Weekend reading: rental property, odds of a tragedy, and more

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Hi everyone and welcome to weekend reading, where we share some of the best posts we read over the past week. We hope you enjoy them as much as we did. If you haven’t already, please consider following us on TwitterFacebook, and Google+, where we share the latest in personal finance, debt, retirement, insurance, tax and investments.

Personal Finance

Robb from Boomer and Echo has a new look on the RRSP vs mortgage debate. He argues that because RRSPs can be used as an emergency fund compared to the lack of an emergency fund with a paid down mortgage, you shouldn’t put all your eggs in one basket and solely pay down your mortgage, while ignoring your RRSP.

When it comes time to pay tax, businesses use CCA to account for the depreciation of assets. Dan at Our Big Fat Wallet explains the basics of how CCA is calculated.

Ian McGugan of the Globe and Mail weighs the pros and cons of rental property as a source of retirement income. The benefit is that income is received in perpetuity with a good tenant, and can increase with the pace of inflation, providing more income than a traditional annuity. Of course when it comes to rental properties, the negative is having bad tenants or not having any at all. There is also the hassle of maintenance, which may pose a problem as you get older.

Investments

Jonathan at MoneySense explains how diversification benefits your portfolio by looking at the performance of different asset classes over the years. The basic concept is that winners rotate, and because the winners in a particular year are hard to predict even by financial professionals, you should diversify your portfolio so you can participate in the gains of each year’s winners.

John Heinzl of the Globe and Mail lists five mistakes dividend investors make.

Insurance

Here at AAFS Insurance, we looked at the odds of a tragedy occurring. During our working years, there is a high probability of either death, disability or critical illness affecting you or your spouse. Do you have the proper protection in place in case any of them occur?

LSM Insurance discusses the maximum amount of life insurance you can apply for. For amounts higher than $500,000, you will likely have to disclose your financial information, including your salary and net worth. LSM say that if you are uncomfortable with this, you can choose an insurer that does not require financial or medical information.

Life-quotes.ca shares valuable information about underwriting for people with hypertension. Typically, insurance companies will scrutinize factors such as medication, treatment, age and the presence of other health issues to determine the underwriting decision.

We hope you enjoy the reads this weekend and be sure to check back next week for a new post. Subscribe to our weekly newsletter on the right side of the page so you don’t miss a single post!