• WHAT’S NEW

  My Daily Dose

  Spiritual Books
  "Life Lessons:
  Simple Words That Matter"
  Author: Rick Tocquigny

  Semi Finalists for the Aviva Community Fund Contest 2010!

  Events/Workshops/
  Sponsorships

  2bempowered's corporate workshops

  Look For Weekly Additions

• Recent Posts

  • Corporate Services: Tips & Tools Blog
  • I’m so proud of my son… he spoke up today
  • Mathilda, the 94 year old amazing dancer!
  • Jermaine Paul wins season 2 of THE VOICE
  • The power of coconut oil… so many benefits including slowing Alzheimer’s

• Blogroll

  • Connect Home – UK: diy power tools
  • The World Change Foundation
  • Their Opportunity
• 
  Subscribe in a reader

In part of the process of understanding your finances it is imperative that you understand the terminology. Fancy names can be broken down to the most simple so that everyone understands. Being aware allows you to make better financial decisions that serve your needs. This way you are in full control of your future! Thank you Jay & Joan!

Tax Terminology and Acronyms
Terminology (general definitions):

Adjusted Cost Base (ACB)
In simplistic terms, adjusted cost base refers to the capital cost of depreciable property and, for property other than depreciable property, the cost to the taxpayer of the property with specified adjustments.

Allowable Business Investment Loss (ABIL)
Allowable business investment loss is a special rule to allow 50% of capital losses on shares or debt in a small business corporation to be offset against income when calculating taxable income.

Alternative Minimum Tax
A structure that provides for the recalculation of an alternative amount of tax based on the removal of certain tax preferences when compared with the regular tax calculation.

Canadian-Controlled Private Corporation (CCPC)
Canadian-controlled private corporation is a private corporation that is not controlled directly or indirectly by a public corporation, by non-residents of Canada, or by some combination of both.

Capital Dividend Account
A notional account available to private corporations to integrate corporate and personal income tax on the receipt of items such as the tax-free portion of capital gains and the proceeds of life insurance policies.

Cumulative Net Investment Loss (CNIL)
Cumulative net investment loss is the excess of investment expenses over investment income cumulatively since 1987 that reduces the amount of the lifetime $500,000 capital gain exemption.

Depreciable Property
Property owned by the taxpayer that is entitled to apply capital cost allowance.

Exempt
The item is not subject to income tax. An example of income that is exempt from income tax is a life insurance benefit payment or money that is inherited. In these examples, the initial funds are tax-exempt, but investment earnings on the funds are not.

Fully Taxable
The item is subject to regular full income tax. An example of this is employment earnings or interest income.
General Anti-Avoidance Rules (GAAR)
General anti-avoidance rules give the CRA broad powers to challenge technically correct transactions that violate the spirit and intention of a section of the Act or are abusive of the Act read as a whole.

Income Tax Instalment Payments
Under specific circumstances, a taxpayer may be obliged to make successive payments directly to the government for an income tax liability that is created during an ongoing taxation year.

Inter Vivos Trust
A trust that is settled by a living person.

Kiddie Tax
An income-splitting tax imposed to discourage income splitting with children.

Listed Personal Property
A sub-set of personal-use property.

Mutual Funds
A mutual fund is a pool of investment capital that has been used to purchase a basket of investment vehicles, most often equities or debt instruments. Investors may purchase an unlimited number of units (in mutual funds structured as trusts) or share (in mutual funds structured as corporations) in these investment pools, hence, the term mutual fund. The more units/shares of a mutual fund that are purchased, the lower the value of each unit/share. In general, mutual funds allow investors to purchase ownership in a diversified portfolio of investments for relatively small amounts of cash.

Personal-Use Property
Property that is used primarily for personal-use or enjoyment by the taxpayer or by a person related to the taxpayer.

Prescribed
Set or established by regulation as in prescribed interest rate.
Prescribed Interest Rate
The Act prescribes several interest rates to be applied in different situations. Items such as late taxes, tax refunds or taxable benefits attract interest and the prescribed rates dictate the amount.

Qualified Small Business Corporation (QSBC)
Qualified small business corporation are shares eligible for the $500,000 lifetime capital gains exemption.

Recapture of Depreciation
The recapture of capital cost allowance previously claimed as a deduction from income and brought back into income because of disposition.

Segregated Funds
An individual variable insurance contract, better known as a segregated fund, is an investment contract, considered insurance by law, where a specified group of assets outside the company’s general reserves supports the contract’s policy reserves. Segregated fund policies have values that vary according to the market value of their specific group of assets. Assets of segregated funds are not part of the general reserves of the insurer, so no laws prevent them from investing all their assets in equities. Depending on its contract, a segregated fund may allocate the assets to a fund of treasury bills, common shares, bonds and debentures, real estate or mortgages, like a mutual fund.
Sheltered
The item is subject to tax, but at a point in the future. An example of this is the earnings that grow within an RRSP or RRIF.

Small Business Corporation (SBC)
A CCPC of which all or substantially all of the assets, on fair market value basis, are used principally in an active business, carried on primarily in Canada.

Testamentary Debts
Refers to amounts payable as a consequence of death and includes income or profits, taxes of the deceased for the year of death or previous years, and any death taxes payable as a consequence of death.

Acronyms
ABIL Allowable Business Investment Loss
ACB Adjusted Cost Base
Act Canadian Income Tax Act
AMT Alternative Minimum Tax
CCA Capital Cost Allowance
CCPC Canadian-Controlled Private Corporation
CRA Canada Revenue Agency
CDA Capital Dividend Account
CEC Cumulative Eligible Capital
CNIL Cumulative Net Investment Loss
fair market value Fair Market Value
GAAR General Anti-Avoidance Rules
ITA Income Tax Act
ITR Income Tax Regulation
LSVCC Labour-Sponsored Venture Capital Corporation
MTR Marginal Tax Rate
QSBC Qualified Small Business Corporation
RDTOH Refundable Dividend Tax on Hand
V-Day Valuation Day
SBC Small Business Corporation
TONI Tax on Income
UCC Undepreciated Capital Cost

Jay F. Llave & Joan Morrow

Creative Planning Financial Group

(416) 487-5210

Tags: financial acronyms, financial terminology, understanding financial terms

This is a good topic for me today for I want to write about our relationship or LACK OF relationship in Canada, actually North America, with our elderly.

There is much wisdom that can be imparted to us from our grand parents and great grand parents that when applied, maybe tweaked slightly, can really make a difference in our life.

The topic today focuses on teaching our young about money. Right now, as it stands, I invest my children’s money and they cannot touch it. I leave some in their account so if they really want something they can buy it. I know, that in some ways I am still enabling them. It is funny because my son wrote home from camp that his first day was challenging because he had to unpack his clothes and put them away HIMSELF. He is 10 1/2 years old. When I received the letter I thought to myself — this is good — he needs to learn to be responsible and accountable.

Consumer debt is a problem that is plaguing ALL countries around the world. Canada is one that is doing financially better than most. Do not kid yourself, we can easily become the US, Europe or Japan if we do not watch how we spend. People have been spending beyond their means for too long. Interestingly, my parents, or I should say my father, only spends what he can afford. He may create some debt however it will be manageable and likely for business. I learned this from him. I also learned in my failed marriage how to spend beyond my means. It is not a good felling and one that I WILL NOT repeat.

How do we teach something that we, ourselves, are not good with. I have some tips that Joan and Jay have provided. I do feel that we must learn to lead by example. Take this as a starting point. I have made it one of my missions to teach women financial literacy. I stay commited to this.

In the meantime… Here are 3 tips:

Three Ways To Teach Kids About Money

We hear a lot about financial literacy these days as Ottawa promotes its efforts to educate Canadians about money management, saving and investing. Clearly, the first steps begin with our kids, and not just in the classroom.

Parents, grandparents, and other caregivers can provide some of the building blocks to economic maturity by sharing their own experiences with money. Here are 3 ways you can help them understand basic financial concepts.

1. Let them manage their own income. It’s important for your kids to have their own money to manage – and mismanage. They will learn a lesson (albeit painful sometimes) when they spend their entire allowance on an impulse purchase.
2. Help them set goals and allocate their money. Set goals for donating, savings and spending and give them separate piggybanks to allocate the chosen portion of the money they earn.
3. Show them the power of compound growth. Opena savings account, GIC or other investment for your child. If you have online access to the account, even better – yur child can track its accumulation and online calculators to project future growth. It can be fun too!

Joan can be reached at 416-545-5352 or email her at joanm@cpfg.com

Jay can be reached at 416-545-5317

It is time as individuals we take responsibility and accoutability for our actions, choices and outcomes. If we want to change something, a behaviour, than we must change the way we think. It is ok to have “stuff” however at what expense. It is time to begin to live within our means.

All my best,

Sandra

Tags: accumulation, compound growth, donations, financial literacy, ottawa, spending, wealth, young

This is the title of an article I recently came across. The article is an interview with Maddy Dychtwald, who co-wrote the book, Influence: How Women’s Soaring Economic Power Will Transform Our World For the Better with co-author, Christine Larson.

Maddy says, “the status of women is changing”. With women representing in some countries over 50% of the population, holding more prestigious positions and earning higher salaries than ever before, their earning power is increasing — allowing them to influence change. For the past two decades, the increase in female employment in the “rich” world has been the main driving force of growth, the Economist magazine said in 2006. “Those women have contributed more to global growth than have either new technology or the new giants, China or India”. That is incredible!

Maddy Dychtwald and her husband, Ken Dychtwald, co-founded the demographics research firm AGE WAVE. They conducted a survey along with Allianz, a financial services company, and Harris Interactive, a public opinion research firm, with 3,000 men and women with one question in mind – how do women handle their money as opposed to men?

3 trends emerged:

1. Money means security to women, freedom to men. Overall, women were far less optimistic and confident than men were about money. One in five women had a secret stash of money her partner didn’t know about – twice the number of men with a secret stash- to use as a hedge against financial disaster.
2. Men see themselves as warriors and women see themselves as worriers. Men are almost twice as likely to say they would take significant financial risks, while women are more likely to buy and hold investments, rather than churn them. As a result, women’s investments often do better than men’s in the long run (interesting – we let them grow!).
3. WOMEN ARE MORE LIKELY TO PUT OTHERS’ FINANCIAL NEEDS AHEAD OF THEIR OWN. The often feel torn between the desire to do what’s best for their family and what’s best for their own future.

While women may be hurting themselves, there is a social benefit when women chose to use their earnings to pay for university, support their children or help care for their aging parents.

Maddy says that despite women’s growing economic power, MANY WOMEN ARE UNSURE OF THEIR MONEY MANAGEMENT SKILLS. THIS LACK OF CONFIDENCE IS A ROADBLOCK TO ATTAINING THEIR DREAMS.

My feeling, and of course it is just that, is that women need to become accountable and responsible for their financial choices and outcome. It means simply reducing fear around an area that most women have handed off to their spouse, significant other or advisor. It is time that women take back their power. It means educating ourselves in this area. What I love about this area of my site is that it allows women to ask the most minute, simple question without fear of being ridiculed or laughed at.

I am well aware of my finances for I am divorced and have no choice. As I educated myself and asked MANY DUMB questions I now feel strong and confident when I sit with my bank person and am renegotiating my mortgage. I will no longer hand away my power. If I do not like something I will question it. It is my money and my choices. Saying that I often use my gut and intuition when making choices – like choosing my financial advisor. I needed to know that we were on the same page, that I can call him with a question and he will get back to me, and he does. I have referred him on to many other people. I also like that I have made money with him!

WOMENS’ ECONOMIC POWER AND INFLUENCE will change the way that marketers talk to us. Maddy says that women are the primary buyers of just about everything. We are responsible for 80% of consumer purchases! We can drive a new industry to grow or fail. Look at the organic and natural foods industry. It has grown 28% in two years, largely driven by women.

On my vision board I have the following words: I choose to embrace my power: confident, bold, beautiful after 40!

Women of the world, let’s embrace this power and use it in a way that is loving, kind and compassionate while still impressing what we want. That is what I call EMPOWERMENT and balancing our male and female energies- being empowered in a way that we are strong and embrace and live by our truth however in a loving, kind and compassionate way.

Tags: Age Wave, Aliianz, fiancial awareness, Harris Interactive, Maddy and Ken Dytchwald, women enconomic power

I left a message for Joan and Jay asking them for some clarity on some of the terms that they provided in their last posting. What I do know is that while some understand these terms, many do not. That is the exact point of this blog on financial empowerment. The more questions you ask, the better clarity you have the better you can make a decision.

I just was sent this article from the Business Section of the Toronto Star and the title is, Women’s power equals economic power. Women represent 50% of the marketplace and with some education we will have economic power to bring about changes we want. Get educated and ask many questions!

If I was shopping for a suit and I wanted a specific fabric, designer, and cut I will ask the sales person to help me. I laugh because every time I go into Home Depot to ask for something that I need to buy I never have the right terminology instead I use my hands a lot to explain. Well, that is not always the most effective way! I finally end up with what I need however it takes a few tries.

Here is the breakdown for you from Joan and Jay and if you have any more questions please do not hesitate to call:

Happy Spring!

This entry will focus on some key definitions many of our clients have been asking.
Money Market Fund = The investment objective of the Fund is to provide investors with interest income by investing in high interest cash accounts.

Returns (or Rate of Return) = The percentage by which an investment appreciates or depreciates over a given period of time.

Government bonds = “Government of Canada Real Return Bonds (the “Bonds”) constitute direct, unsecured, unconditional obligations of Her Majesty in right of Canada. The Bonds may be issued from time to time in different series, with the coupon rate and maturity date (“Maturity”) varying for each series. The Bonds of a series may not be called for redemption by the Government of Canada prior to Maturity for that series.
Each Bond has a nominal principal amount of $1,000 (“Principal”).
The Bonds bear interest adjusted in relation to the Consumer Price Index for Canada (the “CPI”).
Interest on the Bonds consists of both an inflation compensation component (“Inflation Compensation”) calculated based on Principal and payable at Maturity and a cash entitlement (“Coupon Interest”) calculated based on Principal and accrued Inflation Compensation, which Coupon Interest is payable in semi-annual instalments on the dates specified for each series of Bonds (the “Coupon Payment Dates”) in each year. Coupon Interest is calculated by multiplying one-half of the specified annual coupon rate for the relevant series of Bonds by the sum of the Principal and the Inflation Compensation accrued from the date the first Bond of such series was issued (the “Original Issue Date”) to the relevant Coupon Payment Date. At Maturity, in addition to Coupon Interest payable on such date, a final payment (the “Final Payment”) equal to the sum of Inflation Compensation accrued from the Original Issue Date to Maturity (whether positive or negative) and Principal will be made.”

Guaranteed Deposits = “The Canada Deposit Insurance Corporation (CDIC) is a federal Crown corporation created by Parliament in 1967 to protect your deposits made with member financial institutions in case of their failure. CDIC guarantees deposits with registered institutions in the event of the institution’s insolvency. This deposit insurance offers a maximum guarantee of $100,000 per person, per registered institution.”

Liquidity = The degree to which an asset or security can be bought or sold in the market without affecting the asset’s price. Liquidity is characterized by a high level of trading activity. Assets that can by easily bought or sold, are known as liquid assets.
It is the ability to convert an asset to cash quickly.

Bond yields = Yield is defined as the annual cash distributions divided by the current share price, in this case from bonds.
To calculate current yield for bonds, divide the coupon rate by the number shown as current price and multiply by 100. Example: 8.60% coupon divided by 85 current price = 0.1010, multiplied by 100 = 10.10% current yield on the bond.

Debt instrument = A paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract. Types of debt instruments include notes, bonds, certificates, mortgages, leases or other agreements between a lender and a borrower.
Debt instruments are a way for markets and participants to easily transfer the ownership of debt obligations from one party to another. Debt obligation transferability increases liquidity and gives creditors a means of trading debt obligations on the market. Without debt instruments acting as a means to facilitate trading, debt is an obligation from one party to another. When a debt instrument is used as a medium to facilitate debt trading, debt obligations can be moved from one party to another quickly and efficiently.
If you would like us to publish more definitions, please write our editor for the specific terms you would like us to discuss.

Happy investing,
Jay F. Llave and Joan Morrow
416-545-5352

For those not familiar with some of the “financial terms” I have asked Joanne to give you a glossary of meanings. I read below and I understand what she is talking about however I am “empowered” and in charge of my finances — it’s just me I have to be.

As you know this site is about breaking things down to the “simple” and that just means that I give you the meaning of the terms so that you can understand what a financial person is saying only in layman’s terms. (I like that it is lay”man” and not woman). Money is something that many of us hold dear to our hearts and so if you are going to ‘part with it’ even from an investment side I want to make sure that you FULLY understand what is being told to you.

The option that Joanne has given you in ‘the closet’ idea is this (the best I can do). When I invest in my closet and clothes for the season I take into consideration how I dress — for me it is more casual however I am entering the corporate world so I need to shift my purchases a little to make them more versatile. My long term purchases are going to be the more classic and for some more conservative purchases: the black dress, a scarf, certain shoes and so on. This is clothes that will be in my closet for months and probably years. For the more trendy stuff — I just saw Sex And The City2 movie and some of those clothes were pretty out there. Some I loved — especially the shoes. When I come to a season and I look at my “cash” that is sitting in my bank (ok it’s from my credit card however I do pay it off with cash) I consider how much am I willing to pay, how many times will I wear it (that’s my return on investment) and will it be in style next season. With this in mind I shop. The more the trendy piece it is the less I want to pay for I know that I will only be wearing it for a few months, especially in the summer for our summer is short. For the winter months there is a greater return on investment because the season is longer. Thinking short-term – 1 month up to a year I keep a price in mind and then I buy the trendier clothes and feel good about wearing them. I match it up with great shoes, a purse, a scarf and the outfit increases in value tenfold!

With your money that you have in the bank, know that money sitting there brings no return or very little. In order to increase the likelihood of receiving a greater interest (these are rates set daily or for a short period of time – 1 year, 2 year) you will want to look at things that you can put your money into that is not risky (or only slightly) and come out with even more money. Keep in mind all money earned through interest is taxable so you may want to talk to your financial planner as well as your accountant.

GLOSSARY(to come shortly):

Here is Joanne’s blog:

There are a couple of alternatives to consider that may provide better returns while still providing reasonable security and access to cash when you need it, short-term bonds and money market funds that invest in short –term debt instruments. By assuming slightly higher risk, government bonds with maturities of 1 year or less potentially offer better returns over cash or guaranteed deposits. Their short maturities provide liquidity if you need access to cash. They are backed up by the federal or provincial government and can be considered very secure (although not guaranteed). Bond yields can fluctuate according to interest rates so they do have a small amount of risk. Money market funds that include bonds and other short-term debt instruments may produce higher yields with only marginally more risk than your cash savings account.

For more information please contact joanm@cpfg.com

Tags: alternative investments, cash balance, short term investments, simple return on investment

Jay and Joan have provided their tips and tools on Managing Your Credit Report. It is about keeping a good credit score.

There is a volume of information. I encourage you to go through this many times. Write down your questions and call Jay and/or Joan if you need clarity.

I have referred many times to the “closet theme”. In this case it is about “refreshing your closet every year” – know where you are at. When you shop – you can use a credit card – then pay it off at the end of the month. Stuffing your closet with things you do not need and will never wear (remember Carrie in Sex in The City – movie 1) for this is not a good use of your credit card and likely will lead to a bad score – for how will you pay off all that debt. Make it manageable.

Enjoy the wisdom shared below:

“How to manage your credit report”
Or
“Why does having a high credit score presume I am honest and I will pay back a loan? How do I manage my score?”

Spring is here and Toronto is busting with festivals; Blues Festival, Jazz Festival, Rock Festival, Family Festivals, and Children Festivals
My summer of festivals becomes a lot less festive when purchasing a condo – my very first 836 sq. ft. space in Toronto that I can call my own.
Fellow readers and friends, I don’t have enough cash in the bank to pay for the condo so I had to borrow it.
Lenders determined my credit worthiness:
• not because of my integrity.
• not because I am a Toastmaster.
• not because I am a nice guy.
• not because of my professionalism.
• not only because of my income.
They based it on a score, not a test score, my credit score.
My parents always told me to be honest and manage your credit report.
To me, honesty is important but it has very little to do with having a high credit score, it is being more practical than honest.
Having a good credit report means that you know how to manage your credit report.
Having good credit makes life easier.
Things go more smoothly.

Friends I am writing today to give you the unwritten rules of managing your credit report.
In North America, it is our baseball card. It’s our business scorecard.
#1 Get credit by obtaining:
1. 2 credit cards (Visa, MC, or American Express)
2. 1 store card (Best Buy, Canadian Tire, any retail store card)
3. Instalment account (home renovation or personal loan)
4. Car loan/lease
5. LOC/HELOC (Lines of credit or Home Equity Lines of Credit)
• Notice I didn’t mention mortgages, because mortgages are not on your credit report (Canada only)
#2 Use all credit cards at least once every 2 months.
1. even in small amounts, and
2. pay it off at end of month
#3 By using one credit card and pushing it to the limit actually has a detrimental effect on your credit score.
#4 If you have to keep a balance for a month, stay below 49% of the limit.
#5 Do not cancel credit cards.
#6 If you have to cancel start with the latest and work your way down.
#7 Do not pay your credit card balance more than 28 days late.
#8 Have Identification verified before checking credit – set it up with equifax.ca and transunion.ca.
#9 A good rule of thumb when shopping for a mortgage/automobile is to have three banks only check your credit on the same day.
#10 If you need to pay your balance late, borrow the payment.
#11 Check your credit report every year.
#12 Check property title every 4 years to ensure information is correct and updated.
#13 Apply for credit when you don’t need it.
#14 Keep documents even after you have paid off any loan
#15 Always use the same full name .
#16 Become knowledgeable of identity theft prevention.
#17 Don’t negotiate a settlement on a debt for less than what you owe.
#18 Set aside a minimum of 6 months income or expenses in an emergency fund
#19 Think of your credit with every business transaction.
#20 Protect your credit.
The above rules of managing your credit report come as a result of interviewing thousands of credit holders and many years of experience managing them.
Having a good credit score will allow you to access money at a very low cost. In turn, when an opportunity arises, you are well positioned to take advantage.

Sincerely,
Jay F. Llave and Joan Morrow
Jay – 416-545-5317
Joan – 416-545-5352

Tags: canada financial re, credit, credit score, debt, financial score, high score, save, spending

I have teamed up with Joan Morrow, an Insurance Advisor and Jay Llave, an Insurance and Financial Advisor both part of the group called, Creative Planning, Financial Group in Toronto, Canada. I attended one of their talks aimed at reaching women. Following their discussion we launched into a whole discussion about women and finances. We all agreed that many women out there fear finances to the point of doing nothing. The women who attended this speaking event were what I call, educated and moderately sophisticated investors, Tier II vs. the woman who is unaware and does not know where to star, Tier I.

Thank goodness there are advisors out there who really do want enlighten and bring awareness so that women can begin to take back their own power. Statistics say that women represent close to 50% of the market and that there are millions if not trillions of dollars sitting in bank accounts or investments that are not earning their potential. With some knowledge, awareness and good questions you can begin to have your money work for you. The first thing is to reduce the fear around money and to have the women realize that they perform so many of the desired skills to do with money – budgetting, investing, tracking, and so forth – on a daily basis.

I have used this analogy many times – your clothes closest is like your financial closet – know what’s in there, what is serving you and working for you and what is not. It may be time to discard the “dead weight”.

Question: Can saving get any easier? Yes*
*only if you are reading this after Jan. 2, 2009

Sandra asked me “How does someone start saving and in what type of savings vehicle?

To answer your question Sandra, let’s start at the very beginning.

Financial Planning 101
Section 1: Part 1: Sub-Section 1
There are two types of people in this world, those that save and those that borrow.
Every day someone is earning money and it is always the saver. Every day someone is losing money and it is always the borrower. This cycle continues every day, 365 days a year, for an entire lifetime.

Which side are you on today?

On which side do you think wealth begins? Saving or borrowing?

Saving money just got easier therefore wealth just got easier.

Solution: A Tax-Free Savings Account (TFSA) account is a great option for tax-sheltering your savings. A TFSA gives Canadian residents aged 18 years and older another place to save and keep all the growth for themselves. You can withdraw funds at any time and for any purpose. For those in the US or outside of North America you can see if your bank offers similar products to this one – with similar or same advantages.

It has never been so easy and the timing is perfect.

Read below for notes on TFSAs.

If we can answer any of your questions, please email us at joanm@cpfg.com or jayl@cpfg.com.

Sincerely,

Jay Llave and Joan Morrow
Creative Planning Financial Group
———–

To know more about TFSA’s please see below:

• Investments can be in any RRSP-qualified savings account
– E.g. savings accounts, GICs, mutual funds, segregated funds, stocks and bonds
• TFSA assets can be transferred to a spouse or common-law partner on death
• Can be assigned as collateral for a loan
• Income and withdrawals do not affect eligibility for federal income-tested benefits and credits
– E.g. OAS, GIS, Child Tax Benefit, EI benefits, GST Credits, etc.
• Plans offered through insurance companies are creditor protected
• Beneficiary designations are allowed on plans offered through insurance companies
• Amounts withdrawn can be re-deposited after a one year waiting period without reducing contribution room
• Spousal contributions are not allowed
• TFSAs must be held individually, not jointly
• Investment income will not be taxed and contributions are not deductible
• You can hold as many TFSAs as you like within the contribution limit

Tags: agent, borrower, creative planning, finances, financial group, financial planner, financial responsibility, insurance, jay llave, joan morrow, savings, spender, tfsa, women

This week I am reading an interesting book called “The Power of your subconscious mind” by Joseph Murphy, PH.D.D.D.

Although I have read tons of books on the power of prosperity this one sums up how to attract wealth very well and it states the following: “True source of wealth” your subconscious mind is never short of ideas. There are within it an infinite number of ideas ready to flow into your conscious mind and appear as cash in your pocketbook in countless ways. This process will continue to go on in your mind regardless of whether the stock market goes up or down, or whether the pound sterling or dollar drops in value. Your wealth is never truly dependent on bonds, stocks, or money in the bank; these are really only symbols necessary and useful, of course, but only symbols. The point being is that if you convince your subconscious mind that wealth is yours, and that it is always circulating in your life, you will always and inevitably have it, regardless of the form it takes.”

Here is a daily exercise: three times a day for five minutes each time say to yourself the words, wealth-success, and finally once before going to sleep. Most people would use this affirmation “I am wealthy” however this doesn’t work because your subconscious mind knows and feels you are lying. By just saying the words wealth-success has incredible powers, it represent the inner power of the subconscious mind.

Now this may sound silly or very simple but just try it for 40 days and experience for your self what happens.

Let us know what happens!

We know that the messages we say to ourselves, our inner critic, are so important. We are all deserving — not entitled — deserving. It all starts with loving and honouring yourself and who you are. The more you feel worthy, the more that you will receive.

Do this exercise and start to feel it.

All of our best,

Sandra & Maritza

Tags: attraction, power of subconscious mind

I met with this man yesterday who comes from a financial background. He started his own company that is very successful and is in many countries around the world.

We began to talk about Women & Finances and he was very interested on my views and what I am doing with workshops and the site, collaborating with Maritza and so on.

WOMEN HAVE THE POWER – I do not know the exact percentage however I can safely say that women represent nearly, if not 50% of the potential investors in Canada. What does that mean? It means that some women today are independently wealthy and in some cases may be the “bread winner” and out earn her husband.

I read an article that women, if not already, are the larger group of the two that have money to invest. Most women due to their lack of awareness, fear and so on, do not invest for themselves and “hold onto money” for they do not know which investments to go into.

It really comes down to empowering ourselves and learning to take back the power: Ask as many questions as you need to until you understand, be accountable and responsible for your actions, and just get to know what is in your financial closet so that it is serving you in your best interest. Whether you are male or female, you need to determine your spending habits. Are you spending more that you earn?

I feel what is really intriguing the corporate world is that women need to step into their role as a financial person. It truly is about baby steps. Some of the financial institutions recognize that building a solid relationship with their women clients is so valuable to how women respond. Women are all about the relationship whereas a man usually wants to know about ROI.

The Corporate world is listening so speak your truth and be true to who you are!

Maritza and I are there to support and guide.

All our best,

Sandra

Here is my message to all women- we represent almost one half of the population here is Canada. We have the financial “clout”. This issue is that most women hand it away by not taking accountability and responsibility for their role in their own finances. It is much easier to blame your brokers, insurance people, financial institution. To be frank THE ONUS IS ON YOU to ask the questions and get the answers fully answered to your liking.

Then take all of this info and make it your own!

SPEAK UP AND OUT!

All my best,

Sandra

Tags: awareness, demographics., development, finance, finance empowerment, growth

This question came to Maritza while reading an article by Suze Orman. We have been dealing with debt and for this question period we wanted to focus on rebuilding your credit. It is truly my belief that you can change your financial position in a very short period of time. It is about taking baby steps — it may take some time.

Question: How can we rebuild our credit after it has been damaged by unpaid debts or we had to go through a bankruptcy? The answer, according to a recent article written by Suze Orman, is to get a prepaid credit card. Instead of going to a bank, she recommends going to a credit union and apply for a secured credit card.

For those that do not know what a secured credit card is, here is a more detailed definition:

A “secured credit card” is a credit card used to build a good credit record for people with a damaged or poor credit score or for people with little or no credit history. A secured credit card requires a security deposit in order to be able to establish a line of credit. Typically, the line of credit you qualify for will be equal to the amount of money deposited with the bank or financial institution that issued the secured card.

For example, you can open a $500 secured card line by depositing $500 in an account associated with the credit card. Many secured cards charge fees for opening the account, and then charge fees for accessing your funds. In some situations, a prepaid debit card with a credit builder option may be a less expensive way to build credit.

Secured credit cards are also referred to as “prepaid credit cards“.

To find out more go to credit unions to search for one in your area. Request that the credit issuer will report your payments to at least one of the credit bureaus – Two well known ones in Canada are Trans Union or Equifax.

I recently asked for my credit rating from Trans Union – this is free — I wanted to know how I stood in the “eyes of my creditors”. I received it and now I want to run through it with someone. I saw a lot of 0s which I believe is good. I too need to find out!

AS FOR THE CLOSET… once you have dumped everything out of your closet and decided what you are going to keep then you can begin to rebuild. It will take some time. Decide how much you will put into this endeavour of rebuilding. Once you know your budget and how much you can spend – you will know how much you will budget for new items. You must be committed to sticking with this number. Like the prepaid credit card, you will only be able to spend that $ figure that you have committed to.

One day you will look at your closet and say – how did I do this? I have a full closet and I know where everything is and I feel good about this.

Take the baby steps to rebuilding your credit history!

All our best,

Sandra & Maritza

Tags: awareness, bankruptcy, credit history, debt, development, financial, Financial Empowerment, growth, prepaid credit cards, rebuild, secured credit cards

← Previous Page — Next Page →