Posts Tagged ‘financial planning’

Insurance you shouldn’t buy | MoneySense.

 

Having insurance falls under Gail Rule #4: Mitigate Your Risks. But “the right kind” of insurance is often confusing for folks. So here are three types of insurance you should skip and save your money.

Mortgage life insurance
If you have a mortgage you’ve no doubt been offered mortgage life insurance by your lender. Don’t buy it. It’s expensive. It’s single-purpose. And it can be denied down the road, since it isn’t “approved” until you try to make a claim, which is not when you want to find out you aren’t covered.

Read more at moneysense.ca Insurance you shouldn’t buy | MoneySense.

Watch out for identity theft

Identity theft has become one of the fastest growing crimes in North America. There are a number of ways identity theft can happen:

  1. Card theft: theft of credit cards from wallets or purses or even newly issued cards from your mailbox.
  2. Shoulder surfing: looking over your shoulder for your Personal Identification Number and using a fake ATM device to read your debit card’s data.
  3. Skimming: using a special device to swipe your credit card at a restaurant or gas station which records the personal information from your card.
  4. Spoofing: creating fake websites or emails that ask for credit card information.
  5. Theft from databases: identity thieves stealing large databases of personal information.

There are steps you can take to protect yourself:

  • Sign all credit cards when you receive them and never lend them to anyone.
  • Cancel and destroy credit cards you do not use and keep a list of the ones you use regularly.
  • Carefully check each of your monthly credit card statements and your bank statements. Immediately report lost or stolen credit cards and any discrepancies in your monthly statements to the issuing credit card company or bank.
  • Shred or destroy paperwork you no longer need.
  • Do not give personal information out over the phone, through the mail, or over the Internet unless you are the one who initiated the contact and know the person or organization with whom you are dealing.

If you are a victim of identity theft, immediately contact your bank or credit card company, your local police and the OPP/RCMP Phonebusters Unit at 1-888-495-8501, E-mail: info@phonebusters.com

http://www.dynamic.ca/eng/learning/Personal-Finances/Consumer-Watch-Out-For-Identity-Theft.asp

The Economics of Happiness – Jeffrey D. Sachs – Project Syndicate.

NEW YORK – We live in a time of high anxiety. Despite the world’s unprecedented total wealth, there is vast insecurity, unrest, and dissatisfaction. In the United States, a large majority of Americans believe that the country is “on the wrong track.” Pessimism has soared. The same is true in many other places.

Against this backdrop, the time has come to reconsider the basic sources of happiness in our economic life. The relentless pursuit of higher income is leading to unprecedented inequality and anxiety, rather than to greater happiness and life satisfaction. Economic progress is important and can greatly improve the quality of life, but only if it is pursued in line with other goals.

In this respect, the Himalayan Kingdom of Bhutan has been leading the way. Forty years ago, Bhutan’s fourth king, young and newly installed, made a remarkable choice: Bhutan should pursue “gross national happiness” rather than gross national product. Since then, the country has been experimenting with an alternative, holistic approach to development that emphasizes not only economic growth, but also culture, mental health, compassion, and community.

Dozens of experts recently gathered in Bhutan’s capital, Thimphu, to take stock of the country’s record. I was co-host with Bhutan’s prime minister, Jigme Thinley, a leader in sustainable development and a great champion of the concept of “GNH.” We assembled in the wake of a declaration in July by the United Nations General Assembly calling on countries to examine how national policies can promote happiness in their societies.

All who gathered in Thimphu agreed on the importance of pursuing happiness rather than pursuing national income. The question we examined is how to achieve happiness in a world that is characterized by rapid urbanization, mass media, global capitalism, and environmental degradation. How can our economic life be re-ordered to recreate a sense of community, trust, and environmental sustainability?

Read the rest of the Article ….

The Economics of Happiness – Jeffrey D. Sachs – Project Syndicate.

Why Free Trade Matters – Jagdish Bhagwati – Project Syndicate.

NEW YORK – Contrary to what skeptics often assert, the case for free trade is robust. It extends not just to overall prosperity (or “aggregate GNP”), but also to distributional outcomes, which makes the free-trade argument morally compelling as well.

The link between trade openness and economic prosperity is strong and suggestive. For example, Arvind Panagariya of Columbia University divided developing countries into two groups: “miracle” countries that had annual per capita GDP growth rates of 3% or higher, and “debacle” countries that had negative or zero growth rates. Panagariya found commensurate corresponding growth rates of trade for both groups in the period 1961-1999.

Of course, it could be argued that GDP growth causes trade growth, rather than vice versa – that is, until one examines the countries in depth. Nor can one argue that trade growth has little to do with trade policy: while lower transport costs have increased trade volumes, so has steady reduction of trade barriers.

More compelling is the dramatic upturn in GDP growth rates in India and China after they turned strongly towards dismantling trade barriers in the late 1980’s and early 1990’s. In both countries, the decision to reverse protectionist policies was not the only reform undertaken, but it was an important component.

In the developed countries, too, trade liberalization, which started earlier in the postwar period, was accompanied by other forms of economic opening (for example, a return to currency convertibility), resulting in rapid GDP growth. Economic expansion was interrupted in the 1970’s and 1980’s, but the cause was the macroeconomic crises triggered by the success of the OPEC cartel and the ensuing deflationary policies pursued by then-Federal Reserve Chairman Paul Volcker.

Moreover, the negative argument that historical experience supports the case for protectionism is flawed. The economic historian Douglas Irwin has challenged the argument that nineteenth-century protectionist policy aided the growth of infant industries in the United States. He has also shown that many of the nineteenth century’s successful high-tariff countries, such as Canada and Argentina, used tariffs as a revenue source, not as a means of sheltering domestic manufacturers.

Read the rest here… Why Free Trade Matters – Jagdish Bhagwati – Project Syndicate

‘Twas the day after Christmas, and all through the house,
Every creature was hurtin’, even the mouse.
The toys were all broken, their batteries dead;
Santa passed out, with some ice on his head.

Wrapping and ribbons just covered the floor,
While upstairs the family continued to snore.
And I in my T-shirt, new Nikes and jeans,
I went into the kitchen and started to clean.

When out on the lawn there arose such a clatter,
I sprang from the sink to see what was the matter.
Away to the window I flew like a flash,
Tore open the curtains, and threw up the sash.

When what to my wondering eyes should appear,
But a little brown truck, with an oversized mirror.
The driver was smiling, so lively and grand;
The patch on his jacket said “US Post Service”, man.

With a handful of bills, he grinned like a fox
Then quickly he stuffed them into our mailbox.
Bill after bill, after bill, they still came.
Whistling and shouting he called them by name:

“Now Nordstrom’s, now Macy’s, now Best Buy’s and Sears
Here’s Pottery Barn, Gap, and Target and Kohl.
To the tip of your limit, every store, every mall,
Now charge away–charge away–charge away all!”

He whooped and he whistled as he finished his work.
He filled up the box, and then turned with a jerk.
He sprang to his truck and he drove down the road,
Driving much faster with just half a load.

Then I heard him exclaim with great holiday cheer,
“Enjoy what you got. . . . . .you’ll be paying all year!”