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.

Stocks

By Natasha

A stock is a general term used to describe the ownership certificates of any company. A share refers to the stock certificate of a particular company, holding a company’s share makes you a shareholder. There are two types of stocks: 1. Common stock: common stock is shares entitling their holder to dividends that vary in amount and may even be missed, depending on the fortunes of the company. The main reason people invest in common stock is for capital appreciation. They want their money to grow in value over time. An investor in common stock hopes to buy the stock at a low price and sell it at a higher price at some point in the future. 2. Preferred stock: preferred stock is a stock that entitles the shareholder to a fixed dividend whose payment takes priority over that of common stock dividends. Preferred shareholders are legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders who have a common stock. There is also something like preferred stock that is called convertible preferred stock. This is basically a preferred stock with an option of converting into a fixed number of common shares, usually any time after a predetermined date. The stock market is a very important part of the economy of a country because it issues shares for the investors to invest in the stocks a company needs to get listed to a stocks exchange and through the primary market of the stock exchange they can issue the shares and get the funds for business requirements. Stocks offer the most potential for growth. American stocks have consistently earned more than bonds over the long term, despite regular ups and downs of the market. That’s why investing in in stocks, exchange traded funds (ETF), or stock mutual funds is important when saving for retirement or other far-off goals you need money for.

Stocks: https://www.investopedia.com/university/stocks/stocks1.asp https://www.investopedia.com/terms/s/stockmarket.asp

Passive income

By Natasha

Passive income is income resulting from cash flow that is received on a regular basis that requires minimal to no effort at all by the recipient to maintain it. The American IRS (international revenue service) categorizes income into three different groups: active income, passive income, and portfolio income. Passive income is taxable, what many people don't know is the difference between ordinary income and passive income. The federal government taxes ordinary income up to 35% and passive income at 15%. You can get passive income by government benefits, rental property earnings, pension, etc. Passive income is important because it's an easier way to make money that isn't active income and it helps people be financially stable because it's a reliable source of income. You also get to keep more passive income because it's taxed a lot less then active income.

Passive income: https://www.investopedia.com/terms/p/passiveincome.asp https://en.m.wikipedia.org/wiki/Passive_income

The 4% rule of retirement

By Natasha 

The 4% rule of retirement is used to determine how much someone who is retired should withdraw from a retirement account each year. This rule provides a steady income stream to the person in retirement while also maintaining an account balance that keeps income flowing through retirement. The 4% rule of retirement helps financial planners and people who are retired make portfolios with a withdrawal rate. Life expectancy plays a very important role while creating a portfolio because people who are retired that live longer need their portfolio to last longer so they can cover medical costs and other expenses that can increase as people age. I think the 4% rule of retirement is a good idea because it controls how much you can take out of your retirement savings per year and it's a good way to manage your money while in retirement.

4% rule of retirement: https://www.investopedia.com/terms/f/four-percent-rule.asp https://www.thebalance.com/dont-confuse-these-two-retirement-rules-of-thumb-453920