Household worth rebounds after recession

Times Colonist- Rising stocks and home prices have helped restore almost all of the value Canadians lost in household net worth during the economic downturn.

Household net worth rose 1.3%, or by $74-billion, to $6-trillion, as the growth in the value of assets, particularly equities and residential real estate, exceeded the increase in liabilities, Statistics Canada reported Monday.

“This marks the fourth consecutive quarterly improvement in household net worth and reflects a 96 per cent recovery off the net worth lost during the recent economic downturn,” David Onyett-Jeffries, economist at RBC Economics Research, wrote in an analysis.

“The increase of household net worth continues to repair the cumulative $552-billion decline.”

Household debt has also risen as low interest rates have encouraged Canadians to increase borrowings, but that has led to strengthening in demand and asset prices, particularly housing, said Mr. Onyett-Jeffries…

Household worth rebounds after recession

How Canadians are growing richer but deeper in debt

The Globe and Mail- Canadians are getting richer as stocks and house prices rise. Household net worth rose 1.3 per cent in the first quarter of the year, or $74-billion, to $6-trillion, Statistics Canada said today, as the value of assets eclipsed the rise in liabilities. “This follows a 1.8 per cent advance in the previous quarter,” the federal statistics gathering agency said. “Gains in the value of financial assets, especially equities, as well as increases in residential real estate contributed to the advance in net worth.”

Household debt also rose, particularly mortgages, Statistics Canada said. The ratio of household credit market debt-to-income now stands at 147 per cent, up from 144.9 per cent in the fourth quarter of 2009…

How Canadians are growing richer but deeper in debt – The Globe and Mail

HST starting to show up on bills … and it’s no mistake

Vancouver Sun- Ready or not, here it comes.

The new harmonized sales tax is making its first appearance on many bills arriving this week.

And, no, it’s not a mistake.

The HST kicks in July 1, and since many everyday services are billed in advance, the HST is now being included.

For instance, bills to Shaw and Telus customers this month will have three lines of tax – the Goods and Services Tax, the Provincial Sales Tax, as well as the HST.

And while it looks like more tax (and probably is), it’s not double taxation. The companies are billing the GST and PST for services up to June 30, and the HST after that…

HST starting to show up on bills … and it’s no mistake

Debt, seniors don’t mix

Financial Post- If your finances are so fragile that you must borrow to stay afloat in old age, you have no business retiring. Better to keep working until you’re debt-free.

This newspaper devotes much newsprint to investing and the name of the game is to be on the receiving end of dividend flow and interest payments, not the one paying out interest. If the latter, you’re vulnerable — to rises in interest rates, layoffs, market crashes or unforeseen emergencies. Those still working have the flexibility to respond to such changes. Once you’re a retiree dependent on a fixed income you are, as the term suggests, in a fix.

Lee Anne Davies, head of Royal Bank of Canada’s retirement strategies, is on record saying that carrying debt in retirement is "not necessarily a bad thing." She argues modern families are more complex than the stable two-parent families Boomers grew up with. Separation and divorce, step-children, his-and-her careers all contribute to the financial stress. Add in greater longevity and it’s clear not all couples will go the distance together in old age.

There may be no other choice for some in this situation, but most planners agree carrying debt should be a last resort…

Debt, seniors don’t mix

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