Rocky Credit Union Speak

CPP Rules

2014-10-20T09:58:00.000-06:00

New CPP Rules

Here’s a reminder about some good news about Canada Pension Plan benefits. As of January 1, 2012, you no longer have to stop working to draw CPP. You can simultaneously receive and accrue CPP benefits between the ages of 60 and 70, which means you have increased potential to improve your retirement finances.

The old rules stipulated that you had to stop working in order to collect early CPP benefits. As of January 1 of 2012, that condition no longer applies.

If you’re between 60 and 65, both you and your employer will be required to continue contributing to CPP. If you are self-employed, you must make the entire contribution yourself. If you choose to continue working between the ages of 65 and 70, CPP contributions will be optional. If you want to continue to contribute to CPP as an employee, your employer must also continue to contribute.

The amounts by which benefits are reduced for taking early retirement and increased for delaying retirement (currently 0.5% per month) are also changing. From 2012 to 2016, the reduction for retiring early will gradually increase to 0.6% per month. The increase for delaying CPP will rise to 0.7% per month by 2013. Once the changes are fully implemented, taking CPP at age 60 will reduce your pension by 36% from the amount it would have been at age 65; delaying until age 70 will increase it by 42%.

Talk to us before making any decisions about early retirement and collecting CPP benefits. We can help you make the choices that will work best for your financial future.

Elaine Kautz, CFP

Credential Financial Strategies Inc. offers financial planning, life insurance and investments to members of credit unions and their communities. ®Credential is a registered mark owned by Credential Financial Inc. and is used under licence.

In partnership with

Home Emergency Preparedness

2014-10-14T08:51:00.000-06:00

This is an article I have updated a few times over the past few years. I thought that it is worth posting again.

Are you prepared for an emergency? There are some areas of the world where they have become accustomed to evacuating their homes at a moments notice. Hurricanes, tornadoes, and forest fires are just some of the natural disasters that affect people’s lives annually. As a result, people who live in areas plagued by these events have 72 hour kits that allow them to leave home quickly, and be prepared to live away from home for at least 3 days. Many have suitcases packed to help them live for up to a week without access to their home.

The basics around a 72 hour emergency kit are:
1. Know the risks
2. Make a plan
3. Get a Kit

Know the Risks – Each person and home is subject to different risks. While the Rocky Mountain House Region isn’t likely to have a hurricane, we have seen some pretty powerful winds that could knock out electricity for a few days. Other potential risks include forest/home fires that result in evacuations and snow/ice storms that could knock out electricity and limit your mobility. The 72 hour kit is usually designed for the risks that result in you having to leave your home very quickly, so consider the risks that could cause that course of action.

Make a Plan – You should make a plan that works for you and your family. The plan should include things like:

How to get out of the house in case of fire
Where to meet for a head count
Contacts for emergencies – hospital, police, friends and family
Where your supplies are stored, fire extinguisher. First aid kit
List of the valuables you want to take with you (family pictures and history…)

Get a Kit – You will want your kit to be in something you can carry (backpack, duffle bag) and can be easily stored in your house, garage, or vehicle. It should include:

72 hours of drinking water
Food that won’t spoil if wet or banged around
First aid kit
Battery powered or wind up flashlight and radio
Medication, toiletries, infant formula or diapers (if needed)
Weather appropriate clothing
At least $20 cash, and some coins for phones or vending machines
A copy of your emergency plan, and a list of where important documents are stored (wills, insurance, family contacts)
A copy of all of your family’s personal information in each person’s pack (photo, name, address. contacts…) This helps with identification of children in case you get separated.
Books, cards, pen and paper, thing to keep you and kids busy

The assumption with a 72 hour kit is that the worst of most emergency situations will occur in the first 72 hours. For more details about 72 Hour Emergency Plans check out the Canadian Government site –getprepared.ca

I would also add that you should keep a list of your debit and credit cards, insurance and loan numbers along with their contact numbers so that you can use them in an emergency even when away from home. Many residents who lost homes in the Slave Lake fire took weeks to recover all of this information, and even for those who did not lose their homes in the fire it took several days before they were able to return and find that information. Having the information stored somewhere safe but accessible (so not just a safety deposit box) may be a great help for you.

The following link is PDF of a 72 Hour Emergency Kit checklist
Jerry

Detect and Prevent fraud Against Seniors

2014-09-29T09:56:00.000-06:00

Unfortunately we see our seniors taken advantage of too many times. Financial abuse can come in many different ways, but it seems to be several main types over and over again.

Globe and mail has printed an excerpt from Financial Care for Your Aging Parent by Lise Andreana, Published by Self-Counsel Press.

It is worth a read. Even this short excerpt would be worth the 5 minutes it takes to read through it.

http://www.theglobeandmail.com/globe-investor/personal-finance/retirement-rrsps/how-to-protect-your-parents-from-fraud-and-financial-abuse/article19334909/

5 Ways For Your Business To Have Good Credit

2014-07-10T14:24:00.000-06:00

Often, as a commercial lender, I have companies inquire as to how they can make their organization credit worthy. Many times lenders struggle getting financing approved due to the lack of some key required information. I would like to take this opportunity to go over some basic information that may help your company secure financing. Also note, much of the information I request is also very useful information for yourselves and the management of your company.

1. Updated Information

The most important step is keep up to date financial information. Most lending institutions require at least annual financial statements. This will include the minimum of an Income/Expense Report and a Balance Sheet. This reporting provides a snap shot of your business year to date and needs to be completed within 90 to 120 days of your company’s yearend. Completion of the same will also result in reporting to CRA (Canada Revenue Agencies) as required and is typically completed by your accounting firm.

2. Track Sales & Expenses

Also, keep a monthly record of sales and expenses. Often a member will come in for financing and they are already over 6 months into their fiscal year but have no record of what they have done year to date. This provides your company, and the lender, with a financial picture of your company. Are the sales trending positively, are expenses being managed? It also provides you with a valuable management tool. If your sales are off track or your expenses are higher than budgeted, then you can make adjustments before you end up with a cash flow problem. This also allows you to do more accurate budgeting. If, for example, you are looking to finance an additional piece of equipment you could accurately determine your net return. As a lender, this is very valuable information, as I can then determine if the historical and projected cash flow will cover the required loan payments.

3. Get the right expertise

Don’t be afraid to admit you don’t have an accounting background. Many small and large business owners know the operational side of the business very well, but little in terms of bookkeeping. I often hear that bookkeepers or accountants are too expensive. Unfortunately, I have far too many times seen business owners get behind in their monthly payroll remittances to CRA, or incorrectly report to CRA, or not report at all, which could result in embarrassing holds placed on accounts by CRA and cheques being returned. Qualified bookkeeper and/or accountant do cost money, but their knowledge can also save you taxes, penalties, and potentially major headaches.

4. Proper tools and training

If you manage your own books, there are many good accounting software programs out there. In addition to using good software, ensure that you and/or your staff bookkeeper take an accounting course beyond just the software course. An accounting class will help you to know and manage your books in a way that can be very valuable to the way you manage your company. The software and classes can simplify your reporting and assist your accountants with preparing your company returns.

5 CRA makes the rules

A further requirement when securing a loan; Are your company/personal taxes up to date? Have you been keeping your monthly payroll remittances current? Many businesses don’t realize this, but often CRA demands can supersede the lenders security interest in your assets. This makes us a little nervous.

Thank you for taking the time to read through this article. Please, if you have any questions do not hesitate to give me a call at 403-846-4225, or contact your current account manager.

Dan Burger

Sr Commercial Lender

RCU Response to Heartbleed Bug

2014-04-11T15:47:00.001-06:00

There has been a lot of news about the Heartbleed bug over the past week. Here is what you need to know in a nutshell:

The Heartbleed bug did not affect Rocky Credit Union’s online banking site. Information was properly encrytped at all times on our online banking site.
The Heartbleed bug is a bug that affects technology used to protect online accounts for email, instant messaging and e-commerce.
The Heartbleed bug has been able to read “encrypted” internet links on many websites for just over 2 years.
The type of encryption that the bug was able to crack is called OpenSSL which is used on about 17% of encrypted sites throughout the world, including Facebook, Pinterest, Gmail, and Twitter.
A new release for OpenSSl has been released, but it is up to the encrypted sites to perform the update.
Because of the prevalence of the use of OpenSSL encryption on so many of the world’s most popular sites, we recommend that members change their passwords for all sites that require you to login and use a password. If you do not, there is potential for someone to access your information, and possibly to even steal your identity.

This is a major event in the world of cybercrime. Again, Rocky Credit Union’s online banking site was not affected by the Heartbleed bug, but if you use the same password on our online banking site as well as any others, for the safety of your information we recommend that you change them all. Jerry

7 Tips to Protect Your Identity and Cards While on Vacation

2013-11-25T08:30:00.000-07:00

7 Tips to Protect Your Identity and Cards While on Vacation

The time for people to escape out cool climate for warmer regions is now upon us. Wherever you go, chances are that their standards for security regarding cards and accounts may not be great as those here at home. The following are 7 tips that can help you protect your money while travelling abroad.

Use credit, not debit. Credit cards usually have zero liability policies which can protect you if they are copied or stolen. Debit cards give direct access to your account, which you want to avoid in areas where identity theft is likely.
Change PINs before your trip. As you leave on your trip stop by the credit union and change your PINs on your debit and credit cards. You can change them back upon returning, which blocks use of any possible stolen/copied cards after the PIN change date. You can change your PIN in branch or at your credit union’s ATM.
Take 2 credit cards. Keep them separated so that if one is lost or stolen you have a backup to use.
Notify the credit union and credit card company before your trip. We try to protect your money, so if we see a surprise transaction in the Bahamas without prior contact we may put a hold on the account. This is meant as protection for you, but warning your credit union about your travel plans can prevent hassles alter on.
Use the hotel safe. Valuables can disappear from even a locked hotel room. Take advantage of using the hotel safe, and lock your passport, credit cards, and laptop away when you are not using them. Far better to be safe than sorry.
Know your information. Make copies of your cards’ and bank’s information before you go and give them to a trusted friend or family member. Give your family a schedule of your plans as well. You could be a long ways from home, and having someone else know where you should be is valuable information should anything happen.
Be wifi safe. No-one should use public wifi to access online banking anywhere, even in Canada. They definitely should not use public wifi for online banking in other countries. Over your own cell phone, using the smartphone’s internet access, not wifi, is the safest way to do online banking in another country.

All of these tips are meant to protect you from possible occurrences. Once you have done them you can relax a little more while on your vacation.

New type of debit card skimming

2013-08-15T14:14:00.000-06:00

Updated from September 2012.

Over 86% of Canadian adults have at least 1 debit card and about 74% have at least 1 credit card. Despite the convenience and popularity of these cards, there is a risk of fraud. It is important to protect your cards, just as you would cash or cheques. Some of the risks associated with debit/credit card fraud are the same as carrying around your account numbers, so protect your card information in your wallet, online and over the phone.

There is, however, another threat to card users that is unique - it's called "skimming." Skimming occurs when thieves set up a device that captures the magnetic stripe and keypad information from point of sales terminals. It is important to note that debit card fraud has been decreasing in Canada because of the conversion away from magnetic striped to chip cards, but skimming with magnetic stripe cards still occurs.

Crooks are now trying to get around the CHIP protection by somehow replacing a store/restaurant/gas station’s debit keypad with their own version. The criminal’s keypad makes you push your debit card in over half of the length of the card so that a scanner can copy the magnetic strip. The keypad then records your PIN as you enter it. To combat this keypad switch many retailers are putting locks or other types of protection on the keypads themselves.

The stores are doing more to protect your information, and by doing the following you can reduce the risk of having your information stolen:

Check your card as you put it in the chip reader to make sure it only goes in about 1/3 of the way. If it goes in more than half way the keypad is suspicious.
Cover the PIN keypad when you are entering your code. This helps block a camera’s or other person’s view of your PIN number.
Never let the card out of your sight. Watch as the retail person swipes it to ensure they only use the store cash register.
Check your bank statements immediately upon receipt in the mail. Make sure all payments are yours.
Regularly check your account balance and transactions by utilizing online banking and mobile banking.
Contact your financial institution immediately if your card is lost, stolen or subject to fraudulent use.
Keep a record of card numbers, PINs, expiration dates and phone numbers so you can contact the issuing financial institution easily in case of theft.
Memorize your PIN number. Do not use your birth date, address, phone number or social insurance number. Never store your PIN with your card and do not make it available to others.
Keep your receipts. You'll need them to check your statement. If they have your account number on them, shred receipts before throwing them away.
Mark through any blank spaces on debit slips, including the tip line at restaurants, so the total amount cannot be changed.
Know your limits. Many issuers limit daily purchases and withdrawals for your protection.
Do not use an ATM if it looks suspicious, it could have a skimming device.
Be wary of those trying to help you, especially when an ATM "eats" your card. They may be trying to steal your card and PIN.
Do not give your PIN number to anyone over the phone. Often thieves steal the cards and then call the victim for their PIN, sometimes claiming to be law enforcement or the issuing financial institution.

If the RCMP discovers business has been skimming cards, financial institutions are notified and replace any cards that were used during the skimming period. While this can create an inconvenience for card users, it helps protect customers and financial institutions from losses due to criminal activity.

By protecting your cards you will be protecting yourself.

Student Loans and Education Financing updated 2013

2013-08-01T09:15:00.001-06:00

1. What student loan options do I have?

There are 2 main government student loan options (National and Provincial) and there are Education Loans from Financial Institutions like Credit Unions and banks.

2. Which is best for me?

I would recommend starting with the Provincial and National student loan programs. You apply for both on the same application. With these government student loans you do not pay or accumulate interest while you are going to school, there are some payment relief programs in place after graduation, and the interest paid on government student loans is tax deductible. There are also some scholarships or grants that may decrease what you owe for government student loans.

More information can be found at http://alis.alberta.ca/ec/fo/pay/loans-grants.html

3. So why would I use a credit union or bank education loan?

The government loans programs provide significant help, but often the government loan programs do not provide enough to cover all your expenses while attending school. The credit union or bank education loans can help you get the funding you need so you can worry about studying rather than your finances.

4. Why not just go with the financial institution education loans and not government?

The advantages of the government loan are discussed in #2 with their main disadvantage discussed in #3. The credit union and bank education loans are flexible, and will usually provide a greater amount of funds than the government loans, but:

they require interest payments while going to school,
the interest is not tax deductible,
and there are no payment relief programs.

While going to school, the interest is usually prime + 1 or so. The financial institution may need your parents to co-sign the education loan.

5. How are the funds sent to me?

The government usually gives you a large amount in September and January, whereas the financial institutions usually provide a flexible loan or overdraft that is attached to your chequing account and can be accessed anytime with your debit card or cheque.

6. How much will school cost?

If we consider that most students in the Rocky Region have to leave home to attend school, the following are some average costs:

Tuition/yr: University $5,600 College $4,000
Books/yr: University $1,800 College $1,400
Rent: With room mates $600/month or $4,800 for 2 semesters
Food: $250/month or $2,000 for 2 semesters

Other things like entertainment, vehicle, phone and computer depends on your own lifestyle.

Average minimum cost of over $14,000/yr for university and over $12,000 for college.

7. How much will a loan cost?

Right now prime is at record lows. If you borrow $10,000 and pay the monthly interest on it, you will pay about $30/month in interest while going to school. If you have borrowed $30,000 for year 4, you will pay about $90/month in interest, at the current record low rate. The rate will likely be going up over the next few years, meaning the monthly interest payment will go up as well.

When it is time to start paying back your student loans, it is important for you to contact your lender, whether that is the government or the financial institution. These are actual loans that you have borrowed with the promise of paying them back. If you are paying back a $30,000 loan at 5.5% over 10 years, the monthly payment will be around $325, quite a bit for fresh out of college. In the above example you will have paid over $9,000 in interest just in the 10 years of paying off the loan.

Education is an investment worth borrowing money to finance. Your education should increase your value as an employee and an income earner over the course of your life. While education is worth borrowing for, like anything else we put on credit, we can over spend. Be aware that the more you borrow means the more you will have to pay back, and those loans will go with you for years after you have used them. If you can live frugally while going to school, it will be worth the effort in the long run to owe so much less upon graduation. Jerry

Business Emergency Planning

2013-06-28T14:41:00.002-06:00

In the past I have posted articles about being personally prepared for an emergency, and my focus was specifically on 72 hour kits and evacuations, whether because of an emergency in your home or a more widespread emergency in the community.

As we have seen in this past couple of weeks, it is very important to be prepared personally, but it also important to have your business prepared for a disaster.

Developing The Plan
Here are some points to consider when developing your Emergency response Plan or Business Continuity Plan:

- Identify the purpose of your business, who you serve and what you do for them.

- Identify the critical services you must provide and the resources you need to provide them.

- Identify the most probable disasters, such as fire, flood, snow storm, electricity outage, phone service outage, lack of staff (sick or can’t travel…).

- Look at the impacts of the disasters on your business. Many impacts can be grouped into a few categories:

no reduction in resources,
a reduction in resources,
complete or almost complete lack of resources.

- These impacts then determine what you can do:

able to operate as normal
able to operate at lower service capacity
close down temporarily or permanently

- Always keep in mind that the emergency impacts not just you and your staff, but may impact your suppliers and definitely impacts your customers.

Once you have your general capability categories you then set out your responses. It is often easier to come up with a list of actions first and then put them in the order they need to happen.

Emergency Scenarios Can Help Give Direction
If you are having trouble getting started with this process, a very revealing way to find out what matters in your business and what you can do in an emergency is try to draw up a realistic disaster scenario and walk through it. If your business consists of just you it might be best to have someone you can trust to bounce ideas off of, and if your company is a bit larger use your management team to walk through a practice. in the simulation, to reflect that decisions have to be made quickly and often without all the needed information, some companies make 5 minutes in the scenario meeting represent 1 hour in real life.

This walk through often reveals areas that need improvement. Usually it reveals that the management needs more information about resources, personnel and technology.

Each scenario walk through can reveal more data that is needed to make a comprehensive business continuity plan. The plan will probably also influence some of your regular activities, like adjusting access to inventories or who has access to the building when other staff is isolated.

You should also find out what your local municipality has in their emergency plan and how that might affect your business. For example - how might their response to fire impact you. Municipalities often post online the most common emergencies they for which they have planned and practiced.

The Clearwater County website has a lot of information to help with personal preparedness that is also useful for businesses at http://www.county.clearwater.ab.ca/departments/page.jsp?pid=63

Once your Emergency Plan is complete it is important that it is not just stored and forgotten. The plan should be reviewed once a year to make sure it is still relevant.

Some general questions to consider:

Will you be able to serve your customers if you have limited resources?
If there is a general area emergency, will your customers still want your service or product during the emergency?
How will you communicate with your staff, customers or suppliers?
How will you make payments or receive payments?
Is your business information backed up or protected?
Can you quickly recover from most disasters?

Some examples of emergencies your business could experience

Isolated area of your operations/office/building:

Extended duration: fire in closet destroys phone system, water pipe breaks over servers
Short duration: flu bug infects customer service department

Entire operations/office/building:

Extended duration: fire destroys entire office, shooter onsite, computer virus attack
Short duration: sewage backup causes an evacuation, computer virus attack

Isolated small geographic area (e.g. approximately a city block):

Extended duration: flood, tornado, civil unrest
Short duration: power loss, police action

Large geographic area (e.g. Entire city or several counties)

Extended duration: hurricane, earthquake, wildfire
Short duration: power outage, storm

http://operationstech.about.com/od/disasterrecover1/a/DisastrRcov-Risk-Management.htm

The Alberta Emergency Management Agency has some excellent information about Business Continuity Planning for municipalities that can be applied to businesses as well.
http://www.aema.alberta.ca/se_business_continuity_planning.cfm

March Means Fraud Prevention Month

2013-03-05T15:48:00.001-07:00

I posted the following article 4 years ago but it is a scam that keeps showing up, so I thought it would be worth posting again.

Two years ago I posted an article on our blog about how crooks are using classified ads and other websites to perpetrate a scam that can be called "Overpayment." The scam artist says he will buy your $2,000 stereo from you based on the ad he has seen in the newspaper or online. He sends a cheque for $4,000. You, being the honest person you are, e-mail him saying that he overpaid. The scam artist replies that it was his secretary's fault and says it would be easier if you just deposit the cheque and than mail a money order for the difference back to him, even offering $100 as a reward for your honesty.

You deposit his cheque, take out the $1,900 as a money order and mail it off. A day or two later you find out that his cheque was fake and that it has bounced, while the money you sent from your account as a money order is very real. This overpayment scam has grown and is being used all over the country, including targeting people in the Rocky Region. It is generally best to meet the buyer/seller in person so you can see the goods or the money you will be getting.

A new version of the scam

There is a slightly modified version of this scam going around this past year. It preys on people who are looking for work. It goes like this:

The scam artist advertises for someone to make money by being a mystery shopper at financial institutions. When victims respond to the ad, the con artist tells them that they will be checking on how well a financial institution is following legislation regarding wiring money. The scammer mails a cheque or two to the victims, instructs them to deposit the cheques and then to wire the money to a certain account that is provided. The victims follow the instructions, keeping $200 for themselves as pay for services. Unfortunately, it turns out the cheques sent by the scam artist are fake and they are rejected within a day or two, while the money the victims wired out was real and out of their own account.

It is important to note that most ads for selling/buying and hiring in the classifieds or online are real ads, but there are also crooks trying to steal your money. If, however, someone is giving money up front before a job or transfer of goods is actually done, then the job is probably too good to be true. Please be aware of the different types of fraud that go on, both to protect your own hard earned money and the assets of your loved ones.

You can check out other articles about scams and theft on this blog under the topic "Fraud."

The RCMP have a website dedicated to fraud. You can get a lot of useful information at Phonebusters.com, and that information can help you keep your money safer. Jerry

Prepared for an Emergency?

2012-10-29T10:59:00.001-06:00

This is an article I have updated a few times over the past few years. I thought that with the hurricanes shutting down much of the eastern coast this week that it was worth posting again.

How to get out of the house in case of fire
Where to meet for a head count
Contacts for emergencies – hospital, police, friends and family
Where your supplies are stored, fire extinguisher. First aid kit
List of the valuables you want to take with you (family pictures and history…)

Get a Kit – You will want your kit to be in something you can carry (backpack, duffle bag) and can be easily stored in your house, garage, or vehicle. It should include:

72 hours of drinking water
Food that won’t spoil if wet or banged around
First aid kit
Battery powered or wind up flashlight and radio
Medication, toiletries, infant formula or diapers (if needed)
Weather appropriate clothing
At least $20 cash, and some coins for phones or vending machines
A copy of your emergency plan, and a list of where important documents are stored (wills, insurance, family contacts)
A copy of all of your family’s personal information in each person’s pack (photo, name, address. contacts…) This helps with identification of children in case you get separated.
Books, cards, pen and paper, thing to keep you and kids busy

The assumption with a 72 hour kit is that the worst of most emergency situations will occur in the first 72 hours. For more details about 72 Hour Emergency Plans check out the Canadian Government site – getprepared.ca

I would also add that you should keep a list of your debit and credit cards, insurance and loan numbers along with their contact numbers so that you can use them in an emergency even when away from home. Many residents who lost homes in the Slave Lake fire took weeks to recover all of this information, and even for those who did not lose their homes in the fire it took several days before they were able to return and find that information. Having the information stored somewhere safe but accessible (so not just a safety deposit box) may be a great help for you.

The following link is PDF of a 72 Hour Emergency Kit checklist
Jerry

Avoid Skimming Crooks

2012-09-17T11:09:00.001-06:00

Over 84% of Canadian adults have at least 1 debit card and about 74% have at least 1 credit card. Despite the convenience and popularity of these cards, there is a risk of fraud. It is important to protect your cards, just as you would cash or cheques. Some of the risks associated with debit/credit card fraud are the same as carrying around your account numbers, so protect your card information in your wallet, online and over the phone.

Cover the PIN keypad when you are entering your code. This helps block a camera’s or other person’s view of your PIN number.
Never let the card out of your sight. Watch as the retail person swipes it to ensure they only use the store cash register.
Check your bank statements immediately upon receipt in the mail. Make sure all payments are yours.
Regularly check your account balance and transactions by utilizing online banking and mobile banking.
Contact your financial institution immediately if your card is lost, stolen or subject to fraudulent use.
Keep a record of card numbers, PINs, expiration dates and phone numbers so you can contact the issuing financial institution easily in case of theft.
Memorize your PIN number. Do not use your birth date, address, phone number or social insurance number. Never store your PIN with your card and do not make it available to others.
Keep your receipts. You'll need them to check your statement. If they have your account number on them, shred receipts before throwing them away.
Mark through any blank spaces on debit slips, including the tip line at restaurants, so the total amount cannot be changed.
Know your limits. Many issuers limit daily purchases and withdrawals for your protection.
Do not use an ATM if it looks suspicious, it could have a skimming device.
Be wary of those trying to help you, especially when an ATM "eats" your card. They may be trying to steal your card and PIN.
Do not give your PIN number to anyone over the phone. Often thieves steal the cards and then call the victim for their PIN, sometimes claiming to be law enforcement or the issuing bank.

By protecting your cards you will be protecting yourself.

What New Mortgage Rules Mean

2012-07-10T10:41:00.001-06:00

CMHC Mortgage Insurance Rules Changes

Effective Monday, July 9, 2012, the Canadian Mortgage and Housing Corporation (CMHC) only provides mortgage insurance for loans with an amortization of 25 years or less when the borrowed amount is 80% or more of the property value. Canadian law requires insurance on mortgages that exceed 80% of a property's value.

Amortization - This lowers the amortization limit from the 30 year maximum set out in 2011. It was as high as a 40 year amortization in 2006, but the amortization period has been lowered by the federal government over the past several years in an effort to encourage consumers to pay off debts more quickly.

Debt Ratios - The government has also set the maximum gross debt service (GDS) ratio at 35% and the maximum total debt service (TDS) ratio at 42% in order to qualify for CMHC insurance if you have a beacon score of less 680. The ratios are at a GDS of 39% and TDS of 44% if the beacon score is over 680. We calculate the GDS by adding up mortgage payments, property taxes and heat costs, and dividing by the borrower's income. TDS adds in other debt payments such as lines of credit and credit cards to get total debt payments.

Borrowed Amount - The borrower can still borrow up 95% of the value of the property using CMHC insurance.

Example - What these changes generally mean is that it may be a little more difficult to qualify for a CMHC insured mortgage as the debt ratio allowed is a little tighter, and the amortization is no longer as long which increases the monthly payment a little but decreases the total interest you would pay. An example is if you have a $250,000 mortgage at 4% annual compounding, your payments would be about $1,194/month and you would pay $140,072 in interest over the 30 years if the rate stayed constant. With the same mortgage amount and rate, but amortized over 25 years, you would pay $1,320/month and $118,602 in interest over the 25 years.

Refinancing Changes - The government has also decreased the maximum amount that someone can refinance borrowings against their home from 85% to 80%. CMHC will insure refinancing at less than 80% LTV, but most Credit Unions and banks will lend for this type without using CMHC insurance.

Other changes for the future by OSFI

In addition to these changes that CMHC has put into effect, the Office of the Superintendent of Financial Institutions Canada (OSFI) that sets regulations for national banks (most provinces also follow similar rules) has released new rules that they expect banks to follow by the end of 2012.

A summary of the OSFI changes is below:

Home Equity Line of Credit (HELOC) - new HELOC offerings will be able to finance up to 65% of the Loan to Value (LTV) of a property, down from the existing 80%. Another type of loan may be used to finance the difference of 15%.

Loan To Value - The Loan to Value ratio should be recalculated upon any refinancing or whenever the lenders deems appropriate.

Down Payment - The 5% down payment should be from the borrowers' own savings. Cash Back mortgage funds are no longer allowed to be used for the down payment.

Mortgage Qualifications - In order to qualify for a 1 through 4 year closed mortgage or a variable mortgage of any length a borrower must qualify at the Bank of Canada's 5 year posted rate.

If you have any questions about your mortgage or qualifying for a mortgage, contact a Consumer Lender here at Rocky Credit Union and you will get good advice that could help you as you purchase your home. Jerry

Which Mortgage Is Best?

2012-04-24T08:23:00.000-06:00

There are a variety of mortgages, and each one has its advantages and disadvantages.

A fixed rate, closed mortgage - about 75% of mortgages across Canada are fixed rate, closed mortgages. Typically someone locks in their rate and payment for 5 years. This lets consumers know what their payment will be every month and how much will be left on the mortgage at the end of the 5 year term.

A variable, closed mortgage - this mortgage has a rate that floats with a financial institution's prime lending rate and is often for a 5 year term. Usually the payment is set at the current rate and then the actual interest rate goes up and down throughout the mortgage. The advantages are that this rate is usually lower than a fixed rate and that if the rate decreases your payment is paying more towards the mortgage principal. However, the disadvantage is that if the rate goes up you will pay more in interest and it is possible that very little of the principal is paid down by the end of the term.

Home Equity Line of Credit (HELOC) - this is a line of credit secured by property, usually a home. There usually is no set repayment schedule, often only requiring an interest payment or deposit each month. This is a very flexible loan in that it can be used to buy almost anything as it is attached to a chequing account. The largest disadvantage, however, is that the easy access and lack of repayment schedule can make it too easy to use and difficult to pay down. This is the type of loan that the Bank of Canada has expressed concerns about being abused by Canadians.

Open mortgage - this mortgage is usually a short term mortgage, often used while trying to sell a home. There is no penalty for paying out an open mortgage.

Capped rate mortgage - a variable mortgage with a maximum the interest rate can go up to, creating a safe ceiling for your mortgage rate.

Reverse mortgage - a mortgage against the equity built up in a home, usually reserved for seniors needing additional funds. Up to 50% of the value of the home can be borrowed, and the interest accrues until the home is sold and the loan is then paid out.

Conventional - a mortgage that has at least a 20% down payment.

High ratio mortgage - Canadian legislation requires any mortgage for more than 80% of the value of a residential property must be insured. There is a fee for this insurance set at a percentage of the mortgage that is paid up front.

With the exception of the open mortgage there are penalties for breaking the mortgage term. Each financial institution allows different prepayment amounts before penalties apply.

Borrowers should always be careful about the amount of debt incurred. While today's rates are at 60 year lows they will eventually increase. When calculating your payments it is wise check to see if you can afford a rate increase of 2% for when your mortgage renews. By planning ahead and getting the mortgage that is right for you, owning your home can be a dream come true. Jerry

Fraud Prevention Month

2012-03-13T11:38:00.000-06:00

March is Fraud Prevention month.

I have written several articles for this blog about fraud over the past few years. My goal with each article is to help people recognize fraud and to help them warn others about it as well.

Fraud covers a lot of categories; from identity theft to lying about damage to a home that is for sale, from stealing a credit card to billing someone for work that was never done.

Two of the most famous types of fraud are the Nigerian Prince Letter Scam and the International Lottery Scam.

The Nigerian Prince Letter Scam is quite old and is so-named because the letters originally said they were from a Nigerian Prince who is a prisoner in his country after a violent government turn over. The Prince has money in another country but cannot access it. If you would be willing to send money to a contact that will bribe the guards keeping the Prince under house arrest, he could sneak out of the country and then reward you with millions of dollars for the help. The reality is if you send money they will keep asking for more as long as you are willing to send it.

The International Lottery Scam involves sending a letter that congratulates you for winning millions of dollars in an international lottery. In order to process the delivery of this money into your account all you have to do is pay for some minor legal fees with a money order and send the lottery organization your account information for direct deposit. Needless to say you won't see the money and they may try to access your account through fraudulent cheques or withdrawals.

Other articles about fraud and scams that I have written about are:

The Overpayment Scam

Debit & Credit Card Fraud

Using online banking can prevent fraud

Checking your credit report annually can prevent fraud and errors

Keep safe and always feel free to ask questions of Rocky Credit Union staff about fraud and how to better protect yourself. Jerry

Financial Security in Retirement

2012-02-24T11:02:00.001-07:00

Term Deposit and Savings Account rates have dropped to 50 year historic lows. The Federal government is talking about adjustments to various pension programs. How do you ensure that you have a financially secure retirement with all of this uncertainty?

Establish your financial foundation - Many people have an idea of when they would like to retire but have little idea how much money they have already saved up. Between work pension plans, mutual funds, term deposits, RRSPs and TFSAs, people can have money spread out among many investment options. Before you decide when to retire you should know how much you have available to you today as a starting point.

Determine how much you need in retirement - Some people plan to do a lot of travelling in retirement and others plan to stay close to home and family. Some will still have debt going into retirement and others will have been out of debt for years. Your retirement can sustain any of these choices if you have planned and prepared for it. To begin planning start by figuring out how much you will really need to live on during retirement. Take into account that your health costs may increase over the years. Once you know how much you will need to live on each month you can work those numbers back to determine how much you will need to have saved upon retiring. A financial planner can help your numbers be realistic and they can help determine any potential OAS and CPP cash flow into your monthly budget.

Evaluate your risk tolerance - The markets go up and down, sometimes rather dramatically, but over the long term they tend to go up. If the ups and downs of the current market keep you awake at night, your investment portfolio is probably too heavy in the markets. Everyone wants a great return, but a great return also means a great risk. Low risk means low returns, so you want a balance. You need some risk if you want to earn better than inflation returns. Before you invest anything a financial advisor should go over what kind of risk you are comfortable with for your investments.

Look at your time frame - If you are retiring in less than 5 years, than you should not be putting much of your portfolio at risk because you may not have enough time to recover if the markets have a bad few years. A good financial advisor will warn you of this. If you are planning to continue to invest or do business for at least 10 years then your portfolio can hold the riskier investments (with higher potential return) because it is more likely if the markets go down that your portfolio will have time to recover. By looking for returns over the next 10 or 15 years you can afford to take a little more risk today. Concentrating too much on the short term means you will be constantly anxious about what is happening. Investing is best done over the long term, not in a short burst of a couple years before retirement.

Diversify your investment portfolio - This is something your advisor should be doing with you annually. While certain industries have had a great run (technology stocks in the 90’s, oil from 2002 to 2008) they also have crashed in big ways. By placing too much of your portfolio in specific industries that have good returns, you are also placing your investments at risk of a serious drop. By diversifying your portfolio you can have some money in high risk/high return areas, but also protect yourself from the downside with steady dividend stocks, bonds and term deposits.

It is natural that the older one gets the less risk they tend to take, however a lack of a proper retirement fund by some baby boomers, or having lost and not regained investments from the downturn in 2008, has encouraged many people to try and “catch up” by taking more risk to get better returns. Investment portfolios are not best designed to provide good 1 year returns. They work best providing solid returns over a long period of time. Don’t try and take more risk to get ahead, and you shouldn’t over-react by going to zero risk either as the returns are very low when risk is minimal. It is a balance of having some secure and some risk in order to earn solid returns over the long term.

This is why it is important to have an advisor help in the investment process. A third party without the emotional involvement will provide an objective, more realistic opinion than you have when you are feeling a lot of anxiety. Decisions should rarely be made in an emotional state, whether in distress or exuberance, we tend to emphasize too much of the good or the bad and not make a rational decision. Third party advice can help avoid many emotional decisions.

Finally - using the above information to create a plan and act on it. Knowing where you are and how much you need will do nothing for you without the action. A retirement planner can help remind you of your destination and the steps to get there, making it possible for you to have the retirement you have planned for. Jerry

CPP, EI and Tax Rates for 2012

2012-02-01T11:56:00.002-07:00

It is a new year and the new tax rates are in. There were not a lot of changes from last year. Most money ranges and limits moved with the government's inflation index.

Federal Income Tax Rates	2012	2011
Basic Personal Exemption	$ 10,822	$ 10,527
15% on the first:	$ 42,707	$ 41,544
22% on the next up to:	$ 85,414	$ 83,088
26% on the next up to:	$ 132,406	$ 128,800
29% on the income over:	$ 132,406	$ 128,800

*Alberta Income Tax Rates*	*2012*	*2011*
Basic Personal Exemption	$ 17,282	$ 16,977
Tax rate	10%	10%

*CPP*	*2012*	*2011*
Maximum Pensionable Earnings	$ 50,100	$ 48,300
Basic Exemption	$ 3,500	$ 3,500
Rate	4.95%	4.95%
Employee & Employer Max.	$ 2,307	$ 2,218
Self Employed Max.	$ 4,613	$ 4,435

EI	2012	2011
Maximum Insurable Earnings	$ 45,900	$ 44,200
Employee Rate	1.83%	1.78%
Employee Max.	$ 840	$ 787
Employer Rate	2.56%	2.49%
Employer Max.	$ 1,176	$ 1,101

2011 RRSP contribution deadline is February 29, 2012. The contribution limit is $22,450, although if you have not contributed to the maximum in past years you have additional contribution room. You can contribute to RRSPs until you turn 71 when RRSPs must be converted into something else like a RRIF (Registered Retirement Income Fund). The limit for 2012 is $22,970.

2012 TFSA contribution room is $5,000. If you haven't contributed in past years you can contribution up to $20,000.

Banking Changes Over 20 Years

2011-12-22T08:32:00.000-07:00

The ways that people access and use their money has changed a lot over the past twenty years.

Twenty years ago the standard way to do financial transactions involved: going into your local branch during banking hours, waiting in a line, doing your deposits, transfers, bill payments, withdrawing your cash, and leaving to do your other business. Bills were often paid by mailing a cheque, which usually took a few weeks to come out of your account, and if you ever wanted to pay for something without a cheque you had to go back to your branch again to withdraw cash during banking hours.

Today consumers have a variety of ways to do their financial transactions whenever and wherever they want, faster and more accessible than 20 years ago. Between debit cards, online banking, mobile banking (using cell phones), e-mailing money, and ATMs.

In addition to the convenience and speed of these electronic services, the decrease in cheque usage has resulted in retailers receiving far fewer NSF cheques which saves stores both time and money. Instead of waiting for cheques to be deposited, and hopefully not bounced, debit machines allow an instant transfer of cash from the purchaser to the retailer.

Most payroll deposits are now automated, which saves businesses the cost of printing cheques and staff the time needed to deposit them.

Every auto-deposited government cheque (CPP, OAS, Child Tax Credit...) saves tax dollars by eliminating the cost of printing and mailing them out, plus the government funds are deposited into your account directly on the appropriate day, regardless of the weather or date. Auto-depositing government cheques also helps fight mail theft and cheque fraud because it helps keep the cheques and personal information out of mailboxes and trash cans.

With these many financial conveniences also comes the need to protect your information. As you use online banking or debit cards make sure that you protect your passwords by doing the following:

Do not use your children's or your birth date, your address or phone number, or easy to guess numbers like 1111, 1234, or 9999.
You should change your password on a regular basis. Most privacy experts recommend changing your passwords at least annually.
You should use a mixture of letters and numbers, and symbols like # or % helps make the password even more secure.
Do not use the same password or debit PIN (Personal Identification Number) for every account. If a criminal discovers your one password, you could be giving them access to all of your e-mail accounts and online banking accounts unless you have a different password for each one.
Do not keep your passwords in your wallet, a paper in your desk or stored on your computer or tablet under a folder named "Passwords." This may seem obvious and silly, but it happens too often.
Do not share your password or PIN with anyone. A common form of electronic financial theft occurs when a family member or friend knows your PIN and then uses it to withdraw cash for themselves.
Use reliable anti-virus software and keep it updated. You should also run a thorough virus scan on your computer once a week to look for anything that may steal your information or damage your computer.

All of these precautions can make using debit cards and online banking seem like they may be unsafe. The reality is that when used properly electronic services are very convenient and secure, and the financial services industry is working to make them even safer.

This past year all debit cards, credit cards, and Point of Sale machines at businesses were converted to Chip Cards. The chip is a mini computer, which gives the card the ability to store and process data securely. Unlike a magnetic stripe, this processing power makes it extremely difficult to copy and reproduce cards and card information.

Secondly, this processing power is used, together with cryptography (series of mathematical algorithms), to allow the card and terminal to communicate with one another and carry out security checks to ensure the card is valid.

These chips require you to enter a PIN instead of writing a signature. Throughout the years the PIN has proven to prevent fraud better than the signature, so a PIN has become the new standard on Chip cards.

This new technology makes doing banking easy, fast, and convenient for your personal schedule. If you ever have questions about your electronic banking services, contact your local financial services provider. Jerry

Safe Online Shopping

2011-11-28T09:01:00.001-07:00

I posted the following advice over a year ago, but with so many more people shopping online this year I figured it would be worth re-posting.

Online purchases have grown dramatically over the past decade. Whether you are looking for auto parts, books or even clothing, you can buy them online. While many people want to see and touch the items they are buying, more and more feel safe about purchasing their goods over the internet.

There are security risks, but if you follow the tips below you can have more confidence in your online shopping experience.

Make sure your information is being entered on a secure site.
Look for the latest credit card password procedures
Know who you are buying from. Use stores you are familiar with or people you know have dealt with.
Beware of refurbished items, often a detail buried in small print.
Check the store’s return policies before you buy.
Use a separate credit card for online shopping, preferably one with a low limit in case the number gets stolen.
If the deal sounds too good to be true, it probably is.
Online deals can seem great, but what do you do if something goes wrong with the product? Check out local retailers too as they can often provide faster service than the online merchants.

Christmas is coming, so if you are looking for a specialty item you just can't get nearby, feel free to do some online shopping, but keep safe. Jerry

New Polymer $100 Note

2011-11-10T08:32:00.002-07:00

Used with the permission of the Bank of Canada.

Ottawa, Ontario -

The Bank of Canada unveiled a new polymer bank note series today at its head office in Ottawa. Information on the polymer material and advanced new security features was released, along with the images and designs of the soon-to-be-issued $100 and $50 bank notes, and the themes for the remaining notes in the series.

Minister of Finance Jim Flaherty and RCMP Commissioner William J. S. Elliott joined Bank of Canada Governor Mark Carney for the unveiling ceremony.

Minister Flaherty spoke of the importance of cash as a means of payment in the daily lives of Canadians, adding this is why it is important Canadians see their story reflected in the designs. “These bank notes evoke the country’s spirit of innovation, and their designs celebrate Canada’s achievements at home, around the world and in space,” he said. “Bank notes are cultural touchstones that reflect and celebrate our Canadian experience.”

The $100 note, which is to be issued in November 2011, features images that focus on Canadian innovations in the field of medicine: from pioneering the discovery of insulin to treat diabetes, to the invention of the pacemaker and to the role Canadian researchers have played in mapping the human genetic code. Sir Robert Borden, Prime Minister of Canada between 1911 and 1920, in an updated portrait, remains on the front of the note.

The $50 note, which will be issued in March of 2012, features images of the Canadian Coast Guard Ship Amundsen in the North, reflecting Canada’s leading role in Arctic research. It also evokes the part that Canada’s northern frontier—with its vastness and splendour—has played in shaping our cultural identity. An updated portrait of William Lyon Mackenzie King, the Canadian Prime Minister between 1921 and 1930 and again from 1935 to 1948, is on the front of the note.

The notes will contain a number of unique features that expand the frontiers of bank note security and will make them difficult to counterfeit but easy to check. Most prominent are two transparent areas: the larger area extends from the top to the bottom of the note and contains complex holographic features; the other is in the shape of a maple leaf.

“The Bank’s objective with every new series is to produce a bank note that Canadians can use with the highest confidence,” said Governor Mark Carney. "The Bank is combining innovative technologies from around the world with Canadian ingenuity to create a unique series of bank notes that is more secure, economic and better for the environment."

RCMP Commissioner Elliott stated that, “These new and technically innovative notes will go a long way to deter the threat of counterfeiting in coming years.” He added that the RCMP will “continue to work with the Bank of Canada, and our policing partners, to maintain public confidence in Canada’s currency.”

In the next six months, the Bank will focus on raising public awareness of the coming note series. It will also continue to provide information to the cash-handling industry to help prepare the system for polymer notes, and will work to inform retailers, financial institutions and law enforcement agencies about how to check the new security features once the notes enter circulation.

Starting with the $20 note in 2012, the remaining bank notes in the polymer series will be issued by the end of 2013. The themes of the other denominations will be:

$20 The Canadian National Vimy Memorial—evokes the contributions and sacrifices of Canadians in conflicts throughout our history. (Portrait: HM Queen Elizabeth II)
$10 The Canadian train—represents Canada’s great technical feat of linking its eastern and western frontiers by what was, at the time, the longest railway ever built. (Portrait: Sir John A. Macdonald)
$5 Canadarm2 and Dextre—symbolize Canada’s continuing contribution to the international space program through robotics innovation. (Portrait: Sir Wilfrid Laurier)

The specific designs and detailed images of these notes will not be released until their official unveiling dates.

- Excerpt from Bank of Canada Announcement

Links to examples of new notes and security features

October 2011 - How Money Flows— Distributing Canada’s Polymer Bank Notes

June 2011 - Introducing Canada’s New Polymer Notes

Link to Bank of Canada page with Youtube videos about new notes

Tax Free Savings Accounts (TFSA) Info

2011-11-01T10:14:00.000-06:00

The Tax-Free Savings Account (TFSA) is a flexible, registered general-purpose savings vehicle that allows Canadians to earn tax-free investment income to more easily meet lifetime savings needs. The TFSA could be best described as a Tax Free Investment Account because you can invest in stocks, term deposits, and mutual funds as well as applicable savings accounts.

The TFSA was started in 2009 allowing an investment of up to $5,000 per Canadian who is 18 years old or older. The $5,000 amount is cumulative, meaning that if you haven't invested in a TFSA before, as of 2011 you could invest up to $15,000 ($5,000 for each investible year). In January, 2012 you will be able to invest up to $20,000.

How the Tax-Free Savings Account Work:

Canadian residents age 18 or older can contribute up to $5,000 annually to a TFSA.
Investment income earned and capital gains in a TFSA are tax-free.
Withdrawals from a TFSA are tax-free.
Unused TFSA contribution room is carried forward and accumulates in future years.
Full amount of withdrawals can be put back into the TFSA in future years.
A withdrawal does not decrease the maximum amount that can be invested in a TFSA, but the TFSA reinvestment must wait until the next calendar year.
Choose from a wide range of investment options such as mutual funds, Guaranteed Investment Certificates (GICs/Term Deposits) and bonds.
Contributions are not tax-deductible.
Neither income earned within a TFSA nor withdrawals from it affect eligibility for federal income-tested benefits and credits, such as Old Age Security, the Guaranteed Income Supplement, and the Canada Child Tax Benefit.
Funds can be given to a spouse or common-law partner for them to invest in their TFSA.
TFSA assets can generally be transferred to a spouse or common-law partner upon death.
Similar to RRSPs, TFSAs can be transferred from one financial institution to another, usually with some fees involved to cover the paperwork required by the Canada Revenue Agency.

The TFSA has many great benefits. To get the most out of your TFSA, make sure you talk to an investment professional. Jerry

Showing Aging Parents You Care

2011-10-19T15:11:00.000-06:00

Is it too late to consider long-term care insurance for an aging parent? If your parent is in good health, the answer is no.

Many healthy aging parents have no coverage for a simple reason: it’s just not a concern. But if the need for long-term care moves from being a remote possibility to a reality, the financial burden could be significant. Making sure your parents have long-term care insurance can be one of the smarter financial moves you can make.

The costs of an extended-care facility or in-home care can quickly deplete finances. Adult children may then be required to help pay the expenses, negatively affecting their finances, and perhaps their own family’s standard of living.

It’s best to purchase long-term care coverage before age 65 — the earlier the better. Not only will the cost of premiums be lower, purchasing coverage early will also eliminate the possibility that parents will later suffer health issues that could disqualify them from coverage. Most insurers allow the purchase of long-term care insurance up to age 80, although at this age you’ll have to carefully weigh the much higher costs of coverage versus the benefits.

If your aging parents are without long-term care coverage, talk to them about why they might need it. If they’re not in a position to pay the premiums, it might be wise to share the cost or to purchase insurance on their behalf.

We can help you determine whether it makes sense to purchase long-term care insurance for your parent or another relative.

Ealine Kautz, CFP

Credential Financial Strategies Inc. is a member company under Credential Financial Inc., offering financial planning, life insurance and investments to members of credit unions and their communities. ®Credential is a registered mark owned by Credential Financial Inc. and is used under licence.

Overpayment Scam Returns

2011-10-07T13:34:00.000-06:00

Two years ago I posted an article on our blog about how crooks are using classified ads and other websites to perpetrate a scam that can be called "Overpayment." The scam artist says he will buy your $2,000 stereo from you based on the ad he has seen in the newspaper or online. He sends a cheque for $4,000. You, being the honest person you are, e-mail him saying that he overpaid. The scam artist replies that it was his secretary's fault and says it would be easier if you just deposit the cheque and than mail a money order for the difference back to him, even offering $100 as a reward for your honesty.

You deposit his cheque, take out the $1,900 as a money order and mail it off. A day or two later you find out that his cheque was fake and that it has bounced, while the money you sent from your account as a money order is very real. This overpayment scam has grown and is being used all over the country, including targeting people in the Rocky Region. It is generally best to meet the buyer/seller in person so you can see the goods or the money you will be getting.

A new version of the scam

There is a slightly modified version of this scam going around this past year. It preys on people who are looking for work. It goes like this:

The scam artist advertises for someone to make money by being a mystery shopper at financial institutions. When victims respond to the ad, the con artist tells them that they will be checking on how well a financial institution is following legislation regarding wiring money. The scammer mails a cheque or two to the victims, instructs them to deposit the cheques and then to wire the money to a certain account that is provided. The victims follow the instructions, keeping $200 for themselves as pay for services. Unfortunately, it turns out the cheques sent by the scam artist are fake and they are rejected within a day or two, while the money the victims wired out was real and out of their own account.

It is important to note that most ads for selling/buying and hiring in the classifieds or online are real ads, but there are also crooks trying to steal your money. If, however, someone is giving money up front before a job or transfer of goods is actually done, then the job is probably too good to be true. Please be aware of the different types of fraud that go on, both to protect your own hard earned money and the assets of your loved ones.

The RCMP have a website dedicated to fraud. You can get a lot of useful information at Phonebusters.com, and that information can help you keep your money safer. Jerry

In Case Of A Car Accident

2011-09-14T14:30:00.000-06:00

An opinion piece by Jerry

A few weeks ago my wife and I were involved in a collision that could have ended much worse than it did. While traveling north on a primary highway a car coming south turned left across our lane. I was able to stomp on the brakes and yank steering wheel to the left so that we just clipped the other car's right rear bumper at about 50 km/hr.

Fortunately no-one was injured. We each were able to drive off the road into the nearby gas station. There we exchanged insurance information and business cards. We pulled off the pieces of our right headlight and duct taped the wires down so we could continue driving. Both vehicles were quite functionally usable.

This was the first time I had ever been in an accident when I needed to make a claim. It was a learning experience for me. Here is what I learned from this incident:

Get more information at the accident. While we both took each other's insurance information, we should have gotten the license plate and driver's license information as well.

If there are witnesses, ask for contact information so that they can tell the police or insurance company what they saw.

Pictures are great. We had a camera in the van, so we took pictures of both vehicles and the intersection. The pictures reminded me of details I had forgotten, like that the road was mostly dry, but it had rained earlier that day. The pictures can also help show both the police and the insurance company what happened. Use the camera on your mobile phone if you need to, but get some pictures. They help keep everyone honest.

Contact the insurance company quickly. They can walk you through the steps you need to take.

I went to the RCMP at a later date to report the accident. They told me not to bother until I knew it was over $2,000 in damage. The insurance company sent an appraiser who then told us it was over $2,000. I returned to the RCMP and told them this, and filled out an accident report.

If the vehicle isn't drivable or someone has been injured the police should be called to the site.

We were fortunate with our accident as no-one was injured, and the driver of the other vehicle has accepted full responsibility for the accident. This means we do not need to pay our insurance deductible and our vehicle insurance will not have a price increase.

Still, no matter how well things turn out, an accident and vehicle repairs create a stressful time. We are still waiting for the autobody repair shop to contact us with a time to bring in the vehicle. As a one vehicle family, we hope to have it repaired and on the road quickly. Jerry

Saving Money Is A Choice?

2011-09-06T10:49:00.000-06:00

An opinion piece by Jerry

My wife and I finished buying our children's clothes and school supplies 2 weeks ago. It was a lot of money to spend in one weekend, and there is more to come with school fees and the fall sports/activities registration coming up. In fact we have found mid August to mid September to be more expensive than Christmas for our family.

We are fairly frugal, and my wife is amazing with a budget. Before we did any clothes shopping she went through the kids current clothes to see what still fits and the shape of the clothes. None of them had much of a growth spurt this last year, so many of the clothes can be worn again, those that didn't fit were given to friends that could use them or to goodwill. There were a few new things they needed, so we made a list. We went to Old Navy and stuck to the list. Old Navy carries its own brand and doesn't carry popular brand name clothing, but the quality and prices are decent, although we did notice price increases over last year.

We purchased school supplies through our local school. They have a program where the teachers list all the supplies needed and the school will do then through a supplier and just have the supplies available the week before school starts for pick up. The price is actually quite good, so we went with the school program, but still had to buy supplies for our other 2 kids. We ended up doing Staples for the remaining 2 because the whole selection was there and the prices were pretty much what we wanted. We bought our oldest one brand name binder that cost 4 times as much as the regular binders, but everything else was purchased on the inexpensive side.

We ended up spending about $700 for 4 kids' school clothes and supplies for the new school year. It could have been much more, but that was a big enough hit to our budget that we are glad we were able to keep it down.

Compare this to a close friend's family. She has 3 kids in school and spent about just over $1,000 on clothing and supplies. When we were talking with here about costs she asked us how we kept the costs down. She also then explained to us how she felt it was important for kids to have brand name items to feel good about themselves. When we talked about buying a $17 hoodie vs and brand name one for $55 the difference in costs became quickly apparent, but our friend says she just can't see reducing the purchases because of the types of clothes she wants her kids to wear.

We have had the same discussion with other people about birthday parties. We did what is now the standard party of having 8 to 12 kids, pizza, a birthday cake, and then goody bags worth about $6 to $10 for each attendee. We ended up spending over $200 without even including the price of the gift. With as many kids as we have my wife and I decided that we needed to do something different that would not impact our budget as much.

We now offer our kids $100 cash for their birthdays along with 1 friend for a sleepover. They get our family dinner of the b-day child's choice (often Kraft Dinner, sometimes spaghetti) and a movie rental of the b-day child's choice, along with popcorn. Plus they get their gift. For each additional child they want for the sleepover they get $25 less, until at 5 kids they get no cash. We still make the party fun with activities and games and a great homemade cake, but we don't do goody bags unless they are taking home a craft they made at the party.

We have heard from friends that they wish they could do what we do, but they feel obligated to do the $200 party because their kids' friends do those types of parties. They feel like it will make their children feel bad to do less or different than the other kids. I'm not sold on that. We have decided that clothes, school supplies and birthday parties are not a competition. Our kids are involved in community activities and groups. Do we need to spend more money on these other areas too? I think it doesn't hurt to lets kids know there are budgets and limits to what they can have or what we as parents can do for them.

Let me know your thoughts about spending on kids. Jerry