Lift your wallet or purse, turn your head and cough: It’s time for your annual fiscal checkup.
Today we are going to look at some common money areas that don’t get as much attention as investments and mortgages, but are also important for good personal financial hygiene.
Net worth statement
This is simply our assets minus liabilities, or what we own minus what we owe, which boils down to a single dollar figure. We generally want this number to increase over time until we are in the decumulation phase of life. Keep in mind that with more assets, such as owning a home or a large investment portfolio, it’s possible to see our net worth go down from time to time even though we are doing all the right things in the accumulation phase.
To do: Calculate your net worth once a year to keep on top of your overall progress.
Budgets
The single most fundamental aspect of managing our financial lives, and the most loathed. Luckily there are many ways to budget beyond setting up and updating massive spreadsheets, including the use of apps or automating transfers into separate accounts on a regular basis.
To do: If you’ve never set up a budget before, find a method that appeals to you and put it into motion. If you have a budget, review how you’ve spent your money to see if it aligns with your values and goals. If not, make a change to get back into alignment.
Check your credit reports
A credit score is a number, but a credit report contains much more information held by credit bureaus about all the credit products opened in your name. You are allowed to access your credit reports for free from Equifax and TransUnion, but note that finding the free options can be tricky. The websites might try to steer you toward a monitoring subscription priced at $24.95 per month, but those are not necessary in order to access your reports.
To do: Access your free credit reports and check that the details are correct. If you see anything fishy or incorrect, follow up immediately.
Emergency fund
The traditional rule of thumb of three to six months’ worth of monthly expenses may be too much or too little for all situations. If you are low on the income spectrum or have never had an emergency fund, focus on the first $1,000 ASAP. You can dial the urgency back from a 10 to a seven when it comes to hitting three to six months’ worth of expenses as your next target. But if you are a high earner in a field in which it might take a year or longer to find your next gig, you’ll need an emergency fund to match.
To do: Figure out an emergency fund level that makes the most sense for your situation and map out a plan to get there.
Insurance
Disability insurance is rarely top of mind for people, but it should be because one of the most valuable financial assets for many Canadians is their ability to earn an income. We’re talking millions of dollars over a career. If you became disabled and unable to earn that income, what would happen? Over time, disability insurance coverage from employers has become less generous, and many self-employed Canadians have no disability insurance. While you’re at it, review your life insurance and critical illness insurance needs as well.
To do: Check your coverage, and if you don’t have any, or it’s not as much as you thought it could be, look into your options with private insurance.
Estate planning
A first child is generally the trigger for getting serious about creating a will but, to this day, I’m shocked by the number of parents who tell me they haven’t gotten around to it yet. A survey by online estate planning company Willful backs this up: 97 per cent of Canadian parents agree a will is a good idea, but only 52 per cent reported having one. It’s worth noting that estate planning is not just reserved for parents. There are many reasons for setting up a will, but you don’t have to be a parent to need powers of attorney (or an equivalent, depending on where you live) for health care and financial transactions in case you become incapacitated.
To do: For less complex situations, there are lower-cost options available online today. More complex situations will still need a human touch.
Preet Banerjee is a consultant to the wealth management industry with a focus on commercial applications of behavioural finance research.
CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.
It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.
The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.
Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.
TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.
The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.
The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.
On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.
“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.
“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”
Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.
BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.
The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.
BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.
It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.
The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”
Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.
This report by The Canadian Press was first published Nov. 7, 2024.
TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.
The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.
Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.
On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.
In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.
It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.
This report by The Canadian Press was first published Nov. 7, 2024.
