Risk evaluation (in relation to investments)

by Giana

When it comes to choosing an investment, there are some different factors that can contribute to whether the investment will be lucrative or not. Risk evaluation is the probability of you losing or gaining money on your investment. The main factor that will influence the risk of your investment and whether or not it will be rewarding is market conditions, including currency risk and political risk.

The risks you can take with your investments vary widely. The investments that have the lowest risk also give out the smallest gains, or none at all. The investments that have the highest risks have the potential to give out the biggest gains, but since they pose a higher risk, also have a potential for big loss. 

There are some things to take into consideration when you are trying to decide the amount of risk that you want to take with your investment. First, you should not be using the money that you need to live for investments. Depending on how much you have to invest, you might want to spread out your money into different investments, so if you do lose money, you will still have some elsewhere. Also, you might want to invest your money in different asset classes that have different amounts of risk (e.g., bank stocks, gold, real estate, cash and antiques). 

http://www.finra.org/investors/reality-investment-risk

http://www.finra.org/investors/reality-investment-risk

https://www.google.ca/search?safe=strict&biw=1366&bih=662&tbm=isch&sa=1&ei=eHkYW5irKoKwjwS2ooOgAw&q=market+risk+triangle+for+investing&oq=market+risk+triangle+for+investing&gs_l=img.3...42471.51459.0.51619.21.21.0.0.0.0.227.1590.20j0j1.21.0....0...1c.1.64.img..0.2.301...0i8i7i30k1.0.O9WZufaTA5s#imgrc=8YGyC9ZScr3mZM:

Loan calculators

By Natasha A loan is something that is borrowed, usually a sum of money, that is expected to be paid back with interest. Loan calculators help determine the monthly payments on a loan that need to be paid. Loan calculators can also be used for mortgage, auto, or other types of loans. The two loan calculators that I compared are Scotia bank and TD Canada trust.

Scotia bank:

-Scotia bank pros: •easy to understand labels •vast amount of options •very interactive •there is a therefore statement (a final statement that clarifies results) •no pop up ads •disclaimer that lets you know that the loan calculator may not be necessarily accurate -Scotia bank cons: •small print •no step by step instructions •the calculations may not be accurate Overall a good calculator, easy to understand labels and a therefore statement that makes the answer clear but this loan calculator does have small print therefore making it a little harder to read the labels making it harder to use the calculator.

TD Canada trust:

-TD Canada trust pros: •step by step instructions •useful links •disclaimer that lets you know that the loan calculator may not be necessarily accurate -TD Canada trust cons: •not many options for payments •no therefore statement (a final statement that clarifies results) •more difficult to understand •pop up ads Overall a good calculator, step by step instructions but this loan calculator is hard to use and is confusing therefore not easy for beginners to use. Both calculators are good and bad in different ways but personally I think overall the Scotia bank calculator is a better loan calculator. https://www.tdcanadatrust.com/loanpaymentcalc.form

Podcasts: Afford Anything vs. The Mad Fientist

By Natasha I decided to compare two different financial podcasts that give good financial advice and suggest the best one. -afford anything: -afford anything pros: -good introduction with music -answers questions -good audio -sound effects -gives disclaimers and let's listeners know important information, ex. She isn't a professional -knows important information -the podcast episodes have good titles that let listeners know what the episode is about -she states her opinion but doesn't let her opinion influence her answer -has sponsors -she gives a good final answer that is clear and easy to understand -does question and answer episodes to make sure she's answering everyone's questions -afford anything cons: -not a professional -most episodes are long Overall afford anything is a good podcast to use to get information and helpful financial advice. -The mad fientist: -the mad fientist pros: -background music in some parts of the episodes -good introduction with music -has special guests -gives good advice -tells stories -talks to people who are professionals or people who have experience -suggests books, blogs, and other podcasts that are helpful -the episodes have good titles -the mad fientist cons: -minimal swearing -doesn't give that much finical advice in episodes but still is a little helpful -some episodes are long Overall the mad fientist is a good podcast to use to learn a little bit of information and is a good way to pass time. Therefore I think afford anything is a better financial podcast because it is overall more helpful and is a better podcast.

The Side Hustle

by Gabby

The side hustle is something that many people now of days have taken upon themselves. There are many different reasons why someone might like to do this, for example to live out their dream of being an artist, or just to make a little extra cash. A side hustle is basically your second job, there are many benefits to having a second job, some may use it as a way to fulfill their lives in a way that they are not able to within their regular jobs, or as a lot of younger people may use a side hustle, to earn a little extra dough to make ends meet. There are obvious negatives to having a side hustle, for example stress, a lack of time, a lack of energy. At the end of the day, if having a second job is something you would like to do, it will most likely be beneficial to your bank account as well.

https://www.sidehustlenation.com

Timeline Vs. Intensity

by Gabby

Timeline vs. Intensity is the theory of how much time it will take you to reach your goal of your desired retirement fund in combination with the amount of your takehome pay you will need to put away annually vs. The intensity of the actual saving, for example if your stroll and take your time it will seem as if it's taking forever to reach your goal, and if you only give yourself a very short amount of time to reach your goal, you might feel very rushed and as if you need to obsess over the program in order to succeed. This program can be condensed or stretched out, depending on your take-home pay amount and the amount of time you allow yourself, and may be used for a variety of things such as a retirement fund, buying a new car, paying off student loans and so much more.

https://affordanything.com/timeline-vs-intensity/

Financial Blogs

by Gabby

The two financial bogs that I will be talking about today are Girls on the Money and Young and Thrifty. These two blogs are both financially focused and provide help people who are trying to get their foot in the door on their way to their financial journey. Girls on the Money is very homemade and personal, yet still provides helpful information, links to buy their book and to their social medias, where others can share their stories, recommendations and tips. On the other hand, Young and Thrifty is a very professionally made and well formatted website with an abundance of how to guides, blog posts, and links to their ebooks. Each of these blogs provide addiment amounts of guidance for anyone looking to find some, although I prefer Young and Thrifty because of the clean lay out, organized categories and separate how to guides. Young and thrifty provides valid information in a way that can be quick and easy for anyone to use, which I think that many people appreciate.

https://girlsonthemoney.com 

https://youngandthrifty.ca

Mortgage Calculator App

by Carol-Anne

I chose to conduct my comparison on two mortgage calculator apps.  The first app I looked at was called, ”Canadian Mortgage app”.  I mainly chose this one because it had a five-star rating.  The only one.  Most of the other ones had low or no ratings at all!  The second app I looked at was called, ”Mortgage calculator for iPhone -calc Pro”. 

    The calculator for iPhone -calc pro was exceptionally difficult to navigate.  I believe this is due to the fact that in the review for the app, it says it has a calculator for everything.  This makes it incredibly frustrating to try and figure it out. It would be easier if the app was organized better. However, I discovered that the app does have an entire section dedicated to financial aid.  The Financial Calculator contains 10 powerful calculator worksheets to help solve common financial problems.  Five display options: normal, scientific, fractions, engineering, and allow up to 2-10 decimal places.  Five calculator modes: simple, algebraic,
direct algebraic, expression, and RPN. Advanced graphing functions:
simultaneous graphs, find points on the
graph and show tangents, and allows you to copy or email them.  Supported Languages: English, German,
Spanish, Portuguese, French, Italian,
Dutch, Japanese, Simplified & Traditional
Chinese, Korean, and Russian.

However, the Candadian Mortgage app is currently featured by Apple, the Canadian
Mortgage App has been used over 4+
million times and ranks as Canada's #1
mortgage app.  The app allows you, the user, to easily calculate your total home
ownership cost, the stress test, compare
rates by national and regional lenders and
brokers, calculate land transfer taxes and
determine your affordability to the penny.  The app was very easy to navigate as well. Some simple features that made it easier would be:

. All Possible Payment Frequencies
. 2018 Stress Test Rules
. Minimum Down Pavment Calculator
Total Monthly Ownership Calculator
. Closing Cost Calculator
. Affordability Calculator
. Extra Payments Calculator
. Load and Save Multiple Scenarios
. Scenario Comparison (side by side)

. Real-time Mortgage Rates
And it even allows you the aability to apply with an expert on the app.  The calculations have also been
vigorously tested both mathematically
and physically against almost all available
mortgage calculators. It calculates at an
extended number of decimal places,
and uses specialized rounding as suggested by the European Commission. 

In my opinion, with the comparing of the two apps, I feel as though the Canadian Mortgage App was the best option overall. This is due to the fact that I found it easier to navigate and understand.  I like the fact that it has a lot of options with layouts. However, I don't like how they crammed so much into the app.  This applies to both of the apps that I looked at.  It felt too overwhelming and confusing. But if I needed to calculate mortgage, I would definitely recommend and use the Canadian Mortgage app.

 Calculator for iPhone - Calc Pro by Panoramic Software Inc.

Canadian Mortgage App by Bendigi Tech Inc

Challenge everything

by Carol-Anne

The saving idea called, “challenge everything” by J. Money.  It is his new mentality of challenging the “norm” and getting his expenses as low as possible without sacrificing his quality of life. For example, every month he would focus on a new bill or expense that has been status quo for years – which helped to determine what’s truly important now in his life. Things like cable, cell phones, cars, insurance, etc.

 He got his idea from this clip from a friend’s blog post:               
                                       
“The most important thing to note is that cutting your spending rate is much more powerful than increasing your income. The reason is that every permanent drop in your spending has a double effect: it increases the amount of money you have left over to save each month, and it permanently decreases the amount you’ll need every month for the rest of your life.”                             

That last line stopped him in his tracks: “it permanently decreases the amount you’ll need every month for the rest of your life.” This hit him hard for personal reasoning so he was inspired to save more and as fast as he could.

His Total [Monthly] Savings since Starting This Challenge:
·         Cell Phones: $112.58
·         Cable/Internet/Phone: $80.00’ish
·         Car Insurance:  $30.59
·         TOTAL: $223.17

He opened up a new separate savings account that allowed him to track it all over the next 12 months, along with other “extra” money I find/earn over time.

Here were his monthly balances:
·         Month #1 balance: $203.96
·         Month #2 balance: $406.60
·         Month #3 balance: $1,209.16
·         Month #4 balance: $2,029.81
·         Month #5 balance: $2,954.14
·         Month #6 balance: $3,442.39
·         Month #7 balance: $3,843.70
·         Month #8 balance: $4,097.22
·         Month #9 balance: $4,485.22
·         Month #10 balance: $4,738.13
·         Month #11 balance: $4,990.84
·         Month #12 balance: $5,484.07

UPDATE: MISSION COMPLETE!!!

He ended up saving over $5,000 saved in one year.  Here is a diagram of the saving experience:

Critique

Personally, I feel like this is a good idea for saving money quick and conveniently.  I believe this because, it feels like this guy earned a lot of his money by doing almost nothing but ridding himself of finances that he didn’t need.  It also seems like it wouldn’t be that hard to cut back on things if I just slowed down and payed more attention to what I spend my money on.  Finally, I feel as though it would be a lot easier than I may think because there are probably a lot of expenses I could cut back on easily without losing anything valuable.  Like cutting the data from my phone bill.  I rarely need it as I have school and home Wi-Fi.  Come to think of it, it is essentially pointless for me to have it.  In conclusion, I feel this saving idea is a smart, adaptable and convenient way that I, personally, could use.

http://www.budgetsaresexy.com/challenge-everything/

Comparing Regular Banks to Credit Unions

by Jenna-Mae

Regular banks and credit unions share similar services like auto loans, checking and savings accounts and mortgages. But the difference between them is that “customers” of a credit union are considered members and they own the institution. While regular bank accounts are simply a company. They aim to “maximize profits” for shareholders. Credit unions focus on the members needs and try to provide credit at reasonable rates.

There are multiple pros and cons for these services. For example credit unions typically pay higher interest rates on all deposit accounts including savings, money market and checking’s. While some online banks offer rates close towards credit unions, the rates range from four to ten times the amount in interest you’d receive from local commercial banks. Also offering lower fees, many credit unions provide checking accounts with minimum balance and without a monthly account service charge.

Some disadvantages to owning a credit union would be fewer options for different checking’s and savings accounts and Less host of loan and investment products. There’s also inconvenience with less locations, having less physical branches and a sub-par online banking system that also present poorly online services.

Financial gym

by Riley

Financial gym offers a one on one service to help you save your money efficiently and effectively. Financial gym has a three step process on help you save. Step 1 is meet your trainer, you sit down 1 on 1 with one of their trainers as they train you on how to save your money. Step 2 is get your plan, you and your trainer will create a plan that fits perfectly to you using simple and achievable tasks. Step 3 is work it out, basically this step is just your trainer keeping up with you to make sure that you are keeping up with your plan and are saving money. I think this is good it is personal and they make sure you are saving your money the whole time and they hold you accountable if you are not keeping up with your personalized plan.

https://www.financialgym.com/

Hardbacon

by Riley

Hardbacon is app for buying and managing stocks. I don’t know how common buying stocks is with people now a days but the app seems simple and easy to use it is an apple devices only app right now. The app is very advanced and claim that it can set you up with something called a robo-adviser I’m not sure how helpful that may be compared to an actual person helping you. I think this app isn’t going to last it may be easily accessible and always with you but I think buying stocks is just too complicated for an app to handle. It is just smarted for people to do this kind of stuff face to face with someone. 

https://hardbacon.ca/

Pay Yourself First

by Riley

Pay yourself first is a phrase commonly used in personal finance and retirement planning it means to automatically route a specified saving contribution from each paycheck to the time it is received. Pay yourself first doesn’t refer to earning money but refers to saving money. Basically you are taking out your own sum of money and putting it into a retirement fund or any kind of fund with no middle man. This method helps with people who don’t save enough for retirement or an emergency fund. Personally I think this is a good method it makes sure you have money in those funds whether it’s emergency or life insurance or your 401k. The pay yourself first simplified is just put money in to your funds before you pay for your bills.

 https://www.investopedia.com/terms/p/payyourselffirst.asp 

Saving is Sexy

by Riley

This article states that men that spend more money on first dates have better dating success but are more likely to go home alone compared to savers who are more desirable romantic partners. The article also says those who are savers are much calmer and more likely not to cheat or drink too much when at bars. This article has zero evidence to prove any of their findings are true.  I didn’t like this article it had zero financial aid it just tells you that if you want a long-term relationship be a saver if you want a short one night stand kind of thing than be a big spender. For me this is not helpful and complete irrelevant to budgeting money.

http://www.humbledollar.com/2018/04/saving-is-sexy/

Retirement

by Riley

When thinking about retirement you have to decide if u are going to save for your retirement or get a pension. A pension plan is a sum of money added up during your employment period, these payments are drawn to help with life after work. A pension is either a “defined benefit plan” or a “defined contribution plan”, a defined benefit plan is a fixed sum is paid regularly to a person, a defined contribution plan is a fixed sum of money invested then becomes available at retirement age. Pensions should not be confused with severance pay. Saving for retirement could just be saving with a bank with a certain fixed number or investment rate of whatever you decide.

https://en.wikipedia.org/wiki/Retirement

https://www.canada.ca/en/financial-consumer-agency/services/retirement-planning/start-saving-retirement.html

OSAP

by Kristy

          OSAP stands for the Ontario Student Assistance Program. OSAP assists students in paying for their post-secondary education, for those that need the financial help.

          OSAP offers two types of funding. OSAP offers grants, which is money that the student is not required to pay back. OSAP also offers student loans, which is owed back to OSAP once the student is finished school.

          Almost everyone is eligible for OSAP, including Canadian citizens, permanent residents and protected persons. Unfortunately, you are not eligible for OSAP if you lack the academic requirements, have enough financial resources, the income given on your OSAP application is significantly different from what you reported to the Canadian Revenue Agency, you have defaulted a student loan, have bursary or grant overpayments or significant loan overpayments, failed a credit check, declared bankruptcy or you have reached your limit of student loan funding (limits given below).

Ø 340 weeks of funding

Ø 400 weeks of funding for doctorial studies

Ø 520 weeks of funding for students with disabilities

          OSAP tries to help with as much as they can. OSAP helps pay for tuition, books, mandatory student fees that a school may charge, living expenses for full-time students and child care for students with children.

          When OSAP accepts your application, you are guaranteed to get some sort of financial help. How much money you receive depends on education expenses, the course load and your personal financial situation.

          OSAP is a huge support for students who want to continue their education into post-secondary. OSAP gives thousands of students every year the opportunity to get the education that they want to have.

Link to source: http://www.ontario.ca/page/learn-about-osap