Archive for April, 2013

10 Tips for Shopping at a Thrift

One of the best ways to live a frugal lifestyle is to make shopping at a thrift store part of your regular shopping regimen. Thrift stores feature items that have been used before. This can include anything from dishes to clothing to books to furniture to toys. These used items are often in reasonably good condition, and can be found at very low prices. Shopping at a thrift store can be a great way to save money, while acquiring items that you need.

Here are 10 tips that can help you better shop at a thrift store:

  1. Show up on stocking days: Many thrift stores have a particular day of the week that they put out new merchandise. Find out what that day is, and show up then to get first pick of the latest deals.
  2. Search for quality: This is especially true with clothing. You might be surprised at the name brand, high quality items some people are happy to part with. Keep your eyes open for items you know are of good quality.
  3. Make a list: You want to be prepared with a list. Even though impulse buying at the thrift store is probably not as bad as when you are paying full price on an impulse purchase, those little surprises can add up. Be sure that you know what you want, and make a plan for what to buy.
  4. Return until you find what you want: Don’t assume that the thrift store is a bust if you don’t find what you are looking for on your first excursion. Check back over time, looking for what you want. Chances are that, eventually, you will find what you are looking for.
  5. Watch for sales: Even thrift stores have sales. Some offer “fill a bag” promotions, “clearance” sales at the end of the season and other sales. This is a great way find even deeper discounts on thrift store merchandise. And, while thrift store shopping works well without coupons, you can also look for thrift store coupons for bigger savings.
  6. Shop during the week: Weekend shoppers are out in force from Friday evening until Sunday evening. Avoid the crowds and avoid competition for the best finds by visiting the thrift store during the week.
  7. Ask about store credit: Some thrift stores only accept donations, but others also accept consignment items and will give you store credit for what you bring in. Find out about the policies at your local second hand store of choice. If you can get store credit for what you bring in, that can be a great way to save a little more.
  8. Be careful about overdoing it: It can be very tempting to go a little crazy at the thrift store, buying several things at once. Stick to your plan, though. If you only need three dress shirts, don’t go nuts and buy 10 or 11. Remember that a frugal lifestyle is about moderation.
  9. Plan to take awhile: A trip to the thrift store is likely to take awhile, since you will probably have to dig around a little. Be prepared to take around an hour — or more. This means that perhaps you leave the kids at home for a serious trip to the thrift store.
  10. Don’t forget to donate!: Finally, you want the thrift store to keep going. If if you don’t get store credit, you should still donate some of your unneeded items as well. Keep the cycle going, and provide great deals for others, just as they are providing them for you.

via 10 Tips for Shopping at a Thrift Store.

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Alter ego trust can help protect your assets.

 

A will is the traditional way to distribute your assets upon your death.

 

But it may not be the best estate planning tool for you. Depending on your circumstances, an alter ego trust or joint spousal or partner trust could be a better choice.

 

When assets pass under a will, probate fees must be paid. In B.C., where probate taxes are the second highest in Canada (1.4 per cent of estate values over $50,000 — about $14,000 per $1 million of estate value), these can be hefty.

 

Also, a child or spouse (including a common-law spouse) unhappy with their share of the estate can attack your will under the Wills Variation Act. They can ask the court to change the terms of the will. If the court concludes that your will doesn’t adequately provide for the proper maintenance and support of the disgruntled claimant, the court can vary your will and order whatever distribution it thinks is “adequate, just and equitable.”

 

This is where trusts can be useful. Assets in a trust don’t form part of your estate (the trust owns the assets) and therefore do not pass under your will. This means no probate fees are payable in relation to these assets, and the assets are not subject to claims under the Wills Variation Act.

 

But one of the problems in the past with setting up a trust that takes effect while you’re still alive is that it generally triggered a tax liability for any accrued capital gains on property transferred to the trust (other than your principal residence, which is exempt from capital gains tax).

 

Enter alter ego trusts and joint spousal or partner trusts. Since 2000, you have had the option of creating an alter ego or joint spousal trust without attracting any immediate tax consequences. You can transfer property to an alter ego trust or joint spousal or partner trust without triggering any capital gains tax.

 

You must be 65 or older to set up one of these trusts. With a joint spousal or partner trust, your property and assets are transferred into the trust, but you still have the use of your assets and continue to receive income on the trust assets. On your death, the assets pass to your spouse or partner according to the terms of the trust. An alter ego trust is similar but is for people who don’t have a spouse. After your death, the assets pass to the named trust beneficiaries.

 

Read the rest of the article at canada.com Alter ego trust can help protect your assets.