Canadian Financial Blog And US Jobless Claims

US Jobless Claims Fall And Canadian Finance Blog

First Published Date: May 10, 2009

Yes, this is a Canadian personal finance blog, and yes, the headline is about unemployment in the US. So yes, there may appear to be a contradiction in writing about that issue in this blog. But as we have all become more aware than we ever needed to be, the influence that one country can have on another is all the more when it comes to financial issues. Therefore, even though the figures may be coming from south of the border, it should be cause for reassurance and satisfaction to hear that the US Labour department has reported that jobless benefit claims fell to their lowest point in three months this week.

The news is, as ever, not all good. The number of people living on unemployment benefit has reached its highest level yet, but the number of new claims falling is a sign that the wave of layoffs has possibly reached its peak. The motto of the last few months where money issues are concerned is again relevant – “This is an encouraging sign, but we’re not out of the woods yet”. But living as we do in an age where perception is almost as important as hard reality, it is important to look at encouraging news as a potential springboard to a sustained improvement. Figures will not improve the situation by themselves, but investors, employers and job hunters can all play a part by showing optimism and helping to drive the economy forward.

OK, so no doubt some will be saying “this is all very well and good for America, but how does it really affect Canada?”. It is a good question, but there is an answer to it. The fact is that the US and Canada are linked not only geographically, but in business terms too. From simple matters like Canadian and US citizens in border regions crossing over the border to commute to work – then spending their wages in their home country while paying taxes in the other – to things like trade tariffs, the two countries have a mutual interest in seeing that things run smoothly with their neighbours. The worst case scenario would be protectionism in times of financial stricture, where either country moves to shore up its own interests. The likelihood of this increases in parlous economies, and decreases when news improves.

Canada, as we have discussed previously, has a lot to be proud of where handling of the recent financial crises has been concerned. Panicking will help no-one, and Canada has certainly avoided panic. Taking great care to ensure that the way we move out of the crisis is not just the quickest, but the most secure, is the only way forward. The potential for things to go badly wrong is never far away, and an increase in serenity south of the border will mean that Canadian economists can continue to steer the best path forward without the worrying distraction of things getting worse down South. And that affects everything in Canada – housing, employment, lifestyle, it all adds up.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on May 10, 2009.

Overnight Bus to Aswan | Egypt Travel Blog: Day 3 (Part 21) 01D19

16 Hours Overnight Bus Continues | Cairo to Aswan

Egypt Travel Blog: 10 DAYS Egypt Explorer - Felucca Cruise & Red Sea

Once the bus started to move, I settled in on the top level near the window. Everyone sat far from each other, so I had all the seats in my row to myself. There was traffic, so it took more than an hour to pass Giza and reach Cairo.

It was already dark and the vistas from Cairo’s nightlife started to unfold in front of my eyes. The intense, chaotic, noisy, and crowded streets were mind-blowing. I was mesmerized by Cairo at night and fell deeply in love with the city.

There were bazaars and roadside shops all over the place. Places were so crowded that I couldn’t grasp the extent of it. Tea stalls and cheap restaurants were all over and really crowded. There were fish markets and fruit & vegetable markets on the streets everywhere.

Cairo seemed to be getting crowded as the night was maturing. The ancient, sprawling mega-metropolis has another face at night. The city streets were flooded with too much bright lights and the streets were vibrant, colorful, and full of life.

One of our tour mates wanted to stop by a confectionary to grab water and snacks. Two armed officers followed her to the store while the bus was stopped. I doubt tourists anywhere else get this type of royal treatment.

The tour coach operators took a break too. I saw them smoking and drinking tea from a tea stall. There were two operators to give one another break; the journey was too long for one operator to make it. They were well dressed in a suit and tie.

As we crossed the city perimeter, darkness took over. We would continue through the night and will stop at 3 service stations before reaching Aswan.

America's Best Places for Retirement

Top American Cities to Retire

First Published Date: June 17, 2015

If you are thinking beach paradise California or mega metropolis New York City are on the best places to retire list, think again. Financial website Bankrate recently published its first ranking on America’s best and worst cities to retire and many famous cities are not on the list.

Bankrate looked at various factors such as cost of living, walkability, weather, crime rate, health care quality, tax rates, a specialized wellness score for seniors, etc. among 172 American cities and came with its lists of best and worst places to retire in America.

Here are the ten best cities:

1. Metro Phoenix, AZ
2. Arlington, VA
3. Prescott, AZ
4. Tucson, AZ
5. Des Moines, IA
6. Denver, CO
7. Austin, TX
8. Cape Coral, FL
9. Colorado Springs, CO
10. Franklin, TN

And here are the worst 10 cities:

1. New York, NY
2. Little Rock, AR
3. New Haven, CT (and surrounding area)
4. Buffalo, NY (and surrounding area)
5. Newark, NJ
6. Albany, NY (and surrounding area)
7. Hartford, CT (and surrounding area)
8. Oakland, CA
9. Indianapolis, IN
10. Cleveland, OH

Some highlights from this report:

– Only one city in Florida made it to the best list
– Cities in Arizona, including the 1st, 2nd, and 3rd, swept through the list. No wonder so many Canadians are flocking to Arizona and buying properties.
– The Big Apple is not so big on the list and made it to the worst city to retire, due to its high cost of living.
– No city in California is on the list.
– Las Vegas was not represented.

If you are interested in finding out Canada’s best places or the world’s best places to retire, visit the A Dawn Journal Retirement Section.

How To Rent In Thailand

Renting in Thailand

First Published Date: June 21, 2009

Living abroad is something that most people want to do for at least some portion of their life, and which more and more people are deciding to do. As the Internet among many other things has seen the world become a lot closer, we all have a much better insight on other countries, their customs and the options they offer for someone looking to move there. Depending on the move you make, the “intricacies” of the whole process may not even need to be all that intricate. It is imperative, though, that you inform yourself of exactly what will be expected of you before you begin to put your plans into action. For example, while it may be relatively easy for a Canadian citizen to move to the US, or vice versa, moving between continents is not as straightforward.

The vagaries of property law often see a particularly large amount of tax levied on anyone looking to buy a house in a country where they have not lived before. This is one of the first things you should check before moving, as it can add another 50% to the cost of the house. Among the nations which place severe restrictions on non-nationals owning property is Thailand. To buy a property anywhere in Thailand, a non-Thai national will need to jump through a certain amount of hoops, and will invariably end up paying more than a Thai national. In order to avoid doing this, it makes a lot of sense to rent initially if you are planning only to spend a few years or less in the country. In becoming better acquainted with the country, it is also possible to learn a way to buy a property hassle-free, or monitor any changes in law.

Renting a property in Thailand, for Thai or non-Thai, is a lot more convenient and straightforward than purchasing. In fact, it is so straightforward that negotiation is very firmly discouraged. If you see a place advertised as being available at a certain price, you should not even consider trying to work the landlord down – most landlords will prefer to leave the property empty than rent it for less than the going rate. Why you would negotiate anyway is a matter for yourself – many rents for studio apartments in Phuket and Bangkok are in the region of $150, some even less.

If renting in Thailand it is worth being aware that all rental contracts are exclusive of things such as electricity, water and telephone bills, which are instead considered surcharges. However, considering the affordability of renting a property in urban or rural Bangkok it is hardly too much of a headache for someone with savings and a decent regular income to pay rent and bills and still have enough left over to live on without discomfort. Three bedroom houses in the more rural areas are available for little over $300 a month. At the other end of the market it is more than possible to spend four figures renting a condominium, but for that price quality is guaranteed.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the realestateexpedition.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on June 21, 2009.

Canadians are among the most heavily taxed in the industrialized world

Canadian Tax Issues

First Published Date: Jan 31, 2009

To paraphrase Benjamin Franklin, nothing in life is certain except for death and taxes. It is a legal requirement that we must pay tax on earnings and purchases in addition to other more specific levies that pay for our public services. This is a necessity, but that does not make it any less galling when the time comes to give up a portion of the money we have earned. Taxes are indeed such a vexed issue that those of us who can afford to often employ a financial advisor or accountant whose knowledge of the system can spare us at least some of the unnecessary tax expenses that often go unnoticed due to the less than total comprehensibility of the system.

One way to defray at least some of your tax burden is to invest some of your money in bonds. When a bond matures it is seen as a capital gain, and only half of the proceeds of capital gains are taxable under Canadian law. There are jobs that pay a portion of their salary as bonds for this very reason, although this is obviously unpractical for those whose income falls below a certain threshold. However, as Canada’s taxation system is progressive, with a higher rate paid by those on larger incomes, some people argue that this legal tax avoidance measure is simply a way of redressing an unfair balance.

Sales taxes also account for a portion of each Canadian citizen’s tax burden. Depending on which province the sale takes place, the tax on a sale can rise as high as 13%. Certainly all provinces other than Alberta have a Sales Tax level of 10% or more, with Alberta clocking in at a comparatively tiny 5%. Therefore, if it is practical for you to do a large amount of your purchasing in Alberta, this is one way in which you can avoid being stung for more cash. Prince Edward Island is comparatively a high sales tax area, with a  taxation level of 15.5% of the cost of the sale. Thus, an individual who pays most of their Sales Tax within Prince Edward Island can, at least in theory, unburden themselves of more than two-thirds of their tax loss by doing their shopping in Alberta.

Unlike most of the Western world, the Canadian government does not impose Inheritance Tax on its subjects. Inheritance is seen as another form of capital gain and therefore subject simply to Capital Gains tax just like bonds or stocks. Though to benefit from this absence of Inheritance tax, someone needs to die – which takes us neatly back to the words of Benjamin Franklin all those years ago. One other thing – if you like a cigarette and a beer, and drive an air-conditioned vehicle, then you are paying four different kinds of Excise tax. It might be time to look at whether you can walk to the liquor store.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on Jan 31, 2009.