Borrowing costs will likely rise in 2018.
The economy’s improving, and chances are interest rates will go up. Are you ready?
Consider interest rates before taking on more debts.
If you have a variable-rate mortgage or a home-equity line of credit, expect your interest rate to keep pace with these increases. Protect yourself by paying down your debts.
Dealing with low savings rates
Rates on a savings account will probably remain unchanged. Waiting for your big bank to boost savings rates to meaningful levels – equal to the cost of living or better – is pointless. Search for an online bank with a competitive return on savings. My favourite online site for great rates is Ratehub.ca
Following the crowd when it comes to cryptocurrencies
There’s a gold-rush aspect to bitcoin and other cryptocurrencies, but it’s also a technology story, an investing story and a testament to how trust in public institutions is decaying. Remember, bitcoin is a virtual currency that isn’t backed by anything tangible such as a government and its central bank.
Not having a diversified portfolio.
A common reason why stock markets crash is fear of recession. The economies in the United States, Canada and elsewhere seem to be improving, which should be good news for stocks. But there’s a feeling of complacency about risk these days that has to be acknowledged. DON’T forget bonds or GIC’s still have a place in your portfolio.
Not understanding what you are paying for investment management fees
It’s hard to find an investing expert who doesn’t believe we’re in an era of more modest investment returns than we’ve seen in previous periods. Current returns may be a temporary bubble. Lowering fees is one way to fight back. Look at what you pay, and what you get for the money. An adviser who skillfully manages your portfolio, your retirement plan and your tax situation may be worth the money.
Jackie Porter is a Financial Literacy Empowerment Ambassador with a Specialty with Single Women By Choice Or Chance. If you are over 45, single by choice or chance, living in Canada today and are examining the options for your future, Jackie can help you. As a Financial Literacy Empowerment Ambassador, her my book and empowerment programs will help assist you in designing a life plan that encompasses not only financial goals but also your other life priorities- such as career, relationship and other personal goals. You can take a sneak peek