This episode of the Mo’ Money Podcast is sponsored by the Scotiabank Momentum Visa Infinite card. Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases).1 Plus, no annual fee in the first year.2 A welcome offer of up to $299.3 To learn more & sign up for the card, click here.
1You will earn 10% cash back (the “Offer”) on the first $2,000 in eligible purchases posted to your new Scotia Momentum® Visa Infinite* credit card account (the “Account”) beginning on the Account open date and ending 3 months after that date or when you reach the maximum cash back value of $200, whichever comes first (the “Offer End Date”). Eligible purchases include purchases (less any refunds, returns or other similar credits) but do not include payments, cash advances (including balance transfers, Scotia® Credit Card Cheques or cash-like transactions), interest, fees or other charges. After the Offer End Date, you will earn regular cash back on purchases at the regular cash back rate described in the Scotia Momentum Visa Infinite Cash Back Program (the “Program”) that applies to the Account (the “Cash Back Program Rate”). The 10% cash back rate for any category is made up of the sum of: (i) the regular Cash Back Program Rate (variable by categories as set out under the Program); and (ii) a “Bonus Cash Back Rate”. Cash back earned under this Offer will be credited to your Account in 2 instalments so long as your Account is open and in good standing at time of payout of each:
1.Bonus Cash Back Rate: The amount earned under the Cash Back Bonus Rate will be credited to your Account within 2- 3 months after the Offer End Date; and
2.Regular Cash Back Rate: The amount earned under your regular Cash Back Program Rate will be credited to your Account according to the regular cash back payment schedule as set out under your Program (November).
EXAMPLE: If the regular Cash Back Program Rate for the Gas Stations and Grocery Stores category is 4% then the Cash Back Bonus Rate will be 6% for that category so that you will earn a total of 10% on the amount of all eligible everyday purchases in that category until the Offer End Date. If you make $2,000 in eligible everyday purchases in the Gas Stations and Grocery Stores category, your cash back earnings will be credited to your Account as follows:
First, the Cash Back Bonus Rate of 6% x $2,000 = $120 will be credited to your Account within 2-3 months of the Offer End Date.
Secondly, the Cash Back Program Rate of 4% x $2,000 = $80 will be credited to your Account as per the regular cash back payment schedule (November).
The Account is considered in good standing if it is not delinquent (past due) or over limit and the Cardholder(s) is not in breach of the Revolving Credit Agreement that applies to the Account.
All other terms of the Scotia Momentum® Visa Infinite* Cash Back Program Terms and Conditions apply. Offer applies to a new Account only opened by April 30, 2019.
Former or current Scotiabank credit cardholders of any kind in the past 2 years, including those that transfer from an existing Scotiabank credit card account or re-open a closed Scotiabank credit card account, are not eligible for this Offer. All rates, fees, features and benefits are subject to change.
Offers may be changed, cancelled or extended and cannot be combined with any other offers.
2 We will waive the initial annual fee for the primary card and each additional supplementary card for the first year. Offer applies to new Scotiabank credit card account (“Accounts”) only that are opened by April 30, 2019. Any additional supplementary cards must be issued by April 30, 2019 to qualify. Former or current Scotiabank credit cardholders of any kind in the past 2 years, including those that transfer from an existing Scotiabank credit card account or re-open a closed Scotiabank credit card account, are excluded from this offer.
The current annual fee is $99 for the primary card and $30 for each additional supplementary card.
The current preferred annual interest rates for the Account are: 19.99% on purchases and 22.99% on cash advances (including balance transfers, Scotia® Credit Card Cheques and cash-like transactions). All rates, fees, features and benefits are subject to change. Offers may change, be extended and cannot be combined with any other offers.
3Based on a $99 annual fee waiver in the first year and a potential cash back earning of up to $200 during the offer period.
A topic that I think we millennials all need to focus more on is retirement planning. And the reason I think so is because traditionally retirement planning seemed like something for older generations, and what us younger generations needed to focus on was debt-repayment and homeownership.
Listen, I know us millennials have a lot going on, but NOW is the time to start planning for retirement, not when we’re nearing it. That’s why I have Ron Haik, Senior Financial Planner & Regional Manager, Ontario at Nicola Wealth on the show to talk all about how to plan for retirement in Canada and as a millennial.
Here are some things we discussed.
Where Do You Even Start?
A common question I get, because planning for retirement either seems too simple or too complicated. Where you start is determining what your retirement will look like. Everyone’s retirement is different, but essentially you need to answer what kind of life do you want to lead after you’ve finished your full-time career. Retirement may still include working, or maybe you want to volunteer, travel the world, or help raise your grandkids. Whatever it is, write it down then figure out how much in today’s dollars you’ll need as an annual income in order to afford that life.
TFSAs Don’t Get Enough Attention
For years, RRSPs were given all the attention. Although they are great vehicles for housing your investments for retirement, TFSAs are great too. They may even be better depending on your situation. You see, with RRSPs, you get that wonderful tax deduction that lowers you tax bill while allowing your money to grow tax free. But, once you withdraw funds from your RRSP, that’s when you’ve got to pay tax on that money. That also means you need make sure you’ve included income tax in your retirement budget. With a TFSA, you don’t get a tax deduction when you contribute, but when you withdraw those funds, you don’t have to pay tax either. Things to think about when considering what account type to put your investments into.
Real Estate Investing Is Great, But Diversification Is Better
I recently did a talk on investing for a retreat, and many people there voiced how they were more comfortable with real estate investing because it made more sense to them. You were investing in something tangible and they could wrap their heads around the concept better. Real estate investing is great, but you should never put your eggs in one basket. Real estate should be a portion of your overall retirement portfolio, not the entire thing.
Don’t Set and Forget Your Retirement Plan
Once you’ve built a retirement plan, it’s not something you just put somewhere to gather dust. Your life and goals change, and so will your retirement plan with them. Make sure to revisit your retirement plan every 6 to 12 months.
My Interview on Nicola Wealth’s podcast
Check out this episode of the Wealth Exchange where I’m in the guest’s seat for a change!
Follow Nicola Wealth