What Is Employment Insurance (EI)?

Employment Insurance

Published Date: Sep 15, 2010

When something bad happens, employment-wise speaking, there is often the worry of how you are going to pay your bills. Thankfully, in Canada, there is something called Employment Insurance, which is there to help you when you need help after losing your jobs.

Employment Insurance has not always been the name of the program. Until 1996, it was called Unemployment Insurance. However, it was changed to Employment Insurance because of the negative connotations associated with the word unemployment. Canadians who work within the country pay 1.73 percent of their earnings in return for benefits if they lose their job. There used to be a government contribution to the program but that was stopped in 1990.

Depending on how long you were at your previous job, the amount you receive for employment insurance and how long you get employment insurance will vary. Your employer will contribute 1.4 times the value of the premium you pay.

The amount of employment insurance paid out around Canada varies by the region. Roughly half of all employment insurance premiums are paid out to individuals in Ontario and the Western Provinces. However, employment insurance is very important in the Atlantic Provinces where there are many season workers who work in fishing, tourism and forestry. During the winter there is no work, so those who work in seasonal industries need something to help pay the bills until their work season begins again. To help with this, employment insurance has special rules for those who fish for a living.

Employment insurance will also pay for things like parental leave, maternity leave, and compassionate care leave and illness coverage.

Employment insurance first came about during the Great Depression in 1935. The odd thing was that the Supreme Court of Canada ended it because it was deemed unconstitutional. The constitution was amended so that employment insurance could fall under federal, and not provincial, leadership. The first system then came into being in 1940 and Canada was the last major western country to implement a system of employment insurance.

Changes to the system came about in 1971 under Prime Minister Pierre Trudeau when he made it easier to get. Under the new system, only needed to work for 10 weeks to get benefits for 42 weeks. At this time, the program was also opened up for sickness and maternity leave, which would run for 15 weeks.

However, from 1971 to 1990, the government slowly reduced its contributions until it was no longer contributing. The employment insurance system was then cut back on in 1990, 1993, 1994 and 1996 by the ruling governments, increasing the time someone had to work in a seasonal job until they could earn money. In 2001, the federal government increased parental leave from 10 to 35 weeks and gave workers employment insurance for compassionate care leave.

Currently, the system costs the country $22.7 billion per year.

No matter the cost, it is an important thing for individuals who need help after they have lost their job, suffered a death in the family, or are welcoming a new member to the family.

Credit Card Hacks: The Hidden Gem

How Credit Cards Can Help You Travel

First Published Date: April 3, 2016

ve been working on “Credit Card Hacks: What Credit Card Companies Don’t Want You to Know”, today I will talk about one of the many secrets this book reveals. One of the most overlooked credit card features is free or partially-free travel.

Most consumers shy away from taking full benefit of their credit cards due to a misunderstanding or lack of knowledge in terms of what credit cards can do for us. However, one of the most lucrative benefits credit cards offer is that they can make it possible to travel for free or partially free.

As I write this article today, I am getting ready for my next trip to Myrtle Beach in three weeks. If I had to pay for this trip fully, my estimate is that it would cost approx. $1,800. But because I am flying and staying in expensive resorts partially on points, the cost will be about a couple hundred dollars at most.

No, this is not a once-in-a-lifetime trip. I made it possible by accumulating points year after year. I travel each year paying very little because of the points my credit cards offer and this is what I will discuss in one full chapter in Credit Card Hacks.

To explain in brief, travelling for free or partially free is possible because of the sign-up bonus various travel credit cards offer and there are many other ways rewards points can accumulate faster. The only drawback to travelling for free or partially free is that you have to master various hotel and flight rewards programs.

I have discussed in great detail how to use various travel credit cards to accumulate points and make your dreams to travel and see the world come true in a way that would not have been possible otherwise. Stay tuned for Credit Card Hacks, which is expected to be out this year.

Real Estate in Portugal

Buying Property in Portugal

Published Date: Nov 13, 2010

When you want to move away from the snow and the cold, there are many places you can go. You can go to the Southern United States, but it is crowded down there and many are choosing to go to countries that area a bit more exotic. You can go to tropical countries, but these are often unstable and not the best place to live. This leaves Europe, and if you are going to live anywhere in Europe, you should really give Portugal some consideration.

Portugal is a country on the Iberian Peninsula and it is the westernmost country in all of Europe, bordered on the one side by the Atlantic Ocean, and on the other side by Spain.

Portugal is considered to be a developed country and one of the best in the world to live in. It is has the 19th highest quality of life according to the The Economist Intelligence Unit, it is the 13th most peaceful country in the world and the eighth most globalized. It is a member of the European Union, as well as the Latin Union, the OECD, NATO and the United Nations.

Portugal is very popular among those in northern Europe for the main fact that it has a very warm climate. The climate of Portugal is a Mediterranean climate, and it is one of the warmest countries in all of Europe. The average temperature of Portugal is 13 degrees in the north, and 18 degrees Celsius in the south.

When you are thinking of moving to Portugal, there are several areas where you can choose to live based on the diverse landscape of the country. Portugal is split in half by The Tagus, which is the main river of the country. The northern part of the country has many mountains and plateaus with river valleys, while the south is made up of mostly rolling hills, rivers and plains. The south is warmer, but drier, than the north.

You can live on the coast as well, with great vistas of the Atlantic Ocean that will delight you as you relax on your deck and stare out at the ocean.

Of course, you may not want to live out in the countryside, or in the mountains, you may want to be where the action is, right in the cities. The three largest cities in Portugal are:

1. Lisbon: This is the capital city of Portugal and the largest city in the country with a population of about 564,000. It is the 12th largest city in the European Union and nearly three million live in the area around the city. The city features many great museums, restaurants, parks and historical attractions.

2. Porto: This is the second largest city in Portugal with about 220,000 people in the city and 1.1 million people around it. It sits on the coast and is well-known for the wine that comes from the region around it. Again, there are many great attractions in this city that will make any visitor feel at home.

3. Vila Nova de Gaia is the third largest city in the country with a population of 178,255 in the city and 288,749 around the city. It also sits along the ocean and is well-known for the caves around the region where wine is stored and aged.

When you are buying property within the country of Portugal, the first thing you need to do is begin the real estate purchase process by executing the initial contract, which is called the Contrato de Promessa de Compra e Venda. The contract will be drawn up by the notary at the time the contract is signed, executed and you will be called upon to put down a deposit on the home that you are planning on buying. Typically in Portugal this will amount to roughly 10 to 12 percent of the total purchase price. If for whatever reason the person selling the home decides not to go through with the sale, then you will get your deposit back if the contract has not been signed. If you decide to walk away, you will typically lose the deposit that you paid, and if the contract is signed, you will lose the value you paid between 10 to 15 percent. If the seller walks away after the contract is signed, they need to pay back twice the deposit.

If you are going to buy property within Portugal, you also need to get a Fiscal Number from the Tax Office, which is required for foreigners who want to buy property. All you have to do is complete a simple form and submit it, and it will typically be processed immediately.

From the point that the initial contract is signed, to when the final contract and deed is signed, the time it takes is usually only about three to four weeks.

The last thing you have to do when you are purchasing a home in Portugal, after the final contract has been signed, is to pay the Imposto Municipal Sobre, which is a tax imposed on real estate transactions. You also have to register the deed at the Land Registry Office.

One of the great things about Portugal is the fact that as a foreigner, there are no added restrictions in place to you buying property. The rules and regulations you have to follower are typically the same rules and regulations that everyone within Portugal has to follow.

Portugal is an amazing country that is safe, warm and full of history. If you want to live anywhere in Europe, then this is the country you should think about thanks to its amazing landscape, friendly people and unique culture that will make you feel at home almost immediately. All you have to do is find the home that you want for the price you can afford and make the sale a happen.

How Not to Get Dinged by Air Canada on Aeroplan Rewards Flights

Avoid Aeroplan Carrier Surcharges

First Published Date: April 10, 2016

A lot of us avoid collecting and utilizing Aeroplan miles because of the many horror stories that lead us to believe that it’s not worth going through all the hassle to pay hefty carrier charges (also known as fuel surcharges or taxes, fees and surcharges) to enjoy what are supposed to be free rewards flights.

However, this fear (paying hefty charges) should not stop you from enjoying free flights, especially on business class. With a few tips and careful planning you can fight back against Air Canada and other airlines that charge you fees on Aeroplan rewards flights.

There are some airlines that charge nothing to enjoy your rewards flights, some that charge skyrocketing surcharges, and some that charge little surcharges. Before you book your next reward flights, keep this list handy and avoid those airlines that charge you.

Avoid – Skyrocketing Surcharges

Air Canada, ANA, Asiana Airlines, Austrian, Lufthansa, Thai Airways

Little Surcharges

Air New Zealand, LOT, TAP

No Surcharges

Aegean, Air China, Air India, Avianca, Brussels Airlines, Copa, Croatia, EgyptAir, Ethiopian Airlines, Eva Air, SAS, Shenzhen, Singapore Airlines, South African Airways, Swiss, TACA, Turkish Airlines, United

Here is an example to illustrate. I searched today, April 3, 2016, for a business class one-way flight from Toronto to Singapore on November 1, 2016. This journey is covered by Air Canada and Thai Airways, requiring 77,500 Aeroplan miles. Because both of these airlines charge surcharges, this free flight is going to cost you a staggering $943.06 to pay surcharges.

Now, if you have taken the same trip on Turkish Airlines, which does not charge surcharges, your cost will be only $61.56.

If you have taken the same trip covered by Air Canada and Singapore Airlines, your cost will be $583.86 because Singapore does not charge anything for its portion, but Air Canada is charging its fees.

So there is no reason to avoid the Aeroplan rewards program. All you need to do is know how this program works and use careful planning to get the most out of it.

What Is Rent To Own?

The Rules of Rent To Own In Canada

First Published Date: April 22, 2016

When you want to rent-to-own within Canada, there are some things you need to be aware of before venturing down that road. First, a bit of an explanation of what rent-to-own actually is. Rent-to-own is an agreement where a rental lease and purchase agreement between a tenant and owner is put in place to purchase the property at a fixed price at a specified point of time. With rent-to-own, you agree that five years down the road, you will purchase the house for the price that it is valued at when you reach that point. When you pay rent on the house, the rent goes towards the value of the house, hence the term rent-to-own. So, you pay each month towards the payment of the house, then you buy the house for what it is worth at the point when the term ends.

As the renter, there are many reasons that a rent-to-own property would be a good idea for you. Obviously, the biggest benefit is if you have bad credit and want to buy a home but need to improve your credit first. As well, if you don’t have much money at this moment, or you don’t have a large down payment, then rent-to-own is a very good idea.

In regards to your down payment, the owner of the property is required to accept the down payment that you have. There is no minimum amount, within reason, and that is a big benefit of the rent-to-own system. The down payment typically will be two month’s rent on the home. So, if you are paying $1,000 per month, then you will pay $2,000 as a down payment. Obviously, the more of a down payment you have, the less you will pay for the house over the course of the terms.

The rent you pay is going to pay off the home. Each month that you put money into the bank for rent, you are paying off your home. Typically, you will have a term that is going to be five to ten years. Each month that you pay rent, you pay off the home towards the end of that term. Once the term is over, you then buy the home with a mortgage. Here is an example to help you. So, you agree with the seller that you will rent-to-own for five years at $1,000 per month. Over that five years, you pay off $60,000. That leaves $240,000 on the mortgage, minus your $2,000 down payment. At this point, you need to get a mortgage for $238,000.

Lastly, you need to agree on a price with the seller. The price you pay will depend on the market. When the market is up, you pay more. When the market is down, you pay less, it is as simple as that. Once you agree upon a price with the seller, the seller is committed to that price no matter if the value of the house changes. This can be good if the value goes up but bad if the value goes down.

Before getting into any rent-to-own program, always do your research and make sure this is the best option to be a home owner based on your situation.