Spring is here….(or so the calendar says)

According to the calendar, Spring has arrived.  while snow is still falling occasionally and we are still wearing our winter coats, it is Spring!!  We are used to short springs…it seems so often, to go from winter cold to summer heat with very few reminders of this season we generally love.  so beyond the date marker, how do we know we are reaching that pinnacle of seasons, the one that symbolizes rebirth, renewal and redemption from shoveling?

We start with thinking about spring cleaning…opening the windows, airing out the house or apartment and turning down the furnace.   We think about painting, renovating, redecorating or moving.  We often choose to move during the summer so that children can be settled in a new neighborhood before school starts again, it is the time when moving is easier, apartment leases are up and the cycle of homes on the market, for the same reason as you are thinking of moving, opens up.

What steps do you take to buy a house, whether it is your first or not?  You need to know what your needs are and what neighborhood you want to be in.  Then, in order to ensure you are planning within the realms of reality, you should be pre-approved for your mortgage.  If you already have a mortgage and have been happy with the terms, you may be tempted to stay with whatever bank your mortgage is with.  Rates are low and housing options are plenty.  But does your bank have the same vested interest in your long term commitment?  They will sell you on mortgage insurance without disclosing all of the facts about it.  They will sell you what they want you to have, in both mortgages and insurance, without taking into consideration what you want and NEED for the long term.

Meet with a mortgage specialist who can explain all of it to you, giving you the options that fit your life.  Pre approval is smart, getting it from the right lender is smarter.  Get in touch with me today for your mortgage pre approval and say hello to Spring  🙂  Make an appointment today…..

Andrea

andrea.blaustein@f55f.com

ARE YOUR INVESTMENTS KEEPING UP WITH INFLATION?

ARE YOUR INVESTMENTS KEEPING UP WITH INFLATION?

 

I have been watching with fascination, the recent run of ads on Canadian radio and television for various banks.  They run the gamut from Canada’s chartered banks to banking co-ops.  What are the new ads talking about?  Something that is limited in time, special and amazing and something we should all be running to these institutions for…..HIGHER INTEREST RATES THAN WE HAVE SEEN IN A LONG TIME!  Yes indeed….holy lucky us!!!  From 1.75 to an entire 2% interest rate!!!!   SERIOUSLY?????

Let’s begin with a few facts.  The average rate of inflation in Canada, is 3%.  It has been this for many years and is likely the minimum rate of inflation for the foreseeable future.  Any bank account or investment account where the interest rate is less than 3% is, in fact, negative interest.  Given common bank fees $5.00 – $30.00 MONTHLY), you are in fact, technically at least, better off keeping your money in your mattress.  When you deposit money into the bank or purchase common investments (also paying between .5 and 2.5 % interest), the bank borrows that money and re invests it to help THEIR bottom line…..at rates of 7 – 12% interest.  You get your 2% but they make an extra 10% on YOUR money and, on top of that, charge you service fees unless you keep a minimum of $5000.00 (on average) in your account.  Is it any wonder bank profits are in the multi billions quarterly?

I am not advocating using your mattress as your savings account.  It is an exaggeration (if only a small one). I am however, advocating ensuring that you ask questions and get informed.  A free financial checkup, where you can see all of the facts of your personal financial situation, is an investment of time which you will never regret.  Know and understand what your FIN# is (financial independence number), understand how what you are doing now is getting you towards that number and what you can do in the immediate future to get you there faster.   Many people I talk to these days, respond to the question “at what age do you plan to retire?” with a quick chuckle then say maybe age 70…or 80….or never will be able to.  Their investments, whether they be RRSPs or GICs or savings accounts, are simply being depleted by inflation, faster than they can grow.

So you only have $100.00 per month to invest.  You are paying $150.00 per month into mortgage insurance (by the way, do you know the facts about that “investment”?) and you do not have any way of coming up with more money than that to invest.  With so little money, 5% or more is just a dream as a rate of return on any investment or account.  It is just a dream…right?  If only you could save taxes, you could invest more…but Canada Revenue Agency doesn’t make that possible so $100 / month it is. UNLESS……….naw…..or maybe…….is it possible?

Contact me for your financial check up.  I will teach you about everything from mortgage insurance to life insurance how to grow your investments beyond the rate of inflation.  There is no cost for this service and you may be surprised at what you can learn.  I am available to do this whether you live in Ontario or Quebec or elsewhere including the USA.  Book your appointment soon.

myfuture@unleashtheknow.com

 

This is the second article in the series, WISH I KNEW THAT 30 YEARS AGO.  Part one was published on July 6^th.

What is your financial plan??

As a single mom who didn’t receive child support, life for many years was about getting through that day, each day, making sure the phone didn’t get cut off, the children were fed and the roof stayed over our heads.  I had no plan and frankly, no concept on how to create a plan to change my life and the lives of my three children.  It took me many years to see a way forward and to make real changes in my life.  I am not “there” yet…but I am on my way and the way forward seems so obvious now.

In school, we are taught so many things which we are told “you will surprise yourself someday and find yourself using this”.  Well the fact is, I have never used many things I was taught in school.  I am in my mid fifties and while I am glad that I know what I know, where were the basic life skills on the school curriculum?  We need to teach our young people about credit scores, how to spend and how to save.  We also need to teach them how to make a plan for your finances.  How many of you reading this know your FIN# is?  Do you know what a FIN# is?  Your Financial Independence Number, the amount of money you will need to retire in a comfortable style where your needs in your senior years are taken care of.  Having many people in my family living to and past the 95^th year, I have witnessed firsthand, the cost of being very senior, in good health and bad.   It can be very expensive and way beyond the means of many who thought they were safe.

So what can the average person, of any age, do to ensure that comfort?  How do you go from surviving today to living in 40 years?  Barring inheritance or winning the lottery, we need to start with the basics.

Number one: Invest in yourself.  Investigate opportunities to increase your skills.  Explore opportunities you would never think of yourself in but which would give you that freedom.  Do not be afraid to approach others who are successful and find out how they achieved it.  Ask someone to mentor you.  Open up your world.

Number two: Be ready to work hard now for payoff down the road.  The most worthwhile things in life take time and work.  The most rewarding thing in my life and the lives of many, is my children / motherhood.  Nearly ten months of pregnancy per child, nausea, labor, getting comfortable with nursing, worry, stress, money, no sleep and no private time…but the rewards are endless and lifelong.  So why not be ready to make fewer sacrifices than that, for rewards that are also endless and lifelong.  The ability to take care of those you love, travel, giving to charity, the home you want, the education you want, going to concerts, shows and most of all, saving for a quality retirement.  All for a few dollars a month, invested well and being as much of a habit as showering.

Number three: Talk to an expert.  Talk to a lot of experts!! Do not allow one person at a bank or investment company tell you that you do not have enough to invest to make it possible or feasible to participate in the best programs with the highest returns.  There are companies out there who can make it work for you.  You can start your savings plan with only a few dollars a month.  Add to that, possibly switching out certain programs you are participating in for other ones with superior payoffs and even, possibly, at a lower cost.  I know of some families that were paying tremendous interest fees plus insurance and with some changes were able to save up to several hundred dollars a month AND increase their portfolio and the value of their overall plan.

My new plan started when I was at a point in my life when I should have had it all.  My car had been repossessed, I was at risk of losing my house, both of which I had struggled to save for and buy.  I was devastated.   I had worked so hard but the world’s economy changed my world.  I knew I had to work smarter to make my plan work.  If I wanted a change in my life, I had to be that change, once again.  The plan began and life is amazing.  I know now that my future is secure and I am helping others secure their futures too.  I did not take NO for an answer, instead I made sure I KNOW all that I need to create my future.  What is your FIN# and what is your plan?

 

Andrea Blaustein

andrea@unleashtheknow.com

www.unleashtheknow.com

STAYING POSITIVE

Times can be hard…..good careers and jobs becoming scarcer, single parenthood, divorce, cost of living rising and wages staying where they were five years ago.  With pressures increasing and relief systems harder and harder to access, how do you stay positive?

There is no pat answer for all.  Some principles can be applied in most situations but please remember that if you feel that depression is overwhelming and you have suicidal feelings at all, see your doctor, talk to a professional or confide in someone close to you at the very least.  Another important note for you to make to yourself, is that feeling down sometimes, is normal.  There is a tremendous difference between feeling down for a day or even two, and being clinically depressed.  I generally give myself a day to cry, be angry and feel down, when things are overwhelming me.  It is cathartic and gives me vision of what I really want, through the tears.

Wake up in the morning praying / thinking / knowing good things will happen.  Do not let one bad thing like stubbing your toe or spilling your coffee, set the pace for your day.  If you are late, perhaps it is so that you are not in accident or stuck in an elevator.  We do not know what we are saved from,  as we cannot know what has not happened.  You do not need to be religious to believe in SOMETHING…the universe, Law of Attraction, God or Karma.   Most of all, BELIEVE IN YOURSELF!  Give yourself permission to dream, to be happy and to not let the opinions of others matter enough to break your happiness.

Even the worst times pass.  the moment is just that…the MOMENT.  I have been through some terrible times that I thought would never end.  I have questioned God, my own strength and my ability to survive what seemed to be everything going wrong at once.  I have asked why me?  I hate when people turn it around and ask why not me….I can list a thousand reasons why not me.   I do not have all of the answers but I can tell you these simple truths.

Tomorrow is another day.   Somebody, somewhere cares about you and would miss you if you were not there.  There are solutions to every problem.  They may take what seems like a long time and they may be scary, but they are there waiting for you.  There is something in this world that makes you smile so find it and keep it close.  It may be a piece of music, a picture, a pet or a distant memory.  Use your sadness, frustration, fear or anger to propel yourself forward.  Never let yourself stay in the moment.  Even though it does not fee like it at the time, you are not alone.  You are not the only person to have gone through the situation and chances are,   someone close to you in going through it at the same time you are.  Find resources, get creative and do not be shy.  We tend to want to keep our burdens to yourself but if no one knows, no one can help you.  most bad situations did not happen overnight and they will not disappear overnight.

A Life Coach can be your ear and help you find your motivation.  A program designed specifically for you, will teach you to find your joy, your energy and your future.  Write to me at andrea@unleashtheknow.com to start your get started now.  What is waiting for you on the other side of now?