Money Hacks by Clem

Teach Me About Insurance - Listen in on my insurance meeting with a new client

Join me as I explain to a new set of clients, on the different types of personal insurance available here in Canada. You'll learn about and hear the answers to questions like... - What is Life Insurance? - How does Life Insurance play a role in my personal finances? - How should you structure your life insurance policy? - How to Earn Tax Free Funds in a Life Insurance Plan? - What is Critical Illness Insurance? - What is covered under Critical Illness - How can this plan help me take money out of my corporation tax free? - What is Disability Insurance? - What does Disability Insurance Cover? - Who should have Disability Insurance? - Why is Disability Insurance useful and flexible?  Thank you everyone for your ongoing support.  Hopefully you find this information useful!  Happy to connect and answer questions as needed!  Email: clement.chungcc@gmail.com Website: www.clementchung.com

Should You Buy A Home Now? Real Estate, Mortgage & 5 Strategies to Help You Decide!

Apparently, it’s going to take more than a global pandemic to put the brakes on Canada’s rollicking real estate market. In fact, many changes brought on by the pandemic are influencing buyer behaviour and transforming some long-standing trends. While a home-buying plan still largely depends on the key factors of cost and location, today’s historically low interest rates and the vast number of jobs that are now done from home are encouraging some Canadians to rethink what kind of future home could suit their ideal lifestyle. In other words, more real estate decisions are being based on where people want to live, not where they feel they must. Big city vs. small town Given lower interest rates, the increased amount of time people are spending at home and the fact that many of the amenities that make big cities so attractive have been scaled down because of the virus, home buying in smaller communities is surging. Renters rushing to buy The pandemic has influenced the type of housing preferred by today’s active buyer. Single-family homes, which may have seemed out of reach for some renters, suddenly seemed more attainable when interest rates fell in 2020. Favourable conditions There’s a lot of speculation about the effects the pandemic will have on the Canadian economy and how long they will last. But given the current combination of favourable conditions, including historically low interest rates, positive economic forecasts and a swell of new buyers clamouring to find a home of their own, there’s tremendous confidence that Canada’s real estate market will continue to thrive. A mortgage is a fact of homeownership Unless you can pay cash for a new home, a mortgage will be a fact of life, possibly for many years. Qualifying for and retaining a mortgage can be exciting – it means you’re on your way to owning your new home! But it’s also a big responsibility. Calculating the weight of mortgage rates According to CREA, the average price of a single-family home in Canada was $607,280 in December 2020.[6] After subtracting a 20 per cent down payment ($121,456) from this average price, the remaining amount on a mortgage would be $485,824. Over the course of a typical 25-year mortgage with a two per cent interest rate, you would · make 300 monthly payments of $2,059 · pay $485,824 in principal and $131,931 in interest, for a total cost of $617,755 Home buyers can expect interest rates to change over time, which will influence the total cost of carrying a mortgage. Even relatively small rate increases can significantly affect how much you will eventually pay. Regardless of the amount that’s owed on a mortgage, consider making prepayments when possible or maximizing interest paydown through integrated banking products that easily adapt to your changing circumstances and goals. Buying a house, whether to live in or as an investment, involves plenty of decisions. Here’s what you need to do to make sure you’re buying within your price range so you don’t become cash strapped and miserable just for a roof over your head. 1. Make sure your mortgage payment plus strata fees, utilities and property taxes doesn’t exceed 35% of your income. 2. Buy to hold – we’re not in a market to expect explosive growth any longer and you should always plan to keep the property for the next 2-5 years. 3. Run the numbers to make sure that you have at least $30,000 available after your home purchase 4. Don’t always hone in on the interest rate and instead look at the flexibility provided by each mortgage plan. 5. Run a comparison on the cost of ownership compared to renting and investing the difference. I can help with this. Let's chat! www.clementchung.com email: clement.chungcc@gmail.com

Which Retirement Plan is Best For Me - 6% or 4% Income?

Five million Canadians are set to turn 65 this decade. At the same time, Canadians are living longer and delaying retirement, while fewer have traditional pensions. The pandemic has caused new headwinds and an even greater focus on decumulation challenges. As of December 2020, Canada’s unemployment rate stood at 8.6%. This was up from 5.6% prior to the pandemic. It reached a record high of 13.7% in May, in the wake of the first shutdown. A portion of these jobs belonged to Canadians over the age of 50, resulting in a group of “forced” early retirees. A second group comprises those deferring retirement due to feelings of financial insecurity brought on by the pandemic. I took a moment to research what was available on the internet about retirement planning compared to what was actually in my head and surprisingly, the most valuable resource on the internet for most people is the government of Canada website on the subject matter of Canada’s retirement income system. The government of Canada’s website does a good job going into detail about Canada’s retirement income system. https://www.canada.ca/en/financial-consumer-agency/services/retirement-planning/sources-retirement-income.html What I really want to convey in this episode is the idea of longevity risk. Recently, I sat in a meeting with a client who is age 72 and she had recently downsized her home and was sitting on $500,000 available to fund her retirement. In my discussions with her, we identified that she had three main prioirities. 1. She wanted to boost her income by at least $2,000 per month in retirement now that she has these extra funds, 2. She has a daughter who is ill and, although is an adult, still occasionally requires help in paying for unexpected expenses relating to her sickness, 3. And lastly, being able to leave some of her assets behind for her children is also a priority. Now with the current landscape of social media and the neighbours next door, you can probably guess what the investment recommendations provided to her by other people sounded like right? We have a stock market that is scalding hot due to all the money that the government has thrown at it to fuel the flames over the past two years. We have the crypto currency market which is still in its premature days, so much so that everyone wants to get in early and become the next bitcoin millionaire Then we have the housing market, which provides for some decent returns in a fair market, but since I’m based in Vancouver BC, nothing makes sense about it. So then came the question of how we can create a strategy that makes sense for someone who is extremely risk averse, fearful of investment volatility and stock market movements, and has had her neighbours whisper in her ear that the world financial system is going to collapse in the next decade. This is when I started to remember the lessons and strategies that I had implemented back in the day when I worked with a pension firm that dealt specifically with assets of seniors and retirees. The recommendations had always revolved around two specific asset classes that were mostly unaffected by stock market movements and government policies. First was the annuity strategy, and second, was the guaranteed income funding strategy. At the end of the day – the client managed to reach her goal of increasing her income by $2000 per month risk free, while also maintaining the flexilbility in her finances that she’s been hoping for, as well as making sure that there is money available for the kids when she dies. Lets Chat!  clement.chungcc@gmail.com Come find me at... www.clementchung.com

Family Financial Planning 101: EVERYTHING YOU NEED TO KNOW

Hey Everyone - its been a while since I've uploaded as life has been far too busy as of late. However, I did want to post a meeting that I had earlier this year with a media professional who was interviewing me regarding the matter of financial planning for families in the 21st century. Within this podcast episode, we cover ... - Navigating the Dynamics within the new "norm" in families - How to structure your finances amongst your household - Emergency Funding Strategies & Online Banking Solutions - Managing Debt with the Family - Day-to-Day Cash Planning Ideas We covered a lot of interesting ideas, simple strategies that you can implement to achieve financial security.  You can find me at...  www.clementchung.com Email inquiries at... clement.chungcc@gmail.com

The 8 Universal Truths About Money

Whether you’re starting your career or preparing for retirement, getting married or going solo, your financial situation and needs are unique. But there are fundamental money principles anyone can follow to begin building financial success. Many different types of families exist today and the makeup of families in Canada continues to change. Families with married couples are still the most common type of family, but this has been declining in recent years. Family units that were less common 30 years ago have been increasing, including same-sex couples, common-law parents, and couples without children. The picture of the Canadian family isn’t what it used to be. * In 1976, 39% of mothers with school-age children were employed. By 2009, that number had increased to 73%. (Source: The Vanier Institute of the Family) * Only 3% of eligible fathers took parental leave in 2001 compared to 27% in 2007. (Source: The Vanier Institute of the Family) * One in 10 children lives in stepfamilies. (Source: Statistics Canada). These universal truths are guidelines that encompass the essentials of financial management that apply to all Canadians. Regardless of your age, gender, culture, income or profession, they can help you make better financial decisions every day. 1. KNOW YOUR MONEY PERSONALITY: EVERYONE HAS A PERSONALITY: UNIQUE ATTRIBUTES, VALUES, GOALS, WORRIES, TENDENCIES, LIKES AND DISLIKES THAT DEFINE THEIR CHARACTER. THESE TRAITS ALSO APPLY TO YOUR RELATIONSHIP WITH MONEY. KNOWING YOUR MONEY PERSONALITY CAN HELP YOU MEET YOUR FINANCIAL GOALS. 2. KNOW WHAT YOU’RE SAVING FOR AND HAVE A PLAN TO GET THERE: Defining your life goals will give you the focus to achieve them faster, and setting a target date can help you stay motivated along the way. Read: Get SMART to achieve your financial goals 3. KNOW YOUR CASH FLOW: Knowing how much money you earn and how you spend it is key to managing your money. 4. SHOP AROUND TO GET THE BEST VALUE FOR YOUR MONEY: Most people shop around for the best price on a new TV or a liter of milk. Comparison shopping can work for money, too. 5. CARE MORE ABOUT YOUR MONEY THAN ANYONE ELSE DOES: Even if you’re working with an advisor who is committed to doing his or her best with your resources, the decisions―and the results―are ultimately your responsibility. 6. BE A SAVER, NOT A BORROWER: Borrowing can make sense if it helps you acquire something that boosts your net worth. But over time, paying back debt takes away from your ability to save―even when interest rates are low. 7. THE SOONER YOU START SAVING, THE BETTER OFF YOU’LL BE: Time is money―really. The sooner you start to save and invest your money, the faster it will grow. 8. UNDERSTAND WHEN IT’S TOO GOOD TO BE TRUE: If investment scams actually seemed “too good”, no one would ever be taken in by one. Assess money-related matters with a critical eye, especially when it comes to unsolicited requests for your money. As your life stage and situation changes, financial needs and priorities change as well. Review your financial plan regularly, ask lots of questions, and get to know all the options available to you. Lets Connect! www.clementchung.com clement.chungcc@gmail.com