The beginning of the year is often synonymous with resolutions. Our columnist, Stéphane Blanchard, offers five tips to use in 2021 to balance your finances.

• Know your budget.

It is essential to know your net income as well as your fixed and variable expenses.

• Manage debts well.

It is very important to question the necessity of certain expenses in order to avoid going into unnecessary debt.

• Invest money well.

A financial advisor can help you diversify your portfolio.

• Have an emergency fund.

The unexpected happens so quickly. Having money set aside for this purpose can make a real difference.

• Save for retirement.

Start setting aside money now to ensure a decent standard of living in retirement.

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L’article 5 Financial Tips for 2021 est apparu en premier sur Simple Credit - simple-credit.ca - Solutions de prêts personnels.

Tips and Tricks to Make Quarantine Easier for Your Teen

Pandemic or not, it is possible for both teenagers and adults to have long-distance love relationships. It’s recommended that, as a parent, you discuss the situation with your teen to find solutions and give advice. The absence of the other person is often the most difficult thing to deal with.

In other cases, your teen may be missing the affection and attentiveness that only a significant other can give. Meaningful clothing or objects belonging to your teen’s significant other (if he or she already has them at home) can help soothe the emptiness left by the other’s absence.

For others, these objects are simply a reminder of the absence of their loved one. It may be helpful to suggest that your teen put these items away until they feel the need to see them again.

This period of distancing is not all bad

It is a 100% reliable method of protection against sexually transmitted infections if it is followed properly (this is not the time to exchange fluids, as the Premier of Quebec said!).

Insist that your daughter continue to take birth control pills (if she was already taking them) throughout the lockdown. It will be important for your teen to have condoms in their possession on the day the lockdown is over, if the relationship has reached that point.

As with any time of year, we suggest caution when sharing revealing photos and videos… Long before the pandemic, we saw many young people being bullied after sharing photos, which were then used by people with bad intentions.

Does your teen want to communicate with their significant other?

The easiest way is through video chat. It’s a meaningful means of communication where the non-verbal (facial expressions, gestures) is clearly visible, which reinforces the feeling of closeness.

You can also talk to your teen about writing emails, virtual love letters, or even writing real letters on paper… Writing your feelings often feels good.

A creative tip would be to encourage your teen to keep a diary of this unique event (note activities done over the days, describe thoughts and feelings, explain positive or difficult events).

It will certainly be very interesting to look back on in a few years. Your teenager may be surprised to see, in retrospect, how bold they were.

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L’article Love in the Time of COVID-19 est apparu en premier sur Simple Credit - simple-credit.ca - Solutions de prêts personnels.

With so many other houses for sale, how can you make yours appealing and attractive? Here are a few tips to help you attract potential buyers! 

First, in order to optimize your approach, you have to ask yourself: who is your property for? Be specific! Would it be perfect for a small family or for a professional couple without children? With their knowledge of the market, a real estate broker can help the seller to better target the ideal buyer. “Pleasing everyone is not the most efficient way to find a buyer,” says Guillaume Boily, real estate broker at RE/MAX, and team member of Andréa Côté. Then establish the strengths and weaknesses of your home, putting an emphasis on the former. For example, your street is busy, but your property is very attractive. So, focus on the interior finish without dwelling on the location. Bring out the best in your home…

What’s your category? 

You also need to know what category your home falls into to better present it to buyers. According to Boily, there are three main categories. The first is for renovation projects. This could be a house from the 80s that hasn’t had any renovations or much maintenance. The second is a home that needs upgrades: “It’s a house in good condition, there has been a lot of maintenance over the years, but the bathroom is original and the floors are still parquet,” explains Boily.

Finally, the turnkey house. It’s not necessarily a new construction, but it won’t require maintenance or renovation. Once your category is determined, the buyer has a better idea of what to expect: will they need to undertake major renovations, or just make small additions? It could be the turnkey aspect that interests them… You have to present your type of house well.

Both neutral and alive!

As soon as they set foot into your home, the potential buyer must be able to make it their own: “They have to imagine themselves living in your home when they visit it,” reminds Boily. He adds that it has to be depersonalized while still maintaining a lively appeal. We don’t want to be in a place that seems uninhabited either… Here are some subtle things you can do easily: First, put away your display of family photos. The interior should be neutral, allowing the person to visualize themselves better, as if they were already at home! Put the dog’s bowl in a cupboard and don’t leave the kids’ toys lying around. Also remove busy, flashy decorations or massive, overstuffed furniture, such as your china cabinet filled with various, bright colors. “When you have too many elements, you can take away the imagination of the buyers who visit the house,” says Boily.

One little coat of paint 

Changing the paint is the least expensive and most beneficial modification. Do you have a kitchen with beautiful wood cabinets? Unfortunately, the faded yellow or old pale green on the walls don’t really do justice to the room… Choose a colour that will highlight the attention-grabbing elements. “With whites and light grays, you can’t go wrong,” says Boily. 

For the buyer, the first contact is usually made on the internet via photos of your house. A simple glance will determine if they want to visit it or not… Sometimes all it takes is a fresh coat of paint on the walls to get some beautiful images!

A clean and accessible yard

People also come to view the property before an official visit. They want to see what it really looks like, and more importantly, if it is well maintained. In the summer, if you need to wash siding, windows, and gutters, don’t wait to do it! Carefully mow your lawn, pamper your flower bed, and pick up any bikes blocking the driveway. During the winter, clear the snow and the entrance properly: the buyer should not slip on icy steps. They also should not sink into the snow trying to get to the house. “A well-maintained exterior suggests that the interior will be well maintained as well,” explains Boily. Now you can attract buyers to your home!

NADIA BERGERON

L’article Homes for Sale: Tips and Tricks to Attract Buyers est apparu en premier sur Simple Credit - simple-credit.ca - Solutions de prêts personnels.

The Tax-Free Savings Account (TFSA) is a savings account. The money that is paid into it can be paid into different types of products. In addition, the investment income generated by the products in a TFSA is tax-free. Do you know what you can invest in your TFSA? If you opened a TFSA account a few years ago, or if you’re thinking of opening one in the near future, there are many options beyond the regular savings account.

To help you reach your goals, it may be time to review your savings strategy. The three frequently asked questions below will help you make the best decision for your situation and goals.

What does non-taxable investment income mean?

The TFSA is a very flexible savings tool that can allow you to generate tax-free income through the savings products you include. It allows you to plan and give life to short, medium, or long-term projects, such as a trip, a down payment for a car, renovations, or improving your income in retirement.

In practical terms, this means that if you contributed $1,000 to a Guaranteed Investment Certificate (GIC) that you put into your TFSA, at an annual rate of return of 2%, you would earn $20 at the end of the year, and that money would not be subject to your tax bill.

Withdrawals from your TFSA are not taxable, since the money you save comes from your take-home pay.

Do you know your TFSA?

When opening a TFSA for the first time, some people opt for a regular savings account. Generally speaking, this is a bank account where your money can grow, but at a lower rate – usually 1.5% to 2%, with an average rate of 1% or less in 2020, which is below the inflation rate. This type of investment has a fairly low earning potential.

If your investment income is lower than inflation, you will not accumulate enough money to cover the rising cost of living. By investing in other products that have the potential for higher returns, and whose income is not taxable, you’ll get more for your money.

This diagram illustrates the capital accumulated over five years for a guaranteed savings product and a non-guaranteed product. The simulation is based on an investment of $1,000 in a savings account with an annual rate of return of 0.80% and in the RRSP+ at the Fonds de solidarité FTQ, based on the value of share A between 2016 and 2020.

Remember, however, that, generally, the higher the income potential, the higher the risk. Take the time to assess your risk tolerance based on your investor profile.

What products should you put into your TFSA?

Versatile like an RRSP, the TFSA, which is a savings vehicle and not a product, allows you to invest in a wide variety of financial products, such as mutual funds, GICs, stocks, bonds, etc. It’s up to you to choose according to your needs and savings objectives! Here are the main features of the different products available to you.

Mutual Funds (MF):

Mutual funds are managed by fund managers, while their assets are managed by portfolio managers. The portfolio managers invest all of the investors’ money in investment products that meet the fund’s objectives and follow the investment policies established by the fund managers.

To achieve the desired goal, there are different mutual funds: fixed income, balanced, equity, international, and money market. The return, and therefore the risk, depends on the investments made. With the FlexiFonds, the Fonds de solidarité FTQ offers three investment profiles: conservative, balanced, and growth funds, all of which meet distinct investor profiles.

The mutual fund has no maturity date and can generate returns in the form of dividends, interest, capital gains, etc. It is redeemable at any time and its securities are not guaranteed.

Guaranteed Investment Certificates (GICs) and Bonds:

GICs

GICs are debt securities issued by financial institutions, to which you lend money through these securities. In exchange for this loan, you will receive interest. The interest rate is fixed from the time of investment to the time of maturity.

GICs cannot usually be withdrawn and will have to be held until they mature, which will be in one to five years on average. There are a few exceptions, but expect to pay a penalty if you withdraw your GICs prematurely.

Your money is safe because the amounts invested are generally guaranteed by the issuer and your principal is protected by a deposit protection plan, under certain conditions, in case of issuer bankruptcy.

Bonds

Like GICs, with bonds, you lend your money to an issuer – a company or government – who in turn pays you a fixed amount of interest at a certain frequency. At the maturity date, which can be from 1 to 30 years from now, the issuer must pay you back the full face value of the bond.

The value of the bond varies according to interest rates, but also according to the issuer’s credit rating.

Held to maturity, the bond allows you to receive the interest expected at the time of purchase, unless the issuer is no longer able to meet its obligations.

Stocks

When you buy stocks, you own a share of the capital of the company that issued them. Shares have no maturity date and can provide a return in the form of dividends or capital gains. They are traded on stock exchanges or over-the-counter markets.

Both the risk and the return prospects are high with stocks, as their value can rise and fall significantly. If the company is dissolved, you will be entitled to a share of the remaining assets, but only after all other creditors have been paid. In addition, holders of preferred shares have priority over holders of common shares.

 
The TFSA is a savings vehicle that offers many possibilities, much more appealing than keeping your savings in a simple savings account! If it’s been several years since you opened a TFSA, it may be time to check with your financial institution to see what types of products you have invested in. By making the right choices based on your investor profile and objectives, you can maximize your returns and ensure long-term income. It is possible to hold several TFSAs for different objectives, as long as you do not exceed your annual contribution limit. It may be a good idea to get a second opinion on your investments to ensure you get the best out of each one, with the help of FlexiFonds, for example.

By Fonds de solidarité FTQ

Fonds de solidarité FTQ

L’article Your TFSA: More Than Just a Savings Account est apparu en premier sur Simple Credit - simple-credit.ca - Solutions de prêts personnels.