Since this week’s episode featured another guest who was able to achieve F.I.R.E. in his 30s, I thought it would be a great topic for this week’s Money Minute! Since we are currently in a bear market, similar to the one that happened from 2007-2009, this is actually the best time to build wealth. From all the guests I’ve had on my show, that’s how they were able to achieve financial independence and retire early…they invested during the last recession and reaped the rewards.
If you have dreams of reaching financial independence, a great first step is to pick up one of these great books:
Financial Freedom by Grant Sabatier
Your Money or Your Life by Vicki Robin
Quit Like a Millionaire by Kristy Shen and Bryce Leung
Work Optional by Tanja Hester
The Simple Path to Wealth by J.L. Collins
How to Retire Early by Robert and Robin Charlton
Millionaire Teacher by Andrew Hallam
Since we’re all being told to practice social distancing, that doesn’t mean you have to stop talking to people! Make sure to join my Facebook group and join in the conversation: https://jessicamoorhouse.com/facebookgroup
I finally have Kornel Szrejber from Build Wealth Canada on the show!
As a Canadian, I’m always considering what the right financial advice is so I can, in turn, curate the best personal finance content for you guys. Kornel’s mission is very similar to mine, only he’s FI and paid off his mortgage by 32, which is of course incredible!
On the podcast today we’re talking about how to become financially independent (FI) and learning a little more about what the path is toward FI. Kornel and his wife lived together in their twenties and focused their dual-income household toward paying off any debts and their mortgage. In achieving his goals he is now focused on his early retirement and navigating life as a young retiree.
Toss the headphones on and tune it for this energetic interview with Kornel and learn a few ways on how you can create a financially independent life for yourself!
For full episode show notes visit https://jessicamoorhouse.com/234
We are still dealing with a volatile stock market and health crisis, and everyone, understandably, is feeling anxious and panicked. Even though we’re in an uncertain time, here are some of my tips for what to do based on some of the messages I’ve been getting recently.
First off, if you’re currently investing and feel like your job is fairly stable, then don’t do anything differently than what you’re currently doing. Continue to make your regular contributions to your investments to practice dollar-cost averaging and ride out this wave because the stock market will recover. And if you have some extra money laying around and feel comfortable doing so, you can even increase your investment contributions. If you want to try your hand at investing in individual stocks or ETFs, this is a good time to buy, however, it is still risky and you need to understand what you’re doing and the risk you’re taking on. The stock market will most likely continue to plummet, so as long as you plan on buying and holding for the long-term, you will eventually see positive returns in the future. Just make sure you’re only dedicating a small percentage of your portfolio to this type of investing.
Secondly, if you don’t feel safe at your job and there is the risk of being laid off or having your hours cut, this is the time to focus on your emergency fund. Cut back on other expenses so you can dedicate more funds to your emergency fund, and if necessary either pause or reduce your investment contributions if you don’t think you have enough cash saved up in the event that you lose your job.
Thirdly, if you want to take this time in self-isolation to increase your financial literacy, then read books and blogs, listen to other podcasts, and if you are interested, sign up to my Investing Foundations for Canadians online course.
Can you believe it’s been 4 years since I had tax expert Gerry Vittoratos on the show? That’s right, he was the guest for episode 44 of the Mo’ Money Podcast, so I think that means he’s one of my OG guests! Well, it’s a new season and new decade, and it’s also tax season so I thought I’d bring him back on the show to talk about taxes.
In case you don’t know Gerry, he really knows his stuff when it comes to taxes. He’s been working for Thomson Reuters for over 10 years as a trainer and tax support resource person. In his capacity as head trainer, Gerry has been providing training sessions to tax professionals all over Canada. He has also made several radio and TV appearances on BNN and Global TV as the UFile tax specialist discussing a multitude of tax topics. He has also served as the main resource person for the tax support department of Thomson Reuters, resolving complex tax issues and questions for tax professionals using the DT Professional Suite.
Lastly, Gerry obtained his Graduate Diploma (Gdip) in Taxation from Sherbrooke University in 2018, and is in the process of obtaining a Masters of Taxation!
Here are some of the things we talked about in this episode.
We talked at length about tax brackets and how in Canada we have a progressive tax system. That means that you pay different tax rates on different portions of your income. Here’s how that would look for your 2019 taxes:
Your average tax rate is the amount of tax you pay divided by your income.
Average Tax Rate = Total Tax / Total Income
Your marginal tax rate is the amount of tax your would pay on your next dollar of income.
With that said, your average tax rate is what you need to know because it will show you how much money you have to pay the government in taxes.
To help, here’s UFile’s Income Tax Calculator.
There are a ton of tax credit available that you can take advantage of, but it’s important to know the difference between those that are refundable and those that aren’t. Both are still good, but ultimately refundable tax credits are the best kind because you can a tax refund if you use it. For non-refundable tax credits, they only decrease the amount of tax you owe. In other words, if you owe $300 in taxes and your non-refundable tax credit is for $500, you won’t get $200 refunded to you. Your taxes owed would simply become $0.
For more information, check out the CRA’s page on non-refundable and refundable tax credits.
There are a ton of tax credits you can take advantage of, and when you use a tax software like UFile, it will help you find out which ones you quality for. Otherwise, check out this list of deductions, credits and business expenses by the CRA that you may be able to help reduce how much you pay in taxes.
If your investments are in a TFSA and/or RRSP, then you don’t have to pay any taxes on any investment income you earn from interest, dividends or capital gains. But, if your investments are in a taxable (unregistered) account, then you will have to pay taxes. Here’s how that all works:
As Gerry mentioned on the podcast, make sure to check out these other tax resources that will help you this tax season.
If you want to get your taxes done by using UFile, make sure to use promo code MOMONEY to get a special 15% off!
For full episode show notes visit https://jessicamoorhouse.com/233
So…it’s been a crazy few weeks (understatement of a lifetime)! I almost never do “timely” podcast episodes. I typically record all my episodes a few months or weeks in advance, so it’s hard to do an episode that is about what’s going on in the news and it still be fresh or on trend by the time it’s published. But, since what’s going right now with COVID-19 and the stock market is something I have never seen or experienced before, I knew I needed to have an episode to talk about it.
That’s why I’ve got Janna Herron, Personal Finance Editor for Yahoo Finance, on the show today to discuss what exactly is happening, how we should react and how best to manage our money in these uncertain times.
Here are some of her top tips which I completely agree with.
I know you’ve probably been hearing this a lot, but honestly it’s the best advice you can take. I understand it’s easier said than done. I myself am trying not to panic. A lot has changed in my life and business in just the past few weeks, such as all my future speaking engagements have been canceled, so it’s hard not to panic and think the worst. But just remember, the best thing you can do is stay calm to maintain a clear head. When you let that panic take over, you’ll start to make emotional decisions that may not be the best choices for you in the long-term.
Another piece of advice that’s easier said than done, but I would really implore you not to make a very rookie investing mistake which is selling off all your investments to free up cash because you’re panicked. I’ve even had thoughts of selling some things off, or stopping some of my investments to have more cash on hand. That’s a natural feeling to have! Our instincts are telling us to cash out and run away from danger, but when it comes to long-term investing you cannot do this. This is the time to continue investing or if you can afford to, dump more money into your investments.
Now you may be thinking “What if I need cash though?” If you don’t have a fully funded emergency fund that can float you for 3-6 months if you lose work, then that’s obviously a different story. If you feel like your livelihood is at risk, then it’s important to have cash on hand. And by that, I don’t mean literally get cash out of the bank to put under your mattress (though there’s nothing wrong with having some physical cash at home). I mean that in order to prevent you from going into debt, you need to have cash to pay for things if your income dries up. In this instance, there’s a few things you can do.
If you’re still worried about not having any cash, then either reduce your regular contributions to your investments, pause them (but don’t forget to restart them when you can afford to), or if you’re really desperate, liquid some of your investments (ideally from your TFSA or taxable accounts first, not your RRSP).
And if you need to borrow money, make it your last resort and avoid high-cost debt like credit cards and payday loans. Work with your bank to secure either a close-ended loan with set payments or a line of credit.
“Buy low, sell high!” You know how many times people have been messaging me with this quote? Yes, it’s true, right now is a great time to buy equities on sale, however that doesn’t mean this is the time to become a day trader when you don’t know what you’re doing. Buying s
tocks can be risky, and there are a lot of emotions involved with trading. If you really want to start investing, great, but don’t just start buying individual stocks. Start by making an investment plan which will help guide you on what to do.
One way to get started would be to enroll in my Investing Foundations for Canadians course.
For full episode show notes visit https://jessicamoorhouse.com/232
So...what the heck is going on with the stock market right now? Because everyone is freaking out from all the headlines, Twitter hashtags and conversations around the water cooler.
Here’s the thing, we are currently experiencing a market correction, not a crash. That being said, this market correction could lead us into a bear market, which means interest rates and stock prices may sit at a lower point than we’ve experienced for a while. That’s okay. It’s part of the natural market cycle. We’ve had one of the longest bull markets in history, so we were overdue.
The key thing to know is not to panic. Make sure you have an investment plan and are sticking to that plan. Make sure you continue to practice dollar-cost averaging and are still contributing regularly to your investments (do not hit pause!). Do not sell off everything because you’re afraid. That’s how you lose money. You make money during a correction or crash when you don’t sell, or if you continue to buy at discounted prices.
To learn more, I highly suggest you check out my Investing Foundations for Canadians course. But no matter what you do, don’t panic, don’t make decisions based on fear and emotions, and continue to educate yourself about investing so you can feel confident about what you’re doing.
To check out my course visit https://jessicamoorhouse.com/investingfoundations
Keisha and her husband at a young age were very focused on early retirement and nurturing their brand new family. At 34, Keisha and her husband welcomed a brand new baby into the world and becoming an executive was just in sight for Keisha. When their baby was eight weeks old, her husband became very ill and died suddenly.
They later came to the conclusion that he had a very rare disease. This disease was so rare that a year after her husband died, an international medical team had to get together to diagnose the disease.
This series of events shook Keisha’s world and drove her straight into writing. There she was able to share her struggles and deepest thoughts surrounding the tragic experience she went through.
In this episode we talk about her new book, Holistic Wealth: 32 Life Lessons To Help You Find Purpose, Prosperity, and Happiness. Keisha walks us through her financial journey and the types of teams she worked with, in creating a healthy financial future for her children and herself as she did not have a will or estate plan in place when her husband passed suddenly.
I am incredibly moved by the major financial moves she has made out of a tragedy she wasn’t prepared for. If you or someone you love is not prepared for a sudden passing, give them the tools to get a plan in place so everyone, including yourself, is safeguarded for the longterm.
For full episode show notes visit https://jessicamoorhouse.com/231
I get asked all the time "What's a good robo-advisor?" to which I always answer "It depends on what you're looking for."
You see, even though I've got my personal preferences, that doesn't mean they are right for you. Instead, know what robo-advisors are out there then do your own research and due diligence to make the right decision for you and your investment needs.
That's what this episode is all about, helping you start your research. I share some of the robo-advisors available in both Canada and the U.S., and if you're Canadian I'd also suggest checking out robo-advisor comparison sites like AutoInvest and HardBacon too.
You’re gonna love this episode. You’re gonna feel so good after listening to it! Why? Because there’s just something about my guest, Lindsay Bryan-Podvin of Mind Money Balance, that puts you at ease. Which is probably why she’s a financial therapist. She makes you open up, get deep, and eventually get to the crux of what’s going on with your money so you can start building a solid, happy and successful financial life.
In this episode, we discuss what exactly a financial therapist does (and how it differs from some other financial designations), why talking about money is one of the most important things we can all do to improve our financial situations, and how impactful our past is on our financial futures.
Besides working with individuals and couples as a financial therapist, Lindsay is also the author of The Financial Anxiety Solution. If you want to grab a copy of her book, make sure to visit mindmoneybalance.com/podcast to also get a free video training on values-based spending and saving.
For full episode show notes visit https://jessicamoorhouse.com/230