Is Your Mortgage Protected?
If you own a home, chances are you have a mortgage. There are multiple types of mortgages – open-ended, close-ended, fixed rate, variable, etc. In the recent years we saw the emergence of so-called all-in-one accounts which combine checking and savings accounts, a line of credit and a credit card with a mortgage. This can significantly reduce your overall interest expenses and enable you to be debt-free years earlier, while at the same time providing convenience and ease of management by giving you only one combined monthly statement. But this is a subject of one of our next posts…
Auto Industry and the Global Financial Crisis
Amidst all the noise about failing companies and government bailouts, louder than anything else in Canada we hear the voice of our auto industry. They claim to be hit by the global financial crisis more seriously than others and ask for taxpayer money. One of the major roles of the government is to stabilize the economy, and there is nothing wrong with financially supporting a large company or a whole industry to help them overcome temporary difficulties. But are their difficulties truly temporary? Is the liquidity crisis to blame for their troubles? Is everything going to be OK once credit starts flowing again?
How to Deal With Downsizing
More and more often, we hear the word downsizing. This is what companies do during recessions, and we are entering the scariest one in half a century. As gloomy as it may sound, downsizing is actually a healthy and reasonable response of a business to a slowing demand. Payroll expenses are mostly fixed, which means that no matter how much the company is producing, staff still needs to be paid. Therefore, reducing the headcount is a rational step. Also, labor costs are usually high in proportion to other expensed, especially in the industrialized world, and cutting them will make more difference to the bottom line than, for example, using smaller size fonts or turning computers off at night. A business is not a charity and its purpose is to survive and remain profitable. Therefore, unless you work for a collections agency, you need to be prepared.
What Type Of Online Banking Is Right For You?
There are many types of online banking, but out of all of those offers, emailed invites and account info, how do you make sense of which one is right for you? First, narrow down what type of banking is most important to you. If you are looking to buy a home sometime soon, then you may look at a bank that offers a low interest mortgage. If you want to pay bills quickly and easily, a no fee banking account where you can manage everything with the click of the mouse might be better.
Line of Credit Basics
When you apply for a loan and get approved, you enter into an agreement with the lender on a line of credit. For instance, if you get a personal loan, you will receive a personal line of credit, outlining how much you are able to get and how long you can get it for. You only get a line of credit with unsecured loans and these are hard to get because you have to have a very good credit record. With the unsecured loan, you are able to get quick access to line of credit funds.
More Thoughts on Global Economy
In one of our recent articles we shared our pessimistic views on where our economy is going. We compared the way the global economy works to a Ponzi scheme and argued that until we return to fundamentals and start rebuilding the economy on new healthy principles, no recovery is possible. As much as we hate being pessimistic, the recent developments make the gloomy outlook even worse, primarily because of the stupid decisions the major world governments are making.
How To Build And Maintain Good Credit
Good credit in today’s society has become almost as important as a good name, reputation or education. We have become increasingly dependent on our ability to borrow money. While twenty years ago most people would hardly use credit for anything other than a house, today we use credit to buy more and more things – cars, TVs, stereos, computers and even cell phones.
If You Lose Your Job
As thousands of people in Canada get laid off every month and the situation is expected to get worse, more and more people turn to Employment Insurance (EI) for help. EI has nothing to do with charity. The benefits are not funded by the government. The program is, as suggested by its name, an insurance program funded by the premiums paid by employees while they are employed and the companies they work for. Therefore, there is nothing shameful in receiving unemployment benefits. This is something you have been paying for, perhaps for years, and something you are entitled to, as opposed to welfare which is funded by other people’s taxes and is, arguably, unfair. Employees pay 1.73% of their insurable earnings and their employers pay 2.42%, subject to certain maximums.
Are You Afraid of Your Credit Report?
Everyone has a credit report at some point, and it’s not always good! If you have ever filed for credit, whether it be for a credit card, cell phone or a loan, you have a credit score. Everyday, many people are trying to get approved for mortgages, car loans, student loans, etc. and are getting nowhere. It is essential that you know what your score of credit is before applying for anything. There are many avenues to take to getting it, especially with the Internet and different credit bureaus, so you can easily access your score. And now, a lot of places are offering free credit reports!
What Are Exchange Traded Funds?
What are ETF's?
ETF's are a type of securities certificate that determine the legal owner over part of a number of individual stock certificates. ETF's trade on stock exchanges just like regular stocks do, and they also pay dividends. They are different from regular stocks, however, in that they track an entire stock index, rather than just one company.
