Skip to main content

Monthly Archives: May 2011

Older posts

How Would You Spend The Last Days of Your Life?

Posted on by 3
doomsday, preparation, last days

Doomsday did not come on May 21.  However, that didn’t stop people, the followers of Harold Camping, from giving away their entire life savings to Harold Camping in hopes of eternal rapture.  I thought these stories were crazy, but maybe that is just me.  If you thought that the world was definitely going to end how would you spend your last few days alive on Earth?

Harold Camping is a self proclaimed Doomsday profit who predicted that the world would end on May 21 with a series of fatal natural disasters.  He has tens of thousands of fans and followers who tune in to his radio show that is broadcast on more than 50 different radio stations.

A San Francisco Newspaper reported that followers of Harold Camping quit their jobs, sold all of their personal possessions, and spent their (supposedly) last few days on Earth taking luxurious vacations.  Other sources reported that people stopped paying their bills, sold their homes, and even committed suicide prior to the predicted events on May 21 in order to avoid a possible painful death.

I personally don’t believe that anyone can predict the exact date and time that the world will end.  However if it comes down to it, here are a list of things that I would and definitely would not do if it was the end of the world.

Five Things That I Would Not Do:

  1. I would not quit my job.  If it really was the end of the world no one would have need for a bank or a financial planner and therefore I am sure the bank would be closed.
  2. I would not make plans for the future (just in case).  The lists of things to do in my life would definitely stop.
  3. I would not sell my house, because no one would need it. If it really was the end of the world it would definitely not be a seller’s market.
  4. I would not spend all of my life savings because there wouldn’t be enough time for me to enjoy the money.  If I was going to spend my lifesavings it would be to travel around the world and experience new things, and there just wouldn’t be time for that.
  5. I would not give away my money.  Nobody would need it if we are all going to be dead in a week.  I am not sure why people gave their life savings to Harold Camping because if the end of the world was supposed to be May 21st he would have no need for the money.

Three Things That I Would Do:

  1. I would spend time with my family.  In case it really was the end of the world I would like my last moments to be spent with loved ones.
  2. I would make peace with all of my personal troubles and inner demons.  No one is perfect but I would ask for forgiveness before I enter into the afterlife.
  3. I think that I would hope and pray that it really wasn’t the end of the world because there is still so much more that I want to do in my life.  However, I would also pray that I wouldn’t suffer during the rapture and that I would be with my family in the afterlife.

Preparing for the end of the world is definitely different than preparing for our own death.  We don’t need to get all of our finances and insurance policies in order because there is no one left behind.

How would you spend your last days on Earth before the end of the world?

Photo by CTBTO

I Got Robbed… Again!!!

Posted on by 1
getting robbed, bank robbers

That’s right! Last Monday my bank branch got robbed…again. It was exactly the same time and day as the previous week.  I hope this doesn’t mean that every Monday at 11:30 am we are going to get robbed.

I honestly do understand why someone would rob a bank; the reward is definitely not worth the risk.  On both occasions the bank robber walked away with less than $2500.  Both bank robbers were apprehended by the Police and now they are going to jail and bad things are going to happen to them.  This bank robbing duo should have just looked for regular jobs because they could have made $2500 in a couple of weeks, and their income would be sustainable.

It is rumoured that our two bank robbers were brother and sister. My branch manager made a joke that the sister robbed our bank branch because she needed bail money for her brother who was put in jail last week.  We can now joke about the situation because no one was hurt and both bank robbers were caught by the Police.

It was my 4th bank robbery but my first time (at the bank) being interviewed by a Detective.  It was also the first time that my bank branch has been robbed by a woman. She was apprehended by Police the day after the robbery.  The key eye witness? A Taxi Cab Driver.  Last week the female bank robber arrived and left our bank branch in a Taxi Cab.  Needless to say the Taxi Cab Driver provided a description of the female bank robber as well as her home address where he picked her up as well as the address where he dropped her off after the robbery.

There are two things, actually 3 things that I really hate in life. The first is people who use and abuse their power to take advantage of other people.  This usually includes men who attack women and adults who hurt children; however it now includes bank robbers.  The second thing that I really hate in life are people who feel that they have the right to something that is not theirs, this usually includes people who collect welfare as well as people who demand alimony; however this now includes bank robbers.  The third thing that I really hate in life is people who don’t shower and feel it is ok to go out in public unwashed.

I am honestly not sure why people rob bank branches, other than the fact that they don’t get a lot of money, the odds are very high that they will be caught by Police.  Our particular bank branch has 2 security guards present at all times throughout the day.  They don’t have weapons, but having security guards present should be an intimidation tactic; I guess it’s not working. The possibility of being robbed is always a risk that we accept as bank employees, thank goodness usually no one is hurt.

I know that easy access to money may be tempting for some people, but honestly robbing a bank branch is really not worth it.

Photo by Emily Dickenson

Friday Roundup: Let’s save some money

Posted on by

Happy Friday DINKS! I hope you all had a great week.  Today we are discussing different and easy ways that we can save money.  This includes changing our mentality and taking the time to shop around and find the best deal. Sometimes the effort to try and save money should be taken to the extreme and we should just stay at home.

I personally try to save money by sticking to my personal budget.  This year my goal is to want less.  If I want less then I will spend less, and therefore I will save more money.

FOX News feels that we should always save at least 10% of our pay check.  They list moving back in with our parents as a way to save money.  I believe that if we cut down on all major expenses which include our housing costs, transportation costs, as well as food we can save money.  Moving in with our parents may be a way for us to save on our housing costs.  However it could also include renting out a room in our home or turning our basement into a bachelor apartment and renting it out.

Here are some great posts from around the web about different ways to save money:

  • The Simple Dollar talks about the need to always want nicer things when we have money in the post The Danger of the Rich Act.
  • Moneyville says that the inflated prices of gas and other commodities should automatically prevent us from spending money in the post Gas Price Keep Us Home This Weekend.
  • Money Crashers advises us to save money by shopping around for the best deal in the post The 5 Best Online Tech Deals Sites to Save Money on Discount Electronics.
  • Get Rich Slowly answers a readers question about the moral implication of just spending money on stuff in the post Ask the Readers: But What If I am Materialistic?

Photo by Razor 512.

 

What is the International Monetary Fund, and Who is Dominique Strauss-Kahn?

Posted on by 4
International monetary funds, Dominique Strauss-Kahn, money scandals

foreign currencyOver the last week, CNN and many other news channels around the world have been reporting on the arrest and investigation of the sexual assault allegations against (now former) International Monetary Fund Chief Dominique Strauss-Kahn.

Who is Dominique Strauss-Kahn?

Dominique Strauss-Kahn is a French Economist and Banker who recently resigned as Chief of the International Monetary Fund.  On May 14th Dominique Strauss-Kahn was accused of attacking a maid on May 14, 2011 in the Sofitel Hotel in New York City.

The charges against Dominique Strauss-Kahn are two counts of criminal sexual act, two counts of sexual abuse, one count each of attempt to commit rape, unlawful imprisonment, and forcible touching.  Strauss-Kahn is married to Anne Sinclair who has been referred to as the French Barbara Walters.  Both she and her husband are very public figures in France and around the world.

Dominique Strauss-Kahn was in the 4th year of his 5 year term as Chief of the International Monetary Fund.  He recently resigned his position after the news of his sexual assault allegations hit the media worldwide.  Dominique Strauss-Kahn leaves behind an annual salary of over $400,000, as well as a very lucrative travel allowance.

Even though Strauss-Kahn maintains his innocents on all charges, he still resigned his position as Chief of the International Monetary Fund. The IMF will give Strauss-Kahn a departure severance of $250,000 along with an annual pension.  It is definitely a profitable package in the eyes of most people but is a huge pay cut for someone who maintains their innocence.

Strauss-Kahn was arrested at JFK airport in New York on sexual assault charges on Saturday May 14th and released on bail Thursday May 19th.  He is now confined to house arrest in a New York City apartment as he awaits his next court date, which is set for June 6.  His Bail conditions included $1 million in cash as well as $5 million in bonds. Dominique Strauss-Kahn was also required to surrender all of his travel documents.

What is the IMF?

The International Monetary Fund was created in 1944 towards the end of the Second World War to help rebuild global economies from devastation.  Its goal is to promote global monetary cooperation with fair exchange rates, facilitate international trade to ensure that countries can easily transact with each other, as well as promote sustainable economic growth, and reduce poverty around the world.

It is headquartered in Washington DC with approximately 2500 staff members from 160 countries.  There are currently 187 member countries of the IMF.  If a country wishes to become a member of the IMF they are given a quota which dictates their financial contribution, their voting rights, as well as their percentage as a stakeholder in the IMF.

The International Monetary Fund also lends money to its member countries that are experiencing financial difficulties in hopes of rebuilding or stabilizing their economies.  Recent IMF projects include a loan of 26 billion Euros to Portugal to support economic growth and $30 billion US Dollars of financial assistance to Ireland.

What is next for the IMF?

The IMF committee hopes to select the next Chief by the end of June. As for now all processes are business as usual.  The next Chief of the IMF will be voted in by a committee from a pool of nominated candidates.

The European Union currently holds the largest share in the IMF and therefore it is rumoured that they would like to see the new leader of the IMF emerge from Europe.  However, some speculators feel that the new IMF chief should be from an emerging or developing country such as Brazil, India, China, or South Africa. It is interesting to note that of the past 10 IMF 4 of them had been French like Dominique Strauss-Kahn.

Do you think the choosing of the next IMF Chief should be a political decision or it should honestly just be the best person for the job?

Photo by Public Domain Photos

Segregated Funds

Posted on by
segregated funds, investment options, types of investment

In the past on DINKS Finance we have discussed various investment products such as Mortgage Backed Securities, Discount Brokerage Services, as well as Junk Bonds. Today we are going to explore a not so common type of investment.  The reason I say that Segregated Funds are a less common type of investment is because they are only offered through Insurance companies.  Segregated Funds are not offered in mass by financial institutions.

Segregated Funds are the perfect balance between a life insurance contract and a mutual fund. They are similar to a mutual fund because Segregated Funds are a pooled investment with a daily valuation.  Investors purchase units of a Segregated Fund just as we do a Mutual Fund.  We invest our money into a Segregated Fund and it is mass managed by a professional fund manager.

Segregated Funds are similar to a life insurance contract because they can offer a guaranteed rate of return or guaranteed value upon maturity. Segregated Funds offer a potential death benefit upon death of the investment owner which is similar to an insurance contract.  Segregated Funds are usually purchased for a fixed number of years with a maturity date; this is similar to a term life insurance policy.

The Benefits of Segregated Funds

Professional Management. The money that we invest into Segregated Funds is actively managed by a professional fund manager.  They buy and sell assets within the fund based on the current market conditions as well as the investment objectives of the Segregated Fund.

Portfolio Diversification. Segregated Funds offer a variety of different types of investments with different levels of risk. Segregated Funds invest in a variety of different assets which can include Income investments such as bonds, Balanced Investments, as well as Equity Investments such as Blue Chip Stocks.

Protection against Creditor Insurance. Segregated Funds are not sizeable for professionals or self employed individuals who may be personally liable for malpractice.

Estate Planning Advantages. The beneficiary of a Segregated Fund receives the benefits directly after the plan owner dies.  Benefits from a Segregated Fund do not need to pass through Probate.  This is a great advantage of Segregated Funds because Probate fees can be very costly.

To Learn More About Segregated Funds

Mackenzie Financial offers a Mackenzie Cundill Canadian Security Segregated Fund, a Mackenzie Cundill Canadian Balanced Segregated Fund, as well as the Mackenzie Cundill Value Segregated Fund as part of their fund line up.

RBC Insurance offers a variety of Segregated Funds such as the RBC Balanced Global Fund, the RBC DS Growth Global Fund, as well as the RBC DS Canadian Focus Fund.

 

The Bad Reputation of Pre Nuptial Agreements is Unfair

Posted on by 2
pre-nuptial agreements, misconceptions about pre-nups, bad reputation of pre-nup

People usually give Pre Nuptial Agreements a really bad reputation, but I think that this is undue animosity.  Pre Nuptial Agreements are just like any other business deal; they protect the financial interests of all parties involved, as well as provide security of our individual assets.

Pre Nuptial Agreements reveal the intentions of the two people who are entering into a marriage contract.  Marriage is exactly that, a contract between two people and a Pre Nuptial Agreement is the exact same thing.

I am a big fan of and believer in Pre Nuptial Agreements because they guarantee our money, and ensure that our assets remain ours in case the marriage ever dissolves.  My boyfriend Nick comes from a family with money, and I do not.  If we ever decide to get married I would assume that his parents would encourage me to sign a Pre Nuptial Agreement.  I would have absolutely no problem signing a Pre Nuptial Agreement because that is not my money, nor should it ever be.

I am a strong believer that people are never entitled to something that is not ours.  Nick’s parent’s money is theirs, and someday it may be Nick’s, but it will never be my money.  I don’t understand couples who do not get married because of a Pre Nuptial Agreement, or lack thereof.

People should get married for love or companionship; they should definitely not get married for money. We should enter into a marriage with our own good financial habits, and we should leave a marriage the same way. We should leave a marriage with the same possessions and assets that we brought into it, and nothing more.  We should split the value of joint assets only if they were accumulated together.  I would never expect to give Nick half of my retirement savings, just as I would never expect the right to any of his retirement savings.  We should always treat our money like our marriage; we should cherish the relationship and protect it at the same time.

When people get divorced they shouldn’t be entitled to receive alimony payments. I personally feel that paying alimony to a spouse after a divorce is an unfair expense.  Spousal alimony gives someone the legal right to money that isn’t theirs.  We were an independent financial person before we became a couple, and upon divorce we should return to our original state.

The only time that paying alimony to an ex spouse would be acceptable (in my opinion) is if that spouse is the employer.  In other words, if a spouse stays at home because their job is to take care of the house and kids then they are entitled to some form of compensation.  I feel that a couple should be a 50/50 relationship and therefore each spouse is entitled to earn an income.

I do absolutely believe in child support. If a couple ends in divorce and the children spend the majority of their time with one parent, then the other parent retains financial responsibility for those children.  As a child of divorce I am a strong believer that a child should never suffer because the relationship between their parents ended.  Child support is intended to provide financial assistance for the kids, and it should absolutely be enforced by the law.

 

Can you believe that people still rob banks?

Posted on by 6
bank robbery, bank problems, bank being robbed

lego bank
Last week my bank got robbed.  That’s right for the 3rd time in my 10 year career in the financial services industry my bank branch got robbed.  Can you believe that people still rob banks?  We were recently warned that there was a man robbing various bank branches in the area and to be prepared…just in case.

The three bank robberies that I have experienced did not directly involve me because I work in the offices and not on the front line as a teller.  Bank tellers are always told to comply with all of the robber’s demands and just get them out of the branch as quick as possible.  Bank tellers are not supposed to ask questions or give any signals to other staff that they are being robbed.

Bank Robbery #1

The first bank robbery that I experienced was in my early 20’s.  Each teller had a panic button under their wicket which set off a silent alarm in the branch manager’s office when it was pressed.  When she received the alarm the branch manager told everyone in the offices to shut their door and close their lights, to prevent the bank robber from implicating any more staff members than was necessary.

The robber came in quietly and went directly to the commercial wicket, which is where the most money is held, he obviously did his research.  The bank robber handed the teller a note with instructions, she handed him the money in a bag and he was on his way out of the branch.  To any other client the bank robber looked just like a normal commercial client coming to get change for their business.

After the robbery was over another teller came over to the commercial teller and asked if she was alright because she had just got robber.  The funny thing about that was the commercial teller had not told anyone yet that she was robbed.  It was an inside job and the bank robber was actually the teller’s boyfriend. Needless to say he got caught, and she got fired.

Bank Robbery #2

The second bank robbery that I experienced was almost 2 years ago.  The bank robber came into the branch and waited in line.  When he approached the teller he told her to give him all the money and that he had a gun.  He did pull something out of his pocket, but the teller thought that it was a toy gun.  The teller was taking her time hoping that he would get frustrated and leave (which she is not supposed to do), he told her to hurry up and then he called her a name that rhymes with witch.  The teller was so offended that she decided to give him $5 bills and rolls of quarters.  The bank robber left with less than $1000 in coins and small bills. He was caught less than a week later when he robbed another bank branch.

Bank Robbery #3

Last week was my 3rd bank robbery experience, but it was my first experience with the crime scene investigator.  She didn’t look anything like Catherine Willows or Sarah Stokes from the popular CBS Television Show.  She was wearing coveralls, a hairnet, flat shoes, and a doctor’s mask.  She was working alone but she was accompanied by two police officers, one of who ended up taking a mortgage with our bank by the time the day was over.

Facts about Bank Robberies

  • If your bank is “closed for maintenance” or had a “power outage” they probably got robbed.
  • Bank Robbers don’t really get that much money because tellers do not keep a lot of cash in their drawers, for this particular reason.  Most bank branches have one centralized machine that dispenses money or only one teller who controls all of the money on the floor.
  • Banks have pre prepared “robbery bags” that we give to bank robbers.  The bills may not be sequenced but they have been previously identified and will be flagged if the bank robber ever spends the money.
  • The “robbery bag” no longer contains ink to destroy the money because banks cannot take the chance that the bank robber will return in an angry rage and possibly become violent.  The “robbery bag” controls the amount of a potential loss.
  • The days of wearing ski masks and coming in with weapons are over; nowadays bank robbers wait in line and appear to be a “normal” client. They are definitely nothing like you see in movies such as Takers and The Town.

The next time you are in line waiting to be served by a teller at your bank, look around.  The person standing in front of you or behind you may be in line to rob your bank.

More great articles you may find interesting:

Photo by Pasukrau

Friday Roundup: It’s Time To Buy a House

Posted on by 2

Happy Friday DINKS!  It’s May and that means that house hunting season has begun.  The spring is a popular time to buy a home because the cold winter weather is long behind us, and the hot sweaty summer has not yet begun.

Are you planning to buy your first house or another house this Spring? If so then you may want to check out the links below that discuss everything about the process of buying a home, from looking for a good Real Estate Agent to whether home ownership is really a good investment for you.

Like most personal finance decisions, real estate is a personal investment and a personal choice.  While buying a home may be the right decision for one investor, it may not be the right financial decision for another investor.  Some investors choose to buy several properties that provide them with regular revenue, while other investors prefer to buy only their primary family home.  For some investors a single family home may be the right purchase for them, and for other investors a condo may be the smarter financial decision.

Check out these posts that we found around the web that discuss everything about buying a home:

  • Money Crashers tells us How to Find a Great Real Estate Agent You Can Trust
  • Green Panda Tree House gives us 5 Steps to Buy a House Soon
  • DINKS discusses Working with a Real Estate Pro When Buying a Home with a post by our friend Laura Adams
  • The Financial Blogger offers an alternate opinion as he tells us Why Real Estate May Not Be The Greatest Investment
  • 50 Plus Finance gives us tips on How to Avoid The Dreaded 6% Real Estate Commission

Photo by Delta Mike

Savings Tips from FOX News

Posted on by
saving tips, saving advice, money tips

Last Thursday night I was watching the 6:00 pm Fox News and I have to admit that they had some interesting savings tips that I wanted to share.

Savings Tip #1

Fox News said that if students want to save money after college it is definitely an acceptable practice to move back in with our parents after we graduate.  After my first year in university I took a year off and moved back in with my Dad in an effort to save money.  I worked two jobs for one and a half years, and I saved up enough money to move out on my own and not have to live pay check to pay check while attending university.

Fox News said that 85% of young adults move back in with their parents after college.  However, they also said that the option to move back home with our parents after college is not a standing order.  By 28 years old we should be on our own and out of our parent’s house permanently.  I moved out when I was 18 years old, I went back to my Dad’s house when I was 19, and I moved out again when I was 20 years old, I have been on my own ever since.

Savings Tip #2

Fox News suggests that we always save 10% of our pay check. Whether it is 10% of our gross pay check or net pay check is not important, what is important is the habit of always continuously saving. Saving at least 10% of our pay check is a habit that should be installed in our financial belief system at a very young age.  Parents should ensure that their children are always saving at least 10% of their pay check from their first job, their part time job, or their summer job.

This is a habit in which I usually disagree with because there is no point in saving if we aren’t paying our bills on time.  Very often is the case that people put money in their savings accounts and before they receive their next pay check the money is right back in their checking account. A good financial habit is to save a little more and spend a little less.

Fox News said that it is a good idea to save at least 10% of our pay check, regardless of our expenses, because we are always going to be paying off some form of debt.  Whether we are paying off our student loans, our mortgage, or making monthly payments on our credit cards, we are always paying off something.  Fox News said that we should always save 10% of our pay check because if we were waiting to have no expenses or monthly bills we would be waiting forever.

Fox News also stressed the importance of investing in our 401K. They also noted that we shouldn’t stress too much about the current expensive price of gas.  Fox News notes that gas prices should be lower by midsummer.  That is something I am sure we are all looking forward to!

Photo by Digital Primate

Do Your Parents Have a Mortgage?

Posted on by 5
mortgage stories, parents with mortgage, mortgage advice

The days of couples retiring with a mortgage are a thing of the past.  Nowadays more and more of our parents are retiring with a mortgage on their home.  The days of getting a 30 year mortgage at the age of 25, and having it paid off by the time we retire at 55 is becoming less and less common.  The reason why our parents are so often retiring with a mortgage is because times change along with personal financial personalities, and individual financial habits.

The divorce rate is currently a lot higher now than it was years ago. Divorce is a more popular trend in this day and age, than it was when our parents were our age.  When people get divorced, one or both people in the couple need to move.  Sometimes they choose to rent, but sometimes they choose to buy another home.  This will create a new mortgage later on in their financial life.

My Dad and my (evil) step mother have a mortgage on their home; this is not because of my step mothers divorce, it is because of her bad financial habits.  In the last 9 years my step mother has changed financial institutions twice and paid a pre payment penalty on her mortgage, as well as refinanced three times to consolidate her debt, and pay off the debts of her 40 year old children.  This is an unfortunate financial habit because there is no equity left in their home.  Building equity is often the reason why people buy a home. When we buy a home we want to build equity and increase our profit upon the sale of our home.  No one wants to sell their home just to pay off their mortgage.

The only reason that I ever suggest for my clients to refinance their mortgage is to renovate or upgrade their home. Equity in our homes should only be used to finance improvements or repairs to our home.  It is also a good idea to refinance only when our mortgage is up for renewal, this avoids any additional pre payment penalties. The reason why the equity in our home should be used only to improve our home is because we will get our money back with the increase in the value of our home.

The equity in our home should not be used for the sole purpose of consolidating our consumer debts; even though the interest rates are lower on a mortgage than they are on our credit cards.  Paying off consumer debt does not increase the value of our home; it only creates a larger debt load.  A consolidation loan or a personal line of credit is a better option to help us pay off consumer debt.

It is ok to have a mortgage during retirement if our parent’s retirement income can support the mortgage payment.  Very often people plan for their retirement income to be 60% to 80% of their pre retirement income, depending on their retirement expenses.  Usually our retirement expenses are lower than our pre retirement expenses, but this is not always the case.

Photo by RKramer62

Older posts

Boost Your Brand – Advertise with Us!

Advertise With Us

You cannot copy content of this page