Financial Peace NOW !!!

Cash Flow Planning

noreply@blogger.com (CharlesPedley) — Tue, 01 Nov 2011 17:13:00 +0000

Have enough water to sail the ship!

Do you know why you wouldn’t try to sail a yacht in a creek? That's right, because you don’t have enough water, enough flow. Money works the same way. When you live beyond your means (beyond your cash flow), you are trying to sail a lifestyle on a flow that won’t support it. That leads to being stuck and, eventually, trouble.

Use your budget to determine what you can spend and save. It will take about 90 days to get it working properly, so keep trying and don’t throw your hands up in the air at the first sign of trouble. Get an envelope system going so you know exactly how much cash you have left for a given category. You’ll know the flow, which helps you to go!

You are making this ship sail, so get going! It’s all you!

Time For Your Financial Snapshot!
Taking small steps and measuring your progress along the way leads to staying focused on accomplishing your goals. Click hereto measure how far you've come!

Watch Sharon Ramsey discuss what it was like making the first Ramsey budget after bankruptcy.

Complete your first Financial Snapshot, either onlineor on the paper form included in your FPU workbook.
Time to make a zero-based budget (with your spouse, if you have one) and bring it to the next class.
Read Chapters 19–21 of Financial Peace Revisited. It tells you how to write down a plan and take control.
Don't miss next week's lesson: Dumping Debt. Take your payments out with the trash!

CLASS RESOURCES

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TESTIMONIES

We were living paycheck to paycheck, we had payday loans, and we were on a first-name basis with the people at the bank—all because of overdraft fees. We took the "risk" and ordered FPU. Today we aren't debt-free yet, but WE HAVE HOPE! We plan on taking it again and sharing it with our family and friends.
—Lisbun, FPU member

YOU'LL LIKE THIS

Laying The Groundwork
Got questions? Dave has the answers. Visit the Ask Dave tool in the MRC to view hundreds of common questions and Dave's answers to them all.

The Great Recovery
The Great Recovery is in motion and by joining FPU, you are a vital piece of the movement! Learn what you can do to further the cause to recover this economy-one family at a time. Help us track the nation's turnaround, take our Great Recovery Challenges, and find helpful tools and tips to fuel your own personal recovery.Learn more.

noreply@blogger.com (CharlesPedley) — Fri, 14 Oct 2011 21:18:00 +0000

Rob Carrick of the Globe and Mail financial section wrote this piece in a recent newsletter:

October 12, 2011 A reality check for financial marketers By ROB CARRICK

From Thursday's Globe and Mail

It's no wonder consumers resent banks when they suggest a customer pay bills by taking on more credit card debt.

Canada's banks must feel great every time the Occupy Wall Street movement scores another media headline. For four weeks, protestors have camped out on Wall Street in New York to show their anger over the way banks and investment firms have prospered while the rest of the country struggles economically.

There's talk about this movement coming to Canada, but so far nothing much has materialized. That's in part because our bank-led financial sector plays it much safer than its counterparts on Wall Street. Less gambling, less risk, less boom-bust. If the Canadian banks do have a weak spot, it's complacency. Every so often, you notice a bank acting as if we are not living in an economically precarious time. An example would be those obnoxious credit card cheques the banks mail out to customers now and then. Talk about a product that's wrong for today's world.

Here's the sales pitch attached to some TD Canada Trust Visa cheques sent out recently: "There are times when you can't use a credit card for purchases, such as rent or utilities. Or you may want to consolidate higher interest non-TD balances, such as department store credit cards, on your TD Canada Trust Visa card." TD is putting two notably bad ideas in the heads of customers here, both of them particularly unsuited for a time when Canadians are carrying record debt levels. The first is paying your rent and utility bills with your credit card.

That's what you do after you've lost your job, blown through your savings, plundered your registered retirement savings plan and risk eviction or having your hydro cut off. Strictly for emergencies of the direst kind, in other words.

The second bad idea is paying off your department store credit cards with a regular Visa card. You could cut your interest rate by roughly one-third, but you'll still be paying in the area of 19 to 20 per cent. TD spokesman Mohammed Nakhooda said in an e-mail that Visa cheques represent a very small portion of customer spending on its credit card products. Mainly, the cheques are used to consolidate high interest credit card debt. "As for the choice of words in the marketing, it was simply an illustration and we'll continue to explore other examples in the future," Mr. Nakhooda added.

Sometimes, a bank will send credit card cheques that let you pay off the balance on another card using a super-low teaser rate. President's Choice Financial recently sent out MasterCard convenience cheques that came with a rate of 2.97 per cent for six months. After that, the usual rate kicks in. Bulletin: You don't solve problems with credit cards by using other credit cards. A line of credit or a consumer loan is a better solution, but neither are as lucrative for banks.

Here's yet another negative to consider with credit card cheques. When you make out one of these cheques to someone and they cash it, the money is posted as a cash advance on your credit card. This benefits the bank, not you. Unlike with a regular purchase on a credit card, there's no interest-free grace period with a cash advance. As one bank explains this on its website, "Interest is always charged on cash advances from the day the cash advance is made." Another reason not to like credit card cheques is that the interest rate on cash advances is usually higher than on regular card balances. In the case of those PC Financial MasterCard cheques, the teaser rate of 2.97 per cent would rise to the 21.97-per-cent cash advance rate instead of the usual PC Financial MasterCard rate of 19.97 per cent.

Still another strike against credit card cheques: Money you access using them does not generate reward points or other card benefits. You just have to look to the United States to see what happens when banks fall out of synch with their customers. It's not just the Occupy Wall Street movement. In response to tighter government regulations, some banks recently cranked up fees on debit cards. The net result can be seen in this headline on a recent Reuters story: "Americans seethe as banks hit them with new fees." [Dave would be proud of Rob.}

Read the rest of the story here.

Staying Gazelle Intense

noreply@blogger.com (Charles Pedley) — Sun, 18 Sep 2011 02:58:00 +0000

Staying Gazelle Intense!

Wherever you are in your journey to Financial Peace, gazelle intensity is a key ingredient in reaching your goals and changing your family tree! Do you remember how you felt the first time you saw Dave running all over the stage, screaming, "CHEETAH!" in the Dumping Debt lesson? You can keep that feeling alive!

Reminding yourself why you're changing your life is a great way to stay wired up and fired up no matter what's going on around you.

Here are a few ideas for keeping up gazelle intensity!

Plug Into The New Financial Peace Facebook Page: We want to invite you to a new place to connect with other FPU class members and coordinators from all over the nation! You'll get accountability, tips and inspiration from the Financial Peace Facebook Team to help you through the Baby Steps. Check out the page, and "like" it to stay connected at facebook.com/financialpeace.

*One of our Facebook fans is going to win a free iPad this month! "Like" the page by September 30 to be included in the drawing.

Plan A "Gazelle Gathering." Jim, an FPU coordinator in Visalia, California, recently wrote to tell us about a Gazelle Gathering they were having for their 121 FPU grads at Neighborhood Church! They planned a fun event, and it was a great time of fellowship. Grads from all eight classes energized each other by sharing victory stories—big or small! If you're interested in helping make it happen, get in touch with your coordinator. Reconnecting with even a few fellow class members will charge you up, as well.

Share Your Story: There's just something about sharing what you're going through that refuels the desire to stick to your plan! Whether it's on a blog, to a friend, or in front of a group, don't be afraid to get real about the challenges and the victories you're facing. Are you a "nerd" or a "free spirit?" What Baby Step are you on? What motivates you to change your family tree every day? Authenticity and passion are contagious!

Going back through the class (for free since you have lifetime membership!), stepping up to lead a class, and listening to people scream "I'm Debt Free!" on Dave's radio show are great additional tools to keep yourself motivated and equipped on your journey to Financial Peace.

Whatever you do, find a way to get connected! It's all part of living like no one else, so later you can live like no one else!

See you on Facebook!

The FPU Facebook Team

Blair, Robbie, Michael and Debbie

*The iPad giveaway is void where prohibited. For full contest terms and conditions, send a SASE to the Financial Peace University admin team at: 1749 Mallory Lane, Brentwood, TN 37027.

noreply@blogger.com (Charles Pedley) — Thu, 15 Sep 2011 03:48:00 +0000

From DaveRamsey.com

Getting Past Debt and Betrayal.
Can't see this email? View the online version
September 13, 2011 | Volume 7 Issue 16

From Duped to Debt Free

It was a long six years for Randy and Susan, but it will be a long-lasting future of Financial Peace for them.

It's amazing enough that they paid off $42,000 in six years (including the house) on a $75,000 annual salary. It's even more amazing that they did so after a financial investor stole $72,000 from them! The guy ended up in jail, while Randy and Susan decided that they didn't want to be prisoners to their debt forever. One shackled person was enough.

Hear them call from Dave's lobby to scream debt freedom!

No matter what has happened to you in the past, it doesn't hinder your ability to work hard in the future. You can always go forward. Bad things do happen in life, but if these two had sat and stewed with anger for the last few years, they wouldn't be where they are today.

It's a happy ending, Dave Ramsey style! They've done it, and so can you. Forget about how life hit you in the past, get on a budget, and start making your future bright.

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In This Edition

Not-So-Hot Wheels

It's car season, and we're all over it. Check out the worst sets of wheels our members have owned.
Read below

Top 10 Reasons Not to Buy a New Car

We've got some things to say that might cool off the car fever you might be experiencing.
Read below

Why the Credit Union?

Our members give their thoughts on why a credit union (or a bank) is the better option.
Read below

School of Hard Knocks

A startling number of students have school loan debt, according to a new poll.
Read below

Take Our Survey!

Please take our 26-second survey and rate the articles from today's Gazelle Gazette!
Take the survey!

Not-So-Hot Wheels

Now is the time of year when car dealers start offering their specials. Well, here at My Total Money Makeover, when we say words like "car" and "special" in the same sentence, it's usually not a good thing.

Check out what our members have driven (or in some cases, pushed) in the past. Click here to enjoy the full thread!

Better Off Walking
I had a 1980s Chevy Chevette that I paid $500 for. It wasn't worth that. It never wanted to start for me, even after I replaced the starter and the fuel filter. It took several tries to get it started and it often died on me at a stop sign. More than one night after work, I had to push the car off the road in the rain and then walk the rest of the way home.

The car didn't go over 30 mph. The A/C didn't work and the car had a habit of overheating, so in the middle of 100-degree weather, I'd have the heater running to pull heat off the engine. The brakes went out, and whoever had the car before me glued the lugnuts on, so the wheels wouldn't come off. I was never able to replace the brakes. So, I drove around with a car that had no brakes and would frequently die on me. I was much better off walking! —Kristin in Vermont

An Uphill Battle
My parents had a car called the Boot Hill Express. There were holes rusted through the floor in the backseat, so we kids were able to watch the road going by. This car would not go uphill when it was raining so there were certain things we just couldn't do on those days. —Therese in Massachusetts

The Nightmare's Still Going
I'm driving it now. White 1997 Eagle Talon. It likes to drink oil, doesn't get the best gas mileage, and I have to replace the back two tires about every six months because the car somehow rubs the tread down quickly. —Wesley in Alabama

Short End of the Stick
My worst car was a small vintage Honda hatchback we called the "brown breakdown." My ex-husband bought an "economical" car for me for $625, while he drove a brand-new Dodge diesel truck with all the bells and whistles (yes, we were broke). It died every single time I left the house at the same intersection less than a quarter mile from my home!

The air conditioning blew hot air, the rearview mirror was on the console and you had to hold it to see behind you, no radio…I think you get the picture. —Teri in Indiana

Stuck in Second
Old, rusty tiny Honda Civic hatchback we had when we lived in Sitka, Alaska. We paid $500 for it from a friend of the family.

The gear shift broke off under the floorboard when the car was in second gear. We drove it in second gear for several months. We lived at the top of a hill. The kids would push it backward out of the carport, then we would pop the clutch to start it as we went down the hill. In Sitka, there are only about 14 miles of road, and the top speed limit wasn't much over 35 or 40 mph, so we could survive in second gear.

The only real problem was when I couldn't find a pull-through parking spot and had to push it backward to get to a place where I could pull forward. — Brenda in Washington

Need more? Well, we've got it! Visit the full thread here!

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Top 10 Reasons Not to Buy a New Car

With the 2012 model cars ready to roll out, you'll see ads all over the place for special deals on the 2011 models.

But don't get suckered into buying a new set of wheels, no matter how good the deal sounds. A non-millionaire buying a new car is exactly the kind of behavior that will keep them out of the millionaire's club.

That's just one reason not to buy a new car. We've got 10 more, so let's get to them. Here are the top 10 reasons you shouldn't buy a new car:

Drop a rock off a 20-story building. That's how fast the car—and most likely your money situation—will drop in value.
You think about your car for maybe an hour a day (while you're driving it). There's no point in making a $400 payment for that.
A $20,000 new car will be worth about $4,000 in 10 years. Putting $20,000 into a mutual fund will turn it into $66,000 in the same period. Where would you rather put your money?
You're already paying out the ears for a gallon of gas. No sense in doing the same thing for the car that you'll put the gas into.
You'll be so worried over every dent, scratch, scrape, nick, sound, crumb, smear, tear and smudge that you won't have any time to enjoy the new car.
There are two ways to get a new car smell: an extra $8,000 to the dealer or a $15 "new car smell" spray bottle at the auto parts store. We'll take the spray.
The worst car accidents happen on the showroom floor.
The 2007 Transformers movie had a big marketing tie-in to the new (at the time) Chevrolet Camaro. If you caught car fever and bought it then for $30,000, it was worth $12,000 by the time the third movie premiered in June 2011. Car fever and car value? Gone. Payment? Still going.
Better for you to own the car (used) than the other way around (new).
Dave says it's a good idea, and that's good enough for us.

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Why the Credit Union?

You've heard Dave tout the advantages of small banks and credit unions over the big national banks time and time again.

His biggest reason for dealing with them is that, in addition to being treated like a human being, you'll actually get to talk to one if you call customer service. There are other reasons for and against doing business with local banks and credit unions, and some of our members are happy to weigh in:

Pro-Local
I love the personal attention that they give me. The staff greets me by name, and they always smile and say something nice when I come in and again when I leave. —Laura in Arizona

They know me by face and name, yet continue to verify my ID for every transaction. There are no fees for savings/checking accounts, and I can easily transfer money with no holds. The mortgages and refinances have low rates, and they even have a free coin counter. —Jill in Pennsylvania

My credit union has an on-site notary and faxing service. Both free. —Kara in Pennsylvania

There are no fees, ATM reimbursements of up to $5 per month, free bill-pay service and easy transfer of money between my business and personal accounts. I get my paycheck two days early, and I have the ability to deposit a check from home or even a smartphone just by scanning the front and back of the check. —Veronica in Mississippi

I prefer credit unions because they are not-for-profit and serve members rather than maximize profits. —Aaron in Michigan

Anti-Local
Unfortunately, the local credit union we've been members of for 20+ years still asks for our name, account number, verification answers, age, employment, salary, length of time on job/house, etc. for every phone contact.

They look at me with a smug face when I go to do teller-transactions and also have a very difficult online bill-paying program.

USAA (a much larger entity) knows who I am before I connect with a call or email, has a very user-friendly web banking program, and easily sets up online payment accounts.

The credit union does have several convenient locations. That's about it. —Wes in Colorado

Having It Both Ways
I have accounts with a local credit union as well as a big-name bank. I like both. I like the personal attention at the union, and I also get immediate posting of transactions like transfers and deposits, whereas the big bank takes at least 24 hours to post.

I like the security of the big bank. I have had them contact me about fraudulent transactions almost immediately after they were made, which I don't think a credit union could do. —Todd in North Carolina

As far as the actual product, there really isn't anything that much better about my credit union than my national bank account. In fact, their online banking is nowhere near the level of the national chain, which is annoying. But the customer service is head and shoulders beyond the chains, and I love being treated like a human being. —Emily in Texas

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School of Hard Knocks

Sadly, the phrase "student loan" is becoming as much a part of our vocabulary as the word "college."

A new poll by the Associated Press and Viacom finds that almost 6 in 10 students rely on loans to help with the cost of school. That's a very sad stat. It's become more common to just borrow money than it is to look for a more affordable college or find better means to pay for it.

But going to school without debt is simpler than you think. Not easier, but simpler. Here's an example.

Let's say you want to go to an in-state school that costs $15,000 a year for everything. That's $1,250 a month. If you get a job making $10 an hour and you work 30 hours a week (which is very doable, even for a full-time student), that's $1,200 a month during the school year.

"Now wait," you might be saying. "That's not enough to cover the cost of school, and you haven't taken out money for taxes and gas." Right on both counts, but we also haven't talked about working during the summer or Christmas break (where you have no expenses and more time to work).

If you work a full 40-hour schedule during the summer and December, you can make between $6,000 and $7,000. When combined with your school-year income, you'll have enough for expenses and even some fun money, and that doesn't include parents helping to pay, working more than 30 hours a week, or even scholarship money.

Even better, doing this means you don't have a student loan payment around to destroy the first few years of your post-school life.

Imagine paying $300 a month for 10 years after you leave college. If instead you invested the money during that time, and then left it alone until age 65, it would be worth $4 million! You are literally throwing away a multimillion-dollar fortune by getting a loan for school!

Sit down tonight and brainstorm some ideas that you can do to reduce the cost of the school you're attending. Get a job as a resident assistant. Apply for scholarships. Look at places near campus where you can work. A little thought and a lot of effort can positively affect the rest of your financial life.

Taxes or Savings?

noreply@blogger.com (Charles Pedley) — Fri, 01 Apr 2011 15:49:00 +0000

This came via a Globe and Mail newsletter.

1. Who has to file a tax return?

Not everyone has to file an income tax return, but you will if you fall into any of the following categories: You owe taxes, you sold capital property, you are splitting pension income with your spouse, you have to pay towards the Canada Pension Plan (CPP) on self-employment earnings, you have to repay part of your Old Age Security benefits, you still have amounts owing under the Home Buyers Plan or the Lifelong Learning Plan, or if you received certain advanced benefits. Even if you don't have to file, though, there are often good reasons to do so if you qualify for refundable tax credits.

2. Which spouse must claim the child-care deduction?

The deduction for day care, camp and other child-care fees must be claimed by the spouse with the least amount of taxable income. If the other spouse is a full-time student or a full-time inmate in prison, however, the higher income spouse can claim the deduction.

3. What happens if your medical expenses aren't high enough to claim?

Claiming medical expenses requires some planning. One spouse may claim all of the medical expenses, including their own and those of their spouse and their dependent children. The challenge is that the sum of those expenses must be more than 3 per cent of your net income or $2,024, whichever is less. Claiming the deduction on the spouses' income tax return with the least income allows you to take the largest advantage. Also, you can choose your period of time if it is a 12-month period ending in the year of filing. Choose the period with the most expenses.

4. Does being audited mean you have done something wrong?

There are many types of tax audits and most of them simply require that you provide proof or clarify information on amounts that you have claimed on your return. If you have kept all of your documentation and have only claimed expenses and credits for which you are eligible, there is nothing to fear from a CRA audit.

5. How many years back can the CRA audit you?

You are required to keep your tax records and documentation for six years plus the current one. The CRA can go back and audit the past three years under normal circumstances. However, if they think that there is fraud or deception happening, they can go back indefinitely.

6. Is it better to get a tax credit or a tax deduction?

A tax deduction reduces your taxable income at the highest marginal tax rate to which you are subject. For example, if you have $53,000 in taxable income, you are in the 22-per-cent tax bracket. Your deduction reduces your taxable income at that rate. A tax credit gives everyone a reduction of taxable income at the lowest tax rate (15 per cent) so that everyone gets the same benefit regardless of their tax bracket. If you are in any tax bracket except the lowest, a tax deduction gives you more money back. (Find out how to get a tax benefit from your mortgage like many Americans have, check outCreating A Tax-Deductible Canadian Mortgage.)

7. If you earn more income, is it possible to pay more in taxes than the extra you make?

This enduring myth has been responsible for all kinds of odd behaviour, such as turning down overtime hours at work because of the worry that it will result in a net decrease in one's paycheque. Canada works on a marginal tax rate system, which means that you pay an increasing percentage of your income to federal and provincial tax authorities as your income rises. However, it is always a percentage and will never be more than the income itself. In 2010, the top federal tax rate was 29 per cent.

8. Are lottery winnings taxable?

In Canada, lottery winnings are not considered to be taxable income. There are a few exceptions to the rule, however, for those who earn their living by placing bets. The CRA considers that business income. If your ticket wins the big prize, though, you do not have to pay taxes on it.

9. Can you claim your pets as dependants?

You can never claim a pet as a dependent. Dependents must be human. You may, however, be able to claim the costs of purchasing and maintaining a service animal if you require one to help you due to vision or other disability issues.

10. What are the penalties for filing returns or paying taxes late?

The CRA charges interest on all taxes due at its prescribed rate, which changes quarterly. If you have already filed your return and have not yet paid the balance, interest will continue to accrue until you pay it. If you file your return late, the CRA charges a late-filing penalty of 5 per cent of the balance owing plus 1 per cent extra for every month or part-month the return isn't filed. If it is your second offense in four years, the CRA has little sympathy. The penalties double to 10 per cent plus 2 per cent a month.

The Bottom Line

Remember, you don't need to memorize the Income Tax Act to file your own taxes. But by knowing the answers to the previous questions, you'll be able to prepare yourself for tax time throughout the year and not find yourself scrambling for information and receipts come tax-deadline day.

Why do I need a lawyer to help me with my will? | Wills and estate planning | Investor Education Fund

noreply@blogger.com (Charles Pedley) — Wed, 23 Mar 2011 17:15:00 +0000

Why do I need a lawyer to help me with my will? | Wills and estate planning | Investor Education Fund

Why do I need a lawyer to help me with my will?

Wills can be tricky. For example, if you are leaving something to someone in your will, that person can’t witness when you sign. Even pulling out a staple can lead to questions about your will.


Dealing with wills and estate plans requires a special understanding of law, taxes, and money matters. Here’s a quick look at the reasons you may want to get a lawyer, and the dangers of not getting legal advice.

Why do I need a lawyer for my will?
When you write your will, a lawyer helps you:

• Understand what you need to do and why
• State your true wishes so they will be carried out the way you want them to be
• Make sure your will follows the laws of your province
• Reduce taxes and other costs your loved ones may face after your death
• Make sure your estate can be quickly settled
• Choose someone to care for any children you may leave behind (called a guardian).

A lawyer who deals with wills knows how to make your wishes clear so they will be carried out the way you wanted them to be. This becomes even more important if your estate is complex, or if you have concerns that someone will try to fight your will.

Example: What if you decide you don’t want to leave money to a person who is expecting to get some? There are right ways and wrong ways to do this. If you make mistakes, the person you cut out can fight your will by going to court. Then your loved ones will have to deal with a dispute after your death.

Read the rest by clicking this link or the one at the top of the page ....

Wills and estate planning | Investor Education Fund

noreply@blogger.com (Charles Pedley) — Wed, 23 Mar 2011 17:11:00 +0000

Wills and estate planning | Investor Education Fund

You NEED to have a will or the government may take all you have left to pay for the cost of probating your estate.

The difference an RDSP can make: Shannon’s story | RDSPs (for disabilities) | Investor Education Fund

noreply@blogger.com (Charles Pedley) — Wed, 23 Mar 2011 17:06:00 +0000

The difference an RDSP can make: Shannon’s story | RDSPs (for disabilities) | Investor Education Fund

Shannon, age 15, loves playing baseball, skiing, and swimming with dolphins. She also has a severe disability called Engelmann’s Syndrome. For her parents, Kathy and Rob, their biggest worry is what will happen to Shannon when they are no longer here to care for her. Saving on their own has been difficult.

So when they sat down with a financial adviser, one of the things they talked about was setting up an Registered Disability Savings Plan (RDSP). Here is the savings plan they developed for Shannon’s future

From age 15 to 34

Kathy and Rob will open an RDSP for Shannon at their local bank and deposit $2,000. They will put $200 per month in the RDSP for the next 20 years. That’s a total of $48,000. The federal government will put in an added $79,500.

At age 45, when withdrawals begin, Shannon’s RDSP could be worth more than $377,237.

RDSPs (for disabilities) | Investor Education Fund

noreply@blogger.com (Charles Pedley) — Wed, 23 Mar 2011 17:03:00 +0000

RDSPs (for disabilities)

Information about the Canada Registered Disability Savings Plan

12 ways to cut your spending | Budgeting | Investor Education Fund

noreply@blogger.com (Charles Pedley) — Wed, 23 Mar 2011 16:51:00 +0000

12 ways to cut your spending | Budgeting | Investor Education Fund

Not Good Enough

noreply@blogger.com (Charles Pedley) — Sat, 22 Jan 2011 21:13:00 +0000

You can do better than that!

So there you are ... locked in a negotiation over some item you want. The seller isn't budging on his asking price. He thinks he has you by the throat and will get you to cough up the cash. That is, until you start to walk away. When he asks where you're going, you turn around and say four words about the price: "That's not good enough!"

Now who's got who?

When you put together all of the tips you've learned, such as paying with cash, using walk-away power, looking for a bargain and more, you're going to win with money. You won't pay $500 for something that you can get for $300. You'll get people to throw in extra before you agree to a buy. You're keeping more of your money with you and getting something for it at the same time!

Watch Sharon Ramsey discuss her love for shopping. She offers tips about shopping wisely and reaping the benefits.

Don't forget to complete the monthly cash flow plan or the allocated spending plan.
If Financial Peace University is making a difference in your life, share the good news with someone!
Visit the MRC if you missed this week's class and need to make it up. It's a snap to do.
Don't miss next week's lesson: Of Mice and Mutual Funds. It's a big deal!

CLASS RESOURCES

TESTIMONIES

Dave Ramsey's Financial Peace University is amazing. My wife and I have changed the way we spend money. We are $75,000 in debt, excluding our house, and plan on paying it off within three years. Dave's class changed our lives forever.
—Tomas, FPU member

Thanks to this program, even though I am almost 60, I will be able to retire in five years, having completed all steps and having built much more wealth than I would have ever believed at this time of life.
—April, FPU member

YOU'LL LIKE THIS

Gaining Momentum
Check out the special content that summarizes many of the techniques, tips and tools Dave uses when searching for a great deal. If you still don't believe it's possible to find big bargains, read these encouraging stories from people who have been successful.

Staying Gazelle Intense!

noreply@blogger.com (Charles Pedley) — Sat, 22 Jan 2011 21:12:00 +0000

Staying Gazelle Intense!

Here are a few ideas for keeping up gazelle intensity!

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Buyer Beware!

noreply@blogger.com (Charles Pedley) — Sat, 22 Jan 2011 21:10:00 +0000

Be on your guard when buying.

We've got some news for you: 90 days is not the same as cash. Don't be interested in "no interest for 12 months." Businesses come up with these creative ways for people to buy items so they can attach all sorts of fees and interest charges when people don't pay on time. On average, 88% of the 90-days-same-as-cash deals convert to debt.

Some stores prey off people's willingness to buy these "deals." Don't bring that into your life. Save cash, pay for something, and be done with it. If it's a big purchase, wait 24 hours, and consult your spouse before buying. That will keep you from impulse buying and paying stupid tax.

You're halfway through the course, so go full steam ahead!

Time For Your Financial Snapshot!
You are halfway done, and your financial picture is getting better! Keep taking those small steps. Click here to measure how far you've come!

Complete your second Financial Snapshot, either online or on the paper form included in your FPU workbook.
Memorize the Five Keys to developing power over purchase.
Read Chapter 5 of Financial Peace Revisited. It helps you develop power over purchase.
Don't miss next week's lesson: Clause and Effect. We ensure you'll love it!

CLASS RESOURCES

TESTIMONIES

My wife and I attended Financial Peace University. We found the information and teachings so useful. We bought an FPU kit for our adult daughter and her family. They also find the teachings to be a good path to being free of credit card debt, building education funds, and retiring like no one else.
– Kevin, FPU member

YOU'LL LIKE THIS

Gaining Momentum
Paying off stuff and becoming debt-free is a better experience than financing a big-screen TV can ever be. We've got a bunch of debt-free calls in the Ask Dave section of My Total Money Makeover. Come listen to some!

Make a zero-based budget (with your spouse, if you have one) and bring it to the next class.

An impossible choice

noreply@blogger.com (Charles Pedley) — Sun, 16 Jan 2011 04:23:00 +0000

An impossible choice from MoneySense magazine gives some guidelines in a real life situation about helping a parent, amounts needed to pay for a nursing home, the GIS, and just where your responsibilities with family lie. It also throws up a RED FLAG about "special investments" which may be scams!

Summary:

Samson and Laura have given to others their whole lives—they even donate $10,000 a year to charity. Now their investments have gone bad and they have to make a heartbreaking decision: should they put the kids through university, or support the mother they love?

By Julie Cazzin | From MoneySense Magazine, Dec/Jan 2010

Tags: children, Financial planning

Check it out. I know you will learn something!

-Charles

Somewhat Frightening Life Insurance Ads on TV

noreply@blogger.com (Charles Pedley) — Thu, 18 Nov 2010 05:39:00 +0000

[PLEASE CHECK THE END OF THIS ARTICLE FOR INFORMATION TAKEN FROM AN ONLINE INSURANCE BROKER WEBSITE.]

I am writing this out of concern for individuals because the average person is NOT aware of the dangers of life insurance [or mortgage insurance] which has no medical.

I know of 3 ads that I see on TV all the time. I have only read the literature of one but they are all the same in the most fundamental and dangerous way.

Think about it. If all the other companies want you to take a medical and these companies do not, what does that mean?

I could very roughly compare it to getting a driver's license without taking a test. You just sign up and YOU ARE A DRIVER! Would you want to be driving on the same street as a person like that? Why not? Like I say rough analogy.

When an insurance company does a saliva test or asks you for medical information including your family medical history, providing you have not given inaccurate information, the insurance company is on the hook for the term of the policy. You aren't. You can cancel at any time. But the company is locked in.

With mortgage insurance and the three companies with no medicals, you have the problem that IF the insured passes away, THEN the insurance company gets to check into the insured's PAST medical history. If they find ANYTHING which might indicate that you went to your doctor to check up on a certain condition or your doctor recommended some test or other, they CAN AND DO use that as evidence that you may have had a pre-existing condition and therefore they can REFUSE to pay!

Doctors routinely order all kinds of tests when you have a medical problem, in order to ELIMINATE certain medical conditions and narrow the scope of what is causing your symptoms. That fact can be used to suggest that you HAD a problem all along and therefore the policy is invalid. Convenient for the company, disastrous if someone is counting on the money being there for the beneficiaries.

That is the way mortgage insurance works and also the way NO-MEDICAL policies are written. It is certainly NOT because these companies love you so much they are going to give you a lot more for a lot less.

This is a case of if it sounds too good to be true, it probably IS to good to be true.

I have seen these commercials so many times and ordered some of their literature to check them out. I also know others who have read their policies thoroughly.

If you know anyone in that has bought a policy like that which may be worthless, and they indicate to you they would like help deciphering the convoluted language used, then please let me know. We can help you to spot the exclusions which make a policy useless except to the company collecting the premiums. I am not saying they are all evil companies, just sounding an alarm about what COULD happen to you.

Oh and by the way, that accident insurance, isn't that a bonus?

Fewer than 5% of people die in accidents which leaves a 95% surety to the company that they will never have to pay.

That is like betting on a game of chance with the "dealer" having a 95% chance of winning. The player has only 5 chances out of one hundred that he/she might actually win anything.

Even bank interest rates look good compared to those odds! (:-)

Cpedley

Fix your Finances Now!

Here is basic information taken from the broker's website..

"Below is a comparison of the CARP plan against other non-medical life insurance carriers for a 60-year-old, female non-smoker:

CARP @ $25,000: $96.90/month

Death Benefit: Limited in the first two policy years
Maximum Issue: $25,000

Canada Protection Plan Simplified Life @ $25,000: $80.78/month

Full Death Benefit: Takes effect from day one
Maximum Issue: $50,000

Assumption Life Golden Protection @$25,000: $82.49/month

Full Death Benefit: Takes effect from day one
Maximum Issue: $50,000

Industrial Alliance The Perspective @ $25,000: $92.61/month

Full Death Benefit: Takes effect from day one
Maximum Issue: $50,000

[This was in answer to a letter from someone on the broker's website. Notice his warnings about expense?]

"Hi D......,

...

The premiums are a function of your age, health, smoking status and plan type.

You can usually qualify for a traditional life insurance plan at standard rates if your high blood pressue and cholestrol are under control with medications.

In the event you are not approved you could apply with for a non medical plan but these plans have a higher premium and the death benefits are generally limited to a return of premium plus interest in the first two policy years. Lastly regarding quitiing smoking to qualify for non smoker rates you would have to be tobacco free for 12 months - this includes tobacco substitute products like nicorette."

[The same broker has an article on his website warning about NO-MEDICAL insurance. I highlight the dangers he points out.

Medical Tests and Life Insurance

Recently, the need for requisite medical examinations prior to obtaining life insurance has come under some scrutiny. This sentiment has been perpetuated by the numerous companies providing insurance products without a medical as a clever attempt at attracting prospective customers.

The ever-increasing pace of today's culture has demanded a streamlining of the dreaded 'to-do list'. It's no wonder the idea of obtaining insurance without the inconvenience of a visit to the doctor has become so appealing.

Typically, life insurance companies request medical tests if the client is applying for coverage of $250,000 and over or at lower face-amounts if the client is over the age of 50. Therefore, the higher the face amount and the older the client, the more medical tests required.

These tests are generally a function of the risk-level being absorbed by the insurance company.

At smaller face-amounts the tests may only include a urine sample, for example. But as the risk to the client increases, tests may expand to include a medical exam, blood work and an ECG. When the face-amount exceeds $1,000,000 the insurance company may also initiate a request for an inspection report and/or a financial statement.

Insurance companies may also attempt to acertain a client's risk by obtaining an Attending Physician Statement from the family doctor and/or a specialist. This does not require any work on the client's part. The insurance company pays the doctor directly to complete the documentation. Once the insurance company collects this information they forward it to an underwriter to make the decision.

Despite the obvious convenience of avoiding this extra step, two important reasons remain for submitting to a medical test:

Many insurance companies offer preferred rates to individuals whom are in good health and possess favorable family health histories. An insurance company can only make this assessment if they obtain the necessary medical information. The discounts can be substantial -- as much as 30% in some instances, which can conversely, translate into savings of thousands of dollars.
Providing insurance companies with all the necessary underwriting information up front shortens claim processing periods. Most creditor insurance applications for the likes of mortgages or lines of credit do not require medical tests. The fact that insurance companies have limited initial client information necessitates that they perform their underwriting at the time the claim is filed. Simply put, when your family needs the money most the insurance company is otherwise occupied finding out if you were as healthy as indicated on your initial application.

Taking a medical examination in concurrence with your life insurance application is an inconvenience worth enduring. It's the difference between adequately protecting your family and thouroughly protecting them.

MORTGAGE INSURANCE PROBLEMS
[Included from CBC since the no-medical insurance has the same characteristics and possibly problems.]
=======================================

IN DENIAL

Mortgage insurance: Not always a sure thing

"If you have a mortgage on your home, chances are good you also have mortgage insurance. The idea is that if you should become seriously ill or die before paying off the mortgage, the coverage will kick in and pay it off for you. It’s meant to offer peace of mind and to reassure you that your family will be able to stay in your home if anything should happen to you.

The reality falls a little short of that. In this week’s Marketplace investigation, we meet two families who bought the coverage and thought they were protected, only to have their claims denied when they became sick or died. In each case, the insurer said the applicant person had lied on their initial application form.

It turns out a routine test at the doctor could be reason to deny your claim, if you don't mention it. Had a cuff inflated on your bicep? That counts as being tested for high blood pressure.

As Erica Johnson reports, the bank staffers selling mortgage insurance are unlicenced and rarely trained to explain the details and legalities of those insurance products. The result is people who pay premiums and think they are covered, only to realize later that they are not.

CBC MarketPlace VIDEO REGARDING MORTGAGE INSURANCE

Editor: These are MUCH more expensive policies than is available normally through Term Insurance. However it is best to acquire traditional term insurance BEFORE AGE 50 as rates can go up dramatically. The younger the better with as long a term as possible, at least to age 65 is best. Hopefully by that time you won't need insurance as your savings, investments and your house all act as self-insurance.

Collectors

noreply@blogger.com (Charles Pedley) — Thu, 18 Nov 2010 05:36:00 +0000

Even tho this NOT Canadianized, the principles are similar. See the other references on this site to the Government of Canada and of Ontario websites which give you additional information which DOES apply to Canada.

Taking the bite out of
collector threats.

Collectors. The word can send shivers down the spine. Even though they are mean and nasty and call you over and over, remember something: The only thing emptier than a credit card collector's head is a threat they make.

Take care of the four walls—food, shelter, clothing and transportation. Don't get behind on the house or, even worse, not buy food because some moron with a headset talks to you like he's a back-alley tough guy. Don't try to dodge the debt; you DO owe the money. But prioritize so you can take care of your family and then pay your bills, in that order. Cut your lifestyle to beans and rice and get the sharks out of your life.

Also, don't be fooled by people saying you have to build your credit or other lies like that. The FICO score doesn't measure prosperity—it measures how much you love to go into debt and stay there. Which would you rather be: a millionaire with no credit score or broke with a piece of paper that has a big number on it? Don't be fooled!

How will changes from the new Credit CARD Act affect you? Find out more.
Watch Sharon Ramsey reflect on the difficulties of going bankrupt. She also shares her heartfelt advice for others in the same situation.

Review your credit report. You can get a free copy from each of the three credit agencies once a year. Check it for accuracy immediately!
Read Chapters 9 and 22 of Financial Peace Revisited. It gives you the lowdown on the myths of credit reports and the lies of collectors.
Don't miss next week's lesson: Buyer Beware. Be on guard when someone is selling!

CLASS RESOURCES

TESTIMONIES

My husband and I went through Financial Peace University three years ago, and it was the smartest decision we made in our marriage!
—Cori, FPU member

YOU'LL LIKE THIS

Laying The Groundwork
If you're tired of unsolicited calls, then get on the government's National Do Not Call Registry to protect your number. Also, make sure to stop all of the pre-approved credit offers that fill your mailbox!

If you missed Dave on the radio this week, check out his free one-hour podcast.

Military Bonus Lesson Audio: Listen to Dave speak about the importance of financial readiness training.

Does Student Loan Consolidation Make Sense?

noreply@blogger.com (Charles Pedley) — Fri, 22 Oct 2010 16:51:00 +0000

This article comes to me as an FPU Coordinator

I have some slight reservations with the article below even though I agree with 99% of it.-c
Interest rate is not as important as INTEREST AMOUNT. If you have a higher rate but are paying it off over LESS TIME then you can save money over having a lower rate.
-More on this later.
-Charles

Does Student Loan Consolidation Make Sense?
You probably already know that Dave doesn't recommend student loans. There are all sorts of ways a future college student can get through college without going into debt.

But how should you deal with a client who has graduated with student loans and is trying to figure out a way to pay them off? You can't change the past, but you can help them move forward and pay off their nagging student loan debt.

Dave usually doesn't like debt consolidation—because it doesn't change behavior—but student loan consolidation is an exception. Unless you have a client who is addicted to school and continues to take out loans, then consolidation is perfectly fine under a few conditions.

Your client needs to make sure their net interest rate on the consolidated loan is lower than the net interest rate on their current loans. And you also need to be sure that your client is gazelle intense about paying off this debt. The lower interest rates won't help much if they are just happy to stay in the red for another 20 years.

Finally, make sure they understand that—in most cases—consolidating will take them off deferment. Once they pull the trigger on making the consolidation, it will be time to start paying up.

When it comes to student loans, one of the most important things you can do is encourage all of your clients to avoid them—whether for themselves or their children. Dave regularly receives calls from people who are in their 30s and 40s and still over their heads in college loans. That's not a financially healthy way to live.

Make sure your clients understand that it is possible to be a student without a loan. Just like credit cards, student loans don't have to be a way of life. Scholarships, grants, second jobs—these are just a few of the ways to pay for college.

Cut out the problem on the front end, and you won't have to deal with questions about consolidating these loans on the back end.

For more details on Counselor Training, please contact Chad Nikazy

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	Jan 25–29, 2011
	Apr 25–29, 2011
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Where Genius is nourished.

$TORIES & TIP$

noreply@blogger.com (Charles Pedley) — Sun, 03 Oct 2010 21:55:00 +0000

Clicking the title above will take you to the forum.
You may just browse and read. OR
You may register and submit posts to encourage others along their road to FINANCIAL FREEDOM!

Keep Up Your Gazelle Intensity!

noreply@blogger.com (Charles Pedley) — Wed, 08 Sep 2010 04:03:00 +0000

I will be putting up various FREE products that can help you manage your finances. The FIRST ONE is AceMoney. I use it and I am an affiliate of the software. I own Money and Quicken but find them both too complicated and cumbersome.

AceMoney does all I need and does it quickly and easily without complication. Oh! And the price is VERY GOOD TOO!

[Editor: Coming soon: the links for Ace and others]

Get Back On Track With Your Money!

Time to get angry at your debt!

Hey Charles,

Can we all agree nothing gets you fired up about knocking out your debt like Financial Peace University? When the class ends though, where will your support come from as you go it alone?

Dave Ramsey’s website My Total Money Makeover is where over 45,000 Dave Ramsey fans go to get support as they beat their debt. My Total Money Makeover gives you budgeting tools and the ability to get advice from thousands of other Dave fans from across the country!

A My Total Money Makeover yearly membership retails for $89.95, but because you went through Financial Peace University you get a 25% discount on the yearly membership and a special price of $67.50. Hurry, this offer expires at 11:59 p.m. on August 31!

If you sign up before then, we'll also email you a special code for 2 FREE digital downloads from Dave's online store:

The Total Money Makeover audio book
"High Performance Achievement" MP3

Joining is easy

Follow the steps below and in minutes, you'll join over 45,000 others who are changing their family trees.

Go to the Member Resource Center and log in.
Once you log in, if you're not on the "Upgrade" page, just click on the Upgrade link in the top right corner and follow the upgrade instructions.

Just remember, in order to get your discount, you must log in first to the Member Resource Center.
Keep up the good work, and we hope you stay gazelle intense by joining My Total Money Makeover!

Our Next Counselor Training Is Coming Soon!

noreply@blogger.com (Charles Pedley) — Wed, 08 Sep 2010 03:58:00 +0000

Mark your calendars!

Our next session is fast approaching! Don’t miss it! Send your application today.

Featuring:

Instruction on the counseling process used in our office
In-depth personal finance information about bankruptcy, foreclosure and estate planning
Hotel accommodations for Tuesday through Friday nights
Breakfast and lunch on Wednesday through Saturday
Dinner on Tuesday, Wednesday and Friday
Roundtrip shuttle to the Nashville International Airport, the hotel and conference center
High-quality training materials and manuals
mytotalmoneymakeover.com membership

Cost: $2,950 ($1,500 for spouse)

SEATING IS LIMITED.
Please turn in your application by 5:30 p.m. CST Friday, September 3.

Download an application now.

Fax your completed application to 615.550.6234 or chadn@daveramsey.com

	Upcoming Counselor Training Events
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Why Timeshares Are a Bad Idea

noreply@blogger.com (Charles Pedley) — Tue, 03 Aug 2010 01:35:00 +0000

Why are timeshares a bad idea?
Timeshares are one of the biggest scams on the market today. Now that summer is here, you may have a vacation-starved client or two ask you about them.

You know the deal. Basically, you plop down a good chunk of change—the average cost of a timeshare in the U.S. is $14,500—to "own" the property for one or two weeks a year. You pay several hundred dollars per year on maintenance costs.

We know the facts, and you know the facts—but what do you say if one of your clients is considering buying a timeshare?

First off, most people buy timeshares because they showed up for a "free dinner." What started as a free meal turns into a high-pressure sales presentation. The salesmen do everything short of locking people in the room to make them sign on the dotted line.

After people buy a timeshare, they rarely use it. But they still have to make the annual fees and the upfront payment is gone forever. Even if they do use the timeshare, it's still a horrible use of money. They pay thousands of dollars ahead of time to use the property for a specific week at the same place every year.

On top of all that, timeshares have a poor resale value. You can't give the things away! You can't find anybody doing any volume on reselling timeshares. Occasionally, you'll find someone who sold one, but you can't expect to make money.

Reselling a timeshare is next to impossible. The best bet is to sell it back to the high-pressure, sleazy folks who sold it in the first place. But the seller will take a financial beating just to get rid of it.

Bottom line: If your client is thinking about buying a timeshare, tell him or her to keep the cash and just go on vacation. One timeshare can cost the same as multiple vacation trips.

Timeshares are a bad plan. Make sure your clients know to stay away—far, far away!

For more details on Counselor Training, please contact Chad Nikazy

	Upcoming Counselor Training Events
	Sept 14–18, 2010
	Oct 26–30, 2010
	Dec 7–11, 2010
	Register Now

Last Word on Long Term Care in Canada

noreply@blogger.com (Charles Pedley) — Fri, 11 Jun 2010 13:23:00 +0000

I believe in listening "prophetically" to speakers and teachers. What on earth does that mean, you ask?

To me it means, analyzing what is being said or taught, researching the facts, then using my meagre brain capacity to come to a conclusion based on ALL the facts. The word "prophetic" is based on the 1 Corinthians sense of the word.

[1 Corinthians 14:29 (New International Version)

²⁹Two or three prophets should speak, and the others should weigh carefully what is said.]

I would totally recommend as Dave warns that Ontarians buy Long-Term Care insurance if your family history is one of extended years of disability in health or in being able to care for yourself. If you did NOT buy it, the government may provide a lot of care but your relatives and/or friends may shoulder a heavy burden.

However if your family DOES NOT have that history, then it seems that you may be falling for an insurance like mortgage insurance where you NEVER know the outcome of being able to receive compensation until AFTER the fact. That IS too late.

I believe Dave Ramsey's methods and suggestions are the best alternative for a society wracked in debt. They have helped many people come to grips with their finances, due to Dave's friendly but confrontational style of teaching. That is all good.

However relying totally on a complete stranger to you OR to Canada can have disastrous consequences. Dave as his organization has told me does NOT market his FPU to Canadians which is why it has NO Canadian content. Crown Financial, where Dave gets his Biblical research, HAS an office in Canada if anyone wants to confer with them to see what they have to say about LTC.

Crown Financial Canada http://www.crowncanada.ca/
Crown Financial Ministries Canada
15 Barrie Boulevard
St Thomas, ON N5P4B9

Phone: 866.401.0626
Fax: 519.631.2198

If you feel it is a necessity to purchase LTC insurance then purchase it considering the warnings of accredited Canadian financial analysts, not the fear induced by a salesperson.

In Ontario, over time, certain basic standards have been applied to most insurance policies. Each insurance company can add its own special benefits as a bonus to encourage you buy from them. but the basic policies have been standardized so that you will NEVER get one that leaves out an important part. In other words, auto policies will always have liability, direct compensation property damage,collision, comprehensive or all perils as part of the policy.

However there are NO standards set for LTC because it is so new. The danger is that if you do NOT read the policy very carefully, sorting out all the legalese, you MAY find that you are not covered when you need it due to "escape" clauses which allow the insuring company to not pay. Then ALL the money you have paid FOR coverage could have been paid in vain because you may get nothing for it.

My thought and the opinion of some others in the financial industry is to build up enough resources on your own by good investments so that you do not waste your money, or God's money, in vain at least until the policies are standardized to some degree. Of course, some may opt due to family history to purchase a plan anyway with VERY CAREFUL reading of the terms offered. In fact, it MAY be well worth it to pay a lawyer to look at the proposed LTC policy before it is purchased to find any loopholes before it is too late.

May you live 'circumspectly' and may God bless you with good health!

P.S. I have been doing an informal survey. No it is NOT scientific, but it is interesting. I keep asking people around my age if they have had any relatives who needed LTC and had a real struggle financially because they did not have LTC coverage. So far no one has indicated they knew of any such situation. Of course, Susan being in the healing industry so to speak, has, but that of course is because of being in it that she is exposed to those who have suffered without LTC.

May God help you to walk 'circumspectly' and bless you with good health.

-Charles

Dave Ramsey and the Canadian Story

noreply@blogger.com (Charles Pedley) — Fri, 21 May 2010 03:47:00 +0000

Since Dave Ramsey's material is American, some things do not apply in Canada. We are in the process of sorting outwhat does and what DOES NOT apply.

Long Term Care

Dave stresses that when you are 60 you should automatically sign up for long term care insurance. There is so much mis-information in the insurance business that we are trying to find out HOW NECESSARY Long Term Care Insurance is in Canada or at least in Ontario.

Sources of Help in Ontario

Ontario Government - Health and Long Term Care

This page introduces the subject.

Trillium Foundation - if anyone knows more about what is covered, please let us know.

Microsoft Word - Final English Aging Report - 07-04-09.doc [247 pages] Canada: Special Senate Report on Aging.
- Recommends more care availability for seniors to stay in their homes which costs less

So how necessary is it?

Publications Explaining Benefits Provided Free

Seniors' Care : Arranging Care

Seniors' Care : Residences Offering Care
This page advises you as to what type of residence to seek:

Another clue as to what is provided:

Costs

The Ministry of Health and Long-Term Care (MOHLTC) provides funding for homes. The amount paid by residents for their accommodation is called a "co-payment".

Also the Costs page shows what the senior would have to pay with the government providing the balance.

"Some long-stay residents in basic accommodation may be eligible for a rate reduction. The home Administrator can provide a rate reduction application form to residents to complete.

Government Subsidies for Accommodation Costs
If your income is not sufficient to pay for the basic accommodation rate, there is a subsidy available to reduce your accommodation rate. Subsidies are only available for basic accommodation.
If you are moving into a long-term care home and your spouse requires financial assistance to remain in his or her home, there is a government benefit called "Exceptional Circumstances" for people with lower incomes or couples who have to live separately. For more information, contact your local Community Care Access Centre."

Seniors' Care : Who do I Contact for Information?

Finding out more about legal and financial planning considerations
As you plan your future, you may also wondering how decisions will be made if, for some reason, you are unable to make decisions on your own. Creating a plan will ensure that decisions about your health and personal care will be made by the right person, with a full understanding of your values and wishes. Download a Power of Attorney Kit
I can not stress enough the importance of EVERYONE HAVING A WILL, AND POWER OF ATTORNEY FOR HEALTH AND DECISION-MAKING.

For More Information

Call ServiceOntario, INFOline at 1-866-532-3161
(Toll-free in Ontario only)
TTY 1-800-387-5559. In Toronto, TTY 416-327-4282
Hours of operation : 8:30am - 5:00pm

Ontario Long Term Care Association [OLTCA]

Sources of Funding Long Term Care

1. Paying off your house means the senior has a source of income by selling it to provide care in their senior years when they cannot live without help.

2. Old Age Security [OAS] is provided to all Canadian Citizens

3. Canada Pension Plan [CPP[ will apply to those who have worked outside of their home.

4. GIS [Guaranteed Income Supplement] can provide extra money if an individual or couple have below a certain income level.]

Unlike the U.S. the health aspects of Long Term Care are paid for in the most part.

Is LTCI necessary in Ontario? The jury is still out but we are investigating until we find an answer.

One thing for sure as Susan pointed out is that people with a family history of needing long-term care due to some diseases which run in the family SHOULD definitely, if they can afford it consider the affordability and EXACTLY what is covered.

On one of these links there was a checklist that you should ask your agent, record the answers and then have him sign the paper endorsing what you wrote was what he said. This also gives you a legal footing for your claim for LTC if it is denied by the insurance company.

Any help you can give according to your experiences would be gratefully accepted.

LTC Part 3 - Your Own Home?

noreply@blogger.com (Charles Pedley) — Tue, 18 May 2010 03:12:00 +0000

Disadvantages of Seniors Staying in Own Homes

- My mother: you can be tricked into unnecessary repairs, selling furniture that your family would like for much less than its worth, being conned into giving money to help out a poor unfortunate person without a job who promises to pay it back as soon as she gets work. [Still waiting years later!]

- My mother-in-law: anyone can come to the door and pretend they are there to fix something and really want to get into your house to steal something [in this case her expensive vacuum cleaner]

- What if the senior leaves the stove on and it causes a fire? It happens.

- What if the senior has a heart attack and has no time to contact anyone? She/he will be missed sooner by a resident. In your own home, it could be days before anyone tries to contact her/him. It happens.

- Some areas may be dangerous due to break and enter, robberies and being beaten up or murdered by a home invader. It happens. Listen to the news. [Senior homes are locked to outsiders.]

-Is the senior really able to look afer her property and home or is it just too burdensome?

- Individual families need to balance the advantages and disadvantages and be able to make their own decisions.

-However a time comes when the senior NEEDS to be where more people are for her/his own safety and to enjoy the fellowship of similar-aged people. In your own home this will probably not happen much after a certain age when it is too hard on the senior to prepare a meal and invite people over. My mother eats two meals a day with a group of friends and can't wait to get there! She loves it when she can introduce us to her table friends.

-Is it likely that a senior would join an exercise class when in their own home or more likely if as is usual when it is offered in senior homes.

Advantages of Seniors Staying in Own Home

[use comments section to suggest others]

Less cost?
Comforting familiar surroundings. [So is a womb. (:-)]
[your turn!]

LTC Part 2

noreply@blogger.com (Charles Pedley) — Mon, 17 May 2010 06:03:00 +0000

Susan Ball, a nurse in our 2010 Spring FPU course makes a comment from personal experience.

Of course the main concern is how to pay for extras not paid by our Ontario government plans. I have discovered several factors that relate.

First let us take the situation of living in your home and then you need LONG TERM CARE in ONTARIO, Canada.

If you were to move to a senior's home, many have at least two sections: self-contained apartments with a small kitchen, a bed-sitting room with no kitchen.

I am somewhat familiar with two homes: Pleasant Manor in Virgil where my 92-year old mother is right now still in her own apartment but goes out for two meals a day. I know a bit about Portal Village in Port Colborne as my wife's 88-year old mother lives in her self-contained apartment.

Both of those homes have both sections: self-care, and assisted care

Pleasant Manor in Virgil
[non-profit facility]
Cost of a self-contained apartment is about $1000 possibly on the way to $1100 but not quite.
Cost of a Wellness suite is $1348.40 per month including 3 meals a day, medicine distribution, laundry, cleaning etc.
You can add to the basics by having more or less privacy.

Portal Village in Port Colborne
Self-care Apartment is about $2400 a month with free cleaning service, all breakfasts and 15 evening meals. Cost was $100 extra per month for all evening meals.

This sounds very expensive until you consider all the savings you have from selling your home! There are also SAFETY FACTORS to consider for a senior living alone in a home which are not good. [more on that later]

These are approximated because each home has different expenses.

Home Expenses Per Month

Taxes of $233
Heating $77
Home Insurance $36 [tenants insurance would be about 1/2 that amount or less]
Electricity $190
Maintenance and Repairs [varies] $50 - $100
Water and Sewer ???
Others
TOTAL - AT LEAST $636 month

Sources of Payment for a Long Term Care Apartment

$636 not needed for home expenses
OAS up to $516 [rounded]
CPP [varies depending on outside of home work] up to $934.17
CPP if you are disabled up to $1126.76
GIS for those with low incomes [single person below $15673 per year] $652.51
No food purchases necessary [How much do you pay for food per month?
CCAC in many cases and Trillium for some
Personal Savings, TFSA's, RRSP's etc.
TOTAL SOURCES up to $2186.17 per month including the maxes above.

Sources minus cost of wellness suite would be positive balance of $837.77

Of course, you may not get the maxes; you may get even more if disabled

Every situation is different.

My main concerns regarding this whole LTCI is that the record of some insurance companies for finding loopholes NOT TO PAY OUT is rampant! [that means way too many] and you may not be getting what you thought you were paying for along with the lack of affordability for most people..

However on the other side, if your family history shows long term care was needed by Mom or Dad, you might want to get LTCI as long as you READ the policy or have the agent show you exactly what you get and what exclusions are present. If there are too many like ones I have seen, KEEP YOUR MONEY AND RUN!!! (:-)

References

CPP RATES

http://www.servicecanada.gc.ca/eng/isp/pub/factsheets/rates.shtml

OAS

http://www.servicecanada.gc.ca/eng/isp/oas/oasrates.shtml

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