One reason people choose to lease a car is that you can exchange it and get a new car every three or four years.When one lease expires, you sign a new lease on a new car.You “turn in” the previous car and lease a new one. Others prefer to buy a car and keep it for longer. Owning a car gives you an asset—something that you can sell for money.You can’t sell your leased car.
When you find a home you want to buy, you put in an “offer.” A real estate agent can represent you.You can put certain conditions in your offer for a home. Having a professional inspect the property before closing the purchase is a good condition.“Conditional on financing” can give you time to arrange a mortgage. In some cases, there may be more than one offer on a home so you may be competing with other interested buyers. Learn more
A mutual fund pools the money of many investors.The funds are invested by a professional money manager. Investors pay for this professional service through administrative fees.The past performance of a fund does not indicate its future performance. Many things change. A fund’s performance and return can change a great deal from year to year. Some funds are riskier than others.Visit DayPlanner web site – Link #140 for information on mutual funds and links to different mutual funds for comparison.
If you lease a car you must have your own car insurance. In addition, you usually have to pay for the maintenance costs, such as oil changes and brake adjustments. Some companies may include oil changes and basic maintenance in the cost of the lease. Check the details before you sign a lease.
You can pay less interest over the term of your mortgage if you pay more frequently. For example, if you make payments bi-weekly or bi-monthly, you can pay less total interest than if you pay monthly.When you work out the terms of your mortgage, look at the different payment options—see how the options can affect your total cost. Learn more
An investor can make money on stocks in two ways: Dividends: Owning stock means owning a share of the company. Many companies pay out some of their profits to shareholders as dividends. Capital gains: Investors make money when they sell a stock that rises in value after they buy it.The money they make is called a capital gain. Income earned from dividends and capital gains can be taxed differently than employment income—usually at a lower tax rate.
There are always some people who try to take advantage of others. Be careful with anyone who phones offering a deal, asking for money, or saying you won a contest. Never give out personal information. Don’t respond to people who request money or your personal information (especially banking information) over the Internet. Unfortunately, some people will try “scams” to take money from others. Learn more
When you find a home you want to buy, you put in an “offer.” A real estate agent can represent you.You can put certain conditions in your offer for a home. Having a professional inspect the property before closing the purchase is a good condition.“Conditional on financing” can give you time to arrange a mortgage. In some cases, there may be more than one offer on a home so you may be competing with other interested buyers. Learn more
You can open a Registered Retirement Savings Plan (RRSP) at any financial institution to save for retirement. Money invested in an RRSP is tax deductible and grows tax-free until withdrawn.At age 71, you must convert the RRSP into a Registered Retirement Income Fund (RRIF) or buy an annuity. Talk with a financial advisor or someone at your financial institution.They can help you with your RRSP investment. Learn more
Take good care of your personal papers, especially papers about your identity, banking, credit cards, and bills. Keep these in a safe place.You wouldn’t want such information to get into the hands of others.Tear up such papers before throwing them away. Many office stores sell “shredders.” It is a good idea to shred personal papers before throwing them away.