Hub Blogs

Hub Blogs contains fresh contributions written by Financial Independence Hub staff or contributors that have not appeared elsewhere first, or have been modified or customized for the Hub by the original blogger. In contrast, Top Blogs shows links to the best external financial blogs around the world.

Save money with Travel Rewards programs

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Flight bonus points symbol concepts isolatedBy Alyssa Furtado, RateHub.ca

Special to the Financial Independence Hub

Active and casual travelers have long known that one of the best ways to save on their vacations is by using travel rewards credit cards. It’s pretty simple: Sign up for a travel rewards program, collect points, and redeem them when you have enough saved.

What makes travel rewards credit cards so appealing is the fact that many offer huge sign-up bonuses. Usually there’s a minimum spend required within a set amount of time, but that seems pretty minor when you’re getting a few hundred dollars in return.

In addition, many travel credit cards offer additional benefits that help you save on your travel. For instance, many include travel emergency medical and car rental collision/loss damage waiver insurance. That’s easily worth a few hundred dollars a year.

The downside to travel rewards programs is that they can be difficult to understand for some. Here’s a look at three popular programs to help you decide the one that’s best for you.

BMO Rewards

With BMO Rewards, points can be used for flights, hotels, and more. They’re only redeemable on the BMO Rewards website or by calling the BMO Rewards Centre (a $29.95 booking fee applies), but there’s still some decent flexibility here. There are no blackout dates, you can book with any airline or hotel, and you can use your points to pay for taxes and fees. You receive $1 credit for every 100 points you redeem. That values each BMO Rewards point at $0.01 apiece. Continue Reading…

Top 5 Income Tax Stories of 2016

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David J. Rotfleisch

By David J. Rotfleisch, CPA, CA, JD

Special to the Financial Independence Hub

Some of the biggest Canadian income tax stories this year have an international connection. Here are my top five picks for income tax stories for 2016:

1.) Panama Papers and Bahamas Leaks

The top tax story of 2016 is the Panama Papers leak in March followed by the Bahamas leak in September, both a result of investigations by the International Consortium of Investigative Journalists (ICJ).

The leak was unprecedented in size and scope and consisted of data and secret papers demonstrating murky and in some cases illegal offshore financial transactions of celebrities, financiers, politicians and ordinary citizens from Canada and all over the world. Encrypted internal documents from Mossack Fonseca, a law firm based in Panama, were released to the ICJ by an anonymous whistleblower.

While headlines mentioned billionaires, entertainment and sports celebrities, politicians, public officials, as well as the network of global law firms, banks and accounting firms that sell and profit from offshore financial secrecy, ordinary Canadians have been caught in the web as well.

Passport information of about 350 Canadians was revealed. And the Royal Bank of Canada used Mossack Fonseca to organize offshore corporations on behalf of its Canadian clients.

The Bahamian leak added yet more information from internal records from the official registry of the Bahamas, a known Caribbean tax haven. Information was added to the same searchable data base as well as details of some 175,000 Bahamian corporations, trusts and foundations set up over the past 25 years.

Canadian Revenue Minister Diane Lebouthillier announced that CRA would carry out an investigation to determine how many Canadians set up offshore corporations and bank accounts to evade taxes.

CRA has indicated that it reviewed the searchable database, identified 2,600 records with a Canadian link and undertook tax investigations into 85 Canadians. To-date, CRA has executed search warrants and launched 60 income tax audits.

 2.) Fraudsters Impersonating CRA Collections Officers

A continuing top story from 2015 is the Canada-wide epidemic of bogus phone calls from scam artists claiming to be CRA collections officers and threatening Canadians with jail time for alleged unpaid taxes.

Thousands of Canadians have been contacted by these call centre fraudsters and hundreds have been victimized into making payments to these criminals for taxes not owing. While a number of payment methods were used by the fraudsters, the most common payment was via iTunes cards.

Continue Reading…

5 surprisingly smart Financial Habits of Millennials

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5-millenialsBy Maricor Bunal

Special to the Financial Independence Hub

Millennials often get a bad rap for a lot of things. They are usually perceived as narcissistic, entitled, lazy, spoiled, and (perhaps the greatest stereotype of all) irresponsible with money. But having grown up in a sluggish economy, millennials may not be as bad with money as most people think. In fact, when it comes to personal finance, millennials are actually making some smart money moves that their older counterparts would do well to emulate.

Here are five surprisingly smart financial habits commonly used by Gen Y-ers that older generations should consider picking up.

1.) Use technology to manage finances

Millennials are a generation that grew up with technology, so it’s only natural that they would tap its power to help them with their personal finance. These days, Gen Y-ers rely on various mobile apps and tools to easily track and manage their money. Some of the most popular budgeting and finance apps today include Mint, GoodBudget, and PocketGuard. These apps are used to record and track purchases, monitor spending patterns, and even make automated, hassle-free payments.

2.) Choose experiences over material possessions

Continue Reading…

‘Tis the season of merry debts

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depositphotos_36811637_s-2015“It’s that renowned time when much debt is racked up during the spree of merry.”

The season of joyful giving hovers in our merry midst once again.

Some finances get stressed and stretched to the max — like credit cards creeping past their safe outer limits. The reasons don’t matter, it’s the outcomes that really count.

Easy credit is everywhere. It seems so painless at first. Just sign those tempting card offerings that sail through email and mail slots. Voila, it’s done. I receive at least a couple new flavours every month.

People love to be generous during these merry times. Yet good intentions can lead to frightful finances. A frosty thought that may cost dearly. Possibly, even a brush with financial ruin.

For example, making the minimum monthly payment on credit cards is akin to a slow financial death. With interest rates in the 20% ballpark, it takes a lifetime to pay off balances.

Good Samaritans wanted

Let’s reflect a little on the season that incurs those merry debts. Individuals who spend more than they can afford usually don’t do it intentionally. As we know, stuff happens: all in the spirit of giving.

Continue Reading…

Buying a home with an Income suite? What you need to know

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first-time-landlordBy Penelope Graham, Zoocasa

Special to the Financial Independence Hub

 As Canadian real estate becomes steadily more expensive, homebuyers are increasingly exploring new affordability options. Renting out a portion of your home to help offset mortgage costs has become a popular method – and with the price of an average detached house well past the $1 million mark in the Toronto real estate market, it may be the only way some buyers can move beyond condos and townhomes.

For these buyers, assuming the role of landlord in exchange for a bigger house or better neighbourhood seems a smart trade-off. However, renting out part of your property – especially when you also dwell there – can be a complicated undertaking, and requires extensive research and resources. Here’s what those considering the purchase of a home with secondary suite should take note of.

What is a secondary suite?

Also referred to as an income suite, secondary suites are separate units within a principal residence. It must have its own private entrance, kitchen, sleeping and living areas. In order to comply, and be protected by, your province’s Residential Tenancies Act (RTA), you cannot share any of these living facilities with your tenant, as they’re otherwise considered a boarder. Continue Reading…