spending.

So how does the Law of Large Numbers apply here? Simply put, at some point the whole debt situation could defy the ability of a government to control a national economy and the response to ever increasing debt burden costs. Here is a definition from Investopedia:

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