The new Tax-Free Savings Account (TFSA), revealed in the Conservative 2008 Budget starts in 2009 and gives Canadians aged 18 and older tax free contribution room of up to $5,000 annually (from their taxable income). The investment income, including capital gains, earned in a TFSA will not be taxed — even when withdrawn.
The plan also allows an investor to withdraw funds from the TFSA at any time and for any purpose. The withdrawal amount can then be put back at a later date without reducing contribution room for that year. Unused room can be carried forward to future years.
TFSA Good For Retirees
Continue reading Canadians Get Tax-Free Savings Account (TFSA) in 2008 Budget
Alberta’s housing market is about to slowdown which should improve affordability in 2008, according to
a new housing report issued by RBC Economics. Since November, selling a house in Calgary has been difficult with a the slow buying period and overall lower demand.
RBC currently calculates the need for pre-tax household income for a detached bungalow to be 43 per cent, the standard two-story home to 46 per cent, and the standard townhouse to 33 per cent. The standard condo was the only segment to witness affordability improve to 28 per cent.
Continue reading Canadian Housing Market to Cool – Alberta Included
The Bank of Canada released its January 2008 Monetary Policy Report Update. Highlights include expectations that the Canadian economy will continues to operate above its production capacity, despite some slowing in growth in the fourth quarter of
2007. Both total and core inflation have been lower than projected in the October Monetary Policy Report, largely reflecting a price-level adjustment related to increased competitive pressures in the retail sector stemming from the level of the Canadian dollar. Financial conditions have deteriorated since October, leading to tighter credit conditions in industrialized countries. Given this, and a deeper and more prolonged decline in the U.S. housing sector, the U.S. economic outlook for 2008 has been revised downwards significantly.
Continue reading Canadian January Monetary Policy Report
U.S. property/casualty insurers are expected to pay homeowners and businesses $6.5 billion for 2007 property losses from 23 catastrophes’ the third highest in a decade and the forth highest frequency for the same period, according to preliminary analysis by ISO’s Property Claim Services Unit.
Continue reading US Property insurers pay third highest in a decade
As selected by Insurance Journal
1. Climate Change
In February, the Intergovernmental Panel on Climate Change issued the first of three reports. It confirmed: 1) the temperature in the atmosphere and the oceans has grown warmer and can be expected to continue to do so. 2) The amount of greenhouse gasses, mainly CO2 and some methane, has increased markedly since 1750. 3) These gasses are the most significant cause for the temperature increase. 4) Human activity is primarily responsible for their production.
Al Gore helped the cause, but in reality, currently there is little being done because people want to be green on one hand, but won’t do what it takes to ‘be green’ like stop driving their SUV’s.
Continue reading Top Ten US 2007 Insurance News Stories
Hi and Lois Nov 25, 2003.
There are 3 types of people in life: The spender, the lender, and the investor.
“Poor people spend and buy stuff, the middle class buy liabilities, and the wealthy buy assets.”
Let’s take a look at these truisms.
The spender will buy stuff, putting off achieving their financial goals until they have more money. In fact habits become harder to break over time. The day they plan for their financial future may never arrive. The spender needs to realize that almost every wage earner is capable of both meeting their every day expenses and investing for their long term goals.
Continue reading Too Much Flexible Spending – What to Do With Your Income
Turns out somebody in the US wants to talk climate change. US delegates to a UN climate conference suggested they will not be a roadblock to a new international agreement aimed at reducing potentially catastrophic greenhouse gases, but refuse to endorse mandatory emissions cuts. Many governmental delegations at the meeting in Bali see mandatory cuts as crucial for reining in rising temperatures.
Faced with melting polar ice and worsening droughts, delegates from nearly 190 nations opened the two-week conference with pleas for a new climate pact to replace the Kyoto Protocol, which expires in 2012. That deal required the 36 signatories to cut emissions by 5 percent.
A key goal of the conference will be to draw in a skeptical United States, now the sole industrial power that has refused to rafity the Kyoto Protocol, citing fears it would hurt the U.S. economy because cuts aren’t required of rising economies like those in China and India.
The US repeatedly defended their refusal to embrace emission caps after Australia’s new prime minister signed papers Monday to ratify the 1997 Kyoto agreement – reversing the decision of his nation’s previous, conservative government. We for one side with the US (a bit). Actually no, we side with Canada. The impact Kyoto will have on the overall environment will be nil (from a Canadian contribution standpoint) because the major producers like India, China, and US won’t participate.
Continue reading US Won’t Block Climate talks in Bali
Falling on hard times? Turns out the way to get out of your massive house payments you agreed to cause you don’t know how to deal with money and live beyond you means is to burn your house down!
Insurance fraud investigators are actually preparing for more arsons by cash-strapped homeowners trying to avoid foreclosures and ballooning monthly payments as the subprime mortgage crisis deepens. Continue reading Sub Prime Scare Made Your House Worthless? Burn it Down!
When you make crappy cars and you primarily rely on a weak Canadian dollar to compete with your world rivals you’re bound to hit some snags along the way. Case in point GM, they just can’t make ends meet so what happened?
General Motors of Canada will cut 1,200 jobs at an Ontario truck plant in January, a move the Canadian Auto Workers Union says shows the effect of slumping U.S. housing and credit markets on the already struggling auto industry (sure, that’s the only reason why…..) Continue reading GM Dumps Pants and Cuts 1200 Jobs in Canada
This is the story of Ernest and Serenity J. Ernest is a project manager at Dubblebubble Space Corporation. His wife is a teacher. They have 2 children, Cordelia 14 and Brent 11. Since the family came back from vacation in Halifax, Ernest has been working a few late nights and weekends as his company is expanding their information systems. As a result he and his wife have had to postpone their usual Saturday night dinner date. However, this gave Mrs. J and the children the opportunity to go to West Edmonton Mall for some back to school shopping. She is planning to surprise Mr. J with a 60 inch plasma TV for his upcoming birthday.
With her babysitting money Cordelia buys the latest trends from TuTutemon. Brent has already put in a request for a Playstation 3 for Christmas. He is too young to work but makes a few dollars from walking the neighborâ€™s dog when they are away.
Continue reading Holding Off From Selling Off After Sub Prime Scares