Factors to Consider When Deciding the Location for Your New Home
A house is just a shelter, but a home is what you make of that house. Buying a house is the most significant investment you’ll make. You have so many factors to consider when you’re looking for the perfect home. One of the most important things to consider is the location for your new home. Choosing the right location for your new home is important because it affects many aspects of your everyday life and the value of your home in the future.
Here are the factors to consider when deciding the location for your new home:
1. Affordability
Affordability is a decisive factor when it comes to buying a new home. You should keep in mind that not every community will be in your budget. So have you determined what your budget is? It’s very important to determine what you can afford.
Your main concern when buying a house is being able to live comfortably and within your means. You would need to consider everything from closing costs, upfront fees, housing expenses, and the price of gasoline and consumable goods.
2. Commute
Maybe you own a business that has ATVs for sale, sell custom t-shirts, or provide drain cleaning services, so you have the luxury of working from home. But, if you don’t then you would definitely want to consider your commute to work. The amount of time it takes you to get to work or an office space and back home can be a determining factor in your decision when deciding the location of your new home.
Your commute to work can have a significant impact on the amount of time you can spend with your family. In addition, even if you own a car, you should also be considering if the location of your new home is nearby a reliable network of public transportation. This could help you save the time and stress of driving to work and back home, as well as save you money on car maintenance and gasoline consumption.
3. Healthcare Facilities & Services
Do you have young children or a family member in the family that fall sick often and require recurring medical attention? Even if you don’t, it’s better to be within a reasonable driving distance to an emergency room in case something happens to one of your family members. Access to nearby healthcare facilities such as hospitals, nursing homes, and drug stores and pharmacies, as well as healthcare services such as a dentists, optometrists, and pharmacists should be an important factor to consider when deciding the location of your home.
4. Schools
If you have young children in the family, you’ll want to consider if the location of your new home has access to good schools. You should be asking yourself questions such are there public or private schools nearby and are my kid(s) able to walk to school? Even if you don’t have kids, school districts are important features for a community. Living in popular school districts will increase your home’s resale value if you plan to sell your house in the future.
5. Convenience & Amenities
What do you want to have close access to? Do you want to have close access to a gym, park, mall, banquet hall, or grocery store? Or maybe you want to live in an area that’s near the best shawarma or the best Italian restaurant in the city? You should consider if it’s a necessity to be close to shopping and restaurants because some people don’t mind driving 15 or 30 minutes to get to a grocery store or their favorite restaurant.
6. Proximity to Family & Friends
Is being close to your family and friends important to you? Maybe you have a large extended family and you love spending the holidays with your family and friends. If this is the case, you should buy a house that is within driving distance to your family and friends.
7. Crime & Safety
It’s important to feel comfortable where you live because no one wants to live in an area that’s known for criminal activity. Do your digging before you decide one the location of your new home by asking the previous homeowner or your real estate agent.
Essential Health Tips for Retirees
Old age is an unavoidable stage of life. Our body goes through major changes as we age. New complications may arise with each passing year. However, these complications can be managed and controlled so you can enjoy retirement.
Here are the essential health tips for retirees:
1. Eat well
Eating nutritious foods in the right amounts can help you healthy. So it’s important to eat well to help control or prevent many illnesses such as obesity, heart disease, high blood pressure, and more.
2. Keep Active
Aside from eating well, you should keep active. Find something you enjoy to help you maintain strength, balance, flexibility, and promotes cardiovascular health. Keeping active will also help you to sleep better, stay at a healthy weight, prevent or control illness, and more.
3. Regular Checkups
You should get regular vision, dental, and hearing checkups. Some people by the age of 50 notice changes to their vision. For example, a gradual decline in the ability to see small print or focus on close objects. You should book an appointment with your optometrist because it’s important to receive regular eye exams to ensure that your eyes are healthy. In addition, you also want to take care of your teeth and gums in order to last you a lifetime by brushing, flossing, and getting regular checkups.
4. Quit Smoking
Smoking kills because it can cause cancer, strokes, and heart failure. Did you know it also leads to erectile dysfunction because of atherosclerosis and to excessive wrinkling by attacking skin elasticity? You should take this important step of quitting smoking in order to improve your health and fight aging.
5. Manage Stress
You should manage stress by exercising or using relaxation techniques. You can also make time for friends to help you manage your stress. Successfully managing your stress will have a positive effect on your health and how you feel.
What Is An Investment Loan?
We use money to spend on items that we want now such as clothes, electronics, and automobiles. But, what about if you use that money to invest for the future and build wealth instead?
Imagine using your borrowing power to invest. You’re probably doing it with a mortgage or a Registered Savings Plan (RSP). These types of investments have the potential to increase in value over time.
It’s considered a good type of debt because you’re not spending on things that depreciate quickly like clothes, electronics, and automobiles. Therefore, if you’re borrowing to invest, you’ll be investing in your future.
What Is An Investment Loan?
An investment loan is a type of loan that is used to purchase mutual or segregated funds. The purchased funds are held as a collateral which secures the loan; the same way a house is used as a security for a mortgage loan. In addition, the lender holds the funds on behalf of the borrow until the loan is repaid in full.
What are compound returns?
Compound returns on an investment means that returns are calculated on the initial investment and accumulated growth from year to year. Having a larger initial investment growing is essential for compounding success.
For example, say your initial investment is $100K, if you make 10% per year then every 7 years your money doubles. So hypothetically in 7 years you could have $200K, then in 14 years you could have $400K, then in 21 years you could have $800K, and in 28 years you could have $2.8 million.
What are the risk of borrowing to invest?
Borrowing to invest involves a greater degree of risk than a similar purchase using cash. If the value of the investment falls, the borrower would suffer a loss of value beyond what they may have experienced if they invested with only their own money.
You are also responsible for loan payments irrespective of the performance of your investments. So if your investment drops in value, you’ll lose on the investment and still be required to repay the loan in full.
Is an investment loan right for me?
Investors who are looking to benefit from an investment loan will have available cash flow, a high risk tolerance, and a long investment horizon. You should speak to your financial advisor to help you determine if borrowing to invest is right for you.
Tips for Travelling
Are you planning on travelling out of the country? Looking to visit your family or flying south for a vacation?
Vacations are for reducing stress. It should be fun and relaxing. Things can happen to make it a stressful experience.You’re not able to control weather or flight delays. However, you can make your trip a lot more memorable and most importantly stress-free.
Here are 5 tips before travelling:
1. Passport
You should make sure your passport is up to date. Many countries require that your passport is valid for 6 months after your return date. It’s recommended that you renew your passport no less than 9 months before it’s set to expire. Click here for more information on how to renew your passport.
You should bring copies of your passport when you’re travelling out of the country. You’ll want to be sure you can prove your citizenship just in case your passport gets lost or stolen. In addition, you should also leave a copy of your passport at home with someone you trust.
2. Money
You should call your bank to make sure your credit card will work in the country you’re travelling to. Not every place takes credit cards you should always have local cash too. Keep in mind that some countries require travellers to pay in order to enter or leave the country.
3. Luggage
Sometimes, things happen. The airline may lose your luggage. So you should always pack a set of clothes in your carry-on. Don’t forget to bring small snacks because eating in a foreign country can become a task. You should also check what your airline’s rules are to avoid any fees.
4. Research
You should do some local research before you travel out of the country. Research events like festivals and ceremonies, as well as a couple of national dishes to try.
5. Travel Insurance
Travel insurance is very, very important. This will ensure you’re protected on your next vacation, just in case you become sick or get injured. There are also other benefits such as coverage illness, lost luggage, trip cancellation, accidental death, and medical evacuation.
Things to Consider Before Choosing a Mortgage
Buying a house is one of the most expensive purchases, so choosing the right mortgage is very, very crucial. You shouldn’t rush to move into your new home because you’ll neglect to shop around for the right mortgage.
As a result, this could lead into a financial mistake that can cost you thousands of dollars. Therefore, you should take the time to shop around and carefully choose the right mortgage for you and your family.
To avoid ending up with the wrong loan and prevent financial problems, here are the 4 things to consider before choosing a mortgage:
1. Consider the interest rate and annual percentage rate
You should consider the interest rate and annual percentage rate before choosing a mortgage. The interest rate is the total sum of money borrow and calculates how much your monthly payments will be. The annual percentage rate includes the interest rate along with other costs such as broker fees and some closing costs and calculates the total cost of the loan.
2. Consider the down payment requirements between lenders
You should consider the down payment requirements between lenders before choosing a mortgage. Many lenders offer insured mortgages with as little as 5% down payment. However, this low down payment comes at a price. In Canada, mortgage default insurance is requirement for down payments between 5% and 19.99%.
3. Consider all closing costs
You should consider all closing costs before choosing a mortgage. Closing costs are one-time fees lenders charge for a number of different administrative expenses. In addition, closing costs represent approximately 3% to 4$ of the total sale price of your home.
4. Consider acquiring a good faith estimate
You should consider acquiring a good faith estimate before choosing a mortgage. A good faith estimate is a document provided by lenders to home buyers upon completion of a mortgage loan application. This document is a breakdown of all potential costs and other costs associated with a mortgage loan.
5. Types of Mortgages Available
Understanding the various types of mortgages available is crucial in making an informed decision. Fixed-rate mortgages offer stability, with the interest rate remaining constant throughout the loan term, providing predictability for budgeting. Conversely, adjustable-rate mortgages (ARMs) typically start with lower initial interest rates that may adjust over time, offering potential savings in the short term but carrying more uncertainty in the long term. Government-insured mortgages, such as those offered by the Canada Mortgage and Housing Corporation (CMHC), provide accessibility for homebuyers with smaller down payments, while also mitigating risk for lenders. Each type of mortgage has its own set of advantages and considerations, and understanding how they align with your financial goals and risk tolerance is essential in selecting the right option for your needs.
10 Tips for a Happy Retirement
Retirement is a time for embarking on one of life’s greatest adventures. There’s a lot you can do to make retirement a great time of life. You shouldn’t be too concerned about the financial aspects of retirement planning. Aside from the financial side of retirement, you should also focus on retirement living. This means deciding on what you want to do for the rest of your life.
Here are 10 tips for a happy retirement:
1. Increase your financial stability
Can you afford to retire now? If not, what about a partial retirement? Do you have the opportunity to downsize your life? Many retirees or soon to be retired boomers are downsizing their lives to free up money for what matters most during their retirement years.
2. Develop new friendships
Did you know those who have strong social networks are 30 percent happier with their lives? There are certain retirement options that can offer the opportunity to develop new friendships.
3. Stay active and healthy
It’s important to stay active and healthy because when you feel good, it’s a lot easier to stay positive and open to new experiences. So make sure you eat well, stay active, and watch your weight. You can look into joining fitness facilities with pools, golf courses, tennis courts, and more.
4. Be social and stay connected
Maintaining friendships is crucial to your health and well being because you need people you can rely on emotionally and for real life help. Therefore, you need to be social and stay connected in order to surround yourself with meaningful connections.
5. Do what you love
Retirement is the time to sit back, relax, and truly enjoy life. You can set yourself up for success by choosing a care free lifestyle. One of the best ways to do this is to consider downsizing in order to free up time and money.
6. Research the best places to retire
It’s possible that you already live in the best place for you, but it’s also possible that there’s a better place for your retirement. Relocating to a more economical location may give you more money for retirement expenses.
7. Make your travel dreams a reality
Traveling is the most popular and desired for retirees and soon to be retired boomers. So you need to figure out how to travel if you want to have a happy retirement. You can make this happen by setting a goal and prioritizing that goal above everything else.
8. Keep a schedule and structure
What’re you going to do with your time once the 9 to 5 is over and done? You can make switching from a busy life to one where busyness only happens because you want it to by keeping a schedule. This will help you avoid the boredom and restlessness during this transition from working to being retired.
9. Spend your savings, but don’t stop budgeting
You’ll want to be sure that your retirement funds last as long as you need them to. So you’ll need to have a clear plan for making your savings lasts because you won’t have next week’s paycheck to fix your financial mistakes.
10. Hire a financial advisor
You’ll need to create a strategy to maximize your financial resources so it’s important to hire a financial advisor. A financial advisor will help you spend and save more wisely during your retirement.
5 Ways to Save for Your Child’s Education
Post secondary education can be costly. A student attending college or university can expect to pay between $2,500 and $6,500 per year or more in tuition. In addition, other expenses such as books, supplies, housing, student fees, and transportation will add to that total.
Did you know approximately 60% of students with debt rely on parents or family for financial support?
If you start saving for your child’s education early, it will take the pressure off you in the years ahead. It is important to start saving for your child's early so you can provide the opportunity for your children to finish college or university debt free.
There are many ways you can start saving for your child’s education such as the Canadian Education Savings Plan (CESG) and Registered Education Savings Plan (RESP). However, there are also other ways to help you get focused and save for your child’s education in the future.
Here are 5 ways to save for your child’s education:
1. See what you can afford to save
Seeing what you can afford to save will help you see where you’re spending your money. So you should review your bills, receipts, and bank and credit card statements to give you a realistic idea of what you can afford to save.
2. Set and review your budget regularly
Set how much you want to save based on what you can afford to save. Then, review your budget regularly because your financial situation can change.
3. Start early
The best and right time to start saving for your child’s education is early. This means saving for your child’s education even if you don’t have a child yet. So rather than buying expensive birthday presents or Christmas gifts, put some money away on a daily, weekly, or monthly basis towards your child’s education.
4. Family resources
You should encourage godparents, grandparents, and other family members to contribute to your child’s education savings instead of buying expensive birthday presents, Christmas gifts, and other events.
5. Engage your children
You should engage your children by explaining what their education expenses demand so they have an understanding of the important of financial planning. Engaging your children gives them the opportunity to become more involved to save for their education as they grow older.
Tips for Decorating your First Home
Purchasing your first home is an exciting time. There are a ton of possibilities for how you can decorate your first home and make it your own. But, it can also be a little nerve-racking deciding where you should start.
Here are 4 tips for decorating your first home:
1. Clean house at the old place
This is the perfect time to start over. Before you make an offer on a new place, you should clean house at the old place. Get rid of approximately 25 percent to 50 percent of your old stuff such as faulty appliances, wobbly furniture, and questions accessories. This will make your current digs easier to pack up and put you ahead during move-in to your first home.
2. Start with the bedroom
The bedroom is where you’ll spend most of your time when you’re at home. You should start with the bedroom especially if you’re on a tight budget. Purchase a new bedding and paint the bedroom walls to complement your bedding. If you’re ready to splurge, add coordinating window treatments and buy that bed you’ve always dreamed about.
3. Don’t buy everything all at once
Make sure you don’t buy everything all at once. Live and enjoy your first home for at least a couple of months before you make any significant purchases. You need to think about how you’re going to use your house and how you actually live in the house. For example, maybe spending money on renovating the bathroom isn’t as important as beefing up the kitchen and dining area.
4. Fight the urge to match
“Everything has to match.” Retail stores would love for you to buy everything in sets, but you need to fight the urge to match. Don’t turn your home into a lifeless, generic look of a furniture showroom. In addition, don’t be boring, so make sure your own personal style shows through. Your top priority should be proportion, scale, and balance of your furniture and accessories within each room.
3 Ways to Pay Off Student Loans
Now that you finished school you are ready to enter the workforce. This is probably exciting for you, but a daunting transition in your life.
You are probably planning on buying a car and your first home, but you also have to pay for your student loans. There are plenty of ways to pay off your student loans to alleviate your debt and live a better financial life as you are starting out.
Here are 3 ways to pay off your student loans:
1. Make extra payment
Make extra payment is one of the best ways you can pay off student loans faster. For example, pay the minimum payment each month, but make extra payment once every three months in the year for a total of 16 payments.
2. Pay more than the minimum payment
You should pay more than the minimum payment each month. Paying any more than the monthly minimum payment will reduce the cost of your student loans.
For example, let’s say you have a $100,000 in student loans at a 7% interest rate with a 10-year repayment term. When you pay an extra $100 per month, you can save $4,696 in interest costs and pay off your student loans 1.08 years earlier.
3. Make a lump-sum student loan payment
If you have extra cash from a raise, bonuses, or tax refund, you should make a lump-sum student loan payment.
For example, if you have a $100,000 in student loans at a 7% interest rate with a 10-year repayment term, making a lump-sum payment of $2,000 would save you $1,703 on your student loans and pay off your student loans 4 months earlier.
Things You Should Know About Writing a Will
Creating a will with the help of a financial advisor is one of the most important things you can do for your loved ones. Therefore, creating a will is a must. A will protects your assets in order to be passed down to your heirs without any unnecessary hassles.
You should be actively planning for your will so you can stay in control over who gets what of your property. This will give you a peace of mind knowing that your assets will end up in the right hands.
There are 6 things you should know about writing a will:
1. What happens if I die without a will?
A person who dies without a will is said to have died intestate. This means that the person’s assets are distributed based on the laws of intestacy. The laws of intestacy are based on legal relationships and not how much certain relatives may have meant to the person or what emotional attachment certain relatives may have to specific assets of the deceased.
2. Do I need an attorney to prepare my will?
You don’t need an attorney to prepare your will. You’re able to create your own will, but it must meet legal requirements in order to be valid. However, an experienced attorney can provide useful advice, especially if you’re an individual with large assets.
3. Who should act as a witness to a will?
Any person who is an adult and is not included in your will as an executor or beneficiary can act as a witness to your will. This will prevent the potential of any conflict or interest in the event of a dispute. In addition, your witness may have to appear in court if there is a question about the validity of the will. Therefore, you should choose a witness that is likely to remain in your life.
4. Who should I name as my executor?
An executor is responsible for making are your last wishes are carried out. You can choose your spouse, children, or close friend to be an executor. You can also choose an attorney or someone with legal and financial expertise as your executor. Furthermore, you should discuss the responsibility with the person you’ve named as your executor before you complete the will form. Your executor can choose to decline the responsibility if he or she hasn’t yet undertaken the required duties so you should choose more than one executor.
6. How often does a will need to be updated?
You will need to update your will in many different circumstances such if a change in relationship occurs, a beneficiary dies before you, any major assets are purchased or sold, or you moved to a different prove, state, or country. The most important thing to keep in mind is that the only version of your will that matters is the most current valid one at the time of your death. It’s recommended that you review your will once per year to be sure that no changes are necessary.