Money Hacks by Clem: Recent Episodes
ClementChung
I teach money. My podcast will encompass all things around personal finance, investing, Canadian taxes and more!
Find me at www.clementchung.com
Join me as I explain to a new set of clients, on the different types of personal insurance available here in Canada. You'll learn about and hear the answers to questions like... - What is Life Insurance? - How does Life Insurance play a role in my personal finances? - How should you structure your life insurance policy? - How to Earn Tax Free Funds in a Life Insurance Plan? - What is Critical Illness Insurance? - What is covered under Critical Illness - How can this plan help me take money out of my corporation tax free? - What is Disability Insurance? - What does Disability Insurance Cover? - Who should have Disability Insurance? - Why is Disability Insurance useful and flexible? Thank you everyone for your ongoing support. Hopefully you find this information useful! Happy to connect and answer questions as needed! Email: clement.chungcc@gmail.com Website: www.clementchung.com
Apparently, it’s going to take more than a global pandemic to put the brakes on Canada’s rollicking real estate market. In fact, many changes brought on by the pandemic are influencing buyer behaviour and transforming some long-standing trends.
While a home-buying plan still largely depends on the key factors of cost and location, today’s historically low interest rates and the vast number of jobs that are now done from home are encouraging some Canadians to rethink what kind of future home could suit their ideal lifestyle. In other words, more real estate decisions are being based on where people want to live, not where they feel they must.
Big city vs. small town
Given lower interest rates, the increased amount of time people are spending at home and the fact that many of the amenities that make big cities so attractive have been scaled down because of the virus, home buying in smaller communities is surging.
Renters rushing to buy
The pandemic has influenced the type of housing preferred by today’s active buyer. Single-family homes, which may have seemed out of reach for some renters, suddenly seemed more attainable when interest rates fell in 2020.
Favourable conditions
There’s a lot of speculation about the effects the pandemic will have on the Canadian economy and how long they will last. But given the current combination of favourable conditions, including historically low interest rates, positive economic forecasts and a swell of new buyers clamouring to find a home of their own, there’s tremendous confidence that Canada’s real estate market will continue to thrive.
A mortgage is a fact of homeownership
Unless you can pay cash for a new home, a mortgage will be a fact of life, possibly for many years. Qualifying for and retaining a mortgage can be exciting – it means you’re on your way to owning your new home! But it’s also a big responsibility.
Calculating the weight of mortgage rates
According to CREA, the average price of a single-family home in Canada was $607,280 in December 2020.[6] After subtracting a 20 per cent down payment ($121,456) from this average price, the remaining amount on a mortgage would be $485,824.
Over the course of a typical 25-year mortgage with a two per cent interest rate, you would
· make 300 monthly payments of $2,059
· pay $485,824 in principal and $131,931 in interest, for a total cost of $617,755
Home buyers can expect interest rates to change over time, which will influence the total cost of carrying a mortgage. Even relatively small rate increases can significantly affect how much you will eventually pay.
Regardless of the amount that’s owed on a mortgage, consider making prepayments when possible or maximizing interest paydown through integrated banking products that easily adapt to your changing circumstances and goals.
Buying a house, whether to live in or as an investment, involves plenty of decisions. Here’s what you need to do to make sure you’re buying within your price range so you don’t become cash strapped and miserable just for a roof over your head.
-
Make sure your mortgage payment plus strata fees, utilities and property taxes doesn’t exceed 35% of your income.
-
Buy to hold – we’re not in a market to expect explosive growth any longer and you should always plan to keep the property for the next 2-5 years.
-
Run the numbers to make sure that you have at least $30,000 available after your home purchase
-
Don’t always hone in on the interest rate and instead look at the flexibility provided by each mortgage plan.
-
Run a comparison on the cost of ownership compared to renting and investing the difference. I can help with this.
Let's chat!
www.clementchung.com
email: clement.chungcc@gmail.com
Five million Canadians are set to turn 65 this decade. At the same time, Canadians are living longer and delaying retirement, while fewer have traditional pensions.
The pandemic has caused new headwinds and an even greater focus on decumulation challenges. As of December 2020, Canada’s unemployment rate stood at 8.6%. This was up from 5.6% prior to the pandemic.
It reached a record high of 13.7% in May, in the wake of the first shutdown. A portion of these jobs belonged to Canadians over the age of 50, resulting in a group of “forced” early retirees. A second group comprises those deferring retirement due to feelings of financial insecurity brought on by the pandemic.
I took a moment to research what was available on the internet about retirement planning compared to what was actually in my head and surprisingly, the most valuable resource on the internet for most people is the government of Canada website on the subject matter of Canada’s retirement income system.
The government of Canada’s website does a good job going into detail about Canada’s retirement income system.
https://www.canada.ca/en/financial-consumer-agency/services/retirement-planning/sources-retirement-income.html
What I really want to convey in this episode is the idea of longevity risk.
Recently, I sat in a meeting with a client who is age 72 and she had recently downsized her home and was sitting on $500,000 available to fund her retirement. In my discussions with her, we identified that she had three main prioirities.
-
She wanted to boost her income by at least $2,000 per month in retirement now that she has these extra funds,
-
She has a daughter who is ill and, although is an adult, still occasionally requires help in paying for unexpected expenses relating to her sickness,
-
And lastly, being able to leave some of her assets behind for her children is also a priority.
Now with the current landscape of social media and the neighbours next door, you can probably guess what the investment recommendations provided to her by other people sounded like right?
We have a stock market that is scalding hot due to all the money that the government has thrown at it to fuel the flames over the past two years.
We have the crypto currency market which is still in its premature days, so much so that everyone wants to get in early and become the next bitcoin millionaire
Then we have the housing market, which provides for some decent returns in a fair market, but since I’m based in Vancouver BC, nothing makes sense about it.
So then came the question of how we can create a strategy that makes sense for someone who is extremely risk averse, fearful of investment volatility and stock market movements, and has had her neighbours whisper in her ear that the world financial system is going to collapse in the next decade.
This is when I started to remember the lessons and strategies that I had implemented back in the day when I worked with a pension firm that dealt specifically with assets of seniors and retirees. The recommendations had always revolved around two specific asset classes that were mostly unaffected by stock market movements and government policies. First was the annuity strategy, and second, was the guaranteed income funding strategy.
At the end of the day – the client managed to reach her goal of increasing her income by $2000 per month risk free, while also maintaining the flexilbility in her finances that she’s been hoping for, as well as making sure that there is money available for the kids when she dies.
Lets Chat!
clement.chungcc@gmail.com
Come find me at...
www.clementchung.com
Hey Everyone - its been a while since I've uploaded as life has been far too busy as of late. However, I did want to post a meeting that I had earlier this year with a media professional who was interviewing me regarding the matter of financial planning for families in the 21st century. Within this podcast episode, we cover ...
-
Navigating the Dynamics within the new "norm" in families
-
How to structure your finances amongst your household
-
Emergency Funding Strategies & Online Banking Solutions
-
Managing Debt with the Family
-
Day-to-Day Cash Planning Ideas
We covered a lot of interesting ideas, simple strategies that you can implement to achieve financial security.
You can find me at...
www.clementchung.com
Email inquiries at...
clement.chungcc@gmail.com
Whether you’re starting your career or preparing for retirement, getting married or going solo, your financial situation and needs are unique. But there are fundamental money principles anyone can follow to begin building financial success.
Many different types of families exist today and the makeup of families in Canada continues to change. Families with married couples are still the most common type of family, but this has been declining in recent years. Family units that were less common 30 years ago have been increasing, including same-sex couples, common-law parents, and couples without children.
The picture of the Canadian family isn’t what it used to be.
- In 1976, 39% of mothers with school-age children were employed. By 2009, that number had increased to 73%. (Source: The Vanier Institute of the Family)
- Only 3% of eligible fathers took parental leave in 2001 compared to 27% in 2007. (Source: The Vanier Institute of the Family)
- One in 10 children lives in stepfamilies. (Source: Statistics Canada).
These universal truths are guidelines that encompass the essentials of financial management that apply to all Canadians. Regardless of your age, gender, culture, income or profession, they can help you make better financial decisions every day.
1. KNOW YOUR MONEY PERSONALITY:
Everyone has a personality: unique attributes, values, goals, worries, tendencies, likes and dislikes that define their character. These traits also apply to your relationship with money. Knowing your money personality can help you meet your financial goals. 2. KNOW WHAT YOU’RE SAVING FOR AND HAVE A PLAN TO GET THERE:
Defining your life goals will give you the focus to achieve them faster, and setting a target date can help you stay motivated along the way. Read: Get SMART to achieve your financial goals
3. KNOW YOUR CASH FLOW: Knowing how much money you earn and how you spend it is key to managing your money.
4. SHOP AROUND TO GET THE BEST VALUE FOR YOUR MONEY: Most people shop around for the best price on a new TV or a liter of milk. Comparison shopping can work for money, too.
5. CARE MORE ABOUT YOUR MONEY THAN ANYONE ELSE DOES: Even if you’re working with an advisor who is committed to doing his or her best with your resources, the decisions―and the results―are ultimately your responsibility.
6. BE A SAVER, NOT A BORROWER: Borrowing can make sense if it helps you acquire something that boosts your net worth. But over time, paying back debt takes away from your ability to save―even when interest rates are low.
7. THE SOONER YOU START SAVING, THE BETTER OFF YOU’LL BE: Time is money―really. The sooner you start to save and invest your money, the faster it will grow.
8. UNDERSTAND WHEN IT’S TOO GOOD TO BE TRUE: If investment scams actually seemed “too good”, no one would ever be taken in by one. Assess money-related matters with a critical eye, especially when it comes to unsolicited requests for your money.
As your life stage and situation changes, financial needs and priorities change as well. Review your financial plan regularly, ask lots of questions, and get to know all the options available to you.
Lets Connect!
www.clementchung.com
clement.chungcc@gmail.com
If you’ve every searched up the best stocks to buy in 2020, you will likely see that all the recommended companies are Tech growth businesses that are located in the US. Believe it or not, there are actually a lot of great companies that have done extraordinarily well in 2020 because they have great fundamental businesses, strong brand loyalty and have reinvested their profits into their companies to feed the flames of growth.
What I’ve done today is listed 10 different companies that you should invest in, which are outside of the typical technology stock that most people are recommending you buy. This portfolio of 10 stocks will have provided a share price increase of 21.92% per year, over the last 5 years – outperforming the associated index benchmark by 9.6% each year. In January to March 23rd of 2020, the stock market lost 30.54% in total value – during this same period, this portfolio’s resilience only reported a total loss of 10% and as of today, it is sitting at 18.76%.
Tune in to the show and find out the 10 companies that you should include within your portfolio that will let you diversify out of US Tech companies, create resilience during difficult times through brand loyalty and have a proven track record of doing business during tough times.
Investing is a bit like panning for gold – you need to dig through the dirty to find the diamond in the rough. As we move on to major changes within the technological advances of our society, your investment strategy should include participating in the growth of companies that are well adapted to the current trends in marketing, media, sales through brand and consumer loyalty. By doing so, your portfolio will be able to weather the many storms that are sure to come and knock out the stock market in the future.
Lets Chat!
www.clementchung.com
clement.chungcc@gmail.com
Today, I’m going to tell you the 8 best growth stocks in the technology sector to keep an eye on as we move into 2021. In this portfolio, we’ve put together an average year return of 22.94% per year. This means that for every 4 year period that you held this portfolio of stocks, you will have doubled your money.
While I can recognize that past returns are not indicative of future performance, these 8 best stocks to buy right now can almost be considered the blue-chip stocks of the next decade.
Blue Chip companies was a phrase formerly reserved for companies that were so large and so successful, that it was almost impossible for them to fail – these were companies whose products and services were widely accepted and were also known to weather downturns and operate profitably in the face of adverse economic conditions.
In today’s era of technological advancement, we’ve named the 8 tech companies that we’re expecting to take on huge levels of growth in 2021.
Let's Chat
www.clementchung.com
clement.chungcc@gmail.com
Financial Stress is More Common Than You Think.
Here are five tell-tale signs that you’re struggling with money stress and How the state of one’s finances can negatively affect not only their mental health but their overall wellbeing.
-
Feeling a loss of control
-
Problem avoidance
-
Loss of self-esteem
-
Lower energy levels
-
Loss of concentration
With the average Canadian household owing $1.76 for every dollar made, it isn’t surprising that 50% of Canadians agree that their level of debt is causing them stress.
Loans, credit card payments, mortgages and simply trying to keep up with social media are just a few triggers of financial stress that impact Canadians of all income levels and age groups.
When you add in a high level of debt, an average rate of income and various financial responsibilities into the mix, financial stress only increases.
People that are struggling with their finances admit that their mental health is compromised because of it. Approximately 48% of Canadians say they’ve lost sleep because of financial worries (Stats Canada, 2019) and 40% of Canadians (Ipsos, 2018) agree that their level of debt is negatively affecting their mental health.
Having multiple bills to pay and loans hanging over your head can cause you to feel more stress and anxiety, impacting your mental health more negatively than without financial worries.
There are also situations where someone’s mental health may affect their financial stability. If someone is feeling depressed or anxious, there is a chance that they will turn to overspending to make themselves feel better. Personally, I know a lot of my friends spent a good chunk of money on the new Playstation 5, Nintendo Switch, New IPhone 12, as well as the recently revamped craze on Pokemon cards.
While there is nothing wrong with treating yourself every now and then, impulse buying or consistent “retail therapy” can negatively affect your savings, your debt levels and your credit score. If you are spending on things you cannot afford, you can also feel guilty towards your actions, as you may not only be lying to yourself about your financial situation but a spouse or partner as well. This, in turn, could affect not only your mental health but potentially your relationships.
If you are willing to put in the time and effort, there are a few simple ways to take control of your financial health, in turn improving your mental health as well.
If you’re having trouble with debt and cashflow, Use my budget or the Mint App to start the process of identifying opportunities to turn a negative cashflow into a positive one.
If you’re looking for savings strategies – consider “paying yourself first” where monthly contributions are deducted from your bank account on the same day as your pay cheques. Alternatively, use the Moka App to round up your purchases to save money on every transaction you make.
Once you’ve arrived at the point where you’re ready to invest, set up an account with Questrade or any online brokerage if you’re looking for a Do it Yourself solution and use my 13 investments for beginners as a starting point to build your first portfolio.
Lets Chat!
www.clementchung.com
clement.chungcc@gmail.com
If you want to outperform the S&P500 AND the TSX, You need to stop buying high dividend paying stocks and instead buy stocks that grow their dividends each year.
I’m going to tell you the 13 best dividend paying & growing stocks that you need to have in your portfolio today! And just so you know – by holding these stocks over the last 10 years, you will have earned an annualized return of 12% year over year. This means you would have outperformed the Canadian Stock Market (TSX) and the US Stock Market (S&P500) as a whole!
Dividends are part of the profits that a company pays out to their share holders, as a way of returning to them some of the funds that they contributed to the company. High Dividend payments indicate that a company has earned massive profits and have little to no expectation of large reinvestments into the company’s operations – we call these cash cows.
Low dividend payers generally indicate that they are making profits and would like to provide their investors with some sort of rewards, while also signalling that the profits they’ve made are going to be directed into the future growth of the company. We call these dividend growers.
Dividend Growers are my favorite form of investment holdings because they constantly pay me a passive cashflow on my monies invested – and because they’ve continually reinvested their funds into their company, their stock prices tend to skyrocket as they continue to grow over the course of 5 – 10 years.
This is the method I’ve used to create a portfolio that generates a 3.70% dividend yield – which is guaranteed pay out of income each year, while also averaging a 12% return on investment through increases in the value of my holdings.
Dividend paying stocks are great investment ideas for people looking for a steady stream of income while also benefitting from the ongoing returns within the markets. Its important to be picky when it comes to choosing individual stocks as their business models and industries can affect the dollars that you make on your portfolio. If you copy the 13 holdings that I’ve listed in this video, while maintaining a dividend reinvestment plan & annual rebalancing strategy, you will earn a 3.70% dividend yield on your portfolio and likely, outperform the stock market index based on the value approach that we’ve taken in assessing these holdings.
Let's Chat!
www.clementchung.com
Hey guys - I'm so excited about this podcast where I tell you about the secret to investing with ETFs during recessions, elections and pandemics.
DID YOU KNOW? The biggest mistake most people make when using Exchange traded funds is in purchasing a single broad market index!
Exchange traded funds are diverse, flexible and cost effective – however, if you want to know the most effective way to use ETFs, then be sure you stay tuned until the end when I reveal the technique that all institutional portfolio managers are using to maximize the use of ETFs in their billion dollar portfolios.
The COVID-19 pandemic prompted many investors to look more closely at their investments – and made it clearer than ever why it’s important to know what you own and understand how it works.
What is an ETF?
An ETF trades on an exchange – just like an individual stock. That makes ETFs very easy to buy and sell, and it also means they are priced throughout the trading day (unlike a mutual fund, which is priced only at the end of each trading day).
ETFs also generally offer:
· Low fees because they have lower operating costs
· Transparency, with holdings reported every day
· Potential tax efficiency when portfolio turnover is low
Keep in mind that the savings associated with low fees and tax efficiency are magnified over time. So investors benefit the most from these features when they hold ETFs for the long term.
With so much money going into these assets, I want to make sure that you know how to differentiate between the different kinds of ETFs.
Passively managed
The first ETFs, introduced in Canada 30 years ago, were structured to replicate the returns of a specific index. Instead of actively choosing investments, the managers of these early ETFs set them up to match the holdings of the indexes they were tracking. They were “passively managed,” simply matching the index without trying to outperform it.
Actively managed
With an actively managed ETF, a portfolio manager carefully selects individual stocks, bonds or other assets, just as he or she would for an actively managed mutual fund. The difference is that the portfolio is structured as an ETF with all an ETF’s benefits, including low fees and potential tax efficiency.
Strategic beta or smart beta
As of Nov 2, 2020 – The strategic Beta ETF FNGU earned a whopping 267% return for the year so far.
A strategic beta ETF may give preference to value stocks, growth stocks, low-volatility stocks or any other group of assets that can be clearly defined. With a rules-based approach, performance does not necessarily depend on the manager’s day-to-day decisions but rather on disciplined adherence to the factor model, which offers two advantages. First, even professional money managers can be subject to the behavioural biases that affect all investors, and that may diminish returns. Second, less hands-on involvement generally means lower fees.
Incorporating ETFs into a portfolio
You need to decide whether ETFs can contribute to achieving your goals, and which types will best meet your needs based on your life stage, investment time horizon and tolerance for risk.
Creating a portfolio of ETF’s with a mixture of passive, active and strategic beta holdings could allow you to enhance your portfolio’s returns while also managing risks.
With the instability in the current marketplace, here are a some exchange traded funds to invest in to carve out some extra returns.
-
QTIP
-
ZUH
-
ZUT
-
ZGI
-
STPL
Lets chat!
www.clementchung.com
I will cover all the things Millenials need to know when they are deciding on the purchase of their first home. We talk about how to buy a house in Canada, especially in such expensive cities like Toronto and Vancouver and well as how to buy to house in Canada while maximizing your money saved!
Millennials in Canada are facing a very different home buying environment than their parents. Soaring real estate prices, high levels of student debt and precarious employment are making it difficult for young people to get into the housing market.
See what it will costLook at home prices in and around your desired location and be realistic about what you can afford. Perhaps moving to the outskirts or setting your sights on a smaller property can bring costs down. You might also need to think outside the box a little – like bringing in a tenant to help lower the carrying cost of your new home.
Save for your down payment
If you aren’t already saving, start now. If you can put down 20 per cent of the purchase price, you’ll avoid needing to purchase mortgage insurance (which can add thousands of dollars over the course of the mortgage). If not, at least five per cent is required for first-time buyers.
Learn about government perks Home Buyers’ Plan (HBP).
You can withdraw up to $35,000 tax-free from your Registered Retirement Savings Plan (RRSP) through the HBP to put towards your new home. This amount will be repayable in instalments back into your RRSP over 15 years.
First-Time Home Buyer Incentive.This federal program was introduced in September 2019 to help first-time homebuyers reduce their mortgage payments and the total interest paid over the life of the loan. It’s available to households with an income of $120,000 or less and offers a loan of five to 10 per cent of a home’s purchase price to put towards the down payment. The incentive is repayable when the property is sold or after 25 years, whichever comes first.
First-Time Home Buyers’ Tax Credit.New homeowners can claim a non-refundable tax credit of up to $750 to cover closing costs. GST/HST New Housing Rebate. If your home is a new build and cost less than $450,000, you may be able to recover a portion of the GST and HST that you paid. Land transfer tax rebates. Some provinces and municipalities (for example, Ontario, British Columbia, Prince Edward Island and the City of Toronto) offer rebates on the land transfer tax for qualifying buyers.
Explore your mortgage options
When shopping for a mortgage, there’s more to consider than the rate. That’s why it’s so important to seek help from a professional. For example, a flexible mortgage that allows you to make prepayments can help you pay off your mortgage sooner and save on interest in the long run. Think about your personal situation – if the possibility of rising interest rates makes you nervous, you might be more comfortable with a fixed rate. If you’re expecting changes to your financial situation, an open mortgage may be ideal.
Before applying for a mortgage pre-approval, it’s a good idea to review your credit rating and report any errors. You can request a copy of your credit report once a year for free from Equifax Canada (www.equifax.ca) or TransUnion Canada (www.transunion.ca). With a mortgage pre-approval, your lender will let you know how much it is willing to loan and the estimated size of your payments. The lender will also apply the mortgage stress test to ensure you can make your payments if interest rates rise. It’s important to note, a mortgage pre-approval is not a guarantee that the lender will grant you the mortgage.
Buying a first home can be an exciting and challenging task, but knowing what to expect can make it easier.
Today, I’m going to answer YOUR QUESTIONS on the Canada Recovery Benefit that I’ve been getting from comments on my previous episode.
Do we need to pay tax?
The answer is YES! 100% of the Canada Recovery Benefit is taxable to you – they will account for this in two ways.
I’m trying to apply from the past 4 days but online says this service is not available at this time. How to process?
The CRA reported issues in their system hours after the application for benefits opened. They’ve adviced that they regret any impact this may have had on would be applicants. These technical issueds have been restored and the application process for the recovery benefits has now been restored.
What about those who are working 25 to 30 hours per month. Can they get money for lost hours?
The answer here is “maybe” … but let me explain. The Canada Recovery Benefit eligibility requirements state that you must have lost atleast 50% of your income due to COVID related reasons compared to the previous year. Assuming you work 25-30 hours compared to a full 40 hours a week (by law), then you will have only lost about 25%-35% of your regular income.
What is the Eligibility for CERB?
CERB is the Canada Emergency Response Benefit – this program ended in September 2020, however you can still backdate your request for benefits up until December 2020.
The current benefit that is available for Canadians is the CRB – Canada Recovery Benefit. This program is similar to that of the emergency response benefit however, has more restrictions.
When are the times for the last benefits?
Between now and September 2021, you can apply a total of 13 times for the Canada Recovery Benefit – these do not need to be consecutive periods. For example, lets say in November 2020 you were laid off due to COVID – you can apply for the CRB and received $2000 to support your income. Then you find a job December 2020 – you will have income from work and no longer need the CRB. In February 2021, all hell breaks loose and we’re back to quarantining – you can apply for the CRB at that time again to sustain your income.
How about young kids to not find a job because of online school?
The minimum age for this benefit is 15 years old - so if you’re younger than that, sadly you’re out of luck. If you are over 15, then great! You could qualify assuming you had $5000 of income in 2019.
Now IF you’re going to school – then the reason you’re out of work could be seen as you choosing school over work, and if this is the case, you may not qualify for the CRB.
Please explain the $38,000 limit.
The $38,000 limit to the CRB is based on all income received from all sources. This includes…
-
Working income
-
Investment Income (Interest, Dividends, Capital Gains)
-
Rental Income
-
Canada Emergency Response Benefit Income
-
Canada Recovery Caregiving Benefit Income
-
Canada Recovery Sickness Benefit Income
Lets Chat!
www.clementchung.com
Today I’m going to teach you about the 7 kinds of income sources you need to set up for yourself today!
COVID19 has caused 3 million Canadians to lose their jobs and become unemployed. Sure, many had Employment Insurance and the Canadian Emergency Response Benefit to support their regular income – but what happens when all of these benefits run out?
This is why you need to look at creating alternative sources of income for yourself.
I’m going to go over 7 forms of income that you can start for yourself today!
The first step to becoming financially successful requires you to first understand the basics of making an income or in this case, multiple types of income streams. Once you’re able to do this and automate your financial life – you will be able to gauge how hard you need to work in order to create the lifestyle that you’d like to have.
Here is how the progression will work.
- Get a job
- Save some money to earn interest, dividends, and capital gains
- Pick up a side hustle to sell products online or through affiliate marketing
- Use all the money from the side hustle to buy good real estate
- Go Live Life.
Thanks for tuning in, I'd love to connect!
Lets Chat.
www.clementchung.com
I'm going to cover everything you need to know about the New Canada Recovery Benefit.
The Canada Recovery Benefit (CRB) gives income support to employed and self-employed individuals who are directly affected by COVID-19 and are not entitled to Employment Insurance (EI) benefits. The CRB is administered by the Canada Revenue Agency (CRA).
You can receive $1,000 ($900 after taxes withheld) for a 2-week period. If your situation continues past 2 weeks, you will need to apply again. You may apply up to a total of 13 eligibility periods (26 weeks) between September 27, 2020 and September 25, 2021.
You can apply by
-
Setting up a CRA Account
-
Create your Direct Deposit with CRA
-
Re-Apply for the benefit every two weeks.
Thanks for tuning in!
Lets connect!
www.clementchung.com
Being responsible for your financial situation can be a scary endeavor however, as we move through the changes of our current society – it is super important to educate yourself in personal finance and create good habits that allow you to save & invest consistently.
That’s why I’ve compiled this list of things that you (and your kids) can do, to learn to be financially responsible.
1. Budgeting
With money being such a sensitive topic to discuss in today’s society, its more important than ever for people to learn to be aware of their personal budgets. Consider earmarking these amounts , if possible, to your monthly costs.
2. Compare the Cost of things, to a benchmark
When ever I consider purchasing something, I always compare the cost of the item to the cost of something I value a lot (for example – tesla stock).
3. Being Disciplined in Spending (No Upsell)
Being Disciplines in spending is absolutely key to financial responsibility. This means buying what you need, and not what you want.
4. Invest, Invest, Invest
By investing regularly, you reduce your risk of trying to time the market – when the prices are high, you buy fewer units. When prices are low, you buy more units. This also allows you to maintain a consistent investment strategy – where you will continue to participate in the stock market growth on a long term basis.
5. Create a relationship with debt.
A lot of people hate debt – however, I tell my clients to instead, build a relationship with debt and learn to understand it better. Fire can be used to burn or hurt others – however, when it is used in the right way, it can make plenty of delicious foods.
Remember – save money, compare everything to Tesla stock, invest regularly and create a relationship with debt. Do this and I promise you will see success in your financial life.
Let's Connect!
www.clementchung.com
No one has made the official call to have Canadians educated in the basic understanding of personal finances. Canadians are NOT ok! Can you imagine how different our lives would be right now if Canadians knew…
That if they saved 3 months worth of pay, that they could’ve made it through this pandemic much more comfortably?
And if they knew that banks are much more willing to lend you money when you don’t actually need it?
And that setting up a personal line of credit as a rainy day fund isn’t a terrible bad (or good idea)
That most employed individuals can save their money by filing their taxes for free online?
Or that buying a second hand car would save you almost 20% on any vehicle? And that if you approach the dealer with a full cash payment that was set up previously with a loan at the bank, that you’d get even deeper discounts?
And what about buying a home? If everyone knew that a 5% down payment was already enough, though not ideal, to initiate your first home purchase – there would actually be a lot more home owners.
And for the Renters out there, what if I told you that your $1,600 monthly rent was the equivalent of paying for someone’s $350,000 mortgage – and that if you went and lived with your parents for a year and saved $1,600 a month, you could buy a home with the same $350,000 mortgage.
The importance of savings: a 20-year-old can save $260 a month and have $1M by retirement
Connect with me at www.clementchung.com