A Money Coach in Canada

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If ever you wanted fine art, now is the time: Revival Art in gastown is having a moving sale. The art is going for up to 85% off. These are genuinely incredible deals.

Store hours: Thur, Fri, Sat 9am – 9pm

Location: 359 Water Street.

And! A really fun one – LUSH salutes single parents with this special offer:
SPLL Survival Kit

And for something completely different, these men’s boots, great condition, $50 cdn care of 10 on Wednesday.dscn0022-6-1.JPG

Ask an Accountant is provided by Your Money by Design’s stellar accountant, the inimitable Mindy Abramowitz. We’re happy to have her here each Wednesday! Have a question? Want more info on the post? Leave a comment!

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Maybe you are applying for a credit card, a loan or a mortgage, or maybe you are just trying to get a handle on your personal finances. Where does your car belong in the financial picture?

Although it costs you money, and occasionally grief, your car itself is an asset. Anything you own that can be sold for cash counts as an asset. Even a beater can be sold for parts; and, whether it seems like it or not, it contributes to your net worth.

It’s all the other stuff car ownership entails that leads to confusion. Fuel, repairs, insurance and lease payments are all expenses – that is, costs of owning a car. A car loan is a liability, or debt. Loan interest is another expense. And let’s not forget depreciation – a car loses value from the moment you drive it off the lot. The longer you own a car, the more you will have to budget for future repairs (also a liability!) and the lower its potential selling price.

So a car may be an asset, but it’s one that incurs expenses and gives rise to liabilities over time.

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So in 1992 the top 5% of Canadians had 21% of the wealth.  As of 2004, they have 25%, according to a stats can release a couple days ago.  The rest of us middle-income earners haven’t had much of a change.

More intriguing stats:

To be in the top 5%, you need an annual income of $89K. (in the US, you’d need $165K)

1 in 4 of the top 5% is a woman.

If you’re tempted to be bitter, take some consolation – the top5% paid 36% of the taxes CRA received.

Huge disclaimer: I am a Canadian money coach. I help people with the day-to-day financial issues like monthly cashflow/budgeting, getting out of debt, relationship with money. I am NOT a credentialed financial planner so today’s post is not professional advice – in fact, it’s not advice at all. It’s simply what I am going to do as someone who makes her own investment choices (and does a fine job, if I might add).

Here are 3 stocks I like:

Apple logo

  1. Apple. After a lifetime of being on the fringe, dwarfed entirely by Microsoft, I believe they are going to take giant strides into the market – and not just the pc market, the electronics market. The Ipod, safari for windows, and the hype around the iPhone: all these are some pretty mighty thrusts into the imaginations and wallets of the market. I think this will continue into exponential growth, and that purchases of imacs and macbooks will rapidly increase over the next 3 years as well.
  2. Bank of America. They give dividends of 5%. If the US lowers their interest rates in response to the credit crunch, this 5% will look increasingly attractive in comparison – plus, it’s a bank stock so the underlying asset will increase in value as well.
  3. Timminco. These guys (Canadian) make solar grade silicon metal – used for alternative (solar) energy. They’ve got solid contracts already in place plus a market with more demand than supply.

That’s what I’d do – after triple checking their balance sheets etc. – but repeat after me: Nancy is not a financial planner or advisor.  This is not official advice.  It’s just a peak into her own personal portfolio.  She may regret any one of these purchases, if things don’t play out as planned!

So this isn’t exactly about money, although there’s $25 for grabs, and there’s lots of free stuff a blogger (ahem, like me) could win. David Airey has put together a luscious contest celebrating his 1 year anniversary of blogging.

Prizes include:

  1. A unique wordpress theme for your blog by Nate Whitehill
  2. A personal advertising/marketing plan by DoshDosh (I’m participating just for this!)
  3. One year free hosting by I Love Typography (this site is the loveliest I’ve seen, ever, but I’m a typography freak too. Can’t make it, can’t design it but know and appreciate it when I see it)
  4. A signed book by Lorelle, as in WordPress Lorelle.

And that’s just the first prize. I’m personally hoping for a prize down the list – free membership to Andy Beard’s members only site. (oh please, oh please).

If you’re a blogger and want to enter, here are the contest details. (but share some of the loot you win with me, will you?)