Comments for Canadian Performer's Money http://canadianperformersmoney.com Financial education for performing artists Mon, 10 Jun 2013 16:53:25 +0000 hourly 1 http://wordpress.com/ Comment on Foreboding part III. by Shirley-Meow http://canadianperformersmoney.com/2013/06/08/foreboding-part-iii/#comment-1551 Mon, 10 Jun 2013 16:53:25 +0000 http://canadianperformersmoney.com/?p=3280#comment-1551 You are most correct !! – 21 Yrs ago, there was no TFSA / I first paid off my mortage, before starting the RRSP / I also have a cash account where I keep my other stock investments – It is my plan to eventually take capital gains on my stock holdings & transfer that money into a TFSA / I currently have “DRIP” plans in place – within the RRSP & the money is compounding & growing at a very good pace – as I no longer have any distribution room left / Down the road, I will look at ransfering the RRSP into a RIF / I enjoyed chatting with you – Please look me up if you ever visit Toronto – There is a great Starbucks nearby / Stay happy & well – Warmly Shirley-Meow

]]> Comment on Foreboding part III. by Canadian Performer's Money http://canadianperformersmoney.com/2013/06/08/foreboding-part-iii/#comment-1549 Mon, 10 Jun 2013 15:54:11 +0000 http://canadianperformersmoney.com/?p=3280#comment-1549 Good for you! Just wondering why you choose to invest in an RRSP instead of a TFSA. In your low tax bracket there is almost no benefit to deferring your taxes inside an RRSP. You will be fully taxed on that money upon withdrawal (rates are expected to go up, not down in the future) and the money you withdraw could reduce your eligibility for other government benefits (not true with a TFSA).

I got Gordon Pape’s book “How TFSA’s can make you rich” from the library. In the book he explains why, unless you earn a high income, TFSA’s are much better than RRSP’s for most Canadians.

http://canadianperformersmoney.com/2013/01/14/why-tfsas-are-better-for-starving-artists/

]]> Comment on Foreboding part III. by Shirley-Meow http://canadianperformersmoney.com/2013/06/08/foreboding-part-iii/#comment-1548 Mon, 10 Jun 2013 15:25:13 +0000 http://canadianperformersmoney.com/?p=3280#comment-1548 I am mortage free – and have been, since I moved in / By not having to earn more money to support myself / I was propelled into a lower tax bracket / The tax savings alone is pheonominal, and over the years it is equal to more than the total capital gains on the property – given its market value today / I have taken my excess savings and have maxed out my RRSP – In the next few years, the proceeds will be applied to any remaing cost “Liability” of upkeep to the condo – The plan is to live for free! / I never earned more than $30 thousand Yr (Gross) – armed with only an 8th grade education to fall back on – I just turned 58 last month / A hard life, required living hard to get to where you need to get to in life. I am now semi-retired and work at a hobby business from my home. / I never let the lack of schooling get in the way of “LIFE”!

]]> Comment on Foreboding part III. by Canadian Performer's Money http://canadianperformersmoney.com/2013/06/08/foreboding-part-iii/#comment-1543 Sun, 09 Jun 2013 16:50:55 +0000 http://canadianperformersmoney.com/?p=3280#comment-1543 I just read the article. Wow! That’s a crazy move in a falling market with rates going up and mortgage regulations getting stricter.

But it had a pool, so I guess it’s worth risking your family’s finances!

]]> Comment on Foreboding part III. by Canadian Performer's Money http://canadianperformersmoney.com/2013/06/08/foreboding-part-iii/#comment-1542 Sun, 09 Jun 2013 16:31:45 +0000 http://canadianperformersmoney.com/?p=3280#comment-1542 Sounds like you have a solid plan. You bought when prices were reasonable and your home brings in money. Your home gives you peace of mind. Good for you!

What worries me is the mantra of “you have to own a home, house always go up in price”. Many young people today are buying homes that are extremely over priced (see chart above) while stretching to make their mortgage payments while rates are at these emergency low levels.

When rates go up (they just started) and prices fall (they just started), these people will be left paying a mortgage they can’t afford on a home that is worth less than they owe on it. They could rent the same home for less money and invest the difference in a TFSA for example. Zero stress, more peace of mind.

]]> Comment on Foreboding part III. by Canadianbudgetbinder http://canadianperformersmoney.com/2013/06/08/foreboding-part-iii/#comment-1541 Sun, 09 Jun 2013 16:30:17 +0000 http://canadianperformersmoney.com/?p=3280#comment-1541 There’s about 80k on our mortgage and once I get my money over here I’ll pay that off so I’m not worried about it. Did you happen to read my post last week about what my neighbours did? One House, One Home, Two Mortgages and A Pool… they sold the house but how they went about it was bloody risky to me. They slashed the price alright…

]]> Comment on Foreboding part III. by Canadian Performer's Money http://canadianperformersmoney.com/2013/06/08/foreboding-part-iii/#comment-1540 Sun, 09 Jun 2013 16:20:08 +0000 http://canadianperformersmoney.com/?p=3280#comment-1540 You live frugally and are on top of your finances. You will be fine even if the market corrects (I hope you locked in your mortgage at these low rates?). Rates are going up and already started this week. If the value of your house went up or down, it doesn’t effect your finances if you are still paying the same mortgage payment.

What’s happening right now in the Canadian market is that people are listing their homes for the price THEY think it’s worth, or the price they need to sell it at in order to break even. These houses aren’t selling and the number of listed homes is skyrocketing.

The number of listings usually grows and then prices fall later. When these people finally realize they are not going to get their asking price after their home has been on the market for months, then we will see the domino effect as all these people start start slashing prices at the same time.

]]> Comment on Foreboding part III. by Shirley-Meow http://canadianperformersmoney.com/2013/06/08/foreboding-part-iii/#comment-1539 Sun, 09 Jun 2013 15:44:25 +0000 http://canadianperformersmoney.com/?p=3280#comment-1539 I bought my 2-bdrm condo in “92 – in a place called Richmond Hill Ont. / It took me 30 Yrs of sacrafice, as I lived below the poverty line to save up the money – When I moved in, I promptly rented out a room and still have that room rented out to this day / I have always been more concerned with establishing “Stability” in my life, along with “ZERO” debt – Low stress= peace of mind + contentment / Compromise combined with a good lifestyle made the differance / I also dont own a car – But we all create different strategies in life to get to where we want to go !! – “Home Sweet Home”

]]> Comment on Foreboding part III. by Canadianbudgetbinder http://canadianperformersmoney.com/2013/06/08/foreboding-part-iii/#comment-1538 Sun, 09 Jun 2013 04:03:00 +0000 http://canadianperformersmoney.com/?p=3280#comment-1538 I was reading something about the Canadian real estate on Yahoo today and how it is overvalued and people better get ready for a correction. I hope people are prepared but for the most part what people think their house is worth will be saddened when they find out it’s not what it seems. That’s why I didn’t bother touching the house in my net worth update. When it does correct I won’t feel the pain as much as others who value their real estate too high.

]]> Comment on Foreboding part II. by Foreboding part III. | Canadian Performer's Money http://canadianperformersmoney.com/2013/06/07/foreboding-part-ii/#comment-1536 Sat, 08 Jun 2013 08:14:47 +0000 http://canadianperformersmoney.com/?p=3272#comment-1536 […] ← Previous […]

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