I was recently reminded how low mortgage interest rates is making making home owners think about paying their mortgage faster or investing. It’s a constant conundrum for many, especially if you have limited savings to put towards everything. I will have to preface this post that I strongly recommend you put aside 10% of your gross income aside for savings. It’s called paying yourself first and has nothing to do with the interest rate environment. You do that regardless of any interest rates. That nest egg needs to be built. Once you have that in place and you can pump those savings, you have options and big decisions.
Related: Pay Your Mortgage Faster or Invest it
Depending on how long you have left, different strategies can come into play without putting stress on your wallet and yet it pays your mortgage faster. Beat the banks and pay the least amount of interest.
Accelerated Bi-Weekly Mortgage Payments
Use any mortgage calculator out there and you can see that using accelerated bi-weekly mortgage payments will initially reduce your amortization by 3.5
Continue reading Mortgage Strategies
Canadian Western Bank, ticker CWB, is a small bank by comparison with the top 6 Canadian banks. It has a market capitalization of $2.2B and operates mostly in Alberta and British Columbia. Saskatchewan, Manitoba and Ontario represents 22% of the business. It owns Canadian Direct Insurance Incorporated for home and auto insurance.
They have 4 different segments:
- Wealth Management
The banking services they offer are as follows:
- Commercial lending
- Real Estate lending
- Equipment financing
- Banking services
- Credit Card services offered through MBNA Canada Bank
If you want to get a free technical trend analysis on Canadian Western Bank (or any other stocks), use one of the free services below. You’ll get a free email in your inbox on technical trends when they trigger.
CWB Quick Facts
I have a guest post over at Boomer & Echo where I share how young investors can get started. It’s really for anyone though. Take a minute to read and comment. I cover a number of topics such as:
- Savings & Debt (structured finances)
- Investing Education (Books available)
- Opening an Account with a Discount Broker
- Investing Strategies (Find what works for you)
If you know someone who could benefit, pay it forward and let them know about the post!
The Learning Center
Here is a summary of pertinent topics I have written about that might benefit anyone starting with investing on their own.
In a previous post, we discussed some asset allocation basics for those getting closer to retirement. We talked about some of the main principles behind preparing your portfolio and using a more conservative approach as you get older. We looked at how asset allocation is determined by using different variables like your age, risk tolerance, and investment time horizon. In this article, we will look at a few more ideas behind asset allocation management for senior investors. As you will see, there are similarities but some important differences as well.
Here is a list of the previous posts in this series.
Asset Allocation For Those Nearing Retirement
1. Withdrawing Money. Adding money in the beginning of your investment career is very important. That helps your portfolio grow properly.
Continue reading Asset Allocation – Retirement Ready Part 2
I was recently reading about high interest savings account and their usage in a TFSA and it had me curious about the ways people use their TFSA. I personally have used my TFSA for investments as a partner to my RRSP investments for retirement. The TFSA account is an integral part of my retirement plan as you can see. Obviously, I already have a house and I had savings when the TFSA was first introduced – I simply changed how I use my RRSP and TFSA together. Since everyone’s situation is different, I thought I would review the usage offered for a TFSA and some strategies for different age groups.
What’s your timeline horizon for the usage of the TFSA? I think that’s an important question. The account has been touted as a way to save tax-free for spending it later and I think that’s the worst usage of the account. Don’t get me wrong, saving is great but if you already plan to withdraw from it, what’s the incentive on using the account? Saving a few
Continue reading TFSA Usage and Strategies