#_pf-ca

[michaelshulman-blog]

How you can get your hands on your unclaimed cash

$4 billion to $7 billion.

That is the estimated amount of unclaimed cash belonging to Canadians that is locked away by companies and government agencies, and available for recovery.

The Bank of Canada alone is holding about $626 million, including one balance dating back to 1900.

So how do you know if you’re one of the millions of Canadians who could have assets sitting unclaimed in a vault?

To start, the Bank of Canada offers an online search tool that lets you track down any unclaimed balances that you are entitled to.

The central bank holds onto Canadian cash or negotiable instruments – e.g. banknotes, demand drafts or cheques – that were held by federally regulated banks or trusts after they were inactive for at least 10 years.

That includes the following types of balances:

Chequing and savings accounts

Credit card balances

Term deposits

GICs

Depository receipts

Bank drafts

Certified cheques

Money orders

Official cheques

Traveller’s cheques

If you find out it has been holding onto your money, you have to submit a claim.

If you’ve got a substantial amount of cash sitting in the Bank of Canada’s coffers there’s no need to rush. It will hold onto balances of $1,000 or more for 100 years.

It will also stash amounts under $1,000 for 30 years.

After that, the Bank of Canada will transfer the funders to the Receiver General for Canada and they will be gone for good.

But the good news is that for the first ten years, funds that were held in interest-bearing savings accounts, before being transferred to the Bank of Canada, will continue to rack up interest.

Meanwhile, other common assets are not held by the central bank, including:

Accounts in U.S. dollars or other foreign currencies

RRSPs and RRIF

Life insurance policies

Credit union of Caisse populaire accounts

Unclaimed balances at utilities and other companies

Gold or silver certificates

Safety deposit boxes

Stocks and dividends

These types of assets can be more difficult to track down, as Canada lacks comprehensive unclaimed property legislation, unlike many other developed nations.

On the provincial level, only British Columbia, Alberta and Quebec have legislation related to the issue.

Residents of those provinces can search for unclaimed balances using databases similar to the Bank of Canada’s here:

British Columbia’s Unclaimed Property Society

Revenu Quebec

Alberta Finance

Canada’s Office of the Superintendent of Bankruptcy Canada also holds some unclaimed property related to bankruptcy.

The Bank of Canada advises people to contact provincial securities commissions about money they’re entitled to that were in stocks, dividends or securities.

LegacyTracker – a website that is geared towards helping people track their finance and estate documents – has also pooled a list of resources for Canadians to hunt down their unclaimed assets.

[miriamporter]

What to do if you are the victim of identity theft

In 2014, over 20,000 Canadians had their identity stolen — a 20 per cent increase from just two years prior. For those who have to go through it, it’s a real headache of figuring out whether it had been stolen via phishing email, at a compromised ATM, taken by a fraudulent employee, or any other of the many scenarios that can lead to a thief having your identity.

If you find yourself in this unfortunate scenario, taking action immediately is critical. So once you stop crying and swearing profusely in your head, it’s time to get down to business. Here are ten steps to start the process of reclaiming your identity.

1. Close all your bank accounts

It’s helpful to personally go to your financial institution and tell a manager what happened so they can close your bank accounts immediately and reopen them under different account numbers. At the very least, call to report a stolen bankcard or if you have mistakenly responded to a phishing email and provided personal information.

If you are paid via direct deposit and/or receive government funds you will need to update these institutions with your new accounts, too. It’s a tedious but necessary job.

2. Cancel your credit card(s)

If your credit card is at a different financial institution than your bank account you will need to call them, too. Go over your credit card statement to ensure all charges are correct.

3. Change your passwords

Yes, all of them, not just your banking passwords. That includes Facebook, since social media websites are connected to your identity, as well as any accounts linked with your banking information, like Netflix or your Starbucks card. These days we have passwords for so many things, it’s helpful to make a list of all the websites you need to update. Having different passwords is recommended and there are apps to help you keep this organized digitally.

4. Call the credit unions

Call the two main credit unions to put a fraud warning on your account, Transunion Canada and Equifax Canada. This will (hopefully) prevent someone from impersonating you and taking out a large loan or line of credit in your name. Once the alerts are in place, you will be contacted if someone attempts to use your name to obtain funds.

5. Have your computer scanned for viruses

Whether you have a PC or Mac it’s crucial to have your computer scanned for viruses such as malware. Do not to use new debit or credit cards for online transactions until your computer it is in the clear for viruses.

6. Contact the police (if necessary)

Depending on the severity of the theft, contact the police and report the crime. If a report is filed, include the police report number in all your correspondence. Do not call 911. Contact the Crime Prevention Officer at your local Police Division via their non-emergency number.

7. Report the identity theft or fraud

The Canadian Anti-Fraud Centre (CAFC) “collects information and criminal intelligence on such matters as mass marketing fraud, advance fee fraud, Internet fraud and identification theft complaints”. If you have been the victim of identity theft report the incident with CAFC.

8. Government issued cards

Depending on the severity of your identity theft (phishing scam versus a thief stealing funds) you may need to have your government ID cards reissued. This may be the most tedious task you face when trying to recover from identity theft. All you can do is take a deep breath, and hope the lineups are short. If you need to get new IDs such as your SIN, license, or health cards start by calling 1 800 O-Canada.

9. Correct your credit report or dispute false charges

This may not apply to you, but if it does you will want to dispute any false charges as soon as possible to ensure your credit rating is not affected by something you didn’t do.

10. Sign up for alerts and monitoring

Alerts and monitoring are a great way to keep tabs on your accounts. You can have emails or text messages sent to you according to the parameters you set. You can also sign up for 2-step verification on any accounts that use this system and add an extra layer of security to accounts moving forward.

Once you’ve done everything on the list, relax: the hard part is over. Now you just need to wait for those new cards to arrive a perfect excuse to have friends treat you to a dinner out.

[michaelshulman-blog]

Considering quitting your job? Don't bother flipping a coin, just go for it

Considering quitting your job? Don’t bother flipping a coin, just go for it

When forced to make an impossibly difficult decision, such as accepting a job offer and leaving another, I’ve often resorted to flipping a coin and then going with my gut feeling that I got from results.

But a new working paper says I may be going about this process entirely the wrong way, and that, in fact, I should probably opt to make a change regardless.

The research, titled “Heads or tails: The impact of a coin toss on major life decisions and subsequent happiness,” by University of Chicago economics professor and co-author of “Freakonomics,” Steven Levitt, found that people reported being “substantially happier” months after they went ahead with an important decision, such as quitting a job, ending a relationship or starting a business.

“If the results are correct, then admonitions such as ‘winners never quit and quitters never win,’ while well-meaning, may actually be extremely poor advice,” Levitt wrote in the paper.

To come up with the results, Levitt created a website asking participants who were struggling with a life decision to answer questions about their conundrums.

Then, options (e.g. quit or stay at your job) were assigned to two sides of a coin, with one being the final choice.

Participants were also asked to offer up a friend or family member who could verify if they went through with the results of the coin flip.

The outcome was randomized and they were shown the results.

Participants and their correspondents were then re-surveyed two and six months after the initial coin toss.

Over a year of data collection, more than 20,000 coins were flipped.

In terms of the questions that were rated as “important” by the study, the most popular were:

“Should I quit my job?” which received 2,186 tosses;

“Should I break up with my significant other?” which received 1,686 tosses;

“Should I go back to school?” which received 1,203 tosses;

“Should I start my own business?” which received 893 tosses.

And Levitt found that those who were told by the coin to make a change were not only more likely to go through with it but also more likely to feel better about themselves down the road than those who were instructed to maintain the status quo.

“When it comes to ‘important decisions’ … making a change appears to be not only correlated with increased self-reported happiness but also causally related, especially six months after the coin toss,” Levitt wrote.

“Those who were instructed by the coin toss to make a change were both more likely to make the change … and, on average report great happiness on the follow-up surveys,” he added, noting that about 63 per cent respondent adhered to the results of the coin toss after two month, including 56 per cent of those facing “important decisions.”

Levitt said the results suggest that people may be “excessively cautious when facing life-changing choices.”

In contrast, decisions designated “less important” – such as “Should I break my bad habit?” “Should I go on a diet” “Should I quit drinking” and “Should I try online dating” – in general, did not have a “measurable impact” on happiness after the fact.

The study does have some limitations: participants were recruited through Freakonomics-related social media and were likely to be aware and supportive of Levitt’s research; respondents tended to be young, male and highly educated; and the subject pool was limited to those facing dilemmas and were open to solving them with the flip of a coin.

But maybe next time you’re faced with making a tough life decision, keep the coin in your wallet.

[whenwedrift]

Debunking the 'latte factor' and other money-saving myths

[Will cutting out your daily caffeine indulgence save you from money woes in the long run? Experts don’t think so.]

A few months ago Rona Birenbaum’s daughter asked for the latest iPhone so the certified financial planner decided to compare the price online to the cost of getting it through her service provider.

“With taxes it was almost $1,000 to buy outright, I almost fell out of my seat,” says the founder of Toronto-based financial planning firm Caring for Clients. “But then I go to the service providers – to get the phone for $299 flat you had to then sign up for a certain data plan.”

The data plan, Birenbaum explains, came with a two-year term and so she multiplied the monthly costs and even with the discount it costs a couple hundred dollars more.

“There’s a certain amount of pride and satisfaction that comes from getting that (deal) – you’re saving money on one hand and paying more on another – so its more of a psychological exercise than anything grounded in reality.”

It’s akin to the pervasive myth that boosting your budget is as simple as cutting out that weekly latte.

“It isn’t about spending less, it’s about spending well,” says Birenbaum.

Yahoo Canada Finance took a look at some of the most pervasive “savings” myths:

In-store loyalty credit cards

While these types of store-branded credit cards often offer spending rewards and special bonus days, store credit cards tend to carry higher interest rates than traditional credit cards with stiffer late fees and penalties. Case in point: Home Depot and The Brick have interest rates sitting around 28.8 per cent and 29.9 per cent versus the 19 per cent or lower purchase interest rate on a standard credit card. And missing a payment on a store card offering a deferred payment plan – that “No payment for 12 months” scheme – could trigger 12 months of interest.

Monthly insurance premiums versus annual

“Most people do not know that paying a monthly premium for their life insurance or disability/critical illness insurance is actually about a nine per cent premium for the convenience of paying monthly,” says Birenbaum.

If they paid annually they’d get abut one month free a year, adds the financial planner.

Warehouse memberships

With annual memberships to somewhere like Costco ranging from $50 to $100, there’s bound to be some attraction. For anyone who actually owns a membership can attest, just being in the presence of full wheels of Beemster’s Gouda cheese at deep discounts is worth the price of admission. But in reality, is that membership really worth it? If you’ve got a family of five or more, you can most likely put that plastic to good use stocking up on novelty-sized boxes of pita chips or “his-and-her” sets of snowshoes. But for lone wolves, you’re apt to end up with a bunch of stuff you don’t need and a little heartbreak when the mold spores devour the wheel before you get to it.

Free shipping

It’s the perfect crime – that double verifying system that e-tailers seem to have on lock-down: “are you sure you don’t want free shipping? You’re only one product away.” Let’s be honest, they realize they can’t get you with the bright coloured sale signs because there are no digital aisles to place end-caps on but online sites like eBay, Etsy and Amazon have you figured out: toss a couple options for things you’d like and a promise of free shipping if you spend a bit more and you’re likely to take the bait. Don’t do it, free shipping is apt to save you a couple bucks but spending more defeats the purpose of saving, does it not?

Chasing gas prices

And finally, the game we all like to play with ourselves called “chasing the gas price.” Sure, that Esso on the outskirts is offering a better deal but it’s 20 minutes away. So when you account for traffic (i.e. your time) and the cost of gas to get there (i.e. your savings) that deal doesn’t look so attractive now does it?

[whenwedrift]

Knowing when (and how) to break-up with your bank

Karen Collacutt recently went through a tough break-up. Her bank, it seems, just wasn’t that into her – or rather, it wasn’t that into having her business.

“The bank my husband and I had been working with was a smaller (one)… their hours got less and less and their technology wasn’t up to par,” explains the certified financial planner and founder/prosperity coach at ProsperologyU. “It was becoming really difficult to work with them and so we went through this process of: how are we going to change and how do we change?”

Like any relationship breaking up with your bank can be hard to do; there are a lot of moving parts, a lot of things to consider. That’s why Collacutt advises anyone considering making a change to fully examine the root problem first.

“When you have a challenge with a bank, the first thing you want to do is see if you can resolve the problem,” she says.

Typically, the main concerns Collacutt comes across amongst clients are related to customer service or technology.

“Occasionally it’s fees but a lot of people just ignore their fees which is amazing to me,” says the money coach. As for the recent trend of banks offering iPads for switching, Collacutt is quick to cut that excuse. “Don’t just switch because one of the banks is offering free iPads – if you’re brand new to banking and you need your first account, that’s a great way to get a new iPad but this is a huge amount of work (otherwise).”

If the reason you’re moving is a customer service qualm, be forewarned, despite the colour of their couches, the banking experience doesn’t vary widely in the realm of people-to-people interactions.

“You often end up in the same situation,” says Collacutt. Instead she recommends swapping branches with the same bank to try and find a representative you like working with. Technology is the same, most banks employ tweaks on the same type of technology.

“If it’s a fee challenge then get on the phone with the bank or your new customer service person and see what they can do,” she says. “There’s often a variety of strategies you can use to lower your fees.”

When it just won’t work

Of course, Collacutt recognizes that not every problem has a clear fix and sometimes a break-up becomes all too necessary. The first step, says the money coach, is the come up with a list of the criteria, the things you’re looking for in your new banking partner.

“Start looking at your bank options… look at the major banks, look at some of the smaller banks and credit unions and go and actually meet the people,” she says. “Build a relationship and get them to help you as you’re transferring things over.”

She points out that while many banks have some sort of transferring system, ultimately, it falls on you to make sure the transition is smooth. Collacutt say she’s heard horror stories of accounts going into the red over automated transactions.

“People start shutting things down and they think they have moved everything (but) you might not remember all the different (automated transfers) you have,” she says, adding it’d be wise to have a buffer of funds in your old account to avoid missing payments that may still be connected with that account.

“I recommend keeping your old account open for another full month at minimum so you can be sure all the auto transfers are complete,” adds Collacutt. “It does mean you’re paying double fees for a short period of time but it’s better than having an overdraft or an NSF and having to argue with services that didn’t get paid.”

Once it’s time to properly say goodbye to your old bank account, the money coach recommends sealing the deal with some paperwork saying the account truly is closed. She also points out that just because you’re breaking up with a bank doesn’t mean you can’t be friends with the other departments.

“If they’ve got investments and want to move them, that can be really costly, especially if the market is down at all,” she says, recommending leaving them if possible. The mortgage portion of most financial institutions is also typically a separate department so you don’t need to worry about seeing your ex. “For the mortgage department, as long as they’re getting paid, they don’t really care.”

[kellyputteryahoo-blog]

Reno consultants aim to stop home owners from getting ripped off

[Getting a good contractor is tough, and sometimes you need someone to point you in the right direction. (Getty Images)]

A bankrupt contractor left Sally Jacquart and Russ Visch high and dry last year in the midst of a home renovation that ended up spiraling into a much bigger job thanks to the builder’s neglect.

Initially, the Toronto couple put up with the work delays, thinking that was business as usual until the builder opened the roof above their kitchen which caused more damage from rain. After nearly four months and a cost of $50,000, they’d had enough and decided to fire their contractor. Then they got word that he’d gone bankrupt.

“We were shocked and we didn’t know what to do,” says Jacquart. “Honestly, we were very nervous about hiring someone as the only yardstick we had to measure was the one we chose the initial contractor with. How could we trust our own judgment to pick somebody else, especially when we had no room to lose more money?”

They turned to The Reno Coach, a service offered by Toronto’s Reiner Hoyer, a former contractor, who now acts as a third- party advocate on behalf of the homeowner, ensuring that the reno, no matter how big or small, goes smoothly. The going rate for a reno coach or consultant is in the neighbourhood of $150 to $200 per hour but Jacquart says it’s money well spent. Not only did Hoyer give them peace of mind with his experience and advice, he managed to save them money in the long run.

“He really put our minds at ease in terms of feeling we’d connected with someone who was on our team and who would advocate on our behalf,” says Jacquart. “The magic with him is the connections he has and the relationships he builds so we know we can trust these people.”

Renovation consulting is a relatively new niche service that proponents expect will grow right alongside Canada’s booming home renovation industry. Canadians spent a record $53 billion on renos last year, according to a Scotiabank construction report. Hoyer believes Toronto’s super hot real estate market coupled with the popularity of home renovation shows on HGTV and other networks have fueled interest.

A renovation consultant often steps in once a project has gone wrong or a relationship between the homeowner and the contractor has soured. But they’re much more than hand-holders. They will assist with jobs big and small from helping you locate that funny smell in the basement to million-dollar renovations. Besides helping ensure your project is done on time and within budget, a reno coach can also meet with contractors to discuss design plans, review estimates, arrange schedules with builders, conduct inspections, solve problems, help resolve disputes with contractors and design maintenance plans for your home.

While some question their value, saying they do the same work of a contractor or designer, reno consultants boast that it’s their impartiality and the fact that they’re not selling you any extras other than their services that sets them apart.

“I’m not selling you flooring or kitchen cabinets and I’m telling you here are the important design considerations and options,” says Jeff Clarke, president and CEO of the Toronto-based Renologic.ca. “Since we’re not trying to sell you anything, our advice is based on practical knowledge and custom-tailored to your needs.”

Clarke paid a visit to a client who was about to sign an $18,000 contract to have her leaky basement waterproofed. The moisture issue had been misdiagnosed and in the end the house only needed a $1,000 repair to fix the problem.

“It’s great when you can save people a lot of money,” he says. “We’re a homeowner’s guardian angel.”

The profession may be quite new but Clarke expects it will grow thanks in part to the shortage of skilled trades people and the industry’s lack of oversight. A home inspector for 30 years, Clarke points out that when he started out few people knew of home inspections and today they’re almost compulsory.

“There’s a need for renovation consultants,” he says. “Would anybody invest $100,000 in the stock market without financial advice? Why are you spending $500,000 on your home reno without a $500 consultation from an expert?”

The home renovation process can be long, labourious and costly. Add to that the fact that many clients jump in with too much enthusiasm and too little information, there are bound to be mistakes made. Throw in disreputable contractors and you have a nightmare waiting to happen.

Hoyer always does a credit check on contractors and trades people.

“The financial stability and how they run their business should be a major concern for the client,” says Hoyer. “But often it’s not and they’re giving over money blindly. The industry is very unregulated. And everybody is so focused on looking at the workmanship and getting references in the construction and contractor industry. A guy can be a good tradesperson but he runs a lousy business so now he’s not filing his tax returns and is behind in his WSIB payments and his HST, but he continues to operate because it takes a while before they start knocking on his door.

“My approach is if I can help the people beforehand I’m doing a better service than what Mike Holmes is doing afterwards.”

From over-inflated work estimates to jobs that grow in price at every turn, Hoyer enjoys helping protect his clients from the games and tricks played by disreputable contractors.

“I feel good helping people and saving them from making the wrong choices and giving them solid advice and guidance to level the playing field.”