Personal debt issues?
Debt: It's a four letter word most people fear. For some reason either through credit cards, mortgages, student loans and car payments - virtually every person has debt.
For some, the level of debt is keeping them under water, while others are staying afloat.
While debt is nationwide, according to a recent RBC Debt Poll, Albertans have the highest level of anxiety about debt in Canada at 36% and the least comfort at 42% (the national average was 45%). The poll suggested Albertans are comfortable about their debt situation (at 42%, lower than the national average at 45%) or have no personal debt at 22%, matching the national average.
Paying back debt is typically the largest bill for many households across the province, but seeing that Albertans are cognizant about their financial situations, and the fact that 22% are debt- free, matching the national average is a good sign.
The poll also suggested that Albertans lead Canada in modifying their plans because of concerns related to their personal debt. Because of that, Albertans are more likely to delay or nix their intentions to take a vacation - roughly 28%, where the national average was 24%.
Other stats:
• Delay or cancel new home purchase: 12% Albertans, 8% nationally.
• Retire from working full time: 10%/6%
• Raising children: 8%/4%
• 57% of respondents in Alberta had not changed their plans, below national average of 61%
Although there are indicators that some Albertans are debt-free, some of the poll's findings suggest people are still struggling. The recommended solution is for these individuals to consult a financial planner to assist them with finding a solution.
Permanent Insurance
From gas prices to the cost of living, it seems in today's world there are always increases - and Permanent Insurance is no exception.
Recently an insurance provider increased their rates, effective mid-October, leaving the impression other providers will follow suit.
Permanent Insurance is critical when considering its significance and how it protects individuals and their families. Because of the increases, anyone who is renewing their term policy, or considering purchasing insurance will be spending more. Some will have to contemplate purchasing less, or forego insurance plans, leaving their families and themselves unprotected.
Although increases are imminent, the practical option for clients to explore is converting their term policies to permanent ones before the price jumps.
At WealthCo, we're getting a head start and reviewing our clients' policies to see who needs a review. If you're interested in discussing your policy, feel free to contact us at info@wealthco.ca.
Market factors forcing the price hikes:
• Bond yields have decreased therefore; insurance providers need to increase their rates.
• Bond yields were 6.3% in 2000 and dropped to 3.3% today.
• New international accounting standards requiring insurance providers to invest more capital into their companies.
• Most insiders believe the increase will be 30%
Click here for is a video link to PPI Solutions and the anticipated hike in insurance prices.
The gender of business is changing
Recently Alberta elected its first female premier and so did Newfoundland and Labrador. The "old boys" club days have drastically changed since the Famous Five transformed the way women are perceived.
For years politics and businesses were dominated by Neanderthals (the ones who hunted, not the ones who raised families). But times are changing, and Alberta and the country are growing in that respect.
According to Alberta Women Entrepreneurs' website, there are over 110,000 women owned businesses in the province and they've contributed over $450 million to the economy, while Industry Canada estimates women owned businesses contribute over $18 billion nationally. Four out of every five new business are started by women.
Key elements to start up a new business:
• Research best ways to secure funding
• Gain access to right networks of business contacts and strategic intelligence
• Create clear vision on business plan
• Know what you do, and do what you know
