Personal Finance For Canadians For Dummies

Description

The easy way to get your personal finances in order Personal Finance For Canadians For Dummies offers readers a comprehensive roadmap to financial security. Written by expert authors Eric Tyson and Tony Martin, it offers pointers on how you can eliminate debt and rein in spending, along with helpful tips on how to reduce taxes and save more. The guide also offers a primer on investing, showing how you can build your wealth to ensure a comfortable retirement and university or college for the kids. With up-to-date Canadian examples and references, Personal Finance For Canadians For Dummies arms you with the tools you need to take control of your financial life—in good times and bad. Make smart personal finance decisions Plan the personal finance portfolio that's right for you Reach your personal finance goals Know all of your options The expert advice offered in Personal Finance For Canadians For Dummies is for anyone looking to ensure that their finances are on the right track—and to identify the best strategies to improve their financial health. Introduction......Page 13 About This Book......Page 15 Foolish Assumptions......Page 16 Icons Used in This Book......Page 17 Beyond the Book......Page 18 Where to Go from Here......Page 19 Part 1: Getting Started with Personal Finance......Page 20 Chapter 1: Improving Your Financial Literacy......Page 23 Talking Money at Home......Page 25 Identifying Unreliable Sources of Information......Page 28 Jumping over Real and Imaginary Hurdles to Financial Success......Page 34 Chapter 2: Measuring Your Financial Health......Page 37 Avoiding Common Money Mistakes......Page 39 Determining Your Financial Net Worth......Page 41 Examining Your Credit Score and Reports......Page 44 Knowing the Difference between Bad Debt and Good Debt......Page 49 Analyzing Your Savings......Page 54 Evaluating Your Investment Knowledge......Page 56 Assessing Your Insurance Savvy......Page 58 Chapter 3: Managing Where Your Money Goes......Page 59 Examining Overspending......Page 61 Analyzing Your Spending......Page 64 Chapter 4: Establishing and Achieving Goals......Page 71 Creating Your Own Definition of Wealth......Page 73 Prioritizing Your Savings Goals......Page 76 Building Emergency Reserves......Page 79 Saving to Buy a Home or Business......Page 80 Funding Kids’ Educational Expenses......Page 81 Saving for Big Purchases......Page 82 Preparing for Retirement......Page 83 Part 2: Spending Less, Saving More......Page 101 Chapter 5: Dealing with Debt......Page 104 Using Savings to Reduce Your Consumer Debt......Page 106 Decreasing Debt When You Lack Savings......Page 108 Turning to Credit-Counselling Agencies......Page 113 Filing Bankruptcy......Page 116 Considering a Consumer Proposal: An Alternative to Bankruptcy......Page 121 Stopping the Spending/Consumer Debt Cycle......Page 123 Chapter 6: Reducing Your Spending......Page 126 Unlocking the Keys to Successful Spending......Page 128 Budgeting to Boost Your Savings......Page 136 Reducing Your Spending......Page 137 Chapter 7: Trimming Your Taxes......Page 157 Understanding the Taxes You Pay......Page 159 Trimming Employment Income Taxes......Page 163 Increasing Your Deductions......Page 165 Making the Most of Tax Credits......Page 168 Reducing Investment Income Taxes......Page 175 Enlisting Education Tax Breaks......Page 177 Getting Help from Tax Resources......Page 179 Dealing with an Audit......Page 182 Part 3: Building Wealth through Investing......Page 185 Chapter 8: Considering Important Investment Concepts......Page 188 Establishing Your Goals......Page 190 Understanding the Primary Investments......Page 191 Shunning Gambling Instruments and Behaviors......Page 193 Understanding Investment Returns......Page 195 Sizing Investment Risks......Page 196 Diversifying Your Investments......Page 199 Acknowledging Differences among Investment Firms......Page 206 Seeing through Experts Who Predict the Future......Page 213 Leaving You with Some Final Advice......Page 216 Chapter 9: Understanding Your Investment Choices......Page 218 Slow and Steady Investments......Page 220 Building Wealth with Ownership Vehicles......Page 225 Off the Beaten Path: Investment Odds and Ends......Page 241 Chapter 10: Investing in Funds......Page 245 Understanding the Benefits of Mutual Funds and Exchange-Traded Funds......Page 247 Exploring Various Fund Types......Page 249 Selecting the Best Funds......Page 256 Deciphering Your Fund’s Performance......Page 261 Evaluating and Selling Your Funds......Page 264 Chapter 11: Taking Advantage of Registered Retirement Savings Plans......Page 265 Understanding How RRSPs Work......Page 267 Maximizing Your RRSP’s Growth......Page 270 Examining the Contribution Rules......Page 273 Types of Registered Retirement Savings Plans......Page 278 Taking Money Out of Your Plan before Retirement......Page 281 Closing Down Your RRSP......Page 284 Chapter 12: Investing in Retirement Plans......Page 291 Allocating Your Money in Retirement Plans......Page 293 Transferring Retirement Plans......Page 307 Chapter 13: Investing Outside Tax-Sheltered Retirement Plans......Page 311 Getting Started......Page 313 Taking Advantage of Tax-Free Savings Accounts......Page 315 Understanding Registered Disability Savings Plans......Page 318 Understanding Taxes on Your Investments......Page 320 Fortifying Your Emergency Reserves......Page 321 Investing for the Longer Term (Several Years or Decades)......Page 326 Chapter 14: Investing for Educational Expenses......Page 331 Strategizing to Pay for Educational Expenses......Page 333 Strategies for Saving for Education Expenses......Page 336 Investing Educational Funds......Page 349 Chapter 15: Investing in Real Estate: Your Home and Beyond......Page 352 Deciding Whether to Buy or Rent......Page 354 Financing Your Home......Page 362 Finding the Right Property......Page 376 Working with Real-Estate Agents......Page 379 Putting Your Deal Together......Page 382 After You Buy......Page 385 Part 4: Insurance: Protecting What You Have......Page 393 Chapter 16: Insurance: Getting What You Need at the Best Price......Page 396 Discovering the Three Laws of Buying Insurance......Page 398 Dealing with Insurance Problems......Page 409 Chapter 17: Insurance on You: Life, Disability, Long Term Care, and Medical......Page 414 Providing for Your Loved Ones: Life Insurance......Page 416 Preparing for the Unpredictable: Disability Insurance......Page 426 Planning for Nursing-Home Care: Long-Term-Care Insurance......Page 430 Getting Care for the Road: Travel Medical Insurance......Page 432 Chapter 18: Covering Your Assets......Page 434 Insuring Your Home......Page 436 Auto Insurance 101......Page 442 Protecting against Mega-Liability: Umbrella Insurance......Page 447 Planning Your Estate......Page 449 Part 5: Where to Go for More Help......Page 453 Chapter 19: Working with Financial Planners......Page 456 Surveying Your Financial Management Options......Page 458 Deciding Whether to Hire a Financial Planner......Page 462 Finding a Good Financial Planner......Page 468 Interviewing Financial Planners: Asking the Right Questions......Page 470 Learning from Others’ Mistakes......Page 474 Chapter 20: Using Technology to Manage Your Money......Page 475 Surveying Software, Apps, and Websites......Page 477 Accomplishing Money Tasks on Your Computer, Tablet, or Smartphone......Page 482 Chapter 21: Online, On Air, and in Print......Page 489 Observing the Mass Media......Page 491 Rating Radio and TV Financial Programs......Page 493 Finding the Best Websites......Page 494 Navigating Newspapers and Magazines......Page 495 Betting on Books......Page 496 Part 6: The Part of Tens......Page 498 Chapter 22: Survival Guide for Ten Life Changes......Page 501 Starting Out: Your First Job......Page 504 Changing Jobs or Careers......Page 506 Getting Married......Page 507 Buying a Home......Page 509 Having Children......Page 510 Starting a Small Business......Page 513 Caring for Aging Parents......Page 514 Divorcing......Page 516 Receiving a Windfall......Page 518 Retiring......Page 520 Chapter 23: Ten Tactics to Thwart Identity Theft and Fraud......Page 522 Save Phone Discussions for Friends Only......Page 524 Never Respond to Emails Soliciting Information......Page 525 Review Your Monthly Financial Statements......Page 526 Secure All Receipts......Page 527 Close Unnecessary Credit Accounts......Page 528 Regularly Review Your Credit Reports......Page 529 Keep Personal Info Off Your Cheques......Page 530 Protect Your Computer and Files......Page 531 Protect Your Mail......Page 532 Clean Out Your Wallet......Page 533 Glossary......Page 534 Index......Page 552 About the Authors......Page 612 Connect with Dummies......Page 618 End User License Agreement......Page 620