Money Management All-in-one-desk Reference for Canadians for Dummies, 2nd Edition

834 Pages·2008·6.36 MB·English

by  Heather Ball

Spine: 1.625”
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aged and safe from taxes
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adventure with everything you need to be successful (cid:127) Buying and Selling a Home
(cid:127) Investing Essentials
“An indispensable reference guide.”
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—Mike Gillespie, Canwest News Service (cid:127) Retirement Planning
(cid:127) Estate Planning
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$44.99 CN
Andrew Bell is a host on Business News Network. Andrew Dagys and Andrew Bell
ISBN 978-0-470-15428-1
Paul Mladjenovic co-wrote Stock Investing For Canadians For Dummies. Andrew Dagys and Paul Mladjenovic
Tony Ioannou and Heather Ball co-wrote Buying and Selling a Home For Tony Ioannou with Heather Ball
Canadians For Dummies. Margaret Kerr and JoAnn Kurtz are lawyers Margaret Kerr and JoAnn Kurtz
Ball, Bell, Dagys, Ioannou,
and entrepreneurs. John Lawrence Reynolds is a best-selling author. John Lawrence Reynolds
Kerr, Kurtz, Mladjenovic,
Kathleen Sindell is a professor and consultant. Kathleen Sindell
Reynolds, Sindell
01_154281-ffirs.qxp 7/30/08 9:09 AM Page i
Money
Management
For Canadians
ALL-IN-ONE DESK REFERENCE
FOR
DUMmIES
‰
2
ND EDITION
01_154281-ffirs.qxp 7/30/08 9:09 AM Page ii
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Money
Management
For Canadians
ALL-IN-ONE DESK REFERENCE
FOR
DUMmIES
‰
2
ND EDITION
by Heather Ball,Andrew Bell,
Andrew Dagys,Tony Ioannou,
Margaret Kerr,JoAnn Kurtz,
Paul Mladjenovic,John L.Reynolds,and
Kathleen Sindell
01_154281-ffirs.qxp 7/30/08 9:09 AM Page iv
Money Management For Canadians All-in-One Desk Reference For Dummies®, 2nd Edition
Published by
John Wiley & Sons Canada, Ltd.
6045 Freemont Boulevard
Mississauga, ON L5R 4J3
www.wiley.ca
Copyright © 2008 by John Wiley & Sons Canada, Ltd. All rights reserved. No part of this book, including interior
design, cover design, and icons, may be reproduced or transmitted in any form, by any means (electronic, photo-
copying, recording, or otherwise) without the prior written permission of the publisher.
Library and Archives Canada Cataloguing in Publication Data
Money management for Canadians all-in-one desk reference for dummies / Heather
Ball ... [et al.]. — 2nd ed.
Includes index.
First. ed. published 2003 under title: Money management for Canadians all-in-one desk reference for dummies.
ISBN 978-0-470-15428-1
1. Finance, Personal—Canada. 2. Investments—Canada. 3. Retirement—Canada—Planning. 4. Estate plan-
ning—Canada. 5. Small business—Canada—Planning. I. Ball, Heather II. Title: Money management for Canadians
all-in-one desk reference for dummies.
HG179.M653 2008 332.02400971 C2008-902112-6
Printed in Canada
1 2 3 4 5 TRI 12 11 10 09 08
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01_154281-ffirs.qxp 8/8/08 12:59 PM Page v
About the Authors
Heather Ballis a writer and editor. She has worked on book projects covering
topics such as genealogy, cooking, and small business Internet technology.
She’s also the author of two non-fiction books for children.
Andrew Bellwas an investment reporter and editor with the Globe and Mail
for 12 years. He joined the Business News Network as a reporter in 2001. Bell,
an import from Dublin, Ireland, was for 10 years the main compiler of Stars &
Dogs in Saturday’s Globe. The roundup of hot and damp stocks and mutual
funds was an invaluable therapeutic aid in relieving his own myriad jealousies,
regrets, and resentments. He lives in Toronto.
Andrew Dagysis a bestselling author who has written and co-authored
several books, including Investing Online For Canadians For Dummiesand
Stock Investing For Canadians For Dummies. He has appeared on Canada AM
and several CBC broadcasts to offer his opinions on the Canadian and world
investment landscape. He lives in Toronto with his wife, Dawn-Ava, and three
children — Brendan, Megan, and Jordan. Andrew looks forward to your com-
ments, and can be reached at aj@@[email protected].
Tony Ioannouis a senior associate and manager with Dexter Associates Realty.
Tony obtained his real estate licence in 1984, and has consistently been a top
producing salesperson with NRS Block Bros., and with Dexter Associates
Realty since 1990. In 1990 he obtained his agents (brokers) licence, but contin-
ues to enjoy working as a residential real estate sales person primarily on the
West Side of Vancouver. He has also worked as a division director for the Real
Estate Board of Greater Vancouver. Tony was born and raised in Sydney,
Australia, and immigrated with his family to Vancouver in 1973. He has lived in
Vancouver’s Kitsilano neighbourhood for over 25 years and is an avid mountain
biker, motorcyclist, and golfer.
Margaret Kerr and JoAnn Kurtzare lawyers, and they are also both
entrepreneurs — and they have the bumps, bruises, and scars to prove it.
Occasionally, they find they have a minute of free time here and there, and
that’s how they came to be the authors of, among other books, Canadian
Small Business Kit For Dummiesand Wills and Estates Planning Kit For
Canadians For Dummies.
Paul Mladjenovic has over 22 years’ experience writing and teaching about
common stocks and related investments. He maintains a financial database
for his readers and students at www.supermoneylinks.com.
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John Lawrence Reynoldsis a native of Hamilton, Ontario, and a graduate of
McMaster University. He has won several awards for his writing, including
two Arthur Ellis awards for Best Mystery Novel. His book Free Rider: How a
Bay Street Whiz Kid Stole and Spent $20 Millionwon the 2002 National
Business Book Award. Mr. Reynolds lives in Burlington, Ontario.
Kathleen Sindellis an instructor at the John Hopkins University MBA Program
and is the founder of a firm that provides consulting and authoritative publi-
cations about management, finance, and real estate in the e-commerce
environment.
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About the Technical Editor
Christopher Cottier, BSc, MBA,is a senior investment advisor based in British
Columbia. In 1982, he left the world of banking to join the investment industry in
Vancouver so he could continue to pursue his love of rugby. More than twenty-
five years later, he’s still managing money and playing rugby. With Betty Jane
Wylie, Christopher is the co-author of The Best Is Yet to Come: Enjoying a
Financially Secure Retirement,a pioneering Canadian book on financial planning.
Christopher was ably assisted by Daniel Quon, BA, who has been awarded the
Queen Elizabeth II Golden Jubilee Medal.
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Publisher’s Acknowledgements
We’re proud of this book; please send us your comments at [email protected].
Some of the people who helped bring this book to market include the following:
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(www.the5thwave.com) Layout and Graphics:Stacie Brooks,
Carl Byers, Reuben W. Davis,
Joyce Haughey, Melissa K. Jester,
Erin Zeltner
Proofreaders: Laura L. Bowman, David Faust,
Caitie Kelly
Indexer: Cheryl Duksta
John Wiley & Sons Canada, Ltd.
Bill Zerter,Chief Operating Officer
Jennifer Smith, Vice-President and Publisher, Professional and Trade Division
Publishing and Editorial for Consumer Dummies
Diane Graves Steele, Vice President and Publisher, Consumer Dummies
Joyce Pepple, Acquisitions Director, Consumer Dummies
Kristin A. Cocks, Product Development Director, Consumer Dummies
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Publishing for Technology Dummies
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Composition Services
Gerry Fahey,Vice President of Production Services
Debbie Stailey,Director of Composition Services
02_154281-ftoc.qxp 7/30/08 9:07 AM Page ix
Contents at a Glance
Introduction.................................................................1
Book I: Taking Stock of Your Financial Situation.............7
Chapter 1:Your Financial Snapshot.................................................................................9
Chapter 2:Setting Financial Goals..................................................................................23
Chapter 3:Distinguishing Needs from Wants...............................................................33
Chapter 4:Saving Smartly...............................................................................................43
Chapter 5:Spending Wisely............................................................................................49
Book II: Money Management Basics.............................59
Chapter 1:Getting Credit (Where Credit Is Due)..........................................................61
Chapter 2:Getting Into Debt...........................................................................................69
Chapter 3:Getting Out of Debt.......................................................................................85
Chapter 4:Budgeting and Record Keeping.................................................................113
Chapter 5:Planning for the Inevitable: Taxes.............................................................137
Book III: Home Sweet, Home Free..............................145
Chapter 1:Deciding to Buy...........................................................................................147
Chapter 2:Discovering Your Perfect Home................................................................173
Chapter 3:Getting the Home You Want.......................................................................201
Chapter 4:Deciding to Sell............................................................................................221
Chapter 5:Preparing to Sell Your Home......................................................................243
Chapter 6:Sealing the Deal...........................................................................................261
Book IV: Investment Fundamentals............................289
Chapter 1:Setting Realistic Goals and Expectations.................................................291
Chapter 2:Your Savings Choices: Savings Accounts,
Tiered Accounts, and GICs.........................................................................................299
Chapter 3:Stocks, Bonds, Mutual Funds, and Real Estate........................................305
Chapter 4: Monitoring Your Progress..........................................................................327
Chapter 5: Becoming an Effective Investor.................................................................337
Book V: Making Your Investments Work for You..........345
Chapter 1: Buying Mutual Funds..................................................................................347
Chapter 2:Types of Mutual Funds...............................................................................373
Chapter 3: The Essentials of Stock Investing..............................................................395