April 2, 2010
Start a Legacy Drawer
A Legacy Drawer is a drawer that houses all of the important information your family needs in case something happens to you.
Every household needs a Legacy Drawer. It doesn't matter if you're single with no kids or 76 and have 12 grandkids-you need a Legacy Drawer.
The drawer should be somewhere in your home and contain everything your spouse or family needs to know if you aren't around-anything that has to do with your financial life should be in that drawer. You must organize it in a way that anyone can find a specific document in 30 seconds.
Your Legacy Drawer should contain 11 things.
To Your Success!
Azhar Laher
Thornhill Wealth Forum
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April 9, 2010
Money and Relationships
Myth: My spouse and I shouldn't talk about money because it only leads to fights.
Truth: You cannot have a great relationship until you can communicate and agree about money.
So if you are married and have money fights, you are normal. But if this is a real problem area for you, there is also an opportunity to improve your relationship and maybe even reach agreement with your spouse. I'm not talking about agreement brought on by surrender, but rather by each person getting a vote, understanding the other's view and finding common ground.
Men and Women are Different
When it comes to money, men tend to take more risks and don't save for emergencies. Men use money as a scorecard and can struggle with self-esteem when there are financial problems.
Women tend to see money more as a security issue, so they will gravitate toward the rainy-day fund. Because of their need for security, ladies can have a level of fear when there are money problems.
Men and women are different in how they view money, and it is largely because they process problems and opportunities from different vantage points.
Marriage is a partnership.Both parties need to be involved in the finances. Separating the money and splitting the bills is a bad idea.
As you work on your money together, you will begin to change your family tree. One of your main goals in your marriage should be to pass a legacy down to your children and grandchildren.
To Your Success!
Azhar Laher
Thornhill Wealth Forum
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April 16, 2010
7 Ways to Cut Your Credit Card Debt
If you're overwhelmed by nausea every time you even think of using your credit card, you've probably been on the "charge it" carousel just a little too long. Time to get off.
You've racked up a $15,000 bill across three credit cards, and you only pay the minimum balance on each one. What's worse, the interest rates range from 16%-18%, so you always pay more than you owe. It's a demoralizing cycle that leaves you feeling like a hamster on a wheel, running as fast as you can but getting nowhere.
Don't cry. There's good news. You can pay down your debt, even pay it off, if you're willing to put a little effort into it. After all, what's a little work when you're faced with years and years of irritating credit card payments?
To Your Success!
Azhar Laher
Thornhill Wealth Forum
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April 23, 2010
New CMHC Rules. What does it mean?
The new CMHC rules came into effect on April 19, 2010. Here are the new rules and changes.
To Your Success!
Azhar Laher
Thornhill Wealth Forum
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April 30, 2010
13 Ways To Spend Your Tax Refund
Woo-hoo -- your refund from the "Tax Man"! But that giddy feeling can lead you to squander most or all of the dough on stuff you don't really need. Here are ways to make it easier to save at least some of it.
Debt
Savings and Investing
Fun, Family, Enrichment
To Your Success!
Azhar Laher
Thornhill Wealth Forum
See Latest Investment Properties
29 Financial Calculators
Start a Legacy Drawer
A Legacy Drawer is a drawer that houses all of the important information your family needs in case something happens to you.
Every household needs a Legacy Drawer. It doesn't matter if you're single with no kids or 76 and have 12 grandkids-you need a Legacy Drawer.
The drawer should be somewhere in your home and contain everything your spouse or family needs to know if you aren't around-anything that has to do with your financial life should be in that drawer. You must organize it in a way that anyone can find a specific document in 30 seconds.
Your Legacy Drawer should contain 11 things.
Cover Letter. This is simply a letter stating the purpose of the Legacy Drawer. Nothing fancy, just a way to introduce your loved ones to the contents of the drawer.
- Will & Estate Plans. All information pertaining to your will and estate, including names of the executor and Power of Attorney should be located in one file.
- Financial Accounts. Anything that has money in it and your name on it should be listed in the Legacy Drawer. This includes account names, amount and account numbers.
- Funeral Instructions. All details and specifications for funeral plans should be listed so the family can fulfill your wishes. If you are married, you need one for you and one for your spouse.
- Insurance Policies. All insurance information, including health, car, disability, term life, etc., should be combined into one single document for easy reference. List the type of insurance, who the policy is for, contact information and policy numbers.
- Important Documents. Any legal or other important documents you have should be noted in the file. This includes deeds, birth certificates, Social Insurance cards.
- Legacy Letters. Since the intention behind the Legacy Drawer is to keep your legacy going after you've passed away, it's a great idea to include letters to your loved ones.
- Monthly Budget. Add a copy of your written budget, so your spouse or loved ones know how to operate your household once you're gone. This will help your family keep track of bills and focus on more important things.
- Tax Returns. Keeping tax returns in your Legacy Drawer is like an insurance policy for yourself in the event that you get audited.Hopefully you never have to pull them out, but if you do, at least you are prepared.
- Safe Deposit Box. Keep copies of all your Legacy Drawer papers in a safe deposit box-you can never be too careful. Include information in your Legacy Drawer on where your safe deposit box is and who has access to it.
- Passwords. Write down all passwords, combinations, usernames and PIN numbers. This information allows your loved ones access to any documents, money or information that is left when you are gone.
To Your Success!
Azhar Laher
Thornhill Wealth Forum
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
April 9, 2010
Money and Relationships
Myth: My spouse and I shouldn't talk about money because it only leads to fights.
Truth: You cannot have a great relationship until you can communicate and agree about money.
So if you are married and have money fights, you are normal. But if this is a real problem area for you, there is also an opportunity to improve your relationship and maybe even reach agreement with your spouse. I'm not talking about agreement brought on by surrender, but rather by each person getting a vote, understanding the other's view and finding common ground.
Men and Women are Different
When it comes to money, men tend to take more risks and don't save for emergencies. Men use money as a scorecard and can struggle with self-esteem when there are financial problems.
Women tend to see money more as a security issue, so they will gravitate toward the rainy-day fund. Because of their need for security, ladies can have a level of fear when there are money problems.
Men and women are different in how they view money, and it is largely because they process problems and opportunities from different vantage points.
Marriage is a partnership.Both parties need to be involved in the finances. Separating the money and splitting the bills is a bad idea.
As you work on your money together, you will begin to change your family tree. One of your main goals in your marriage should be to pass a legacy down to your children and grandchildren.
To Your Success!
Azhar Laher
Thornhill Wealth Forum
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
April 16, 2010
7 Ways to Cut Your Credit Card Debt
If you're overwhelmed by nausea every time you even think of using your credit card, you've probably been on the "charge it" carousel just a little too long. Time to get off.
You've racked up a $15,000 bill across three credit cards, and you only pay the minimum balance on each one. What's worse, the interest rates range from 16%-18%, so you always pay more than you owe. It's a demoralizing cycle that leaves you feeling like a hamster on a wheel, running as fast as you can but getting nowhere.
Don't cry. There's good news. You can pay down your debt, even pay it off, if you're willing to put a little effort into it. After all, what's a little work when you're faced with years and years of irritating credit card payments?
- Use the TWF calculator to determine what you owe. To successfully dig yourself out of debt, you need to know how deep the hole is. Are you in it for $2,000 or $20,000? Use the TWF calculator
- Keep track of what you charge. Every time you swipe. Sounds like a headache, but once you have a better idea of how much you're putting on the plastic, you might be inspired to cut back.
- Pay the balance in full. If you can do that, you'll avoid getting screwed by late fees, minimum payments and all the other sneaky ways that credit card companies and banks have for convincing us that it's okay not to pay all we owe, all at once.
- Pay more than the monthly minimum. If you can't pay your balance in one shot, pay more than they're asking for. You'll reduce your debt more quickly, and you won't just be flushing your income down the high-interest-rate toilet.
- Apply for a new card. That's right. No-interest, low-interest, no-annual-fee cards are out there calling your name. Finding the right card means that you can move your debt across town, and save a ton of money in extra monthly charges.
- Out of sight, out of mind. Choose your favorite credit card, and cut up the rest into little pieces. Bury the chosen one in the backyard, stick it in the freezer, or ask your best friend to hide it. Maybe under the poopy newspaper in the bottom of the birdcage.
- Use your debit card. It comes out of your checking account in real time. If your balance is on the brink, the little machine will tell you.
To Your Success!
Azhar Laher
Thornhill Wealth Forum
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April 23, 2010
New CMHC Rules. What does it mean?
The new CMHC rules came into effect on April 19, 2010. Here are the new rules and changes.
- Variable rate mortgages must be qualified on a 5 year posted rate.
- Rental Properties - Max loan to value for purchase or refinance is 80%
- For rental properties only 50% of rental income can now be added to the clients employment income.
- Maximum second home property someone may own is 1. Therefore a client may own his own property and 1 other second home ( whether it is a cottage or home for a parent or child)
- Self Employed Individuals can only purchase with a maximum loan to value of 90%. Maximum refinance is 85%.
- Self Employed who is self employed 3 years or longer does not qualify under stated income. They must show NOA line 150 to average income.
- Commissioned income employees no longer qualify under CMHC. They must qualify have provable income.
- Maximum Loan to value for refinances is now only 90%.
To Your Success!
Azhar Laher
Thornhill Wealth Forum
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April 30, 2010
13 Ways To Spend Your Tax Refund
Woo-hoo -- your refund from the "Tax Man"! But that giddy feeling can lead you to squander most or all of the dough on stuff you don't really need. Here are ways to make it easier to save at least some of it.
Debt
- Pay off your credit card debt: If you are carrying credit card debt then a large tax refund can be your opportunity to put a dent or eliminate your credit card debt.
- Pre-pay your mortgage: Pre -pay your home mortgage. This will also save some interest payments over time.
- Pay off your student loans: If you have private student loans, now is a great opportunity to pay some off. Even if they aren't private loans you can still make some extra payments to help get rid of your loans earlier!
- Pay off your car loan: Pay off all or at least some of your outstanding car loan. Make sure the payment goes toward the principal.
Savings and Investing
- Contribute to a RRSP: Get money into your RRSP now so you aren't waiting until the last minute next tax season.
- Put it into a high-yield savings account: Sock it away and earn better interest than you would n a brick and mortar bank.
- Start a small business: It doesn't take a lot of money to start up a small side business. You could even try your hand at creating a website!
- Build your emergency savings: If you don't already have 8-12 months of emergency savings away then now would be a good time to start!
Fun, Family, Enrichment
- College Course: Register for a college course or technical course. This could be for your own interest or as a way to help advance your career.
- Vacation: Take the money and run! Ok, maybe not like that but it could be a nice chance to plan out a great vacation with the family!
- Fix up your home: Paint, renovate, upgrade appliances, get new furniture - make your home a nicer place to live in.
- Set up a fun money account: Take the refund and put it into an account. Label it fun money. Throughout the year take money out to do things like go to the zoo, amusement park, museum, movies, etc...
- Donate to a charity: Give money/time to those who need it more!
To Your Success!
Azhar Laher
Thornhill Wealth Forum
See Latest Investment Properties
29 Financial Calculators